Amid the COVID-19 crisis, the global market for Heating, Ventilation and Air Conditioning (HVAC) Systems estimated at US$201 Billion in the year 2020, is projected to reach a revised size of US$286.8 Billion by 2026, growing at a CAGR of 5.9% over the analysis period.
Rising concerns over climate change, increasing energy prices and carbon emissions continue to push the adoption of HVAC systems in commercial spaces. The market is also set to gain from the increasing demand for energy saving products. Rebates for energy-efficient systems such as air conditioning and HVAC are encouraging commercial building users to implement and upgrade HVAC systems.
Cooling Systems, one of the segments analyzed in the report, is projected to grow at a 6.2% CAGR to reach US$204 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Heating Systems segment is readjusted to a revised 5.5% CAGR for the next 7-year period.
This segment currently accounts for a 20.8% share of the global Heating, Ventilation and Air Conditioning (HVAC) Systems market. Demand for heat pumps is attributed to availability of systems with advanced functions that allow space heating and cooling while also heating water.
The ability of heat pumps to offer higher efficiency as compared to other space heating and cooling unit is expected to further increase their adoption in the coming years. The climate change and gradually increasing average temperature are driving the adoption of cooling equipment during summers.
Ventilation systems segment to reach $34 billion by 2026
In the global Ventilation Systems segment, USA, Canada, Japan, China and Europe will drive the 4.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$19.4 Billion in the year 2020 will reach a projected size of US$25.8 Billion by the close of the analysis period.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$4.5 Billion by the year 2026, while Latin America will expand at a 5.6% CAGR through the analysis period.
The US market is estimated at $58.1 billion in 2021, while China is forecast to reach $59.3 billion by 2026
The Heating, Ventilation and Air Conditioning (HVAC) Systems market in the U.S. is estimated at US$58.1 Billion in the year 2021. The country currently accounts for a 27.1% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$59.3 Billion in the year 2026 trailing a CAGR of 9% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.2% and 5.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.6% CAGR while Rest of European market (as defined in the study) will reach US$63.8 Billion by the end of the analysis period. The demand for air conditioners in developing regions such as Asia-Pacific is very high with some households owning more than one appliance, whereas the demand for air conditioners from the developed regions remains comparatively low.
The market in Asia-Pacific is anticipated to also benefit from technological advancements and increasing investment in the consumer electronics sector across the region. The market in developed regions is propelled by rising consumer awareness about star-labeled HVAC products, increasing use of VRV and adoption of inverter-based air conditioning systems. PR Newswire