The global HVAC system market size is projected to reach USD 207 billion by 2026, according to a recent study, thereby registering a CAGR of 6 per cent over the forecast period [2020-2026]. Major reasons boosting the global HVAC system market include growing commercial sector and rapid urbanization around the world, driving the demand for HVAC equipment. Moreover, incentives and subsidy programs offered by several governments for the promotion of the use of energy-efficient units is likely to propel the market growth.

Global HVAC System Market - Forecasts to 2026

In recent times, HVAC systems are being integrated with next-generation technologies, namely, IoT sensors, remote control systems, and hybrid HVAC units, to increase efficiency and reduce energy consumption. This would be boosting the global market expansion between 2020 and 2026. Additionally, high costs of installation and maintenance, paired with complexity of retrofit HVAC installations, could hinder the growth of the global HVAC system market. However, many prominent manufacturers are investing in research and development to develop cost as well as energy-efficient units, which will fuel the product demand. In addition, several residential complexes and businesses are replacing old HVAC systems with new energy-efficient HVAC units for higher performance, energy savings, and cost reduction. Remodelling or new construction of residential, commercial, or industrial buildings require HVAC systems is another factor driving the market growth.

Region-wise, Asia Pacific is likely to dominate the global HVAC system market during the forecast period. This growth is owing to the rising disposable incomes of individuals and awareness regarding energy-efficient products. Furthermore, the booming real estate sector across the region due to increasing population will attribute a positive impact on product demand.

Some of the key companies in the global HVAC system market are Carrier Corporation, Samsung Electronics Co. Ltd., LG Electronics, Inc., Lennox International, Inc., Johnson Controls International PLC, United Technologies Corporation, and Daikin Industries Ltd.   Major companies and several governments across the world are promoting HVAC systems through endorsement labels such as ‘ENERGY STAR’ to support energy efficiency and incentive programs, boosting the market growth.  

The service bifurcation, within the offering segment of the global HVAC system market, held the larger revenue share in the year 2019. If not serviced regularly, the equipment can result in 20 per cent more energy consumption than those that undergo periodic maintenance. Furthermore, dirty filters and coils in such appliances become the perfect home for mold and bacteria, which can cause numerous diseases. Because of all such hazards, the HVAC equipment is to be regularly serviced around the world. The cooling category, on the basis of equipment type, would record the highest value CAGR in the global HVAC market during the forecast period, due to the increasing disposable income and global temperatures, which are pushing the sale of air conditioning appliances.

The study suggests that till 2026, the commercial division would contribute the highest revenue to the global HVAC system market, on the basis of the end user of the equipment. Due to rising number of offices and other commercial buildings and expansion of the hospitality sector, HVAC systems are being rapidly installed for commercial purposes globally.

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