Global HVAC Market Projected to Reach $346.7 Billion by 2028, Growing at a 5.6% CAGR

BCC Research Study Indicates Steady Growth in the Heating, Ventilation, and Air Conditioning Industry, with Market Value Rising from $263.6 Billion in 2023 to $346.7 Billion by 2028

June 20, 2024

Boston: HVAC stands for Heating, Ventilation, and Air Conditioning. Here's a breakdown of what each part means:

Heating: This refers to systems and equipment used to generate warmth inside buildings. Common heating systems include furnaces, boilers, and heat pumps. They help maintain a comfortable temperature during cold weather.

Ventilation: Ventilation is about ensuring the flow of fresh air into indoor spaces and removing stale air. This is crucial for maintaining indoor air quality, controlling humidity, and preventing the buildup of pollutants. It can be achieved naturally through windows and vents or mechanically using fans and ventilation systems.

Air Conditioning: This component involves cooling and dehumidifying the air to make indoor environments comfortable during hot weather. Air conditioners and heat pumps are common devices used for this purpose. They work by removing heat from the indoor air and releasing it outside.

Together, HVAC systems are designed to create and maintain a comfortable and healthy indoor environment, no matter the weather outside. They play a crucial role in residential homes, commercial buildings, and industrial facilities by regulating temperature, ensuring adequate ventilation, and improving air quality.

Market Expansion and Revenue Surge

“According to the latest BCC research study, the demand for Heating, Ventilation and Air Conditioning: Global Markets expected to grow from $263.6 billion in 2023 and will reach $346.7 billion by the end of 2028 at a compound annual growth rate (CAGR) of 5.6% from 2023 through 2028”.   

This report examines the HVAC market by product type (heating, ventilation, and cooling equipment), installation type, application, and region (North America, Europe, Asia-Pacific, and Rest of the World). It reviews leading companies, their products, and revenue, along with a patent analysis. The study also covers ESG factors, emerging technologies, and the competitive landscape, including the impact of the Russia-Ukraine war. Using 2022 as the base year, the report provides estimated market values for 2023 and forecasts from 2023 to 2028, with growth rates in millions of dollars.

Some Interesting Facts about Heating, Ventilation and Air Conditioning: Global Markets

• U.S. consumers spend over $10 billion a year on HVAC repairs and maintenance, and this demand is expected to grow by 1.5 times by 2028.
• In the EU, heat pump sales are projected to more than double, from 3 million units in 2022 to 7 million units by 2030.
• Upgrading to advanced HVAC systems can cut energy use by 50%, and integrating AI and IoT can save an additional 20-25% on electricity.

Factors contributing to this growth include:

1. Expansion of industrialization.: The expansion of industrialization means more factories and advanced technology for making goods. This leads to more jobs and better infrastructure like roads and power supplies. People move to cities for work, boosting economic growth and improving living standards. However, it also causes environmental challenges like pollution, which require careful management. Overall, it's about growing industries and economies, changing how people live and work.
2. Construction boom.: A construction boom is a period when a lot of new buildings and infrastructure projects are being built. This includes homes, offices, roads, and bridges. It's usually driven by economic growth, increased investment, and rising demand for housing and commercial spaces. During a construction boom, there are more jobs, more development, and often a noticeable change in the landscape of cities and towns.
3. Technological developments in HVAC systems.: Technological developments in HVAC systems have made them more efficient, smarter, and better for the environment. New systems use less energy, saving money and reducing emissions. Smart controls allow users to adjust settings remotely with smartphones, while AI and IoT integration helps systems learn preferences, predict maintenance needs, and optimize performance. Improved filters and ventilation also enhance indoor air quality, making spaces healthier and more comfortable.

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Report Synopsis       

Market Segmentation

Heating, Ventilation and Air Conditioning: Global Markets Can Be Categorized into Various Segments:

• Market Segments by Product Type

The HVAC market is categorized by product type, including heating equipment like boilers, furnaces, heat pumps, space heaters, and others. Ventilation equipment consists of air filters, air handling units (AHUs), air purifiers, humidifiers, ventilation fans, and others. Cooling equipment includes chillers, air conditioners, water cooling towers, and other cooling devices. These categories help organize the various components and systems that make up the HVAC industry, making it easier to understand and analyze.

• Market Segments by Installation Type

HVAC systems are installed in two main ways: new construction and retrofitting or replacement. New construction refers to installing HVAC systems in newly built structures, such as homes, offices, or commercial buildings. Retrofitting and replacement involve upgrading or replacing existing HVAC systems in older buildings to improve efficiency, performance, or to meet updated regulations or standards. This distinction helps understand how HVAC systems are integrated into different types of buildings and projects.

• Market Segments by Application

HVAC systems are used in various settings, categorized by their application: residential, industrial, and commercial. Residential applications involve heating, cooling, and ventilating homes and apartments. Industrial applications refer to HVAC systems used in factories, warehouses, and other industrial facilities to regulate temperature and air quality for manufacturing processes. Commercial applications include HVAC systems in offices, retail stores, restaurants, and other commercial buildings to create comfortable and healthy indoor environments for employees and customers. These categories help understand where and how HVAC systems are used across different types of spaces.

this report on heating, ventilation and air conditioning: global markets provide comprehensive insights and analysis, addressing the following key questions:

1. What is the projected market size and growth rate of the market?

• The projected market size in 2028 is $346.7 billion, and the market's CAGR is 5.6% during the forecast period.

2. What are the key factors driving the growth of the market?

• Growing Construction Activities
• Increasing Expansion of Industrialization
• Favorable Government Policies

3. What segments are covered in the market?

• By Product Type
• By Installation Type
• By Application

4. By cooling equipment, which segment will dominate the market by the end of 2028?

• The air conditioners segment will dominate the market by 2028.

5. Which region has the highest market share in the market?

• The Asia-Pacific region holds the largest share of the global market.

Some of the Key Market Players Are:

• CARRIER
• DAIKIN INDUSTRIES LTD.
• EMERSON ELECTRIC CO.
• GREE ELECTRIC APPLIANCES INC. OF ZHUHAI
• HITACHI LTD.
• JOHNSON CONTROLS
• LENNOX INTERNATIONAL INC.  
• MITSUBISHI ELECTRIC CORP.
• NORTEK GLOBAL HVAC 
• RHEEM MANUFACTURING CO.
• SAMSUNG HVAC LLC.    
• TRANE TECHNOLOGIES PLC

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Heating, Ventilation and Air Conditioning: Global Markets( ENG015B )
Publish Date: Jun 2024    

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