INDUSTRY REPORT
The cooling product segment dominated the global market with a revenue share of over 54 % in 2020 housing , commercial and hospitality . The growth of the real estate industry is increasing owing to the rising demand for office space , suburban and urban accommodation , and the growth of the corporate sector , subsequently favouring product demand ,” explained Grand View Research .
Although the market is anticipated to record a steady growth owing to these benefits , high installation and maintenance costs , high energy consumption and other operational difficulties are expected to pose a challenge to market growth . In addition , climatic conditions in certain regions can impact the lifecycle of HVAC systems . Regions with damp climatic conditions often tend to reduce the life expectancy of these systems due to their corrosive effects . This is anticipated to hinder market growth .
“ The spread of coronavirus has had a negative impact on the market in 2020 but is expected to provide impetus to the market in the long run . Owing to increased awareness about the health hazards caused by the impure surrounding air , more and more customers are investing in HVAC systems for purifying air and creating a hygienic indoor environment . The pandemic has therefore opened up new opportunities for market participants ,” added the analyst .
Market insights
The cooling product segment dominated the global market with a revenue share of over 54 % in 2020 and is expected to continue its dominance over the forecast period , said the analyst . The cooling segment comprises air conditioning units including room air conditioners ; unitary air conditioners ; cooling towers ; split & packaged systems ; and portable units . Technological advances ( such as remote operation , IoT-integrated HVAC systems and compact units that enable cost savings and enhance energy efficiency and comfort ) are anticipated to increase demand for new cooling systems . Furthermore , changing climatic conditions in the Middle Eastern and Asia Pacific regions are expected to fuel the need for cooling units .
Heating units ( such as boilers , furnaces and heat pumps ) are widely used in residential , commercial and industrial applications . Applications of heating equipment include space heating ; moulding ; floor & wall heating ; steam generation ; vapourisation and drying .
“ Therefore , regions with extreme cold climatic conditions and industries which require a heating process are the major drivers for segment growth . Ventilation units are also gaining traction due to increasing awareness of maintaining a healthy and safe environment .
Demand for air purifiers and other ventilation equipment which prevent air contamination is expected to boost the ventilation product segment growth in the near future ,” added Grand View Research .
“ The residential segment held the largest revenue share of over 40 % in 2020 . Residential HVAC units are compact and easy to install compared to commercial or industrial units . The residential segment comprises equipment used in small spaces , such as houses and small stores / restaurants . Changes in lifestyle and increasing disposable incomes are anticipated to keep up demand for home equipment over the coming years ,” it added .
The analyst expects the commercial segment to record the fastest CAGR over the forecast period owing to rising infrastructure development and increasing urbanisation across major regions , creating a demand for more office spaces . Commercial HVAC units require large spaces and are therefore installed on the rooftops of big restaurants , shopping malls , theatres and other commercial spaces . These systems are used continuously and therefore wear & tear is higher in comparison to residential units . Therefore , retrofitting and replacement demand for these units is expected to drive segment growth over the next seven years .
Regions and products
According to Grand View Research , the Asia Pacific region has been the largest consumer and accounted for over 45 % of global
The spread of coronavirus has had a negative impact on the market in 2020 but is expected to provide impetus to the market in the long run
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