INDUSTRY REPORT
Several OEMs are focusing on green initiatives to reduce greenhouse emissions and manufacturing cost
use of cooling equipment in the summer and of furnaces , boilers and unitary heaters in the winter . Climate change impacts building power consumption and air conditioning loads , which vary depending on the ambient temperature and humidity ,” commented analyst , P & S Intelligence .
The real-estate market and regulatory environment are evolving , with sustainability having a considerable impact on the value , operating costs and marketability of properties . Buildings that are environmentally friendly and meet requirements for health , safety and comfort are becoming increasingly popular .
“ In the Asia Pacific , the market for HVAC systems is anticipated to witness healthy growth over the mid-term . An increase in multi-family and individual homeowners is creating avenues for future growth . The HVAC industry is gradually shifting focus onto energy efficiency . Green initiatives are the focus area for several OEMs with an emphasis on saving money , while reducing greenhouse emissions . Therefore , over recent years , there has been a shift toward ecofriendly HVAC units . This includes products that consume less power and operate on renewable sources of energy , thereby reducing energy costs ,” said Grand View Research .
Over the last few years , the use of geothermal cooling and heating equipment has been on the rise , reducing dependence on fuel-based equipment . Customer inclination towards comfort is creating avenues for growth . To meet the demand , OEMs are developing products that are not just energyefficient but also incorporate the latest technologies offering better connectivity .
Heating units ( such as boilers , furnaces and heat pumps ) are widely used in residential , commercial and industrial applications . Applications for heating equipment include space heating ; moulding ; floor & wall heating ; steam generation ; vaporisation and drying .
“ Today , buildings constructed are ‘ green ’, resulting in an increase in installations of thermostats , sensors and smart meters that can be controlled from a smartphone or PC . Software-enabled HVAC
systems are also trending and are expected to create opportunities over the forecast period . Technology is slowly making inroads in the HVAC field , creating favourable long-term growth avenues ,” continued the analyst .
“ The cooling segment dominated the market for HVAC systems and accounted for the largest revenue share of 54.7 % in 2021 . According to the data published by the International Energy Agency ( IEA ), cooling accounts for over 10 % of the world ’ s electricity consumption . Growing population and disposable incomes ( particularly in the hotter regions globally ) have instigated the usage of air conditioners , subsequently favouring demand for cooling systems such as air conditioners ( AC ), unitary ACs etc . The cooling segment from 2022 to 2030 is projected to grow at an approximate CAGR of 6 %,” it added .
Heating is also a major segment , exhibiting gradual growth over the years . As of 2021 , confirmed Grand View Research , the segment captured over 20 % of the market . The segment , over the long term , is projected to gain traction as the market gradually transitions from a fuelbased working model to efficient low-carbon solutions . The proliferation of solar-based heat pumps will also create avenues for segment growth over the forecast period .
“ The energy efficiency of systems is projected to improve because of new regulatory requirements . This has paved the way for smart controls to be included in buildings ' modern heating and air-conditioning units . The growing population , increasing consumer disposable income and booming commercial construction activities are creating prospects for future equipment demand ,” commented P & S Intelligence in its October 2022 ‘ HVAC Systems & Services Market Analysis ’.
“ Hence , players in the industry are gradually shifting their focus on reducing the heating and cooling capacity of their models , while decreasing their electricity consumption . Several OEMs are focusing on green initiatives to reduce greenhouse emissions and manufacturing cost . Therefore , in recent years , there has been a major thrust towards eco-friendly temperature-control units , which are those that consume less power and operate on renewable sources of electricity , thereby reducing costs ,” it added .
Regional and end-use insights
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“ The residential segment dominated the market for HVAC systems and accounted for the largest revenue share of 40.1 % in 2021 . An increase in multi-family and individual homeowners is creating avenues
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