INDUSTRY REPORT
for the residential HVAC segment . As such in 2021 , the segment was approximately valued at more than US $ 50 billion . In developed parts of the world , the demand for residential HVAC is expected to be more or less stagnant . However , demand from newer markets ( particularly developing markets ) will be slightly on a higher end . This is primarily ascribed to the growing population in emerging markets and market maturity in developed markets ,” added Grand View Research .
The analyst believes that commercial HVAC space offers huge opportunities for growth . The segment is projected to witness a CAGR exceeding 6 % in the market for HVAC systems from 2022 to 2030 . Several trends ( from green and smart technology to automated systems ) are expected to play a pivotal role in shaping the future of the commercial HVAC market .
“ As the COVID-19 pandemic becomes an endemic , and permanent WFH models slowly transition to a hybrid working model , the demand for HVAC in commercial settings is anticipated to witness an uptick ,” said the analyst .
“ Asia Pacific dominated the HVAC systems market and accounted for a revenue share of over 40 % in 2021 . Increasing urbanisation , growing populations and increasing consumer disposable income are key success factors to the region ' s tremendous growth over the years . Lately , the commercial sector has been growing creating prospects for future regional growth ,” it added .
North America , closely followed by Europe , was the secondlargest consumer of HVAC systems in 2021 according to the analyst . Replacement sales , due to ageing infrastructure or retrofit projects , are creating alternate revenue streams for OEMs apart from expansion into the services and maintenance category . The analyst expects the region to witness a CAGR exceeding 5.5 % over the forecast period .
“ Medical tourism is also trending in the Asia-Pacific ( APAC ) region , as regional countries offer cost-effective healthcare services . Moreover , the region is a hotbed for major sports events , which draw large numbers of sportspeople and fans from across the globe , leading to growth in the number of hotels . These factors are leading to commercialisation on a massive scale , which will drive HVAC usage ,” added P & S Intelligence , in its report .
Several trends ( from green and smart technology to automated systems ) are expected to play a pivotal role in shaping the future of the commercial HVAC market
Technology in focus
HVAC is a technological system which is used to provide cooling ventilation and heating facilities to a building . Heating appliances , such as heaters , furnaces and heat pumps , are used to generate heat in buildings via central heating or local heating . Ventilation appliances are used to change or replace air in any building to regulate temperature . Airconditioning appliances are used to cool indoor air for thermal comfort .
Integration of the IoT ( Internet of Things ) in HVAC systems is a major opportunity for appliance manufacturers , according to P & S Intelligence . IoT helps in managing control systems to collect data , which it stores in the cloud , as well as upgrading temperature control processes for improved efficiency and for running a predictive maintenance plan .
“ IoT sensors , in particular , can help to improve indoor air quality ( IAQ ). Continuously monitoring humidity ; temperature ; CO₂ ; volatile organic compound ( VOC ) and noise levels can enhance the equipment ’ s comfort score , by pointing to issues that might harm work settings without immediate redress , particularly in commercial facilities . As a result , IoT sensors are installed uniformly throughout facilities to track and control pollution levels and air quality ,” it explained .
“ This technology is viable for several application areas ( such as luxury apartments , retail stores , restaurants and office spaces ). The demand for it is , therefore , high in North America and Europe , attributed to the increasing adoption of building management solutions which is leading to a rise in usage of energy-efficient and advanced systems ,” it added .
IoT-enabled heating and cooling systems offer real-time monitoring of system functionality and condition . These HVAC systems alert customers or managers to system failure , unusual behaviour and maintenance cycles needed to reduce repair costs .
Emerging technology trends in the HVAC market include the use of connectivity and data to improve control ; eco-friendly systems ; software automation to improve business functions ; ‘ smart ’ HVAC technologies designed for automation and ‘ ductless ’ HVAC systems . Smart sensor technologies can , for example , manage interior temperature and humidity levels , along with lighting , and track outdoor conditions ( such as temperature , humidity , brightness and position of the sun ).
Ductless compact HVAC units can be installed virtually anywhere , without the need for duct installations . They are suitable , for example , for modern infrastructures dealing with holes and gaps in ductwork that cause air leaks .
“ Technology and energy efficiency are two buzzwords that OEMs are aiming to target in the short term to remain relevant and profitable . To gain a competitive advantage , market players prioritise research and development on technologically advanced and differentiated products . Companies are also focusing on developing products that adhere to regional regulatory norms to eliminate the risk of losing business due to regulatory violations ,” concluded analyst , Research and Markets . n
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