DUBLIN, Jan. 11, 2024 /PRNewswire/ — The “Global HVAC&R Market: Analysis By Type, By End User, By Region Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2028” report has been added to ResearchAndMarkets.com’s offering.
In 2022, the global HVAC&R market was valued at US$259.37 billion, and is probable to reach US$360.49 billion by 2028. The global HVAC&R market value is projected to grow at a CAGR of 5.64%, during the forecast period of 2023-2028.
Global HVAC&R market has augmented in the historical period due to major factors including, global warming, economic development in emerging markets, increasing new households units, upgrade and renovation demand driven by higher energy costs, technological disruption, government support, changing climate conditions, and rapid urbanization.
The rising need for energy-efficient and sustainable buildings is expected to further propel the growth of the HVAC&R system industry during the forecast period. The varied global climatic conditions and the strong need to maintain an ambient environment in a building are the key reasons that will positively impact the market over the forecast period.
One of the most distinct and pervasive trends observed in the global HVAC&R market is growing data centre cooling. HVAC makers are mostly engaged in outside server rack cooling for data centres, key players including Daikin, Mitsubishi Electric, Carrier, Trane, and Schneider. They provide equipment such as computer room air conditioners, chillers, and air handling units of chilled water systems for medium- to large-size data centres.
Thus, surging the demand for HVAC&R equipment. More trends in the market are believed to augment the growth of HVAC&R market during the forecasted period include, augmenting heat pumps, growing energy efficient solutions, district cooling, growth in the use of variable refrigerant flow (VRF) systems, etc.
Furthermore, enhanced control systems and automation technologies can improve the efficiency of HVAC systems. Machine learning algorithms and artificial intelligence may play a significant role in optimizing system performance and adapting to changing conditions.
Impact Analysis of COVID-19 and Way Forward
The pandemic of COVID-19 had a negative impact on the HVAC&R business. The COVID-19 outbreak has affected the growth of the HVAC&R equipment industry owing to the lockdown measure in the countries and delay in manufacturing and production of HVAC equipment which are utilized in residential, commercial, and industrial spaces.
Many construction projects were delayed or put on hold during the pandemic, impacting the installation of HVAC&R systems. Furthermore, the pandemic led to disruptions in global supply chains, affecting the production and delivery of HVAC&R components and equipment.
Competitive Landscape and Recent Developments
Global HVAC&R market is fragmented. Market players have implemented sustainable growth techniques in the market. To strengthen their position in the market, some of the leading competitors are pursuing various growth methods such as mergers, acquisitions, collaborations, and agreements.
The key players are constantly investing in strategic initiatives, such as new product launches, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in February 2023, Daikin Europe N.V., a subsidiary of Daikin, signed an MoU for a collaborative partnership with the Greater Manchester Combined Authority (GMCA), consisting of 10 wards and cities in the northwest region of England.
Also, in January 2023, Johnson Controls announced that it acquired Hybrid Energy AS, a provider of high-temperature energy management solutions focusing on heat pumps for district heating and industrial processes. In 2023, Mitsubishi announced a US$0.2bn investment in an air conditioner plant in India. In the US, the company has a 50:50 joint venture with Trane, formed in 2018, that provides HVAC products in the US.
Key players of global HVAC&R market are:
Johnson Controls International PLC
Mitsubishi Electric Corporation
Daikin Industries, Ltd.
Lennox International Inc.
Trane Technologies Plc
Samsung Electronics Co., Ltd.
Panasonic Corporation
Midea Group
Voltas Limited
LG Electronics
Fujitsu General Limited
Carrier Global Corporation
Haier Group Corporation (Haier Smart Home Co., Ltd.)
Danfoss AS
Zhuhai Gree Electric Appliances Co., Ltd.
Market Dynamics
Growth Drivers:
Global warming is a significant driver, as extreme heat leads to increased demand for space cooling, especially in low-latitude developing countries.
Government incentives and regulatory changes are promoting energy-efficient HVAC products, encouraging upgrades and installations.
Rapid urbanization, rising disposable income, renovation demand, and economic development in emerging markets are driving market growth.
Challenges:
High maintenance requirements are a challenge, as HVAC&R systems require regular and meticulous servicing, which can increase operational costs.
Skill shortages in the industry pose difficulties in addressing maintenance and operational needs.
Market Segmentation Analysis:
Market Segmentation by Type:
The HVAC&R market is categorized into four main types: Cooling, Heating, Refrigeration, and Indoor Air Quality.
Within the Cooling segment, AC Equipment and other cooling technologies play a significant role.
Cooling is the largest segment, driven by factors like technological advancements, environmental concerns, regulatory changes, and shifting consumer preferences.
Space cooling, including residential air conditioners and data center cooling, is expected to experience fast installation growth.
Market Segmentation by End User:
The market is divided into three main end-user segments: Residential, Commercial, and Industrial.
Residential is the largest end-user segment in 2022, driven by increasing multi-family and single-family homeownership.
The Commercial segment is expected to have the fastest-growing Compound Annual Growth Rate (CAGR) due to trends in green and smart technologies, government initiatives, and recognition of the value of efficient HVAC&R systems in commercial spaces.
Market Segmentation by Region:
The report covers five regions: Asia Pacific, Europe, North America, Middle East & Africa, and South America.
Asia Pacific led the HVAC&R market in 2022, driven by demand from residential and commercial sectors, particularly in countries like China, Japan, and India.
China’s market is experiencing significant investments in real estate projects and various developments due to urbanization.
Japan’s HVAC&R market is also expected to rise due to company expansions and mergers and acquisitions.
For more information about this report visit https://www.researchandmarkets.com/r/k56m37
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