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The HVAC Equipment market is expected to grow at a CAGR of 4.7% over the forecast period (2021-2026)

·8-min read

The booming construction business in individual emerging economies and the increasing end-user markets, like the data center market, are significant factors driving the growth of the HVAC equipment market over the forecast period.

New York, May 14, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "HVAC Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06030453/?utm_source=GNW
Some of the benefits of adopting HVAC equipment include energy-efficient, improved results, and lifespan, among others. According to British Petroleum PLC, China leads in the consumption of primary energy globally, using approximately 3.3 million metric tons of oil equivalent in 2018.

- Changes in urbanization, industrialization, and migration are some of the critical factors influencing the growth of the market; this has given rise to the number of factories, manufacturing units, and residential complexes, which use HVAC equipment. According to the Population Reference Bureau, In 2019, the degree of urbanization worldwide was at approximately 54%. According to the source, North America, with 82% of the population living in cities was the most urbanized continent worldwide. An AHR Expo and ASHRAE Journal survey found that nearly 88% of respondents in the HVAC industry are witnessing a "good" or "excellent" business year in 2019. 43% of those respondents anticipate 5-10% growth for their business, and 23.5% expect growth at exceeds 10%.
- Moreover, at the 2019 AHR Expo in Atlanta, Samsung HVAC North America announced the expansion strategy of its residential and commercial air conditioning market in the region by building, training, and supporting a wide range of specific representatives, distributors, and installers. The growth in the construction industry and the increase in the disposable income in developing countries, has increased the requirement of HVAC equipment for a broader consumer base. According to the Bureau of Labor Statistics, the construction industry’s business in the United States is expected to amount to almost USD 1.58 trillion by 2028.
- According to a report from the US National Academy of Sciences (NAS), the first decade of the 21st century was 0.8°C (1.4°F) warmer than the first decade of the 20th century. The variation in climatic changes has led to the increasing demand for electrical cooling systems in summers and, simultaneously, for natural gas, heating oil, wood, and electrical heating systems in winters. Moreover, climate change harms energy consumption in the buildings and influences air conditioning loads, which vary according to the ambient temperature and humidity. With the advent of new government regulations, like in the US, HVAC systems’ energy efficiency is expected to rise. This has opened a gateway to the smart HVAC control systems for most advanced heating and air conditioning units in buildings.
- In March 2020, REHVA, the European Federation of HVAC associations, has given a piece of advice that humidification, air conditioning, and duct cleaning has no significant effect on the transmission of COVID-19. They insisted that humidification and air conditioning have no possible impact on the transmission of the virus. Unlike some other viruses, the virus, which causes the COVID-19, is resistant to changes in the environment and is susceptible only to high relative humidities above 80% and a temperature above 30?C. However, virus particles in return ducts could re-enter a building when centralized air handling units are equipped with recirculation sectors. So, the central recirculation is recommended to avoid during COVID-19 by closing the recirculation dampers.

Key Market Trends
Air Conditioning is Expected to Hold Significant Share

- Among HVAC equipment, the air conditioning systems are expected to hold significant market share during the forecast period, owing to energy-efficiency, low installation costs, and ease of maintenance. Various other factors driving the use of air conditioner systems for cooling applications in data centers include increased construction of modular data centers, owing to increased ability to provide computational power and the effectiveness and capacity of these systems to adapt to variations in temperature and humidity.
- The growth of population, and the rapid rise of mobile and other electronic devices, are leading to an increase in data production. The enormous data production, caused by increased internet usage needs the demand for optimal data storage techniques. As more and more data begins to increase energy-efficient, data center power solutions are required. As the data centers are operational 24/7, they can consume a vast amount of electricity. As this electricity is used to power the servers and process all the data, it generates a lot of heat. Therefore the environment needs to be cooled, or the electrical components will overheat.
- Hyperscale data centers are growing in the Asia Pacific region, which is expected to be one of the most significant contributors to the global demand for bigger and faster I.T. infrastructure. According to the Cisco Systems, by 2021, there are expected to be 628 hyperscale data centers worldwide. As robust HVAC systems deal with efficient air conditioning systems are expected to be useful in hyperscale data centers. Florida is now courting hyperscale data centers, planning to invest in HVAC for frequent lightning storms, hurricanes, and managing heat loads. According to Data Center Dynamics, the construction of new data centers will increase at about 9% per year.
- Furthermore, companies are innovating methods to handle air cooling to make them more efficient and consume less power. Amazon recently developed an air handling system that includes a thermal storage unit; the system is configured to provide temperature and humidity conditioned air for heat-producing components in the data center. Such developments in the air conditioning space are expected to increase even further over the forecasted period. In April 2020, Mitsubishi Electric Europe B.V. acquired Swedish Air-conditioning Distributor AQS PRODUKTER AB. Air conditioners and hot-water heat pumps have been gaining significant traction in Sweden, where people are striving to combat global warming by saving energy.

North America is Expected to Hold Significant Share

- The HVAC industry is expected to move towards smart technologies in North America, as the region is witnessing a massive level of IoT connections. The U.S. Energy Information Administration’s (EIA) Residential Energy Consumption Survey (RECS) provided an estimation that 76 million occupied U.S. homes (64% of the total) engage in the usage of central air-conditioning equipment. About 13 million households (11%) use heat pumps for heating or cooling. By 2023, all the residential central air-conditioning and air-source heat pump systems sold in the United States will be required to meet the latest energy efficiency standards which are expected to fuel the growth of the HVAC equipment in the region.
- According to the U.S. Census Bureau, the value of construction starts in the United States is estimated to reach USD 135 billion in 2022. Additionally, according to a new forecast from the American Institute of Architect, construction spending is expected to grow through 2019. Based on short-term projections, the U.S. non-residential construction market is anticipated to rise to 2.4% in 2020 compared to the previous year. Hence such growth in construction in the region is expected to create opportunities for HVAC equipment across residential, commercial, and industrial applications.
- The Canadian HVAC market witnessed an increase in commercial air conditioner shipments, as per the Heating, Refrigeration, and Air Conditioning Institute of Canada (HRAI). The Canadian government plans to eradicate high global warming potential (GWP) refrigerants, such as R-134A, R-507, and R-404, from the commercial market. It has set a maximum of 700 GWP limit for air conditioning chillers, as a result of increased environmental concerns, related to these refrigerants. Notably, the demand for HVAC is rising in the marijuana industry to maintain a specific humidity level. The legalization of marijuana in Canada has opened a wide array of opportunities for HVAC equipment providers.
- In the United States, the growth of the Internet of Things (IoT) has allowed users to control, monitor, and interact with systems and appliances like remotely. HVAC systems are starting to incorporate this technology, including repair notifications, remote access, self-regulation, techniques, which are designed to improve efficiency. For instance, Nest thermostats and Amazon’s Alexa are in more homes. Consumers look at their house as an autonomous unit and see more of the in-home systems as a connected solution rather than separate, divided appliances and services a growing trend of consumers expecting connected HVAC equipment.

Competitive Landscape
The HVAC equipment market is quite competitive and consists of significant players. In terms of market share, a few prominent players currently dominate the market. The players, with a leading share in the market, are focusing on expanding their customer bases across other geographical locations. Daikin Industries Ltd., Johnson Controls - Hitachi Air Conditioning Company, and Honeywell International, Inc. were some of the leading players operating in the HVAC market globally. Further, a significant portion of companies has started offering HVAC systems with higher energy efficiency and green technology compatible with various smart devices.

- February 2020 - Honeywell announced one of the first autonomous building sustainability solutions which evaluate whether a building’s HVAC system is running at peak efficiency. Honeywell Forge Energy Optimization is a cloud-based, machine learning solution that regularly studies patterns such as building’s energy consumption and automatically adjusts them to optimal energy saving settings without compromising occupant comfort levels.
- January 2020 - LG Air Conditioning Technologies USA announced the installation of its HVAC technologies in The Ebell of Los Angeles, a performance art facility located in Los Angeles, and The Lido Hous, a high-end property located in California. The company said that its Variable Refrigerant Flow (VRF) technology and ducted and duct-free solutions make significant inroads in the United States where the demand for high-performance, flexible HVAC technology continues to grow.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06030453/?utm_source=GNW

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