The global HVAC system market size is expected to grow from USD 202 billion in 2020 to USD 277 billion by 2025, at a CAGR of 6.5%. The market growth is fueled by growing demand for energy-efficient solutions, rising government incentives through tax credit programs, and an increasing trend of smart homes.
HVAC system market for heating equipment to exhibit high growth during the forecast period
The heating equipment is expected to register the highest CAGR during the forecast period. Heating equipment is an integral part of HVAC systems. These types of equipment are used to heat buildings to a particular temperature, a practice rampant in cold countries. The rapid climate changes and increasing need for renewable energy sources, along with extensive government support in the form of subsidiaries is expected to increase the demand for heating equipment.
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Commercial market to lead and exhibit high growth during the forecast period
The commercial segment is expected to lead the global HVAC system market during the forecast period. HVAC systems are used widely in commercial buildings. The office segment is anticipated to hold the largest share of the HVAC system industry within the commercial segment by 2025. HVAC systems provide appropriate temperatures and ventilation conditions at offices, which helps in improving employee productivity, working conditions, and preventing health issues arising from improper humidity levels. Thus, the adoption of HVAC systems is expected to increase in commercial buildings in tandem with the growing building stock.
HVAC system market in APAC to grow at highest CAGR during the forecast period
The HVAC system industry in APAC is expected to grow at the highest CAGR during the forecast period. China, India, and Japan are the major contributors to the growth of this market. Increasing construction activities and rising population are a few of the factors boosting the growth of the market in the region.
Key Market Players
As of 2019, Daikin (Japan), Ingersoll Rand (Ireland), Johnson Controls (US), LG Electronics (South Korea), United Technologies (US), Electrolux (Sweden), Emerson (US), Honeywell (US), Lennox (US), Mitsubishi Electric (Japan), Nortek (US), and Samsung Electronics (Korea) were the major players in the global HVAC system market.