HVAC System Market by Heating Equipment (Heat Pumps, Furnaces), Ventilation Equipment (Humidifiers, Dehumidifiers), Cooling Type (VRF Systems, Unitary Air Conditioners), Implementation Type, Application, and Geography - Global Forecast to 2023

HVAC systems are mainly used to reduce energy consumption, provide moisture consistency, and improve thermal comfort and indoor air quality. HVAC systems comprise both heating and cooling equipment. This system helps in saving construction space, installation time and cost, and power. The advent of centralized heat, ventilation, and air conditioning has made life easier for many people in terms of comfort and efficiency. The HVAC system market was valued at USD 170.11 Billion in 2017 and is expected to reach USD 251.60 Billion by 2023, at a CAGR of 6.80% during the forecast period.  The base year considered for the study is 2017, and the forecast period is between 2018 and 2023. Major factors driving the growth of the HVAC system market include increasing demand for HVAC systems for reducing energy consumption, extreme weather conditions, government tax credit and rebate programs, and growing demand for HVAC systems to upgrade old systems.

The objective of the report is to provide a detailed analysis of the HVAC system market segmented on the basis of heating equipment, ventilation equipment, cooling equipment, implementation type, application, and geography. It also provides detailed information on the major factors influencing the growth of the HVAC system market.

The research methodology used to estimate and forecast the HVAC system market begins with obtaining the data on the revenues of key vendors through secondary research via sources such as The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and Air Conditioning Contractors of America Association (ACCA). The vendors’ offerings have also been considered to determine market segments. The bottom-up procedure has been employed to arrive at the overall size of the HVAC system market from the revenues of key players. After arriving at the overall market size, the market has been split into several segments and subsegments, which have then been verified through primary research by conducting extensive interviews with the key experts such as CEOs, VPs, directors, and executives. The market breakdown and data triangulation procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments. The breakdown of the profiles of primaries has been depicted in the following figure.

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Some of the major players operating in the HVAC system market are Daikin (Japan), United Technologies (US), Johnson Controls (US), Ingersoll-Rand (Ireland), and LG Electronics (South Korea). The HVAC system provided by these players are required to meet the standards mandated by governmental organizations, such as International Organization for Standardization (ISO).

Key Target Audience

• Government and research organizations
• HVAC component manufacturers
• HVAC contractors
• HVAC system providers
• Maintenance and service providers
• Original equipment manufacturers
• Research organizations and consulting companies
• System integrators
• Technology investors
• Technology standard organizations, forums, alliances, and associations

“This study answers several questions for the stakeholders, primarily, which market segments to focus on in the next 2–5 years for prioritizing efforts and investments”

Scope of the Report

This research report categorizes the HVAC system market on the basis of heating equipment, ventilation equipment, cooling equipment, implementation type, application, and geography.

HVAC System Market, by Heating Equipment:

• Heat Pumps
• Furnaces
• Boilers
• Unitary Heaters

HVAC System Market, by Ventilation Equipment:

• Humidifiers
• Dehumidifiers
• Air Purifiers
• Air Filters
• Ventilation Fans
• Air Handling Units

HVAC System Market, by Cooling Equipment:

• Room Air Conditioners
• Unitary Air Conditioners
• Chillers
• Coolers
• Cooling Towers
• VRF Systems

HVAC System Market, by Implementation Type:

• New Construction
• Retrofit

HVAC System Market, by Application:

• Residential
• Commercial
• Industrial

HVAC System Market, by Geography:

• North America
• Europe
• Asia Pacific (APAC)
• Rest of the World (RoW)

Available Customizations:

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Company Information:

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Table of Contents

1 Introduction (Page No. - 19)
    1.1 Objectives of the Study
    1.2 Definition
    1.3 Scope of the Study
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 23)
    2.1 Research Data
           2.1.1 Secondary & Primary Research
           2.1.2 Secondary Data
                    2.1.2.1 Major Secondary Sources
                    2.1.2.2 Secondary Sources
           2.1.3 Primary Data
                    2.1.3.1 Primary Interviews With Experts
                    2.1.3.2 Key Data From Primary Sources
                    2.1.3.3 Key Industry Insights
                    2.1.3.4 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
                    2.2.1.1 Approach for Arriving at the Market Share By the Bottom-Up Analysis (Demand Side)
           2.2.2 Top-Down Approach
                    2.2.2.1 Approach for Capturing the Market Share By Top-Down Analysis (Supply Side)
    2.3 Market Breakdown & Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 32)

4 Premium Insights (Page No. - 38)
    4.1 Attractive Growth Opportunities in the HVAC System Market
    4.2 HVAC System Market, By Equipment Type
    4.3 HVAC System Market, By Application
    4.4 HVAC System Market, By Implementation Type
    4.5 HVAC System Market in APAC, By Cooling Equipment & Country
    4.6 HVAC System Market, By Geography

5 Market Overview (Page No. - 42)
    5.1 Introduction
           5.1.1 Drivers
                    5.1.1.1 Demand for Improved HVAC Systems to Reduce Energy Consumption
                    5.1.1.2 Government Tax Credit and Rebate Programs
                    5.1.1.3 Increasing Demand for HVAC Systems Because of the Need for Upgrade Or Refurbishment
                    5.1.1.4 Government Regulations and Policies for Conserving Energy
           5.1.2 Restraints
                    5.1.2.1 Higher Installation Cost of Energy-Efficient HVAC Systems
                    5.1.2.2 Lack of Awareness Regarding Benefits of HVAC System in Developing Countries
           5.1.3 Opportunities
                    5.1.3.1 Increasing Investments in Construction Sector
                    5.1.3.2 Integration of IoT With HVAC Systems
                    5.1.3.3 Increasing Penetration of VRF Systems in Residential Applications
           5.1.4 Challenge
                    5.1.4.1 Complexities in HVAC Retrofit

6 Industry Trends (Page No. - 47)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Software & Services in HVAC Systems
           6.3.1 Software
           6.3.2 Services

7 HVAC System Market, By Heating Equipment (Page No. - 51)
    7.1 Introduction
    7.2 Heat Pumps
           7.2.1 Air-To-Air Heat Pumps
           7.2.2 Air-To-Water Heat Pumps
           7.2.3 Water-To-Water Heat Pumps
    7.3 Furnaces
           7.3.1 Oil Furnaces
           7.3.2 Gas Furnaces
           7.3.3 Electric Furnaces
    7.4 Boilers
           7.4.1 Steam Boilers
           7.4.2 Hot Water Boilers
    7.5 Unitary Heaters
           7.5.1 Gas Unit Heaters
           7.5.2 Oil-Fired Unit Heaters
           7.5.3 Electric Unit Heaters

8 HVAC System Market, By Ventilation Equipment (Page No. - 64)
    8.1 Introduction
    8.2 Humidifiers
           8.2.1 Warm-Mist Humidifiers
           8.2.2 Ultrasonic Humidifiers
           8.2.3 Cool-Mist Humidifiers
    8.3 Dehumidifiers
           8.3.1 Refrigeration Dehumidifiers
           8.3.2 Absorption Dehumidifiers
    8.4 Air Purifiers
           8.4.1 Hepa Air Purifiers
           8.4.2 Activated Carbon Air Purifiers
           8.4.3 Electrostatic Air Purifiers
           8.4.4 Ionic Air Purifiers
    8.5 Air Filters
    8.6 Ventilation Fans
           8.6.1 Crossflow Fans
           8.6.2 Axial Fans
           8.6.3 Centrifugal Fans
           8.6.4 Domestic Fans
           8.6.5 Range Hood Fans
           8.6.6 Power Roof Fans
    8.7 Air Handling Units

9 HVAC System Market, By Cooling Equipment (Page No. - 81)
    9.1 Introduction
    9.2 Room Air Conditioners
    9.3 Unitary Air Conditioners
           9.3.1 Split Air Conditioners
           9.3.2 Packaged Air Conditioners
    9.4 Chillers
           9.4.1 Scroll Chillers
           9.4.2 Screw Chillers
           9.4.3 Centrifugal Chillers
           9.4.4 Reciprocating Chillers
           9.4.5 Absorption Chillers
    9.5 Coolers
           9.5.1 Ducted Coolers
           9.5.2 Window Coolers
    9.6 Cooling Towers
           9.6.1 Evaporative Cooling Towers
           9.6.2 Dry Cooling Towers
           9.6.3 Hybrid Cooling Towers
    9.7 VRF Systems

10 HVAC System Market, By Implementation Type (Page No. - 99)
     10.1 Introduction
     10.2 New Construction
     10.3 Retrofit

11 HVAC System Market, By Application (Page No. - 103)
     11.1 Introduction
     11.2 Residential
     11.3 Commercial
             11.3.1 Healthcare
             11.3.2 Education
             11.3.3 Government
             11.3.4 Office
             11.3.5 Airport
             11.3.6 Retail
     11.4 Industrial

12 Geographic Analysis (Page No. - 114)
     12.1 Introduction
     12.2 North America
             12.2.1 US
             12.2.2 Canada
             12.2.3 Mexico
     12.3 Europe
             12.3.1 UK
             12.3.2 Germany
             12.3.3 France
             12.3.4 Rest of Europe
     12.4 APAC
             12.4.1 China
             12.4.2 Japan
             12.4.3 India
             12.4.4 Rest of APAC
     12.5 RoW
             12.5.1 South America
             12.5.2 Middle East
             12.5.3 Africa

13 Competitive Landscape (Page No. - 144)
     13.1 Overview
     13.2 Market Ranking Analysis: HVAC System Market
     13.3 Competitive Situation & Trends
             13.3.1 Agreements, Mergers, Joint Ventures & Partnerships
             13.3.2 Product Launches & Developments
             13.3.3 Expansions
             13.3.4 Acquisitions

14 Company Profiles (Page No. - 150)
     14.1 Introduction
     14.2 Key Players
(Business Overview, Products Offered, Recent Developments, MnM View, SWOT Analysis)*
             14.2.1 Daikin
             14.2.2 Ingersoll-Rand
             14.2.3 Johnson Controls
             14.2.4 LG Electronics
             14.2.5 United Technologies
             14.2.6 Electrolux
             14.2.7 Emerson
             14.2.8 Honeywell
             14.2.9 Lennox
             14.2.10 Nortek
*Business Overview, Products Offered, Recent Developments, MnM View, SWOT Analysis Might Not Be Captured in Case of Unlisted Companies.
     14.3 Other Key Players
             14.3.1 Mitsubishi Electric
             14.3.2 Panasonic
             14.3.3 Qingdao Haier
             14.3.4 Samsung Electronics
             14.3.5 Whirlpool
             14.3.6 Midea
             14.3.7 Gree
             14.3.8 Fujitsu
             14.3.9 Hitachi
             14.3.10 Danfoss

15 Appendix (Page No. - 188)
     15.1 Insights of Industry Experts
     15.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.3 Introducing RT: Real-Time Market Intelligence
     15.4 Available Customizations
     15.5 Related Reports
     15.6 Author Details

List of Tables (79 Tables)

Table 1 HVAC System Market, By Equipment, 2015–2023 (Million Units)
Table 2 Different Functionalities of HVAC Software
Table 3 List of Different Types of HVAC Software
Table 4 HVAC System Market for Heating Equipment, By Equipment Type, 2015–2023 (USD Billion)
Table 5 HVAC System Market for Heating Equipment, By Region, 2015–2023 (USD Billion)
Table 6 HVAC System Market for Heating Equipment, By Application, 2015–2023 (USD Billion)
Table 7 Heating Equipment Market for Heat Pumps, By Region, 2015–2023 (USD Billion)
Table 8 Heating Equipment Market for Heat Pumps, By Application, 2015–2023 (USD Billion)
Table 9 Afue Ratings and Furnace Efficiency
Table 10 Heating Equipment Market for Furnaces, By Region, 2015–2023 (USD Billion)
Table 11 Heating Equipment Market for Furnaces, By Application, 2015–2023 (USD Billion)
Table 12 Typical Seasonal Efficiency of Boiler
Table 13 Heating Equipment Market for Boilers, By Region, 2015–2023 (USD Billion)
Table 14 Heating Equipment Market for Boilers, By Application, 2015–2023 (USD Billion)
Table 15 Heating Equipment Market for Unitary Heaters, By Region, 2015–2023 (USD Billion)
Table 16 Heating Equipment Market for Unitary Heaters, By Application, 2015–2023 (USD Billion)
Table 17 HVAC System Market for Ventilation Equipment, By Equipment Type, 2015–2023 (USD Billion)
Table 18 HVAC System Market for Ventilation Equipment, By Region, 2015–2023 (USD Billion)
Table 19 HVAC System Market for Ventilation Equipment, By Application, 2015–2023 (USD Billion)
Table 20 Ventilation Equipment Market for Humidifiers, By Region, 2015–2023 (USD Million)
Table 21 HVAC System Market for Humidifiers, By Application, 2015–2023 (USD Million)
Table 22 Ventilation Equipment Market for Dehumidifiers, By Region, 2015–2023 (USD Million)
Table 23 Ventilation Equipment Market for Dehumidifiers, By Application, 2015–2023 (USD Million)
Table 24 Ventilation Equipment Market for Air Purifiers, By Region, 2015–2023 (USD Million)
Table 25 Ventilation Equipment Market for Air Purifiers, By Application, 2015–2023 (USD Million)
Table 26 Ventilation Equipment Market for Air Filters, By Region, 2015–2023 (USD Billion)
Table 27 HVAC System Market for Air Filters, By Application, 2015–2023 (USD Billion)
Table 28 Ventilation Equipment Market for Ventilation Fans, By Region, 2015–2023 (USD Million)
Table 29 Ventilation Equipment Market for Ventilation Fan, By Application, 2015–2023 (USD Million)
Table 30 Ventilation Equipment Market for Air Handling Units, By Region, 2015–2023 (USD Billion)
Table 31 Ventilation Equipment Market for Air Handling Units, By Application, 2015–2023 (USD Billion)
Table 32 HVAC System Market for Cooling Equipment, By Equipment Type, 2015–2023 (USD Billion)
Table 33 HVAC System Market for Cooling Equipment, By Application, 2015–2023 (USD Billion)
Table 34 HVAC System Market for Cooling Equipment, By Region, 2015–2023 (USD Billion)
Table 35 Cooling Equipment Market for Room Air Conditioners, By Application, 2015–2023 (USD Billion)
Table 36 Cooling Equipment Market for Room Air Conditioners, By Region, 2015–2023 (USD Billion)
Table 37 AHRI Standards Related to Unitary Air Conditioners
Table 38 HVAC System Market for Unitary Air Conditioners, By Application, 2015–2023 (USD Billion)
Table 39 Cooling Equipment Market for Unitary Air Conditioners, By Region, 2015–2023 (USD Billion)
Table 40 Cooling Equipment Market for Chillers, By Application, 2015–2023 (USD Billion)
Table 41 Cooling Equipment Market for Chillers, By Region, 2015–2023 (USD Billion)
Table 42 Cooling Equipment Market for Coolers, By Application, 2015–2023 (USD Billion)
Table 43 Cooling Equipment Market for Coolers, By Region, 2015–2023 (USD Billion)
Table 44 Cooling Equipment Market for Cooling Towers, By Application, 2015–2023 (USD Million)
Table 45 Cooling Equipment Market for Cooling Towers, By Region, 2015–2023 (USD Million)
Table 46 Cooling Equipment Market for VRF Systems, By Application, 2015–2023 (USD Billion)
Table 47 Cooling Equipment Market for VRF Systems, By Region, 2015–2023 (USD Billion)
Table 48 HVAC System Market, By Implementation, 2015–2023 (USD Billion)
Table 49 Industry-Standard Rating Parameters Related to HVAC Systems
Table 50 HVAC System Market, By Application, 2015–2023 (USD Billion)
Table 51 Temperature Variation in Commercial Buildings
Table 52 Different Climate Zones for Cities in Us
Table 53 Reference Building With Different Areas
Table 54 HVAC Systems Classification on the Reference Building
Table 55 HVAC System Market, By Commercial Application, 2015–2023 (USD Billion)
Table 56 Temperature Variations in Industrial Buildings
Table 57 HVAC System Market, By Region, 2015–2023 (USD Billion)
Table 58 List of Events to Be Held in North America in 2018 and 2019
Table 59 HVAC System Market in North America, By Country, 2015–2023 (USD Billion)
Table 60 HVAC System Market for Heating Equipment in North America, By Equipment Type, 2015–2023 (USD Billion)
Table 61 HVAC System Market for Ventilation Equipment in North America, By Equipment Type, 2015–2023 (USD Billion)
Table 62 HVAC System Market for Cooling Equipment in North America, By Equipment Type, 2015–2023 (USD Billion)
Table 63 Target Values of Fuel Input From 2017 to 2020
Table 64 List of Events to Be Held in Europe in 2018 and 2019
Table 65 HVAC System Market in Europe, By Country, 2015–2023 (USD Billion)
Table 66 HVAC System Market for Heating Equipment in Europe, By Equipment Type, 2015–2023 (USD Billion)
Table 67 HVAC System Market for Ventilation Equipment in Europe, By Equipment Type, 2015–2023 (USD Billion)
Table 68 HVAC System Market for Cooling Equipment in Europe, By Equipment Type, 2015–2023 (USD Billion)
Table 69 List of Events to Be Held in APAC in 2018 and 2019
Table 70 HVAC System Market in APAC, By Country, 2015–2023 (USD Billion)
Table 71 HVAC System Market for Heating Equipment in APAC, By Equipment Type, 2015–2023 (USD Billion)
Table 72 HVAC System Market for Ventilation Equipment in APAC, By Equipment Type, 2015–2023 (USD Billion)
Table 73 HVAC System Market for Cooling Equipment in APAC, By Equipment Type, 2015–2023 (USD Billion)
Table 74 List of Events to Be Held in RoW in 2018 and 2019
Table 75 HVAC System Market in RoW, By Region, 2015–2023 (USD Billion)
Table 76 HVAC System Market for Heating Equipment in RoW, By Equipment Type, 2015–2023 (USD Billion)
Table 77 HVAC System Market for Ventilation Equipment in RoW, By Equipment Type, 2015–2023 (USD Million)
Table 78 HVAC System Market for Cooling Equipment in RoW, By Equipment Type, 2015–2023 (USD Billion)
Table 79 Ranking of Key Players in HVAC System Market, 2017

List of Figures (70 Figures)

Figure 1 Segmentations of the HVAC System Market
Figure 2 HVAC System Market: Research Design
Figure 3 HVAC System Market: Bottom-Up Approach
Figure 4 HVAC System Market: Top-Down Approach
Figure 5 Data Triangulation
Figure 6 Assumptions for Research Study
Figure 7 HVAC System Market for Commercial Application to Grow at the Highest CAGR During the Forecast Period
Figure 8 Heat Pumps to Hold the Largest Size of the HVAC System Market for Heating Equipment During the Forecast Period
Figure 9 HVAC System Market for Air Purifiers to Grow at A Higher CAGR During the Forecast Period
Figure 10 Unitary Air Conditioners to Hold the Largest Size of the HVAC System Market By 2023
Figure 11 New Construction to Hold the Largest Size of the HVAC System Market By 2023
Figure 12 HVAC System Market, By Region
Figure 13 Increasing Demand to Reduce Energy Consumption and Government Tax Credit and Rebate Programs Boost Adoption of HVAC System
Figure 14 HVAC System Market for Heating Equipment to Grow at the Highest CAGR Between 2018 and 2023
Figure 15 Commercial Application to Hold the Largest Size of the HVAC System Market in 2018
Figure 16 New Construction to Dominate the HVAC System Market in 2018
Figure 17 Unitary Air Conditioner to Hold the Largest Share of the Cooling Equipment Market of HVAC System in APAC in 2018
Figure 18 China to Hold the Largest Share of the HVAC Market in 2018
Figure 19 Demand for HVAC Systems to Reduce Energy Consumption is Expected to Drive the Growth of the HVAC System Market
Figure 20 HVAC Systems: Maximum Value Added During System Integration
Figure 21 Software & Services Used in HVAC Systems
Figure 22 HVAC System Market, By Heating Equipment
Figure 23 Heat Pumps to Hold Largest Size of HVAC System Market for Heating Equipment By 2023
Figure 24 Residential Application to Hold Largest Size of HVAC System Market for Heating Equipment By 2023
Figure 25 Europe to Hold Largest Size of Heating Equipment Market for Heat Pumps By 2023
Figure 26 Residential Application to Hold Largest Size of Heating Equipment Market for Furnaces in 2018
Figure 27 Heating Equipment Market for Boilers in APAC to Grow at Highest CAGR During Forecast Period
Figure 28 Industrial Application to Hold Largest Size of Heating Equipment Market for Unitary Heaters By 2023
Figure 29 HVAC System Market for Ventilation Equipment
Figure 30 AHU to Hold the Largest Size of the HVAC System Market By 2023
Figure 31 Commercial Application to Hold the Largest Size of Market for Ventilation Equipment By 2023
Figure 32 North America to Hold the Largest Size of the Ventilation Equipment Market for Humidifiers By 2023
Figure 33 Commercial Application of Dehumidifiers to Grow at the Highest CAGR Between 2018 and 2023
Figure 34 APAC Region to Hold the Largest Market Share of Ventilation Equipment for Air Purifiers By 2023
Figure 35 Commercial Application to Hold the Largest Size of Ventilation Equipment Market for Air Filters By 2023
Figure 36 Ventilation Equipment Market for Ventilation Fans in North America to Grow at the Highest CAGR for Ventilation Fans During Forecast Period
Figure 37 Commercial Application to Hold the Largest Market Size of Ventilation Equipment Market for Air Handling Units By 2023
Figure 38 HVAC System Market for Cooling Equipment
Figure 39 Unitary Air Conditioners to Hold Largest Size of HVAC System Market for Cooling Equipment During Forecast Period
Figure 40 APAC to Hold Largest Size of HVAC System Market for Cooling Equipment in 2018
Figure 41 Commercial Application to Hold Largest Size of Cooling Equipment Market for Unitary Air Conditioners By 2023
Figure 42 Chiller Market for Residential Application to Grow at Highest CAGR During Forecast Period
Figure 43 Cooling Towers Market for Commercial Application to Grow at Highest CAGR During Forecast Period
Figure 44 APAC to Hold Largest Size of Cooling Equipment Market for VRF Air Conditioners By 2023
Figure 45 HVAC System Market, By Implementation Type
Figure 46 New Construction to Hold the Largest Size of the HVAC System Market By 2023
Figure 47 HVAC System Market, By Application
Figure 48 Commercial Application to Hold the Largest Size of the HVAC System Market During the Forecast Period
Figure 49 Healthcare Application for Commercial to Grow at the Highest CAGR During the Forecast Period
Figure 50 HVAC System Market, By Geography
Figure 51 Geographic Snapshot of HVAC System Market
Figure 52 APAC to Dominate HVAC System Market During Forecast Period
Figure 53 North America: Snapshot of HVAC System Market
Figure 54 HVAC System Market for Furnace to Grow at Highest CAGR During Forecast Period in North America
Figure 55 Europe: Snapshot of HVAC System Market
Figure 56 Germany to Hold Largest Size of HVAC System Market By 2023
Figure 57 APAC: Snapshot of HVAC System Market
Figure 58 China to Dominate HVAC System Market in APAC By 2023
Figure 59 Middle East to Dominate HVAC System Market During Forecast Period
Figure 60 Product Launches and Developments as Key Growth Strategies Adopted By Companies Between 2015 and 2018
Figure 61 Daikin: Company Snapshot
Figure 62 Ingersoll-Rand: Company Snapshot
Figure 63 Johnson Controls: Company Snapshot
Figure 64 LG Electronics: Company Snapshot
Figure 65 United Technologies: Company Snapshot
Figure 66 Electrolux: Company Snapshot
Figure 67 Emerson: Company Snapshot
Figure 68 Honeywell: Company Snapshot
Figure 69 Lennox: Company Snapshot
Figure 70 Nortek: Company Snapshot

The HVAC system market is expected to grow from USD 181.00 Billion in 2018 to USD 251.60 Billion by 2023, at a CAGR of 6.80% between 2018 and 2023. Factors that drive the growth of the market include the increasing demand for HVAC systems for reducing energy consumption, extreme weather conditions, government tax credit and rebate programs, and growing demand for HVAC systems to upgrade old systems.

Heat pumps are expected to hold the largest share of the HVAC system market for heating equipment. The acceptance for heat pumps is increasing owing to their evolving capabilities; these capabilities include performing both space-cooling and -heating functions along with the ability to heat water. Furthermore, heat pumps have higher efficiency than many other cooling or space-heating units, which is expected to increase the demand for the same.

The air handling units hold the largest share of the HVAC system market for ventilation equipment. Air handling units are used to regulate and circulate air in an enclosed environment. It draws the ambient air, reconditions (filtered and cooled) it, and supplies fresh air to the room. Main factors controlled by air handling units are temperature, humidity, air movement, and air cleanliness. Various benefits of air handling units include restriction in cross contamination, simple and safer damper for regulating air, minimal space utility, and portability.

The market for the unitary air conditioners of the HVAC systems for cooling equipment is expected to grow at the highest CAGR between 2018 and 2023. Unitary air conditioners are used in residential, industrial, and commercial applications due to their advantages including low failure risk, space efficiency, and high cooling performance. These air conditioners are used in most classes of buildings, from schools to offices and retail stores, particularly at places where the facilities are associated with low initial cost, and simplified installation is needed.

The HVAC system market for commercial application is expected to grow at the highest CAGR between 2018 and 2023. HVAC systems are widely used in commercial buildings, which include healthcare, education, government, office, airport, and retail. This factor is positively driving the HVAC system market for commercial buildings. HVAC systems consume the highest energy in commercial places around 30% of the energy at a business place. Replacing a traditional HVAC system with an advanced and energy-efficient one can help save a lot of energy.

The HVAC system market in APAC is expected to grow at the highest CAGR between 2018 and 2023. Among the major APAC countries, China is contributing immensely to the HVAC system market. The Ministry of Housing and Urban-Rural Development of P.R. China (MOHURD) has implemented certain protocols and standards associated with construction policies regarding HVAC installation. Currently, China is introducing energy-efficient designs in new buildings by installing new HVAC systems and upgrading old HVAC systems. The country is also focusing on limiting the use of environmentally harmful refrigerants and improving energy efficiencies of units. For this, the Standardization Administration of China (SAC) is working on revising the guidelines and standards on testing methods, energy efficiency, safety, overall performance, and emissions for the HVAC industry. Additionally, the government also took a significant step to limit the use of harmful refrigerants.

Major factors restraining the growth of the HVAC system market include high capital investment required for deployment, lack of availability of vendors, and project financing.  Key market players such as Daikin (Japan), United Technologies (US), Johnson Controls (US), Ingersoll-Rand (Ireland), and LG Electronics (South Korea) have adopted strategies such as product launches and developments, expansions, acquisitions, agreements, contracts, collaborations, and partnerships to gain a competitive edge in the HVAC system market and expand their distribution networks.

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