ID: MRFR/E&P/9181-CR | 165 Pages | Published By Anshula Mandaokar on July 2022
HVAC Equipment Market is projected to be worth USD 368.14 billion by 2028, registering a CAGR of 7.51% during the forecast period (2021 - 2028)
2021 - 2028
HVAC equipment are used to provide safety from any operational fault within the compressor and refrigeration circuit. This equipment are deployed to measure the various parameters in the HVAC systems, such as pressure and temperature, provide energy, and control voltage.
The demand for equipment for HVAC is growing significantly in the global market, primarily due to the increasing need for fire safety solutions. The global equipment for HVAC market is projected to grow at a 4.10% CAGR during the forecast period, 2021–2027. In 2020, the equipment for HVAC market was dominated by Asia-Pacific with a 42.12% share, followed by Europe and North America.
A decline in revenue generation from the power industry has had a substantial impact on the global economy. Private energy generation companies with no long-term power purchase agreements are expected to be the hardest hit during this period due to electricity demand reduction. As the demand for coal and gas has declined, coal mining companies and gas exporting nations have witnessed drastic declines in revenue generation. This has substantially impacted economic activities, causing job losses and salary deductions worldwide across supply chains.
Many utilities in developing nations that still depend on manual meter readings for generating monthly bills are expected to incur losses in terms of revenue collection during the lockdown period. Revenue collection in such countries will decline during this period having a negative economic impact. For instance, many utilities in India are still dependent on manual meter readings, which has reduced revenue collection across the country. As a measure to increase revenue generation, the Indian government has increased taxes on petrol and diesel. This is expected to have a notable impact on the Indian citizens, and prices for many other commodities such as vegetables and pulses are dependent on the costs incurred in the supply chain. Such hikes in prices will have a negative impact on the low and middle-income social classes, which have limited resources during the crisis. As economic activities are further slowing down globally, global economies are expected to witness a further decline in revenues until the pandemic crisis stabilizes.
HVAC equipment are essential equipment for various industries. However, the global pandemic has induced a steep decline in the demand for HVAC equipment market, especially in economies with complete lockdowns. As these are essential equipment for utilities and many other essential industries, manufacturers are still supplying the HVAC equipment to prevent the risk of fire. However, the market has witnessed a steep decline from end-use industries such as residential, commercial, and transportation. This is due to the decline in residential and commercial construction. Furthermore, the automotive manufacturing industry is at a standstill due to the lockdown, reducing the demand for HVAC equipment at the showrooms and manufacturing centers. Additionally, due to lockdowns globally, public and private transportation usage has declined considerably, drastically reducing vehicle breakdowns, leading to a further decline in the demand for HVAC equipment market. However, as many economies have resumed economic activities in June, the demand for HVAC equipment is expected to gradually increase their average growth rate by the second quarter of 2021.
The Equipment for HVAC Market is driven by factors such as the increasing need for fire safety solutions and stringent government regulations. However, the cases of product failure are expected to restrain the market growth to a certain extent. On the other hand, the increasing product demand from emerging economies and the rapid industrialization are expected to create growth opportunities for the Equipment for HVAC Market players.
Fire safety solutions are essential in ensuring safety and preventing fatalities and property loss. Over the past few years, there have been several fire-related accidents in residential, commercial, and industrial spaces that have led to several deaths. Hence, it becomes necessary for architects and engineers to install fire safety solutions in residential, commercial, and industrial buildings to avoid such losses. HVAC and fire protection insulation systems are the fire-rated ventilation ducts to avoid fire and thus guard the property against fire hazards. The fire ductwork systems are designed to extract hot gases, smoke, and flames to ensure safety and protect the buildings, property, and individuals. HVAC and fire protection insulation systems are implemented in factories, public places, malls, and industrial facilities. These systems must comply with the fire codes and norms legislated by the government or city, state, and federal regulatory authorities. Moreover, HVAC and fire protection insulation systems prevent the spread of fire from one area to another. These systems must be tested periodically to ensure better operability during an emergency and protect assets in the premises, limiting the extent of the loss. Thus, the concerns regarding the safety of individuals have contributed to a growing need for fire safety solutions, which is expected to drive the growth of the global equipment for HVAC market during the forecast period.
The population growth and increase in per capita disposable income in emerging economies, such as South Africa, Qatar, Indonesia, Chile, and India, have led to the rapid development of the residential, commercial, industrial, and public sectors. These countries focus on developing various commercial, industrial, and public places as part of the country's economic growth. The increasing applications of HVAC and fire protection insulation systems in developing countries are expected to offer lucrative growth opportunities for the manufacturers offering HVAC systems and enable them to expand their operations in economies with significant growth potential. Additionally, government initiatives such as FDI regulations and the deregulation of the pricing policies in these countries are likely to present significant investment opportunities for HVAC equipment vendors.
The effective working of HVAC and fire protection insulation systems enhances the safety of residential, commercial, industrial, and public places, reducing the losses of lives and money. HVAC and fire protection insulation prevent the fire from spreading. The proper selection of a ductwork system is complex due to its construction, type, building dimensions, orientations, and other configurations. However, various issues, such as stability, insulation, and integrity, cause the failure of HVAC systems. Such issues cause the ducts to collapse, crack, form holes, or cause smoke leakage. Thus, many end users focus on selecting ducts as per their needs and investing in periodic repair & maintenance to ensure effective functioning. Improper functioning of HVAC and fire protection insulation systems also leads to unnecessary operational costs and safety issues. Thus, cases of product failure are expected to restrain the growth of the global equipment for HVAC market to a certain extent during the forecast period.
The global equipment for HVAC market has been segmented based on equipment and region.
Based on equipment, the global equipment for HVAC market has been segmented into pressure switches, pressure transducers, capacitors, contactors, transformers, filter driers, sight glasses, reversing valves.
Globally, the Equipment for HVAC market has been categorized into five different regions—North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Asia-Pacific accounted for the largest market share of 42.12% in 2018 and is expected to register the highest CAGR of 4.63% during the forecast period. Europe was the second-largest market in 2018, valued at USD 725.2 million; the market is projected to exhibit a CAGR of 3.79%.
The accomplishment of an HVAC system is directly related to the comfort levels of a building. A high adoption rate of HVAC systems has been witnessed across North America due to multiple such as highly energy-efficient system, most remarkably, and power-saving techniques. The construction sector is growing in this region, as an increased activity within the commercial building, data centers, hospitals, institutes. Additionally, growing demand for energy-efficient HVAC systems in the industrial sector and rising investment in the construction sector are the major factor that drives the growth of the equipment for HVAC market over the forecast period. Furthermore, highly efficient HVAC systems can reduce energy consumption by half. Heating, ventilation, and air conditioning together account for half of the household energy consumption share across the region. As per the US Department of Commerce, the total construction spending in January 2021 was approximately USD 1,521,454 million (includes residential and non-residential). Therefore, being a part of the ventilation system, equipment for HVAC will positively be impacted by the increased installation of ventilation systems in residential and commercial buildings for the supply of fresh air and removal of used air. Such factors are expected to drive the growth of the equipment for HVAC market in North America during the forecast period.GLOBAL EQUIPMENT FOR HVAC MARKET, BY REGION, 2020 (% SHARE)Source: Industry Expert, Secondary Research, and MRFR Analysis
Asia Pacific Region to Bolster the Equipment for HVAC Market
The increased demand for HVAC equipment market in the region can be attributed to factors such as industrial development, growing construction activities, and the rise in demand for fuel-efficient technologies. Furthermore, the rapidly increasing population rate, drastic climatic changes, and the easy availability of cost-effective systems are some significant factors that drive the market growth. The rapid urbanization in emerging economies, such as China, India, and Japan, encourages the consumers towards a more comfortable lifestyle, thereby increasing the demand for HVAC equipment in Asia-Pacific. In Indonesia, increasing the government investment in energy and the construction industry continues to expand rapidly, driven by government investment in the energy and commercial sectors. The focus of the Japanese government on the development of the existing infrastructure by initiating various real estate projects to attract tourism is expected to accelerate the demand for HVAC equipment. Furthermore, the growing tourism industry is leading towards the growth of construction activities and would drive the demand for HVAC equipment all over the region. In China, one of the highest populated countries, vertical construction is being witnessed due to the lack of space, increasing the demand for HVAC equipment.
The global market for Equipment for HVAC market has witnessed significant growth over the forecast period due to the growing digital content. There are several domestic, regional, and global players operating in the Equipment for HVAC market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global Equipment for HVAC market who have contributed to the market growth. These include Sensata Technologies, Saginomiya Seisakusho, Jiangsu match well electrical products co ltd., Honeywell International Inc., Arrow Electronics Inc., Basler Electric, Diversitech, Dongan Electric Manufacturing Company, General Electric, Hartland Controls, Lefco Industrial Co Ltd., Motors & Armatures Inc., Noark Electric, Nueva Generation Manufacture, Parker Hannifin Corporation, Sealed Unit Parts Co Inc, American Zettler, Danfoss, Emerson Electric, Mueller Co., Sanhua Holdings Group Co Ltd., Eaton Corporation.
There are several domestic, regional, and global players in the Equipment for HVAC market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global Equipment for HVAC market who have contributed to the global market growth.
This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the global Equipment for HVAC Market report based on equipment and region.
|Market Size||2027: USD 4,540.7 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Equipment (pressure switches, pressure transducers, capacitors, contactors, transformers, filter driers, sight glasses, reversing values)|
|Geographies Covered||North America (US, Canada, and Mexico) Europe (UK, Germany, France, and Rest of Europe) Asia-Pacific (China, Japan, India and Rest of Asia-Pacific) Middle East & Africa South America|
|Key Vendors||Sensata Technologies,Saginomiya Seisakusho,Jiangsu match well electrical products co ltd.,Honeywell International Inc.,Arrow Electronics Inc.,Basler Electric,Diversitech,Dongan Electric Manufacturing Company,General Electric,Hartland Controls,Lefco Industrial Co Ltd.,Motors & Armatures Inc.,Noark Electric,Nueva Generation Manufacture,Parker Hannifin Corporation,Sealed Unit Parts Co Inc,American Zettler,Danfoss,Emerson Electric,Mueller Co.,Sanhua Holdings Group Co Ltd.,Eaton Corporation|
|Key Market Opportunities||Increasing demand from emerging economies|
|Key Market Drivers||Increasing need for fire safety solutions|
A 4.10% CAGR is expected to transform the market.
The Asia Pacific regional market is projected to be the major driver of the market.
The segments in the market are offering equipment.
The key contenders in the market are Sensata Technologies, Saginomiya Seisakusho, Jiangsu match well electrical products co ltd., Honeywell International Inc., Arrow Electronics Inc., Basler Electric, Diversitech, Dongan Electric Manufacturing Company, General Electric, Hartland Controls, Lefco Industrial Co Ltd., Motors & Armatures Inc., Noark Electric, Nueva Generation Manufacture, Parker Hannifin Corporation, Sealed Unit Parts Co Inc, American Zettler, Danfoss, Emerson Electric, Mueller Co., Sanhua Holdings Group Co Ltd., Eaton Corporation.