Heating and cooling

Supply-chain shortages, amidst the pandemic, impacted the market for HVAC systems in 2020. However, the market entered recovery from H32020 onwards as global manufacturing activities gradually resumed following strict lockdowns.

According to analyst Grand View Research, the global HVAC systems’ market size was valued at US$ 136.3 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 6.3% from 2022 to 2030. A new Research and Markets.com report values the global heating, ventilation & air conditioning (HVAC) market at US $156.44 billion in 2021, and expects it to be worth US$ 231.11 billion in 2027, growing at a CAGR of 6.72% during 2022-2027.

“Varied climatic conditions and the need to maintain an ambient environment in a building is a key trend that is expected to impact the market over the forecast period. In recent times, the availability of smart features and energy efficiency have been key purchase criteria for most customers, and the trend is expected to gain traction over the next few years,” explained Grand View Research.

The move to energy efficiency

“Global warming, predominately due to greenhouse emissions, has led to a rise in temperature, which has been a major driving force in demand for heating, ventilation and air conditioning (HVAC) equipment worldwide. Climate change has also resulted in the inflated use of cooling equipment in the summer and of furnaces, boilers and unitary heaters in the winter. Climate change impacts building power consumption and air conditioning loads, which vary depending on the ambient temperature and humidity,” commented analyst, P&S Intelligence.

The real-estate market and regulatory environment are evolving, with sustainability having a considerable impact on the value, operating costs and marketability of properties. Buildings that are environmentally friendly and meet requirements for health, safety and comfort are becoming increasingly popular.

“In the Asia Pacific, the market for HVAC systems is anticipated to witness healthy growth over the mid-term. An increase in multi-family and individual homeowners is creating avenues for future growth. The HVAC industry is gradually shifting focus onto energy efficiency. Green initiatives are the focus area for several OEMs with an emphasis on saving money, while reducing greenhouse emissions. Therefore, over recent years, there has been a shift toward eco-friendly HVAC units. This includes products that consume less power and operate on renewable sources of energy, thereby reducing energy costs,” said Grand View Research.

Over the last few years, the use of geothermal cooling and heating equipment has been on the rise, reducing dependence on fuel-based equipment. Customer inclination towards comfort is creating avenues for growth. To meet the demand, OEMs are developing products that are not just energy-efficient but also incorporate the latest technologies offering better connectivity.

Heating units (such as boilers, furnaces and heat pumps) are widely used in residential, commercial and industrial applications. Applications for heating equipment include space heating; moulding; floor & wall heating; steam generation; vaporisation and drying.

“Today, buildings constructed are ‘green’, resulting in an increase in installations of thermostats, sensors and smart meters that can be controlled from a smartphone or PC. Software-enabled HVAC systems are also trending and are expected to create opportunities over the forecast period. Technology is slowly making inroads in the HVAC field, creating favourable long-term growth avenues,” continued the analyst.

To read the rest of this article from ISMR’s November 2022 issue, please see https://joom.ag/jq5d/p34