HVAC System Market Size Global Forecast to 2026 | MarketsandMarkets
Posted by Steve Stark on December 15th, 2021
The HVAC system market size is estimated to be USD 197.0 billion in 2021 and is projected to reach USD 271.5 billion by 2026; it is expected to grow at a CAGR of 6.6% from 2021 to 2026.
The implementation of IoT with HVAC systems has fueled their demand in commercial and residential applications. HVAC systems are of different equipment types, based on different technologies, and their functions are application-specific.
Driver: Increasing government regulatory policies and incentives to ensure energy saving and conservation of natural resources
Governments of various countries are introducing stringent regulatory policies for the vendors while installing and retrofitting energy-prompt HVAC systems. For instance, the Ozone Depleting Substances (ODS) regulation banned the R-22 refrigerant in all states of the European Union from January 2015. Currently, the installed base of a large number of HVAC systems relies on R-22; however, over time, R-22 will become more expensive, and there will be scarcity. As a result, consumers would need to replace their existing HVAC systems, which is expected to drive the demand for modern, energy-efficient HVAC systems comprising programmable thermostats to help control temperatures throughout the day.
Restraint: Shortage of skilled labor
The HVAC industry is poised to experience exponential growth. HVAC systems require fine-tuning and the custom fabrication of parts during installation for their efficient working and avoiding failure. Thus, professionals are needed for the proper installation of HVAC systems. If the installation is not done by professionals, the end user may need to pay more in the long run for repairs, or the HVAC systems may not work efficiently. The requirement for skilled labor is expected to incur additional costs to the user. Thus, it may hinder the implementation of the HVAC system market.
Opportunity: Rapid transformation of IoT within HVAC industry
The Internet of Things (IoT) represents a scenario where HVAC systems can be connected to the internet to allow data sharing. It manages HVAC systems, collects data, stores it in the cloud; improves HVAC operations for better efficiency; and runs a predictive maintenance schedule. It also monitors, controls, and diagnoses units over the internet in a cost-effective way. In addition, IoT enables low ongoing maintenance and repair costs of the HVAC system. IoT allows access to real-time performance data of HVAC systems and interprets it correctly. For instance, IoT-enabled buildings can alert facility managers with early warnings of any operational abnormalities and allow for the remote diagnosis and adjustment of units, which, in turn, could save costs by minimizing system failures.
Challenge: Lack of awareness about benefits of HVAC systems in developing countries
With continuous technological developments, it is very important to make end users aware of the benefits of new products. In the case of HVAC systems, the awareness regarding cost- and environment-related benefits of HVAC systems is low; they are normally perceived to be expensive, which acts as a challenge for market penetration in developing economies. There also exists a lack of awareness regarding energy-efficient HVAC systems.
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Despite various innovations, such as the development of low GWP refrigerants for HVAC, the adoption rate of HVAC systems is not at par with the benefits they provide. Additionally, with respect to contractors of HVAC systems, there is a lack of awareness regarding the standards for HVAC systems. Recently, higher SEER standards such as 21 SEER units have been launched, about which residential HVAC construction firms are unaware, which ultimately hampers their business.
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About the AuthorSteve Stark
Joined: July 13th, 2020
Articles Posted: 234
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