Global HVAC Equipment

Global HVAC Equipment

Global demand for heating, ventilation, and air conditioning (HVAC) equipment is forecast to rise 4.0% annually to $160 billion in 2027, driven by:

•  rising unit sales due to ongoing replacement demand in mature markets and greater uptake of cooling systems in developing HVAC markets
•  increasing demand for higher value energy-efficient HVAC systems
•  growing awareness of environmental issues, resulting in more regulations and subsidies for HVAC equipment

Growing Economies, Urbanization, & Populations Spur HVAC Demand in Asia/Pacific Region

The Asia/Pacific region is expected to dominate the global HVAC market in revenue and unit sales. A number of countries in the region, such as India and Indonesia, are experiencing rapid urbanization, industrialization, and population growth, boosting demand for heating and cooling solutions for both residential and nonresidential buildings. Regional demand will also be supported by steady growth in China, the world’s largest HVAC market, and healthy gains in the large, mature Japanese market.

Climate Change & Environmental Sustainability Will Influence Government Regulations

With increasing awareness of climate change, there is a growing demand for HVAC systems that are both sustainable and effective at mitigating the most severe impacts of rising temperatures. The market is being shaped by various regulations and efficiency norms, especially in key regions like Western Europe and North America. These regulations are pushing for more energy-efficient and environmentally friendly HVAC systems, which can already be seen in:

•  a shift in market preference to heat pumps
•  further technological innovation, such as the integration of solar power into HVAC equipment

Heat Pumps to Lead Global HVAC Market Growth

Heat pumps are expected to capture the largest demand share of the global HVAC equipment market through 2027 due to their energy efficiency, cost-effectiveness, and environmental benefits. These systems are increasingly preferred over traditional HVAC solutions for their ability to provide both heating and cooling efficiently. They reduce electricity consumption and lower greenhouse gas emissions, aligning with global efforts to transition to sustainable energy sources. Sales of heat pumps are especially prevalent in China and Japan. They are seeing increasing unit sales in Western Europe due to regulatory support and cost incentives which encourage the adoption of heat pumps, measures which are part of broader initiatives to achieve carbon neutrality and energy independence.

Study Description

This Freedonia study analyzes the $131.9 billion global HVAC equipment industry. It provides historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) by product (room air conditioners, heat pumps, unitary air conditioners, central heating boilers, warm air furnaces, other types of HVAC equipment) and region (North America, South and Central America, Western Europe, Eastern Europe, Asia/Pacific and Africa/Mideast). Demand, production, and net exports are provided in US dollar terms. This study also evaluates the company market share of key industry players.