Heating, Ventilation, and Air Conditioning (HVAC) Services - Global Market Outlook (2021 - 2028)

Heating, Ventilation, and Air Conditioning (HVAC) Services - Global Market Outlook (2021 - 2028)

According to Stratistics MRC, the Global Heating, Ventilation, and Air Conditioning (HVAC) Services Market is accounted for $9.06 billion in 2021 and is expected to reach $21.31 billion by 2028 growing at a CAGR of 13.0% during the forecast period. HVAC is an acronym for heating, ventilation, and air conditioning. HVAC services organize the regulation of temperature inside a building, using either heating or cooling systems, wall and ceiling ducting or other HVAC technologies. HVAC services include construction, installation, and servicing of heating, cooling, and ventilation systems and equipment. In larger, industrial systems, HVAC software is used to manage an HVAC service system with respect to other areas such as scheduling, dispatch, billing, maintenance, and inventory. Specialized HVAC software is also used by engineers to design ductwork and piping plans. HVAC services enhance system performance evaluation and efficiency optimization of central boiler and chiller systems, vapor-compression cycles of AC and heat pump systems, and of distribution and ventilation systems. HVAC services reduce consumption of energy and increase understanding of system maintenance.

Market Dynamics:

Driver:

Rising demand for safety, comfort, and aesthetic features

The increasing demand for safety, comfort, and aesthetic features has led to several technological advancements in vehicles. HVAC services ensure comfortable ride for the driver as well as the passenger. In addition, the services contribute toward defrosting windows, demisting windshields, and dehumidifying air, which improve the comfort of the passengers. The safe and clean running of the system eliminates risk factors in future. Thus, increase in safety due to adoption of HVAC services by providing safe and favorable conditions inside the vehicle cabin is anticipated to propel the automotive HVAC Services market growth.

Restraint:

Huge maintenance cost

HVAC services are highly costly to integrate and expensive to repair in case of a failure. Installation of HVAC unit in a vehicle results in increase in the overall cost of the automobile. An automobile HVAC unit consists of compressor, condensers, evaporators, and other components. To keep these components in good working condition, regular maintenance is required, which is significantly expensive. Compressor is the costliest component in the systems and requires proper refrigerant and lubrication levels to reduce the risk of premature compression failure. Thus, high maintenance cost of the overall components of HVAC system is anticipated to hinder the growth of the global HVAC Services market.

Opportunity:

Rising technological advancements

The rising inclination for technologically advanced systems is likely to drive the HVAC Services market. The rise in green-labelled products due to the increased environmental awareness has given rise to the thermally driven air-conditioners. These air-conditioners use both natural gas as well as solar energy, thus ensuring energy efficiency. The additional benefits offered are low maintenance, independent control of pipes for heating and cooling purposes, and automatically adjusts to current requirements, along with improved lifetime cost and efficiency. Additionally, smart thermostats and sensors, which can be controlled remotely through apps, are gaining popularity among the customers, especially in commercial buildings in order to gain energy and cost-efficiency, thereby increasing demand for the market growth.

Threat:

Uncertainties due to the pandemic

Uncertainty around the actual duration of the prevailing lockdown makes it hard to anticipate how a recovery in the construction industry will unfold. On similar lines, the HVAC Services industry has been adversely affected by the COVID-19 outbreak due to the shutting down of several component manufacturing facilities across Japan, China, European countries, and the U.S. The global construction industry, once thriving with increased investments, has been severely affected by the suspension of the construction activities in the wake of the ongoing pandemic. Shortage of labors coupled with potential supply chain bottlenecks of materials and equipment is expected to cause project delays in the ongoing funded projects and may lead to reduced spending in the upcoming projects. This has consequently led to a significant slowdown in the production of HVAC equipment. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also pegged back the consumer demand for HVAC services.

The retrofit buildings segment is expected to be the largest during the forecast period

The retrofit buildings segment is estimated to have a lucrative growth owing to a large number of installed HVAC systems in existing buildings and the high demand for maintenance & repair services. Retrofit projects are designed to integrate new components into existing HVAC networks. Retrofitting provides a more cost-effective way to improve system performance without the need to replace the entire system. The green building initiative and steps taken to reduce the adverse effects on the environment caused by old HVAC systems are boosting the adoption of new HVAC line sets in retrofits. When a major component in either the outdoor or indoor unit of a traditional heat pump system or air conditioner fails, both units should be replaced because newer equipment is carefully matched for optimal efficiency and operating pressures.

The installation segment is expected to have the highest CAGR during the forecast period

The installation segment is anticipated to witness the fastest CAGR growth during the forecast period owing to the rise in construction activities in the residential, commercial, and industrial sectors. HVAC refers to the climate control systems installed in homes or commercial properties. Their task is to move heated or cooled filtered air throughout the building, to keep inhabitants of the structure comfortable. The installation process is a crucial step because it serves as the unit’s foundation. It means the efficiency of all future uses of the central air and heating system depends on its proper installation. HVAC installation involves electricity, plumbing, and natural gas systems, all systems that are critical to the integrity, safety, and efficiency of the home. Depending on the home, installing an HVAC unit can take one to multiple days. It prevents delays caused by locating a missing part at a critical juncture. Implementing HVAC during construction should comply with several regulations and standards. Moreover, new energy-efficient HVAC systems are replacing the traditional HVAC systems, which need installation. New technologies are required in the HVAC system to increase energy efficiency, reduce energy costs, and lower carbon emissions.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period driven by the flourishing tourism sector and real estate industry in the region. Governments of the region are promoting the use of energy-efficient systems by providing subsidies and tax benefits. As a result, in addition to new constructions, existing customers are also upgrading to new energy-efficient systems. Major factors driving the market for Europe HVAC services include an increase in new households, rising average construction spending, rising government spending on sustainable building development, rapid urbanization, and growth in disposable income across several European economies. In Germany, the government is actively promoting the fast development and integration of renewable and efficient heating and cooling technologies, through new laws and attractive incentives. This promotion has led to a significant market shift in Germany, fueling the growth of HVAC services market.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period. The market in Asia-Pacific is anticipated to benefit from technological advancements and increasing investment in the consumer electronics sector across the region. The demand for air conditioners in the region is very high with some households owning more than one appliance. The market is propelled by rising consumer awareness about HVAC products and increasing adoption of inverter-based air conditioning systems. China, India, and Japan are the major contributors to the growth of this market. Increasing construction activities and rising population are also boosting the growth of the market in the region.

Key players in the market

Some of the key players profiled in the Heating, Ventilation, and Air Conditioning (HVAC) Services Market include Carrier Corporation, Daikin Industries Ltd, Electrolux AB, Emerson Electric Co, Fujitsu General Ltd, Gardner Denver Holdings Inc, Honeywell International Inc, Ingersoll-Rand PLC, Johnson Controls International PLC, Lennox International Inc, LG Electronics Inc, Panasonic Corporation, Robert Bosch GmbH, Siemens AG, and United Technologies Corp.

Key Developments:

In March 2021, Johnson Controls acquired Cool Solution. The acquisition allows Johnson Controls to fill a geographic service gap in Wales and the South West. This will enable Johnson Controls’ HVAC team to service more customers, and ensure the company can better serve its existing customers with an even stronger install and service offering.

In November 2020, Honeywell launched new products to improve air quality in commercial buildings. Healthy Buildings Air Quality offering to help improve and measure commercial building indoor air quality with the introduction of Honeywell Electronic Air Cleaners (EACs) with UV Systems and a new line of indoor air quality (IAQ) sensors. Honeywell EACs with UV help remove impurities from the air as well as provide filtration and disinfection, without significantly impeding air flow.

In June 2020, Emerson launched two new HVAC on air podcast series focused on technology and regulatory updates. It will focus on upcoming energy efficiency and refrigerant regulations as well as industry trends and contractor support.

Types Covered:
Installation
Maintenance and Repair

Implementation Types Covered:
New Construction
Retrofit Buildings

Categories Covered:
Cooling
Heating
Ventilation

Applications Covered:
Airflow and Quality
Electrical
Temperature and Humidity

End Users Covered:
Commercial
Industrial
Residential

Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances