The usage of air conditioners is expected to increase as the common temperature does, and the HVAC system market will reflect that growth. During 2022-2028, the HVAC system market is expected to grow at a compound annual growth rate (CAGR) of 10.8%, according to "HVAC System Market Forecast to 2028 — COVID-19 Impact and Global Analysis By Component, Type, Implementation, and Application,” an industry report done by Reportlinker.com. It is expected to reach $455.96 billion by 2028, up from $246.10 billion in 2022.
The report states that many people aren’t aware of how necessary it is to not only decide on an air conditioning system, but to exchange an inefficient air conditioning system for an updated one. Growing that awareness will positively impact market growth.
The report also states that new HVAC systems are economical, far more environmentally friendly, and improve indoor air quality.
In addition, the report discusses how acceptance of modern HVAC systems — the developed systems that decrease greenhouse gas emissions — is expected to further boost HVAC market size.
“HVAC systems provide benefits such as cost savings and energy savings and help to maintain sustainable goals regarding environmental safety,” the report says.
While the market is expected to grow, the report discusses the impact that the COVID-19 pandemic had on the market. The report states that government-mandated limitations to control the spread of COVID-19 affected the daily operations of manufacturers, and the stringent restrictions and supply chain disruptions resulted in the shortage of semiconductor chips — which put most HVAC system market players in jeopardy.
According to the report, East Asia has continued to export more machinery than they did before the pandemic. After the lockdown in 2020, manufacturing in India reportedly ceased. Other sectors, such as metals and chemical goods, automobiles, machinery, and equipment, led to the decline in HVAC system market growth.
By the end of 2020, the demand for HVAC systems started to gain momentum as industries started to resume operations.
“APAC is expected to hold more than 35% of HVAC system market share by 2028. China accounts for the largest HVAC system market share in Asia Pacific, followed by Japan and South Korea,” the report stated.
The HVAC system market in China is growing at one of the fastest paces globally, the report said. Residential and commercial buildings in China have been among the prime adopters of HVAC systems in APAC.
The HVAC system market in India experienced growth by developing additional features that met energy demands. India’s high temperature and humidity levels are also driving the HVAC system market growth.
The report stated that due to the difference in size between a residential HVAC unit and a commercial one, also attributes to HVAC system market growth, since their requirements for conditioning a space vary greatly as well.
“Commercial buildings use straightforward, programmable thermostats that send different heating or cooling queues throughout, which is similar to residential HVAC systems. Growing demand from commercial establishments is expected to boost the HVAC system market growth,” the report said.