New products, 06 September 2024
The market is pivotal in providing efficient cooling and heating systems for various sectors, especially as they adapt to long-term climate change. Industries like the construction sector, shopping centers, industrial facilities, and warehouses rely on these systems for climate control and maintaining indoor air quality. The demand for energy-efficient HVAC systems is increasing to reduce greenhouse gas emissions. These systems incorporate ventilation and air quality management, addressing issues like air pressure, moisture, and smoke. With the integration of Internet of Things (IoT) technology and programmable thermostats, This equipment is becoming smarter and more efficient, offering sustainable solutions for environmental challenges. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing residential and commercial construction activities is the major driver of the growth of the market. Infrastructural projects related to commercial and residential buildings are increasing globally at a significant rate, owing to population growth and regulatory support from various government bodies for construction projects.
As the population increases, the need for residential and commercial spaces will rise, which, in turn, will boost the number of construction projects. The number of residential and commercial buildings is rapidly increasing in developing countries such as the UAE, Saudi Arabia, India, and China, which will propel the demand for HVAC equipment.
The advent of smart HVAC systems is the major trend in driving the growth of the market. A smart HVAC system is an intelligent technology that enables users to control their equipment remotely using a smartphone, tablet, or desktop. The traditional HVAC system only allows users to change the temperature of the building using the built-in control panel or switch. On the other hand, a smart HVAC system gives consumers more user-friendly, efficient, and accessible control over the traditional HVAC system. Also, a smart HVAC system not only can run more efficiently but also reduce energy costs.
Thus, a smart HVAC system can help in saving around 13% per month on energy bills. Also, the smart HVAC system consists of sensors that can help users to prevent costly breakdowns. Thus, the equipment helps users in maximizing control for greater efficiency, reduced operating costs, and extended equipment life. Hence, the advent of smart HVAC systems will lead to the growth of the market during the forecast period.
Stringent regulations are the major hindrance to the growth of the market. companies that offer the equipment must comply with the regulations framed by various government organizations and independent agencies. These regulations are aimed at ensuring that proper measures are taken while operating, installing, and manufacturing the equipment. The ACCA standard focuses on the new installation requirements for HVAC systems. As per this regulation, the correct design, proper installation, and testing have a large impact on consumers' satisfaction as well as on energy savings. This standard details the level of performance, which ensures that sound industry practices are followed during the design and installation phases of an HVAC system.
However, the design shall also consider the effects of fire on HVAC systems. Compliance with such regulations can increase the cost borne by the companies, which, in turn, can affect their profit margins. Non-compliance can lead to penalties, including suspension of licenses, imprisonment, and an order to cease future operations. This can further impact revenue generation in the market during the forecast period.
The market share growth by the non-residential segment will be significant during the forecast period. The non-residential end-users of the equipment are manufacturing facilities, commercial and industrial buildings, data centers, retail stores, healthcare facilities, and educational institutions. The increase in construction activities in the non-residential end-user segment will drive the demand for the equipment during the forecast period.
The non-residential segment was valued at USD 70.70 billion in 2018. The segment accounts for the largest revenue share of the market because the large share is attributed to the rising need for energy efficiency among organizations and commercial firms. HVAC and lighting systems account for a major part of energy consumption in commercial buildings. Therefore, companies must develop these systems that are energy-efficient and comply with regional as well as international regulations. Telecommunication and data centers also use the equipment to maintain the optimum temperature in the rooms where servers and other devices are kept. Such factors will increase the market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
