The global HVAC market is expected to grow at a CAGR of 3.4% in coming years, reaching an anticipated $296.7 billion in 2030 ( up from $218.8 billion in 2021), according to research from Guidehouse Insights. But a lack of product and system-design knowledge, and a shortage of well-trained experts, will hamper growth.
Asia Pacific will likely be the largest market in 2021, representing 48.7% of the total market value. Asia Pacific will likely grow at a CAGR of 4.6% by 2030. China, India, and some Southeast Asian countries are expected to lead market growth in Asia Pacific.
Key Technology and Drivers
The HVAC industry has been transforming toward more sustainable technology, showing higher efficiency and environmental friendliness. Local governments are regulating system efficiency and high global warming potential (GWP) refrigerants while innovative market players are developing highly efficient advanced products, the report states. Notable technology examples include: heat pump water heaters, which can efficiently heat water at higher temperatures; heat pumps, which drive electrification in the market; and variable speed HVAC systems, which allow flexible operation of cooling and heating.
Other growth drivers include more user-friendly functions, district heating (DH) and cooling (DHC), and new business models and new construction demand.
Barriers still exist, however. These include:
—High costs for efficient HVAC equipment
—Fossil fuel-powered HVAC limitations on sustainability
—Grid burden and insufficient grid infrastructure
—Lack of product knowledge
—Shortage of well-trained experts and a lack of system design knowledge
—Passive cooling advancements
HVAC operation remains one of the key causes of climate change. The detrimental environmental impact of running HVAC is leading governments — and the industry as a whole — to seek a sustainable cooling and heating solution, Guidehouse Insights concludes.