The cooling systems segment dominated the market in 2020 and is expected to retain the leading position in the future
The global HVAC systems market size is anticipated to reach USD 197.50 billion by 2028, registering a CAGR of 5.9 per cent over the forecast period. A report by Research and Markets noted that the proactive government initiatives will emerge as market growth drivers over the forecast period.
“The rising adoption of energy-efficient and renewable energy products is anticipated to be a significant driving factor for the market. Furthermore, climate changes have rendered heating and cooling equipment a necessity rather than a luxury. Thus, the deteriorating climate condition is likely to positively influence the market over the forecast period,” read the report.
Cooling systems segment dominated the market in 2020
The cooling systems segment dominated the market in 2020 and is expected to retain the leading position in the future due to a rise in demand for air conditioning systems across several sectors. With a steady increase in the global real estate sector, the residential segment captured significant revenue share in 2020.
The segment is expected to grow at a steady CAGR from 2021 to 2028 due to the rising demand from modern households in developing economies. Middle East & Africa is anticipated to grow at a healthy CAGR over the forecast period owing to the increasing construction activities, growing tourism sector, and rising temperatures in the region
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Since the outbreak of coronavirus, key market players are focused on introducing products that can improve the air quality. In February 2020, Havells India Ltd. launched Grande Heavy-Duty Air Conditioner under its brand Llyod. The AC features Catechine coated dust filter and Green Bio air filter along with anti-bacterial Eva Coils, which enhances the air quality.
In addition, the market is expected to experience healthy growth owing to refurbishment and replacement demand. Several customers are replacing old equipment with new energy-efficient units for energy savings, improved performance, and cost reduction. The factors responsible for the replacement of the HVAC (Heating, ventilation, and air conditioning) unit are the system’s age, building remodeling, poor air quality, and high cost of repair.
The spread of the novel coronavirus in 2020 resulted in the shutting down of production plants across the globe in the first quarter. As a result, several major players recorded substantial revenue drop in the initial part of 2020.
However, pent-up demand and increasing awareness about hygienic surroundings have resulted in higher product sales in recent times and are expected to continue in the subsequent years. Overall, the Covid-19 pandemic has had a minor impact on the market and the industry is expected to record steady growth in the years to come.
