International. The global HVAC market, estimated at $175.9 billion in 2020, is projected to reach a revised size of $252.7 billion by 2026, growing at a CAGR of 6.3% during the analysis period, according to the report by Reportlinker.com
Refrigeration systems, one of the segments analyzed in the report, are expected to grow at a CAGR of 6.6% to reach $198.3 billion by the end of the analysis period.
It is anticipated that growth in the market will be driven by the increasing demand for energy-efficient HVAC systems to reduce energy consumption and carbon emissions. Growing concerns about climate change, rising energy prices, and carbon emissions continue to drive the adoption of HVAC systems in commercial spaces.
The market will also benefit from the growing demand for energy-saving products. Rebates for energy-efficient systems, such as air conditioning and HVAC, are encouraging commercial building users to implement and upgrade HVAC systems. In recent years, the industry witnessed a sea of changes in the technology employed, largely as a result of consumers' desire to have advanced microcontrols integrated into their systems, and also due to an increase in demand for eco-friendly refrigerants. Therefore, technological improvements in the recent past have been geared towards meeting the levels of energy efficiency demanded by governments around the world and the convenience expected by average consumers.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the heating systems segment is readjusted to a revised CAGR of 5.6% for the next 7-year period. This segment currently accounts for a 17.8% share of the global HVAC market. The ability of heat pumps to deliver greater efficiency compared to other space heating and cooling units is expected to further increase their adoption in the coming years. Climate change and the gradual increase in average temperature are driving the adoption of refrigeration equipment during summers.
Market in the United States and China
The systems market in the US is estimated at US$31 billion in the year 2021, and currently accounts for a 16.9% share of the global market. China, the world's second-largest economy, is forecast to reach an estimated market size of $53.3 billion by 2026, with a CAGR of 7.2% during the analysis period.
Other prominent geographic markets include Japan and Canada, each forecasting growth of 4.2% and 6.2%, respectively. Within Europe, Germany is forecast to grow at approximately 4.4% CAGR, while the rest of Europe market (as defined in the study) will reach US$10.6 billion by the end of the analysis period. Demand for air conditioners in developing regions such as Asia-Pacific is very high and some households own more than one appliance, while demand for air conditioners from developed regions remains comparatively low.
The market in Asia-Pacific is also anticipated to benefit from technological advancements and growing investment in the consumer electronics sector across the region. The market in developed regions is driven by increasing consumer awareness of star-labeled HVAC products, increasing use of VRVs, and adoption of inverter-based air conditioning systems.
The ventilation systems segment
In the global Ventilation Systems segment, the US, Canada, Japan, China and Europe will drive the estimated 4.26% CAGR for this segment. These regional markets representing a combined market size of US$12 billion in 2020 will reach a projected size of US$16.2 billion at the close of the analysis period. China will remain among the fastest growing in this group of regional markets. Led by countries such as Australia, India and South Korea, the Asia-Pacific market is projected to reach US$5 billion by 2026, while Latin America will expand at a CAGR of 5.5% during the analysis period.
