International. The global market for HVAC systems for the residential sector is estimated to reach $223 billion by 2031, driven by climate change and decarbonization efforts, as well as increased market opportunities for products to meet changing regional needs, according to the latest report from Guidehouse Insights.
Although the residential HVAC market has grown continuously with technological advancements in heating and cooling, its growth potential remains substantial, particularly in developing regions with extremely hot or cold climates.
More precisely, global market revenue for residential HVAC is projected to grow from $164.9 billion in 2022 to $222.9 billion in 2031 at a compound annual growth rate (CAGR) of 3.4%.
According to the International Energy Agency, most homes in "hot countries" still don't have a first air conditioner (AC). The percentage of households equipped with air conditioning for selected countries in 2018 showed that the adoption rate for emerging countries was still low, although developed countries showed a much higher adoption rate. Similarly, emerging cold climate countries offer significant market opportunities for heating.
"If HVAC industry stakeholders want to take advantage of this market opportunity, they need to consider suitable solutions to enter multiple local markets, as no solution fits all global regions," says Young Hoon Kim, senior research analyst at Guidehouse Insights. "HVAC systems that are tailored to local needs will likely vary from region to region and culture to culture, as will the sales channels and installation process."
In addition, climate change and decarbonization efforts require sustainable heating and cooling solutions, which will depend, in part, on adapting an HVAC solution to a region. This will require considering and combining multiple solutions to decarbonize residential HVAC systems, according to the report.
The report, Residential HVAC Market Data, reviews the different types of residential HVAC (heating and cooling), with regional analysis segmented by five regions of the world: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
