Hospital HVAC Systems Market Size, Share & Trends Analysis Report By Product (Heating, Ventilation, Cooling), By End Use (ICU, Operating Rooms, PE Rooms, Pharmacies), And Segment Forecasts, 2019 - 2025

Report Overview

The global hospital HVAC systems market was valued at USD 7.05 billion in 2018 and is expected to register a CAGR of 7.2% during the forecast period. Controlling variable environmental factors, such as temperature, humidity, air flow, and pressure are imperative to maintaining a healthy indoor air at healthcare setups. Considering the vulnerable health condition of patients, it is crucial to control the indoor environment in hospitals. Thus, the need for maintaining requisite temperature range to ensure health and safety of patients along with other hospital personnel is driving demand for HVAC systems.

The growth of hospital industry is anticipated to accelerate the demand for HVAC equipment at healthcare facilities. Aging population and increased prevalence of chronic diseases are the factors contributing to rise in investments and number of hospitals worldwide. According to the Government of India’s Department for Promotion of Industry and Internal Trade, the hospital industry in the country is expected to reach USD 132 billion by 2023 from USD 61.8 billion in 2017. Thus, the rise in number of hospitals is likely to positively influence the demand for HVAC systems.

HVAC systems used in hospitals are designed as per the standards defined for healthy environment necessary for the occupants. For instance, the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) has defined a standard temperature, pressure, humidity, and Air Change Rate (ACH) levels for individual rooms in any hospital. Moreover, HVAC provide additional functionalities, such as therapeutic conditioning and infection control in hospitals and other such healthcare facilities. Compliance to the pre-defined temperatures at healthcare facilities is expected to drive the demand for hospital HVAC systems.

Introduction of state-of-the-art energy efficient products is anticipated to drive the demand for hospital HVAC systems in near future. Use of the systems that operate on natural energy sources, such as solar power, help reduce the cost associated with electricity. Moreover, these systems also reduce the air pollution significantly as compared to conventional HVAC units. Advent of advanced products coupled with the paradigm shift in terms of adoption of energy efficient systems is expected to drive the market over the forecast period.

There exists a need to replace aging systems with new HVAC systems, which is attributed to the growing emphasis on energy efficiency and emission control. Thus, refurbishment of aging infrastructure or an upgrade from old to new units is also anticipated to drive the product demand from hospitals over the forecast period.

Hospital HVAC Systems Market Trends

The hospital HVAC systems market is anticipated to be driven by increased demand for energy-efficient systems coupled with rising awareness of high comfort levels in the hospitals The continued rise in infrastructure and construction activities of commercial buildings is also anticipated to contribute to the hospital HVAC systems market growth.

Rising awareness regarding how the indoor environment can impact the way people think, feel and act has triggered the demand for healthcare building HVAC systems. Similarly, the standards governing the temperature, pressure, and humidity in hospital rooms are further expected to propel the demand for hospital HVAC systems.

There exists a need to replace aging systems with upgraded/new HVAC systems, which is attributed to the growing emphasis on energy efficiency and emission control. The extensive use of HVAC systems in hospitals further increases the need to replace these systems frequently. Thus, refurbishment of aging infrastructure or an upgrade from old to new units are anticipated to drive the sale of HVAC systems over the forecast period

The upward growth of real estate has a positive impact on the HVAC systems market, supported collectively by an increase in construction spending as well as a rise in building permits for the construction of residential, commercial, and industrial spaces.

Installation charges are relatively much higher, although variable, depending on the unit type. For instance, the average price of the installation of a commercial rooftop air conditioner is almost equal to the price of the unit. Moreover, high prices may drive customers toward cheaper options that may not be as effective.

Several policies such asthe American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) have defined standard temperature, pressure, humidity, and Air Change Rate (ACH) levels for individual rooms in any hospital. Moreover, HVAC provides additional functionalities, such as therapeutic conditioning and infection control in hospitals and other healthcare facilities. Compliance with the pre-defined temperatures at healthcare facilities is expected to drive the demand for hospital HVAC systems.

Product Insights

Based on product type, the hospital HVAC systems market is segmented into heating, ventilation, and cooling products. The cooling segment accounted for the most significant value share of the market in 2018 and is anticipated to witness highest CAGR over the forecast period. The use of air conditioning systems aids healthcare facilities in temperature regulation, controlling dampness that stimulates spread of microorganisms, and maintaining good air quality essential for patient comfort and recovery. Thus, imminent need to achieve the afore-mentioned benefits is expected to drive demand for cooling systems at healthcare facilities.

The heating segment is expected to register a significant CAGR of 6.8% from 2019 to 2025. The demand for heating in hospitals is attributed to requirement for high temperature at certain hospital facilities, such as the burn units. The burn units maintain a high average room temperature to keep the patients’ core body temperature high for assisted healing of wounds.

End Use Insights

HVAC systems are installed at different healthcare units including Intensive Care Unit (ICU), operating rooms, airborne infection isolation rooms, protective environment rooms, compounding pharmacies, and other hospital wards. The ICU segment accounted for substantial value share in 2018 and is expected to register strong growth in the next six years. The critical health condition of patients admitted to the ICU unit demands a regulated and controlled temperature environment. Moreover, the average temperature in critical care rooms is lower than that of the other rooms to assist in the healing process.

The airborne infection isolation rooms segment is also expected to experience significant growth over the forecast period. The rise in infectious diseases that spread through bacteria and viruses are primarily contributing to the rise in the number of isolation rooms in hospitals. Such rooms require special ventilation facilities and negative room pressure to control the spread of diseases.

Others segment held the largest market share of more than 40% in 2018 and is expected to register a CAGR exceeding 6.0% over the forecast period. Other rooms and wards in hospitals include waiting rooms, non-intensive care units, pathology labs, general wards, and numerous other rooms. The collective HVAC requirements in all these rooms are substantially higher than the aforementioned units. Thus, the segment is anticipated to continue hold the maximum value share in the forthcoming years.

Regional Insights

The Asia Pacific is characterized by increasing expenditure on infrastructure development is expected to create demand for HVAC systems in the regional commercial sector, which is anticipated to contribute to the product demand for hospital HVAC systems. Most manufacturers are investing in green HVAC, and building automation system technology to reduce carbon footprints and save energy. All these factors are expected to drive demand for HVAC systems across multiple segments including healthcare.

The demand for hospital HVAC systems in China is driven by an increased aging population, an increase in non-communicable diseases, expanding healthcare initiatives, and favorable government policies that encourage the use of energy-efficient equipment by giving subsidies and tax benefits.

North America is characterized by high investment in the healthcare business in the United States and Canada, as well as rising building automation system technology to reduce carbon footprints and save energy along with the presence of major HVAC manufacturers are driving the market growth. In addition, government energy-efficiency incentives are expected to benefit HVAC contractors across the country.

The demand for hospital HVAC systems is driven by the rising construction industry, availability of efficient and advanced systems, and extreme climatic conditions favoring the installation of HVAC in both residential and commercial buildings. In addition, the large presence of key manufacturers of hospital HVAC systems in this region propels the market for hospital HVAC systems.

Key Companies & Market Share Insights

Market players are increasingly investing in R&D in a bid to develop technologically advanced systems like IoT-enabled HVAC systems. For instance, in 2017, Carrier Corporation announced the launch of digital solutions for remote monitoring and controlling of commercial HVAC systems. These solutions help end users monitor system performance through customers’ mobile application. This technology helps customers proactively manage the performance of the systems and makes them aware of any imminent issues that the HVAC system may encounter.

The manufacturers also focus on catering to increasing demand for environment-friendly systems that use alternative sources of energy. For instance, Lennox International Inc. offers HVAC system named SunSource, powered using solar roof modules. Daikin Industries, Ltd.; Carrier Corporation; Electrolux AB; Hitachi Ltd.; Trane Inc.; and Rheem Manufacturing Company are some of the key market players.

Hospital HVAC Systems Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global hospital HVAC systems market report based on product, end use, and region.

• Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Heating

  • Ventilation

  • Cooling

• End Use Outlook (Revenue, USD Million, 2015 - 2025)

  • Intensive Care Unit (ICU)

  • Operating Rooms

  • Airborne Infection Isolation Rooms

  • Protective Environment Rooms

  • Compounding Pharmacies

  • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • South America

    • Brazil

    • Argentina

    • Chile

  • Middle East & Africa