Increased demand for HVAC systems for residential and office building purposes and IoT technologies are expected to drive the global HVAC systems category’s growth

Global HVAC Systems Category - Procurement Intelligence

The global HVAC systems category is expected to grow at a CAGR of 6.3% from 2023 to 2030. Office buildings and high-rise structures are increasingly using HVAC systems to control the temperature within the buildings. As a result of growing environmental concerns, there is a rising trend for green buildings, which is in turn expected to drive category growth. In APAC and the Middle East region, the demand for HVAC systems for residential purposes is growing due to its hot climate conditions. The growing number of building permits and enhanced designs in construction are driving the demand for AC.

The shift of HVAC system maintenance from reactive to predictive maintenance is enabled by the use of IoT technology. Predictive maintenance lengthens the lifespan of the HVAC system while lowering labor and maintenance costs. The traditional Building Management System (BMS) is made up of various subsystems that are installed inside a building office. Only staff members who work in facility management or building management are given access to each organization's unique IT infrastructure. Whereas IoT technologies can be relatively cheaper to install in any type of building over traditional BMS systems. It can be accessible to other building assets such as lighting and security, which transform the facility management services. For instance, voice and light sensors in a meeting room can indicate when the conference is over, and cleaning is needed. The IoT software automatically creates a work order for cleaning, negating the need for human involvement. Facility managers can remotely check the status of these work orders from their desks or while traveling by using mobile applications.

Companies are continuously focusing on new acquisitions, product development, and service enhancement. For instance,

• In February 2023, Armstrong Fluid Technology, a Canada-based company, announced a partnership with Hydronic System Optimisation (officially known as Hysopt), a Belgium-based company, for HVAC digital twin modeling. This collaboration offers customers more reliable scientific simulation and verification of HVAC system energy and carbon savings by integrating Hysopt's advanced technology and Armstrong's vast installation capability.

• In April 2022, collaboration was announced between Carrier Global Corporation and ACI Mechanical and HVAC Sales company for a suite of applied equipment and variable refrigerant flow (VRF) HVAC systems. The applied products are consolidated with stringent energy codes in Washington. The stringent energy codes in Washington can offer an acceptable level of energy efficiency while permitting some flexibility in building design, construction, and heating equipment efficiency. This partnership will enhance ACI Mechanical and HVAC Sales company's solutions, which can provide high-performance HVAC systems and support sustainability.

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Global HVAC Systems Sourcing Intelligence Highlights

• The threat of new entrants in HVAC systems is low as the category is highly capital-intensive which requires substantial investment for various activities such as marketing, distribution, manufacturing, as well as for research and development purposes. In addition, leading players in this category tend to create difficulty for new firms to enter because major players benefit from intellectual property, economies of scale, and customer loyalty.

• The industry is highly fragmented and encompasses several major players such as Carrier Corporation; Daikin Industries, Ltd., Johnson Controls International plc, and Trane Technologies. This fragmentation is often driven by technological advancement focusing on energy-efficient, smart connected systems, smart homes, and sustainable HVAC systems.

• The category’s growth is boosted owing to the adoption of various innovative trends and advancements in technology such as smart HVAC technology, IoT, automation software to enhance operation, geothermal and ductless HVAC systems, zoning systems, and others.

• Operating cost, equipment cost, replacement cost, installation cost, and disposal cost are some of the cost components involved in HVAC systems. Other additional costs involved are insulation, asbestos removal, location of systems, SEER (seasonal energy efficiency ratings), AFUE (annual fuel utilization efficiency) rating, and permit cost. The operating cost consists of labor, maintenance, utility costs, cost of HVAC parts, and others.

Global HVAC Systems Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the global HVAC systems category:

• Operating cost

• Equipment cost

• Replacement cost

• Installation costs

• Disposal cost

• Others

Operating cost (which includes labor, cost of HVAC parts, maintenance, and utility cost), and equipment costs form the largest cost components of the global HVAC systems category.

List of Key Suppliers in the global HVAC systems Category

• Arkema Group

• Carrier Corporation

• Daikin Industries, Ltd.

• Emerson Electric Co.

• Hitachi Ltd.

• Honeywell International Inc.

• Johnson Controls International Plc

• Lennox International, Inc.

• Mitsubishi Electric Corporation

• Trane Technologies