The HVAC industry is one of the ever-growing industries in the world.
Very often than not we come across the term HVAC in our day-to-day lives. Not so long ago, HVAC systems only had industrial applications. But now along with advancements in technologies and changing lifestyles, the HVAC industry has found its application in residential and commercial uses as well.
What is an HVAC system?
In the most simple terms, Heating, Ventilation, and Air-Conditioning i.e.HVAC is the technology devised to provide indoor and vehicular environmental comfort. Acceptable indoor quality is what an individual strives to achieve whenever he is building something. HVAC systems are a major application of thermodynamics, fluid mechanics, and heat transfer.
Ventilation doesn’t only mean proper airflow. It is also inclusive of removal of moisture, temperature control, oxygen replenishment, and removal of odors, smoke, heat, dust, and airborne bacteria. HVAC systems are used from residential buildings to submarines wherein they provide comfort. The mechanism of HVAC is such that, in spite of being extensive and complicated, we only notice it when it stops working. The HVAC system is complex and consists of many components like Air Return, Filter, Exhaust outlets, ducts, electrical elements, outdoor unit, compressor, coils, and blower. Keeping all these components in perfect condition and having regular maintenance will help the HVAC system in life longevity.
The heating element in the HVAC refers to a furnace or a boiler. It includes a pipe system for the fluid carrying the heat or ductwork. Air- Conditioning is interchangeably used in reference to Heating and Cooling sometimes.
How is HVAC different from AC?
An HVAC unit can come in all type of shapes and sizes depending on their specific usage and designs. They also depend on the place they are going to be used in. The various types of combinations may include Boilers, Air Conditioning Units and Ducts, and moisture vents.
Not all HVAC is air conditioning. Even though they are similar and HVAC has AC units included under them. Any unit that can cool or heat the air is called an Air conditioning unit. It doesn’t have other usages and purposes. Although they have a heat pump installed due to the heating and cooling function, they are not similar to an HVAC unit but indeed they are very different.
Types of HVAC
The main classification of an HVAC system can be done in Centralized and Decentralized systems. A centralized system addresses the fact that an entire building needs conditioning as a whole unit and a Decentralized system of an individual unit. We can also classify them in terms of types of buildings, i.e. Residential, Commercial, Industrial or Institutional. All these buildings have different needs of Air-Conditioning and HVAC companies generally cater to all of them.
Apart from these, we can also classify the types of HVAC into Industrial, Residential and Personal purposes depending on their need and usage at a particular place.
HVAC in numbers
According to the latest market research from Grand View Research, the global market size of the HVAC market as of 2020 is US$127 billion and is expected to expand at a CAGR of 5.9% from 2021 to 2028. The global HVAC market is experiencing phenomenal growth in terms of market share as well as innovation due to the environmental conditions in this decade and hence an ever-increasing need for energy-efficient solutions. Global warming and a rising need for a good standard of living have raised the demands considerably. The cooling product segment dominated the market with a share of 54% in 2020. The demand for air purifiers and similar products in the ventilation segment to prevent air contamination is expected to boost in the near future.
The residential segment held 40%, i.e. largest revenue share in terms of end-use insights in 2020. Increasing disposable income has led to the anticipation that the demand in this segment is only to upkeep further. The commercial segment is expected to record the fastest CAGR in the forecast period owing to multiple infrastructural developments all over the world.
Asia Pacific has been the largest consumer and accounted for over 45% of the global revenue share in 2020 due to the factors, such as rapid urbanization, rising population, and increasing disposable income levels. China, especially, dominates the global air conditioning systems demand and accounted for the highest unit sales in 2020. The presence of companies offering low-cost equipment in China and neighboring countries is another factor contributing to regional market growth.
North America accounted for the second-highest revenue share in 2020 and is expected to grow steadily over the forecast period. The market in Europe is also expected to record healthy growth, driven by the flourishing tourism sector and real estate industry in the region. Governments of both regions are promoting the use of energy-efficient systems by providing subsidies and tax benefits. As a result, in addition to new constructions, existing customers are also upgrading to new energy-efficient systems.
Top HVAC manufacturers
The top 10 companies in the world when it comes to HVAC have shown rapid year-on-year growth and are generating higher revenues due to consistent and steady growth. Another important factor to consider is that countries are showing higher per capita income and fantastic economic growth.
Daikin(Japan) is currently the number one company in the market with 100 production units in the world and a presence in around 150 countries.
Ingersoll Rand(US), one of the oldest companies, has around 30 manufacturing facilities in the Americas, Europe, Middle East, and the Asia Pacific with offices in 35 countries.
Johnson Controls(Ireland) is now one of the largest HVAC companies in the world and the best seller products include Chillers, Packaged and split DX systems, Ductless Systems, Air Handling, and Air Distribution systems.
LG Electronics, United Technologies, Midea Group, Electrolux, Lennox International, Nortek, Samsung Electronics are the other companies leading the global HVAC market and are doing extraordinary work in technological advancement.
The HVAC industry is projected to grow in the upcoming future and also is expected to be a beacon of hope in terms of energy-efficient solutions. IIoT and smartphone technology are going to be a major aspect in aiding the maintenance and service programs for the HVAC Market in this decade.