China HVAC Market Size
| Study Period | 2019 - 2024 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 51.17 Billion |
| Market Size (2029) | USD 74.60 Billion |
| CAGR (2024 - 2029) | 7.83 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China HVAC Market Analysis
The China HVAC Market size is estimated at USD 51.17 billion in 2024, and is expected to reach USD 74.60 billion by 2029, growing at a CAGR of 7.83% during the forecast period (2024-2029).
- HVAC systems play an essential role in creating comfortable environments in industrial, residential, and commercial structures. In office settings, they regulate temperatures, ensure adequate ventilation, and, in turn, boost employee productivity and well-being while mitigating health risks linked to inadequate humidity control.
- In China, a huge number of people have been migrating from rural areas to cities, which is raising government and private spending on housing, commercial construction, and infrastructure. New building constructions are creating significant demand for new equipment installations of heating, ventilation, and air-conditioning systems.
- The government in the country is focusing on expanding the residential sector and renovating industrial and commercial buildings to increase the energy efficiency of the buildings, further propelling the demand for HVAC. For instance, in April 2024, the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector was recently introduced by China's Ministry of Industry and Information Technology (MIIT) in collaboration with six other departments.
- This strategic plan focuses on key aspects of technological advancement and economic growth, showcasing China's commitment to improving competitiveness and sustainability in the manufacturing industry. The emphasis on industrial equipment modernization highlights its significance as a primary policy objective.
- Moreover, the demand for HVAC in the country is increasing due to a significant surge in demand for industrial boilers. China is rapidly emerging as a global manufacturing hub, and its large populations offer lucrative growth prospects for industries such as food & beverages, consumer goods, textiles, and more. This crucial factor is expected to drive the growth of the industrial boilers market in China in the near future.
- An HVAC system comprises various components, including home size, HVAC type, brand, labor expenses, climate, ductwork size, and energy efficiency. These components result in a significant overall cost, which hampers market growth.
- The HVAC market in China is fragmented, with a large number of players occupying a small market share. Vendors operating in the China HVAC market mainly focus on new product development, strategic partnership, acquisition, and expansion to meet the growing customer demand, further supporting the market growth.
- For instance, in January 2024, Daikin announced the launch of variable refrigerant volume (VRV) 7 series variable refrigerant flow (VRF) systems that realize the industry's top-level energy-saving performance by strengthening seven features required by air conditioning equipment, for example, adopting low-global warming potential (GWP) refrigerant R32 that is excellent in environmental adaptability and energy savings and in improving basic performance, and also contributes to reducing the environmental burden and the workload.
- Furthermore, the HVAC market in China is highly affected by macroeconomic factors such as government regulations and new initiatives to boost the adoption of energy-efficient equipment. With the rise in housing costs, local authorities throughout China obtained significant non-tax income from land leases and subsequently allocated the funds toward infrastructure initiatives. As a result, the construction sector in the nation experienced ongoing growth, thus fuelling the market growth.
China HVAC Market Trends
HVAC Equipment Segment Holds Significant Market Share
- The fast-increasing industrial sector in China is one of the primary causes responsible for the most significant share. It is also anticipated that growing urbanization and commercialization in the country will raise demand for HVAC equipment. Additionally, rising disposable income and a higher standard of life drive demand for pleasant living spaces, which will drive market growth.
- The demand for air conditioners in China is increasing due to several factors, such as the availability of various product options, continuous technological advancements, and the presence of significant players like Media Group.
- The demand for AHUs is also increasing as they are utilized in factories and other work environments that deal with flammable gases. In areas with flammable gases, sparks produced by an electrical apparatus could lead to an explosion. Hence, explosion-resistant devices or air-handling units are implemented in these settings.
- Furthermore, the construction industry has become a key sector of China's economy, contributing to approximately 7 % of the country's GDP, largely due to the boost from housing developments and infrastructure projects.
- Thus, the growing construction of industrial, commercial, and residential spaces in the country will increase the demand for HVAC equipment and services. According to the National Bureau of Statistics of China, in 2023, the construction industry in China generated an output of over CNY 31 trillion (USD 4.35 trillion), representing an increase of almost 100 % from a decade ago.
Residential Segment Holds Significant Market Share
- The HVAC market in China is growing owing to the rising demand for air conditioning equipment in the residential sector. The demand is growing due to rising temperatures and humidity levels in the area, along with consumers' increasing desire for convenience and comfort.
- Moreover, the government is taking the initiative and investing in building renovation projects in the country, further driving the demand for the country's HVAC services and equipment market. For instance, in November 2023, the government of China announced allocating USD 137 billion in affordable financing for urban village renovation and affordable housing programs, marking its latest move to stabilize the weakening property market.
- Additionally, there has been a significant increase in government-led building renovation projects aimed at improving energy efficiency, which is gaining traction in the China HVAC market. Energy-efficient buildings can reduce greenhouse gas emissions, decrease homeowners' energy costs, and enhance indoor air quality, thereby promoting public health.
- In 2023, China's National Bureau of Statistics reported that the country's production volume of air conditioners reached 233 million units, approximately 22 million units higher than the previous year. China maintained its position as one of the leading global producers of consumer electronics, thus supporting the market's growth.
- Moreover, there has been a substantial rise in residential space heating in urban Southern China over the past ten years, bringing about notable sustainability issues. Consequently, heat pumps have become increasingly popular in the area and are extensively utilized throughout China.
- Air-source and ground-source heat pumps have gained a considerable share of the market and are experiencing an increasing acceptance rate. The Chinese government has been instrumental in driving this trend forward through initiatives such as the coal-to-electricity project. The growing popularity of heat pumps in China is expected to bolster the market's expansion.
- Furthermore, several regional players are expanding their presence in the country's HVAC market, thus supporting the market growth. For instance, in June 2023, Panasonic and Xiaomi announced a partnership to manufacture air conditioners for the Chinese Market. Panasonic plans to leverage its manufacturing and quality control knowledge to support Xiaomi's growing air conditioning operations.
China HVAC Industry Overview
The China HVAC market is fragmented and consists of several players. Companies continuously try to increase their market presence by introducing new products, expanding their operations, or entering into strategic partnerships, collaborations, mergers, and acquisitions. Some of the prominent players include Hitachi Ltd, Lennox International Inc., Panasonic Corporation, LG Electronics Inc., Carrier Corporation, and many more.
- June 2024: Carrier Corporation announced the launch of a new service-based model for comfort and energy solutions. Carrier's Cooling-as-a-Service offering enables customers to secure extended performance and consistent payments instead of facing an initial capital expense for system or equipment acquisitions. This innovative financial approach empowers customers to concentrate on their primary operations, leveraging Carrier's comprehensive expertise to ensure comfort and operational effectiveness.
- May 2024: Midea introduced the EVOX G3 heat pump system. This new iteration of the EVOX series consists of the EVOX G3 Heat Pump and EVOX G3 Air Handling Unit (AHU). Available in sizes ranging from 1.5-ton to 5-ton units, the Midea EVOX G3 heat pumps are equipped with Enhanced Vapor Injection (EVI) technology and a multi-layer heat exchanger, guaranteeing reliable warmth without the need for auxiliary heat, even in extreme weather conditions.
China HVAC Market Leaders
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Carrier Corporation
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LG Electronics Inc.
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Panasonic Corporation
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Lennox International Inc.
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Hitachi Ltd.
*Disclaimer: Major Players sorted in no particular order
China HVAC Market News
- March 2024: Panasonic Corporation announced that its Heating & Ventilation A/C Company (HVAC) plans to launch three new commercial air-to-water (A2W) heat pumps that utilize environmentally friendly natural refrigerants. These models are designed for use in multi-dwelling units, stores, offices, and other light commercial properties. With their compact designs, they are positioned at the top of the industry and will expand the company's lineup of models for standalone homes to fulfill a broad range of consumer needs.
- November 2023: Mitsubishi Electric Corporation announced that it has developed an aluminum vertical flat tube (VFT) design that improves heat exchanger performance by up to an unprecedented 40% in heat-pump air conditioners used for heating and cooling. Compared to conventional aluminum horizontal flat tube (HFT) heat exchangers, Mitsubishi Electric's new VFT heat exchanger also reduces refrigerant charge thanks to about up to 20% smaller internal volume compared to HFT designs.
China HVAC Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs
- 5.1.2 Increasing Demand for Energy Efficient Devices
- 5.1.3 Increased Construction and Retrofit Activity to Aid Demand
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5.2 Market Challenges
- 5.2.1 High Initial Cost of Energy Efficient Systems
6. MARKET SEGMENTATION
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6.1 By Type of Component
- 6.1.1 HVAC Equipment
- 6.1.1.1 Heating Equipment
- 6.1.1.2 Air Conditioning /Ventilation Equipment
- 6.1.2 HVAC Services
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6.2 By End-user Industry
- 6.2.1 Residential
- 6.2.2 Commercial
- 6.2.3 Industrial
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Johnson Controls International PLC
- 7.1.2 Carrier Corporation
- 7.1.3 Robert Bosch GmbH
- 7.1.4 Daikin Industries Ltd
- 7.1.5 Midea Group Co. Ltd
- 7.1.6 System Air AB
- 7.1.7 LG Electronics Inc.
- 7.1.8 Mitsubishi Electric Corporation
- 7.1.9 Danfoss A/S
- 7.1.10 Lennox International Inc.
- 7.1.11 Hitachi Ltd
- 7.1.12 Panasonic Corporation
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablityChina HVAC Industry Segmentation
Heating, ventilation, and air conditioning (HVAC) is a technology that ensures indoor and vehicular comfort by regulating thermal conditions and maintaining acceptable indoor air quality.
The study tracks the revenue accrued through the sale of HVAC equipment and services by various players in the Chinese market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The China HVAC market is segmented by components (HVAC equipment [heating equipment and air conditioning/ventilation equipment] and HVAC services) as well as the end-user industry (residential, commercial, and industrial). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type of Component | HVAC Equipment | Heating Equipment |
| Air Conditioning /Ventilation Equipment | ||
| By Type of Component | HVAC Services | |
| By End-user Industry | Residential | |
| Commercial | ||
| Industrial |
China HVAC Market Research FAQs
How big is the China HVAC Market?
The China HVAC Market size is expected to reach USD 51.17 billion in 2024 and grow at a CAGR of 7.83% to reach USD 74.60 billion by 2029.
What is the current China HVAC Market size?
In 2024, the China HVAC Market size is expected to reach USD 51.17 billion.
Who are the key players in China HVAC Market?
Carrier Corporation, LG Electronics Inc., Panasonic Corporation, Lennox International Inc. and Hitachi Ltd. are the major companies operating in the China HVAC Market.
What years does this China HVAC Market cover, and what was the market size in 2023?
In 2023, the China HVAC Market size was estimated at USD 47.16 billion. The report covers the China HVAC Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China HVAC Market size for years: 2024.
China HVAC Industry Report
Statistics for the 2024 China HVAC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China HVAC analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
