Market Trends of HVAC Services Industry
Residential Segment Holds Major Market Share
- The Population Reference Bureau estimated the global population to be 8.01 billion in 2023 from 7.9 billion in 2022. The degree of urbanization was 57% in 2023, and it is expected to increase in the coming years. The growing population, urbanization, and residential construction have resulted in a high demand for HVAC services in the residential sector, leading to the installation of new systems. In various regions, a proactive and preventative approach is adopted to maintain residential buildings to avert future problems. This encompasses the maintenance and repair of residential HVAC systems, including resolving leaks, corrosion, and any hot or cold air distribution issues.
- Regular maintenance and repairs are essential in the residential sector to ensure optimal performance of HVAC systems. One of the major advantages of regular HVAC maintenance and repairs is the ability to maximize the system's efficiency. Without proper maintenance, the system may face difficulties in functioning, resulting in increased energy consumption and higher costs in the long run. As the demand for efficient practices continues to rise in the residential sector, the need for HVAC services will also increase.
- In various regions like Europe, the United States, Asia, and others, a growing number of consumers are reducing their carbon consumption to combat global warming. To minimize the environmental impact, these consumers opt for HVAC services to upgrade or maintain their existing HVAC systems for heating and cooling purposes.
- For instance, in Europe, the Sustainable Energy Authority offers financial incentives to homeowners who install heat pump systems, enabling them to reduce their energy costs and decrease their carbon emissions. Such initiatives driving the adoption of HVAC services will increase the market's potential across the residential sector.
- The surge in the requirement for energy-efficient HVAC units in nations like India and China can be attributed to the area's escalating housing and population growth. With the construction of more residential properties, the demand for these equipment and services is rising. Furthermore, introducing new infrastructure development projects is anticipated to amplify the need for energy-efficient HVAC solutions, consequently boosting the demand for essential HVAC services.
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Asia-Pacific is Expected to Register the Fastest Growth
- China's 14th Five-Year Plan highlights new infrastructure projects in water systems, energy, transportation, and urbanization. According to estimates, overall investment in new infrastructure during the 14th Five-Year Plan period (2021-2025) is likely to reach approximately CNY 27 trillion (USD 4.2 trillion). The new plan emphasizes nine key items for green building development and energy efficiency. It calls for retrofitting over 350 million sq m of buildings and constructing over 50 million sq m of net zero energy consumption buildings. This is expected to boost the market studied.
- In India, with the rapidly growing IT infrastructure, companies are rigorously investing in new data centers, which is expected to propel the studied market. For example, in November 2022, Amazon Web Services announced the launch of its second infrastructure region in India, the AWS Asia-Pacific (Hyderabad) region. This second infra region offers customers more options to run workloads with greater resilience and availability, securely store data in India, and serve end users with lower latency. AWS has estimated the Hyderabad region will sustain more than 48,000 full-time jobs yearly through a planned investment of more than USD 4.4 billion in India by 2030.
- The construction industry in Japan is witnessing robust growth due to several investments in renewable energy, telecommunication, and manufacturing sectors, as well as the government's aim to cut greenhouse gas emissions and achieve carbon neutrality by 2050.
- Indonesia has one of Asia's major air conditioning markets, with estimates for economic growth and an increase in the middle-income class fueling predictions for additional growth in the air conditioner market, primarily for domestic use. Small-sized models account for most of the market because of their adaptability to the local electric power situation and particular home types in Indonesia.
- As a result, Indonesia is a prospective market for goods that may display great energy-saving efficiency, such as inverter-type air conditioners, while still meeting market demands. According to EIA, Indonesian homes are expected to add another 20 million air conditioners by 2030.
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