HVAC Equipment Market

The article provides a comprehensive analysis of the global HVAC equipment market, highlighting trends, forecasts, and growth patterns. It covers market performance, consumption volume and value, production levels, and export-import dynamics. Key insights include the expected CAGR of +1.3% for volume and +3.8% for value from 2022 to 2030, with China leading in production and exports. The article also discusses the major types of HVAC equipment, import-export prices, and the key consuming and producing countries. Overall, the analysis offers a detailed overview of the HVAC equipment market and its future prospects.

Market Forecast

Driven by increasing demand for HVAC equipment worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.3% for the period from 2022 to 2030, which is projected to bring the market volume to 1.6B units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.8% for the period from 2022 to 2030, which is projected to bring the market value to $308.2B (in nominal prices) by the end of 2030.

Consumption

World Consumption of HVAC Equipment

For the third year in a row, the global market recorded growth in consumption of HVAC equipment, which increased by 16% to 1.5B units in 2022. The total consumption volume increased at an average annual rate of +4.8% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Global consumption peaked in 2022 and is expected to retain growth in the near future.

The global HVAC equipment market revenue rose to $229.2B in 2022, increasing by 4.9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.9% from 2012 to 2022; however, the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2018 when the market value increased by 9.1% against the previous year. Over the period under review, the global market reached the maximum level in 2022 and is expected to retain growth in years to come.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the United States (189M units), China (183M units) and Thailand (105M units), with a combined 32% share of global consumption.

From 2012 to 2022, the biggest increases were recorded for Thailand (with a CAGR of +16.8%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, Japan ($13.2B), the United States ($11.4B) and China ($10.4B) were the countries with the highest levels of market value in 2022, together comprising 15% of the global market. India, Mexico, Germany, Thailand, Italy, Turkey, Poland, the Netherlands, Brazil and Hong Kong SAR lagged somewhat behind, together accounting for a further 17%.

Poland, with a CAGR of +13.7%, recorded the highest growth rate of market size in terms of the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of HVAC equipment per capita consumption in 2022 were the Netherlands (1,550 units per 1000 persons), Thailand (1,496 units per 1000 persons) and Poland (718 units per 1000 persons).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consuming countries, was attained by Poland (with a CAGR of +16.6%), while consumption for the other global leaders experienced more modest paces of growth.

Consumption By Type

Non-household ventilation fans (1B units) constituted the product with the largest volume of consumption, accounting for 69% of total volume. Moreover, non-household ventilation fans exceeded the figures recorded for the second-largest type, electric radiators and convection heaters (232M units), fourfold. The third position in this ranking was held by non-domestic heat exchange units (83M units), with a 5.7% share.

From 2012 to 2022, the average annual growth rate of the volume of non-household ventilation fans consumption stood at +6.2%. For the other products, the average annual rates were as follows: electric radiators and convection heaters (+1.4% per year) and non-domestic heat exchange units (+3.5% per year).

In value terms, the largest types of HVAC equipment in terms of market size were non-domestic heat exchange units ($70.7B), non-household ventilation fans ($51.7B) and non-window or wall air conditioning machines ($41.4B), together accounting for 82% of the global market.

In terms of the main consumed products, non-household ventilation fans, with a CAGR of +8.4%, recorded the highest growth rate of market size over the period under review, while market for the other products experienced more modest paces of growth.

Production

World Production of HVAC Equipment

In 2022, production of HVAC equipment was finally on the rise to reach 1.4B units after three years of decline. Overall, the total production indicated measured growth from 2012 to 2022: its volume increased at an average annual rate of +3.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 with an increase of 71% against the previous year. Global production peaked in 2022 and is likely to see steady growth in years to come.

In value terms, HVAC equipment production dropped to $204.7B in 2022 estimated in export price. The total output value increased at an average annual rate of +1.5% over the period from 2012 to 2022; however, the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The pace of growth appeared the most rapid in 2018 when the production volume increased by 14%. Over the period under review, global production attained the peak level at $214.6B in 2019; however, from 2020 to 2022, production failed to regain momentum.

Production By Country

The country with the largest volume of HVAC equipment production was China (762M units), comprising approx. 55% of total volume. Moreover, HVAC equipment production in China exceeded the figures recorded by the second-largest producer, Thailand (99M units), eightfold. India (66M units) ranked third in terms of total production with a 4.7% share.

In China, HVAC equipment production increased at an average annual rate of +2.1% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Thailand (+24.1% per year) and India (+3.7% per year).

Production By Type

Non-household ventilation fans (922M units) constituted the product with the largest volume of production, comprising approx. 66% of total volume. Moreover, non-household ventilation fans exceeded the figures recorded for the second-largest type, electric radiators and convection heaters (238M units), fourfold. The third position in this ranking was taken by window or wall air conditioning systems, self-contained or split-systems (99M units), with a 7.2% share.

From 2012 to 2022, the average annual growth rate of the volume of non-household ventilation fans production totaled +3.3%. For the other products, the average annual rates were as follows: electric radiators and convection heaters (+1.9% per year) and window or wall air conditioning systems, self-contained or split-systems (+4.1% per year).

In value terms, non-domestic heat exchange units ($70.8B), non-window or wall air conditioning machines ($45.1B) and non-household ventilation fans ($38.1B) constituted the products with the highest levels of production in 2022, with a combined 80% share of global production. Window or wall air conditioning systems, self-contained or split-systems, heat pumps other than air conditioning machines, electric radiators and convection heaters and electric storage heating radiators lagged somewhat behind, together accounting for a further 20%.

In terms of the main produced products, electric storage heating radiators, with a CAGR of +5.1%, saw the highest rates of growth with regard to market size over the period under review, while production for the other products experienced more modest paces of growth.

Imports

World Imports of HVAC Equipment

For the third consecutive year, the global market recorded growth in purchases abroad of HVAC equipment, which increased by 5.3% to 1.3B units in 2022. Overall, total imports indicated a prominent expansion from 2012 to 2022: its volume increased at an average annual rate of +5.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +68.8% against 2016 indices. The pace of growth appeared the most rapid in 2021 with an increase of 25%. Global imports peaked in 2022 and are likely to see gradual growth in years to come.

In value terms, HVAC equipment imports stood at $69.9B in 2022. The total import value increased at an average annual rate of +4.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 when imports increased by 20% against the previous year. Global imports peaked in 2022 and are likely to see gradual growth in the near future.

Imports By Country

The countries with the highest levels of HVAC equipment imports in 2022 were the United States (217M units), Hong Kong SAR (161M units) and China (129M units), together accounting for 38% of total import. Germany (72M units) took a 5.4% share (based on physical terms) of total imports, which put it in second place, followed by Mexico (4.7%). Thailand (46M units), Taiwan (Chinese) (44M units), the Netherlands (38M units), Italy (34M units), Poland (30M units), Turkey (30M units), Brazil (29M units) and Japan (26M units) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Poland (with a CAGR of +15.3%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($10B) constitutes the largest market for imported HVAC equipment worldwide, comprising 14% of global imports. The second position in the ranking was taken by Germany ($4.5B), with a 6.4% share of global imports. It was followed by Japan, with a 4.3% share.

In the United States, HVAC equipment imports increased at an average annual rate of +5.9% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Germany (+6.7% per year) and Japan (-0.2% per year).

Imports By Type

Non-household ventilation fans was the main type of HVAC equipment in the world, with the volume of imports accounting for 1B units, which was near 77% of total imports in 2022. Electric radiators and convection heaters (186M units) ranks second in terms of the total imports with a 14% share, followed by window or wall air conditioning systems, self-contained or split-systems (5.3%). Non-domestic heat exchange units (32M units) held a little share of total imports.

Imports of non-household ventilation fans increased at an average annual rate of +5.8% from 2012 to 2022. At the same time, non-domestic heat exchange units (+9.4%), electric radiators and convection heaters (+5.7%) and window or wall air conditioning systems, self-contained or split-systems (+3.3%) displayed positive paces of growth. Moreover, non-domestic heat exchange units emerged as the fastest-growing type imported in the world, with a CAGR of +9.4% from 2012-2022. The shares of the largest types remained relatively stable throughout the analyzed period.

In value terms, window or wall air conditioning systems, self-contained or split-systems ($18.4B), non-household ventilation fans ($16.6B) and non-window or wall air conditioning machines ($12.8B) constituted the products with the highest levels of imports in 2022, with a combined 68% share of global imports. Non-domestic heat exchange units, heat pumps other than air conditioning machines, electric radiators and convection heaters and electric storage heating radiators lagged somewhat behind, together comprising a further 32%.

In terms of the main imported products, heat pumps other than air conditioning machines, with a CAGR of +11.6%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other products experienced more modest paces of growth.

Import Prices By Type

In 2022, the average HVAC equipment import price amounted to $53 per unit, rising by 4.9% against the previous year. Overall, the import price, however, continues to indicate a mild curtailment. The most prominent rate of growth was recorded in 2014 when the average import price increased by 8.8%. As a result, import price attained the peak level of $62 per unit. From 2015 to 2022, the average import prices remained at a lower figure.

There were significant differences in the average prices amongst the major imported products. In 2022, the product with the highest price was heat pumps other than air conditioning machines ($2,722 per unit), while the price for non-household ventilation fans ($16 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by heat pump (+7.4%), while the other products experienced mixed trends in the import price figures.

Import Prices By Country

In 2022, the average HVAC equipment import price amounted to $53 per unit, with an increase of 4.9% against the previous year. Overall, the import price, however, recorded a mild decline. The pace of growth appeared the most rapid in 2014 an increase of 8.8%. As a result, import price reached the peak level of $62 per unit. From 2015 to 2022, the average import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Japan ($114 per unit), while Hong Kong SAR ($6.5 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Hong Kong SAR (+3.5%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of HVAC Equipment

Global HVAC equipment exports amounted to 1.2B units in 2022, flattening at the previous year's figure. Overall, exports continue to indicate a notable increase. The growth pace was the most rapid in 2018 when exports increased by 73%. The global exports peaked in 2022 and are likely to see gradual growth in the near future.

In value terms, HVAC equipment exports expanded markedly to $71.7B in 2022. The total export value increased at an average annual rate of +4.5% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 when exports increased by 18% against the previous year. The global exports peaked in 2022 and are expected to retain growth in the immediate term.

Exports By Country

In 2022, China (709M units) was the major exporter of HVAC equipment, making up 57% of total exports. Hong Kong SAR (130M units) held a 10% share (based on physical terms) of total exports, which put it in second place, followed by Germany (5.4%). Thailand (40M units), Taiwan (Chinese) (32M units), the United States (29M units), Kyrgyzstan (28M units), Mexico (21M units), the Netherlands (21M units) and Italy (20M units) held a relatively small share of total exports.

Exports from China increased at an average annual rate of +4.1% from 2012 to 2022. At the same time, Kyrgyzstan (+103.4%), the Netherlands (+16.0%), Thailand (+12.8%), Mexico (+8.6%), the United States (+3.7%), Italy (+3.6%), Taiwan (Chinese) (+2.4%) and Germany (+2.3%) displayed positive paces of growth. Moreover, Kyrgyzstan emerged as the fastest-growing exporter exported in the world, with a CAGR of +103.4% from 2012-2022. By contrast, Hong Kong SAR (-1.9%) illustrated a downward trend over the same period. While the share of Kyrgyzstan (+2.3 p.p.), China (+2 p.p.) and Thailand (+1.8 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of Hong Kong SAR (-7.8 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($22.3B) remains the largest HVAC equipment supplier worldwide, comprising 31% of global exports. The second position in the ranking was taken by Thailand ($6.7B), with a 9.4% share of global exports. It was followed by Germany, with an 8.2% share.

In China, HVAC equipment exports increased at an average annual rate of +5.4% over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Thailand (+6.2% per year) and Germany (+2.3% per year).

Exports By Type

In 2022, non-household ventilation fans (920M units) represented the key type of HVAC equipment, generating 74% of total exports. Electric radiators and convection heaters (192M units) ranks second in terms of the total exports with a 15% share, followed by window or wall air conditioning systems, self-contained or split-systems (7.2%). Non-domestic heat exchange units (22M units) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to non-household ventilation fans exports of stood at +3.0%. At the same time, non-domestic heat exchange units (+13.9%), electric radiators and convection heaters (+6.4%) and window or wall air conditioning systems, self-contained or split-systems (+4.4%) displayed positive paces of growth. Moreover, non-domestic heat exchange units emerged as the fastest-growing type exported in the world, with a CAGR of +13.9% from 2012-2022. From 2012 to 2022, the share of electric radiators and convection heaters increased by +3.5 percentage points. The shares of the other products remained relatively stable throughout the analyzed period.

In value terms, the largest types of exported HVAC equipment were window or wall air conditioning systems, self-contained or split-systems ($20.7B), non-household ventilation fans ($15.9B) and non-domestic heat exchange units ($12.7B), with a combined 69% share of global exports. Non-window or wall air conditioning machines, heat pumps other than air conditioning machines, electric radiators and convection heaters and electric storage heating radiators lagged somewhat behind, together accounting for a further 31%.

Among the main exported products, heat pumps other than air conditioning machines, with a CAGR of +9.1%, recorded the highest growth rate of the value of exports, over the period under review, while shipments for the other products experienced more modest paces of growth.

Export Prices By Type

In 2022, the average HVAC equipment export price amounted to $57 per unit, rising by 10% against the previous year. Overall, the export price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 an increase of 58%. Over the period under review, the average export prices hit record highs at $92 per unit in 2016; however, from 2017 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major exported products. In 2022, the product with the highest price was heat pumps other than air conditioning machines ($2,155 per unit), while the average price for exports of non-household ventilation fans ($17 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by heat pump (+3.5%), while the other products experienced mixed trends in the export price figures.

Export Prices By Country

The average HVAC equipment export price stood at $57 per unit in 2022, rising by 10% against the previous year. In general, the export price showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 when the average export price increased by 58% against the previous year. The global export price peaked at $92 per unit in 2016; however, from 2017 to 2022, the export prices failed to regain momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Italy ($198 per unit), while Kyrgyzstan ($0.1 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Hong Kong SAR (+3.5%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform