HVAC Electronics Market Expected to Reach $38 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “HVAC Electronics Market," The HVAC Electronics Market size was valued at $21.9 billion in 2021, and is estimated to reach $38 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031.

Commonly observed types of HVAC electronics are cooling equipment, heating equipment, and ventilation equipment. Among these, the temperature electronics system segment accounts for the largest market size by value in 2020, owing to increase in demand from various industries such as construction and manufacturing. The market is analyzed with respect to different applications in industrial verticals such as industrial, commercial, and residential. The market is mainly driven by global economic growth and development in residential, commercial, and industrial sectors. However, fluctuations in raw material prices and complexity of upgrading HVAC systems limit the growth of the HVAC electronics market.

In 2021, Asia-Pacific accounted the highest HVAC Electronics Market share in terms of revenue, followed by Europe and North America. Moreover, the market in Asia-Pacific is growing with a high CAGR, owing to urbanization and industrial development in countries such as China, India, and Japan.

Moreover, favorable government policies to promote industries such as automotives and food & beverages across the globe drives demand for the HVAC electronics market. In addition, increase in infrastructure spending and growth in demand for cooling and heating systems in the residential and commercial sectors propel demand for HVAC electronics.

Furthermore, on the basis of end users, the commercial segment is anticipated to grow rapidly during the forecast period, owing to rise in commercial projects such as malls, hotels, and resorts as well as growth in initiatives for smart cities. For instance, in February 2020, the government of the UAE passed a tender of $2.7 billion for infrastructure projects under its public-private partnership (PPP) model. These infrastructure projects include industrial and commercial structures. Similarly, in October 2020, the government of South Korea and the Inter-American Development Bank (IDB) collaborated to invest around $1.3 billion in Latin American smart city projects. Such factors drive the HVAC electronics market growth.

However, during the COVID-19 pandemic, various manufacturers in the HVAC electronics market had to stop their business in countries such as China, the U.S., and India. This break directly impacted the sales of HVAC electronics companies. In addition, lack of manpower and raw materials constricted the supply of equipment of HVAC electronics systems, which negatively influenced the growth of the market. However, the reopening of production facilities and introduction of vaccines for coronavirus disease are anticipated to lead to the re-opening of HVAC electronics companies.

Key Findings of The Study

• The report provides an extensive analysis of the current and emerging global HVAC electronics market trends and dynamics. 
• Depending on type, the cooling equipment segment has dominated the market, in terms of revenue in 2021 and ventilation equipment segment is projected to grow at a significant CAGR during the HVAC electronics market forecast period.
• By end user, the commercial segment has registered the highest revenue in 2021.
• By installation type, the new construction segment has registered the highest revenue in 2021.
• Asia-Pacific is projected to register the highest growth rate in the coming years.
• The key players within the global HVAC electronics market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the HVAC electronics industry.
• The report provides an extensive analysis of the current trends and emerging opportunities of the market.
• In-depth global HVAC electronics market analysis is conducted by constructing estimations for the key segments between 2022 and 2031.