Status : Published Published On : Dec, 2021 Report Code : VRSME9089 Industry : Semiconductor & Electronics Available Format : Page : 250

Global HVAC Control Market – Analysis and Forecast (2021-2027)

Industry Insight by System (Temperature Control Systems, Ventilation Control Systems, Humidity Control Systems, and Integrated Control Systems), by Component (Sensors and Controllers and Controlled Devices), by Implementation Type (New Construction and Retrofit), by End-User (Residential, Commercial, and Industrial), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global HVAC controls market was valued at USD 14.67 billion in 2020 and is anticipated to reach USD 27.5 billion by 2027, registering a CAGR of 10.6% during the forecast period 2021-2027. The term "HVAC control" refers to the control system equipped with a sensing device that compares the current condition like temperature with a target state and regulates the functioning of air conditioning and heating systems in an enclosed space. Rapid industrialization has led to the mounting demand for heating and cooling equipment in several industries like mining and power generation.

HVAC Control Market Highlights

Moreover, the surge in energy bills and stringent regulations regarding environmental norms have enforced commercial organizations and industries to install HVAC controls. Furthermore, the mounting demand for remote access control systems during the COVID-19 pandemic that is easy to operate has led to significant growth in investments by commercial, residential, and industrial sectors in HVAC systems, resulting in advancement in HVAC control systems equipped with sensors.  According to the United Nations (UN), by 2050, around 68 percent of the world's population will be living in cities which will lead to an increase in industrial construction activities worldwide, thus necessitating the use of HVAC controls. Thus, the advancement in the infrastructure of residential, commercial, and industrial buildings has led to the rising demand for HVAC controls.

The COVID-19 pandemic has disrupted the global supply chain of HVAC equipment and other control components, resulting in a decline in HVAC controls across different industry verticals. Owing too social distancing norms, many HVAC businesses were forced to temporarily shut down, lay off employees, or operate remotely, resulting in a slow down of operation in the HVAC control industry.

Market Segmentation

Insight by System

Based on the system, the global HVAC controls market is categorized into temperature control systems, ventilation control systems, humidity control systems, and integrated control systems. The integrated control system market is anticipated to grow at a higher rate as it combines temperature, ventilation, light, and other control systems which provides users with the advantages of different features of various controls. It also integrates communication modes like Wi-Fi, cloud computing, and IoT, resulting in controlling, monitoring, and maintaining virtual HVAC systems from anywhere. The rising adoption of IoT in building infrastructure, mounting demand for smart homes, and rising demand for energy efficiency in buildings will accelerate the growth of integrated control systems.

Insight by Component

Based on component, the global HVAC controls market is bifurcated into sensors and controllers and controlled devices. The sensors segment is anticipated to register the highest growth rate and is an imperative component that is used to measure environmental variables like temperature and humidity. These sensors communicate information to the controllers and take appropriate actions. The advancement of wireless technology and its application in IoT and smartphones will further propel the growth of sensors in HVAC controls.

Insight by Implementation Type

Based on implementation type, the global HVAC control market is bifurcated into new construction and retrofit. Among the implementation type, the new construction segment dominates the HVAC controls market owing to robust infrastructural development, enhanced standard of living, and rising focus on energy-efficient HVAC systems.

Insight by End-User

Based on the end-user, the global HVAC control market is divided into residential, commercial, and industrial. The HVAC control for the residential segment dominates the market owing to favorable government regulations and tax credit facilities for the installation of HVAC systems, as well as the increased focus of end-users on lowering electricity bills. However, the COVID-19 has had an effect on the residential sector causing the market to decelerate. The increasing economic slowdown as a result of travel restrictions and reduced consumer demand as a result of lockdowns has had a significant impact on the HVAC controls market for the residential sector. Prices of HVAC control systems and related components and equipment are projected to rise as a result of the supply shortfall in nations like the United States, Australia, and Germany, which rely heavily on Chinese players for their operations.

Industry Dynamics

Industry Trends

The rapid climate change owing to uncertain climatic conditions and surge in global temperature will lead to deployment of HVAC control equipment in residential spaces to improve air quality are the key trends in the HVAC control market. Also, initiatives by the government to create a green, clean, and sustainable environment. by providing financial benefits to promote the use of energy-saving equipment in both residential and commercial spaces are the key trends in the HVAC control market.  

Growth Drivers

The mounting demand for remote control systems, growing R&D activities for the development of innovative HVAC control systems, expansion of infrastructure in industrial, residential, and commercial buildings, and rising population along with increasing disposable income in emerging economies will augment the growth of the HVAC control market. Furthermore, the growing initiatives by the government to increase investment in the construction sector, modernization of workplaces along the development of IoT technology in HVAC systems will drive the growth of the HVAC control market. Thus, the advantages offered by the HVAC systems include energy-efficient, enhanced results, and lifespan will fuel the growth of the market.

Challenges

The less adoption of HVAC controls due to lack of awareness among industry verticals, high cost, fluctuating raw material prices, and technical complexities related to installing and upgrading existing HVAC control systems may hinder the growth of the HVAC controls market. Moreover, the slowdown of HVAC control market growth owing to the spread of COVID-19 because it operates air-conditioning and ventilation systems may further have posed a challenge for the HVAC controls market.

Opportunities

The rising demand for cloud computing in HVAC and integration of smart devices with HVAC systems will create opportunities for growth in the HVAC controls market.

Geographic Overview

APAC is expected to contribute the fastest growth in the HVAC controls market. Owing to the rising HVAC control demand in the residential sector as a result of the rising population will fuel the growth in the region. The government is also promoting energy consumption practices that will accelerate the demand for energy-efficient HVAC systems. The surging construction of new residential and commercial buildings will accelerate the growth of HVAC controls and rising smart city projects along with government subsidies for HVAC manufacturers will further drive the growth of the HVAC controls market.

Competitive Insight

The industry players in the global HVAC controls market are highly competitive and are following strategies like M&A, joint venture, collaboration to sustain themselves in the market. The key players are investing in R&D to serve the mounting demand for advanced technology from developed economies.

Johnson environmental controls offer a complete revolution, with one-of-a-kind solutions that decrease installation, maintenance, and commissioning costs. They're easy to set up and install, and they're built and constructed to save energy and improve room/occupant comfort. The products offered include valves & actuators, sensors, thermostats, critical environmental controls, airflow control, energy solutions, and panels.

Carrier is a leading provider of heating, air-conditioning, and refrigeration solutions. Their rapid HVAC segment offers industry-leading solutions to enhance global comfort, productivity, and efficiency, Their innovative controls, and building automation systems will drive the future of intelligent and sustainable buildings.

In December 2021, Johnson Controls, one of the global leaders for smart, healthy, and sustainable buildings, is offering a novel solution to millions of Americans requiring efficient and environmentally sustainable home heating and cooling with Ultimate Home Comfort™, a 10-year residential HVAC leasing program in partnership with Fundient Capital LLC, thus saves energy cost of up to 53%.

In June 2021, Honeywell has partnered with Trane technologies to accelerate the transition to next-generation, environmentally preferable refrigerant via field testing Honeywell's Solstice® N41 (R-466A), the industry's first non-flammable alternative to R-410A.

DAIKIN INDUSTRIES, Ltd., Johnson Controls, Emerson Electric Co, Honeywell International Inc., Schneider Electric, Siemens, Trane Technologies plc, Carrier, ACUITY BRANDS LIGHTING, INC, and Lennox International Inc. are some of the key players in the HVAC control market.

HVAC Control Market Size and Market Analysis

Source: VynZ Research

Frequently Asked Questions

The global HVAC controls market was valued at USD 14.67 billion in 2020 and is anticipated to reach USD 27.5 billion by 2027, registering a CAGR of 10.6% during the forecast period 2021-2027.
Based on the end-user, the global HVAC control market is divided into residential, commercial, and industrial.
The growth in the construction sector, development of IoT-enabled HVAC systems, rising need to attain energy efficiency in buildings will accelerate the growth of the HVAC controls market.
Asia-Pacific is expected to contribute the fastest growth in the HVAC controls market.
DAIKIN INDUSTRIES, Ltd., Johnson Controls, Emerson Electric Co, Honeywell International Inc., Schneider Electric, Siemens, Trane Technologies plc, Carrier, ACUITY BRANDS LIGHTING, INC, and Lennox International Inc. are some of the key players in the HVAC control market

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
HVAC Control Market