Market Trends of Asia Pacific Commercial HVAC Industry
Commercial Buildings Segment is Expected to Hold Significant Share
- HVAC systems are essential to any commercial building, such as restaurants, hospitals, schools, hotels, office buildings, etc., to provide occupants with a comfortable environment. For instance, HVAC systems are commonly used in many offices to provide appropriate temperature and ventilation conditions, which helps improve employee productivity and working conditions and prevent health issues caused by improper humidity levels.
- The regional commercial sector's HVAC market is predicted to increase throughout the forecast period owing to several trends, from automated systems to green and smart technology, which are anticipated to be crucial in determining the direction of the commercial HVAC market. The increasing demand for environmentally friendly and energy-efficient HVAC systems drives the segment's expansion. The development of the commercial construction sector plays a significant role in the rise of heat pumps, ACs, air handlers, and other HVAC equipment.
- For instance, several rules have altered the engineering of commercial rooftop air conditioners, heat pumps, and warm-air systems for low-rise buildings like retail outlets, educational facilities, and mid-level hospitals to increase RTU efficiency and reduce energy use and waste. The phasing out of CFC (chlorofluorocarbon) and HCFC (hydrochlorofluorocarbon) by several manufacturers has increased the demand for solutions to replace outdated models, which has increased the use of heat pumps.
- Energy consumption in the commercial sectors is gradually increasing in several regional countries, fueling the market's growth to innovate energy-efficient HVAC products. For instance, in China, the secondary sector, which includes commercial and industrial sectors, accounted for 6,070 terawatt hours of electricity consumption.
Understand The Key Trends Shaping This Market
Download PDF
China is Expected to Witness Significant Growth in the Market
- The demand for commercial HVAC equipment in the region has witnessed significant growth opportunities over the past few years. China is one of the essential markets for data center cooling due to the exponential growth in the number of data centers and the government’s policies to support more energy-efficient infrastructure in the country. According to Cloudscene, China has the most significant number of data centers in Asia, with 448.
- In March 2024, an official from China's Ministry of Industry and Information Technology (MIIT) announced that China is gearing up to pilot the opening-up of internet data centers. As China pushes for new industrialization, it is imperative to deepen reforms and broaden its scope of opening-up. Notably, China has made headlines by declaring a complete removal of restrictions on foreign investments in manufacturing. In tandem, the MIIT is gearing up to test the waters by opening up value-added telecommunications services, with a specific focus on internet data centers. This expansion offers a massive opportunity for the vendors in the market studied.
- The construction industry in China has witnessed massive growth due to sustainable construction policies and a shift toward a service-led economy over the past few years. Investing in large-scale infrastructure projects has been a vital part of the Chinese government’s strategy to boost growth. According to EPRA, as of December 2023, China's commercial real estate market was worth nearly as much as all Asia-Pacific combined, which was USD 5.6 trillion.
- The increase in commercial buildings is estimated to affect national energy consumption directly, which is why the Chinese government has taken energy management seriously. Two laws, the Energy Saving Law and Renewable Energy Law, provide the main guidelines for building energy systems and HVAC industries.
Get Analysis on Important Geographic Markets
Download PDF
