Canada Commercial HVAC Market Size (2024 - 2029)

Canada Commercial HVAC Market Analysis

The Canada Commercial HVAC Market size is estimated at USD 1 billion in 2024, and is expected to reach USD 1.42 billion by 2029, growing at a CAGR of 7.21% during the forecast period (2024-2029).

• The commercial HVAC market in Canada encompasses a broad range of HVAC products and services related to heating, ventilation, and cooling equipment for commercial applications. Various factors, including government measures and policies, growing adoption of smart HVAC systems, and emphasis on energy efficiency, influence the adoption of HVAC equipment like heat pumps in the country.
• The IEA stated that Canada is considering introducing a new regulation requiring heating technologies to exceed an efficiency factor of 1 (equivalent to 100% equipment efficiency) by 2030. This proposed regulation would effectively prohibit using traditional coal, oil, and gas-fired boilers. Furthermore, the increasing need to decrease dependence on fossil fuels and explore energy-efficient alternatives for furnaces and cooling equipment is expected to drive the demand for heat pumps in Canada in the coming years.
• Heat pumps present a significant opportunity for Manitobans. One key reason is their potential to save residents money on heating costs. For instance, in November 2023, the Manitoba government committed to funding the installation of 5,000 geothermal heat pumps across the province. Unlike air-source heat pumps, which rely on outside air, geothermal heat pumps extract heat from the ground, enabling them to function effectively even in colder climates.
• The cost of an HVAC system hinges on many factors, including the size of the commercial building, the specific HVAC system and brand chosen, prevailing climatic conditions, and ductwork dimensions. High HVAC equipment costs often translate to prolonged payback periods for consumers. Moreover, as the market increasingly favors advanced solutions, such as swapping traditional heat pumps for geothermal alternatives, these trends are poised to increase HVAC prices, potentially stunting market growth.
• Macroeconomic factors wield substantial influence over market dynamics, especially in sectors such as commercial. Government regulations and regional initiatives further shape the commercial landscape. Notably, commercial growth fluctuations closely track the demand for HVAC equipment. Additionally, rising inflation tends to elevate the costs of materials, labor, and energy in HVAC system production and installation, frequently leading to increased prices for new installations.

Canada Commercial HVAC Industry Segmentation

HVAC is a broad array of heating and cooling systems regulating indoor temperature and humidity. Beyond temperature control, these systems enhance indoor air quality through mechanical ventilation and filtration. The HVAC systems include heat pumps, central air conditioners, ductless mini-splits, furnaces, air handling units, and boilers. Additionally, HVAC encompasses the extensive refrigeration systems found in commercial structures.

The study tracks the revenue accrued through the sale of HVAC products in the commercial sector by various players in Canada. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.

The Canada Commercial HVAC market is segmented by type of component (HVAC equipment [heating equipment, air conditioning /ventilation equipment], HVAC services) and by end-user industry (hospitality, commercial buildings, public buildings, and others). The market sizes and forecasts are provided in value (USD) for all the above segments.