Market Trends of China Commercial HVAC Industry
Commercial Buildings is Expected to Witness a Significant Growth
- China holds a significant position in the global HVAC market, with heating accounting for 42% of total HVAC sales worldwide. The government of China is intensifying efforts to combat air quality concerns exacerbated by the nation's commercial activities to achieve carbon neutrality by 2060. For instance, according to the National Bureau of Statistics of China, in 2023, the total sales revenue from commercialized real estate sold in China amounted to around CNY 11.7 trillion (USD 1.61 trillion).
- In November 2023, Carrier Corporation hosted over 300 commercial HVAC dealers from various regions of China at its annual conference in Changsha. At the Commercial Equipment Market Opportunities event, Carrier's leadership highlighted the company's strategic investments in burgeoning sectors such as new energy, data centers, agriculture, and healthcare. The event highlighted the role of the HVAC industry in supporting China's dual carbon strategy by adopting intelligent and green building solutions.
- The commercial air conditioner industry is expected to experience significant growth in China in the coming years. Various trends, such as automated systems and environmentally friendly technology, are projected to impact the market substantially. The growing need for energy-efficient air conditioners is driving the expansion of this sector. Additionally, the growth of the commercial construction industry is playing a crucial role in the surging demand for air conditioners in China.
- Moreover, sensitive electronic components are located in data centers, and temperature, humidity, ventilation, and cleanliness must be maintained daily to avoid the breakdown of critical machinery. The growth in data centers is a crucial factor driving the demand for commercial ventilation equipment. Additionally, data center managers can use robust HVAC tools like AHUs to ensure that server rooms are kept at the right temperature and humidity.
Understand The Key Trends Shaping This Market
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HVAC Equipment is Expected to Hold Significant Market Share
- China's building sector is witnessing a rapid surge in energy demand for space cooling, exerting pressure on its electricity grid. This surge exacerbates local air pollution and escalates carbon dioxide (CO2) emissions. Over the past two decades, China has experienced the swiftest escalation in building cooling energy demand globally. China stands out as the sole primary market to witness growth in heat pump sales in 2023 amidst a global decline of 3%, as reported by the IEA. Despite its continued reliance on coal for heating, this shift underscores a notable trend in China's energy landscape.
- China is the largest manufacturer and exporter of heat pumps, accounting for approximately 40% of the global production. Notably, most of China's heat pump exports are directed towards Europe. China boasts the largest workforce globally specializing in heat pump installations, commanding a dominant market share exceeding 40% in heat pump manufacturing. The region's manufacturing capabilities will enhance the market's growth.
- Air conditioning (AC) systems are crucial in maintaining a comfortable environment for occupants in various commercial buildings, including restaurants, hospitals, schools, hotels, and office buildings. For instance, offices often rely on commercial AC (air conditioners) to ensure optimal temperature and ventilation, leading to improved employee productivity, working conditions, and health outcomes by avoiding issues related to improper humidity levels.
- For instance, in September 2023, Toshiba HVAC, a Carrier Global Corporation division, introduced its latest Digital Inverter (DI) series in mainland China. This new light commercial ductless split air-conditioning system boasts easy installation and energy-efficient, smart features. The DI series highlights the following: Energy Efficiency ensures load management and precise temperature control, enhancing user comfort while conserving energy.
