China HVAC Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

China HVAC Market Analysis

The China HVAC Market size is estimated at USD 51.17 billion in 2024, and is expected to reach USD 74.60 billion by 2029, growing at a CAGR of 7.83% during the forecast period (2024-2029).

• HVAC systems play an essential role in creating comfortable environments in industrial, residential, and commercial structures. In office settings, they regulate temperatures, ensure adequate ventilation, and, in turn, boost employee productivity and well-being while mitigating health risks linked to inadequate humidity control.
• In China, a huge number of people have been migrating from rural areas to cities, which is raising government and private spending on housing, commercial construction, and infrastructure. New building constructions are creating significant demand for new equipment installations of heating, ventilation, and air-conditioning systems.
• The government in the country is focusing on expanding the residential sector and renovating industrial and commercial buildings to increase the energy efficiency of the buildings, further propelling the demand for HVAC. For instance, in April 2024, the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector was recently introduced by China's Ministry of Industry and Information Technology (MIIT) in collaboration with six other departments.
• This strategic plan focuses on key aspects of technological advancement and economic growth, showcasing China's commitment to improving competitiveness and sustainability in the manufacturing industry. The emphasis on industrial equipment modernization highlights its significance as a primary policy objective.
• Moreover, the demand for HVAC in the country is increasing due to a significant surge in demand for industrial boilers. China is rapidly emerging as a global manufacturing hub, and its large populations offer lucrative growth prospects for industries such as food & beverages, consumer goods, textiles, and more. This crucial factor is expected to drive the growth of the industrial boilers market in China in the near future.
• An HVAC system comprises various components, including home size, HVAC type, brand, labor expenses, climate, ductwork size, and energy efficiency. These components result in a significant overall cost, which hampers market growth.
• The HVAC market in China is fragmented, with a large number of players occupying a small market share. Vendors operating in the China HVAC market mainly focus on new product development, strategic partnership, acquisition, and expansion to meet the growing customer demand, further supporting the market growth.
• For instance, in January 2024, Daikin announced the launch of variable refrigerant volume (VRV) 7 series variable refrigerant flow (VRF) systems that realize the industry's top-level energy-saving performance by strengthening seven features required by air conditioning equipment, for example, adopting low-global warming potential (GWP) refrigerant R32 that is excellent in environmental adaptability and energy savings and in improving basic performance, and also contributes to reducing the environmental burden and the workload.
• Furthermore, the HVAC market in China is highly affected by macroeconomic factors such as government regulations and new initiatives to boost the adoption of energy-efficient equipment. With the rise in housing costs, local authorities throughout China obtained significant non-tax income from land leases and subsequently allocated the funds toward infrastructure initiatives. As a result, the construction sector in the nation experienced ongoing growth, thus fuelling the market growth.

China HVAC Market Trends

HVAC Equipment Segment Holds Significant Market Share

China HVAC Industry Segmentation

Heating, ventilation, and air conditioning (HVAC) is a technology that ensures indoor and vehicular comfort by regulating thermal conditions and maintaining acceptable indoor air quality.

The study tracks the revenue accrued through the sale of HVAC equipment and services by various players in the Chinese market. 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 China HVAC market is segmented by components (HVAC equipment [heating equipment and air conditioning/ventilation equipment] and HVAC services) as well as the end-user industry (residential, commercial, and industrial). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.