South Korea Commercial Hvac Market Size & Share Analysis - Growth, Trends, And Forecasts (2024 - 2029)

South Korea Commercial HVAC Market Analysis

The South Korea Commercial HVAC Market size is estimated at USD 1.54 billion in 2024, and is expected to reach USD 2.24 billion by 2029, growing at a CAGR of 7.85% during the forecast period (2024-2029).

• Innovations like smart HVAC systems, IoT integration, and energy-efficient technologies make modern HVAC systems more attractive due to their improved performance and cost savings. Further, the growing awareness of climate change and environmental sustainability encourages businesses to invest in energy-efficient HVAC systems to reduce their carbon footprint.
• Rapid urbanization and the construction of new commercial buildings, such as offices, shopping malls, and hospitals, increase the demand for HVAC systems in the commercial space. As per the data from the CIA, the urban population in South Korea reached 81.5% of the total population in 2023.
• The adoption of more efficient HVAC systems is being propelled by government regulations and policies that prioritize reducing energy consumption and greenhouse gas emissions. The Korean government has implemented a comprehensive national strategy to promote zero-energy buildings in response to climate change and energy challenges. This initiative is supported by a range of energy efficiency policies designed for both new constructions and existing structures.
• The Korean government has announced plans to enhance its Nationally Determined Contribution (NDC) to reduce total national GHG emissions by 4 0 % from 2018 levels (727.6MtCO2eq) by 2030 and achieve the goal of carbon neutrality by 2050.
• Seoul, which accounted for 68.7% of carbon emissions from buildings in 2019, has been implementing the Seoul Building GHG Reduction Project in line with the Korean government's policy stance to encourage low-carbon buildings. This was included as a major task in the ‘2050 Greenhouse Gas Reduction Plan' and 'Seoul Vision 2030.'
• Many businesses, particularly small and medium-sized enterprises, may find the initial investment in advanced HVAC systems to be cost-prohibitive. Moreover, high energy costs are impacting the overall operating expenses of businesses, making them hesitant to invest in new or upgraded HVAC systems.
• The Russia-Ukraine war has had several indirect impacts on the HVAC market in South Korea. The war has disrupted global supply chains, affecting the avilability of raw materials and components needed for manufacturing HVAC systems. This has led to delays and increased costs in production. The conflict has caused fluctuations in energy prices, particularly oil and gas. Higher energy costs can increase the operational expenses for HVAC systems and drive demand for more energy-efficient solutions.

South Korea Commercial HVAC Market Trends

HVAC Equipment is Expected to have a Significant Growth

South Korea Commercial HVAC Industry Segmentation

HVAC equipment and services encompass a wide range of products and activities aimed at providing and maintaining indoor climate control. For market estimation, the revenue generated from the sale of commercial heating, ventilation, and air conditioning equipment is being tracked, which is offered by different market players for a diverse range of end-users. The market trends are evaluated by analyzing the investments made in product innovation, diversification, and expansion.

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