South Korea HVAC Market Size (2024 - 2029)

South Korea HVAC Market Analysis

The South Korea HVAC Market size is estimated at USD 10.04 billion in 2024, and is expected to reach USD 13.94 billion by 2029, growing at a CAGR of 6.79% during the forecast period (2024-2029).

• HVAC equipment is necessary for maintaining a comfortable environment within industrial, residential, and commercial buildings. For instance, these systems are commonly found in office spaces to regulate temperature and ensure proper ventilation, ultimately enhancing employee efficiency and well-being while reducing potential health hazards associated with poor humidity control.
• The South Korean HVAC market is anticipated to experience significant growth in the coming years owing to rising disposable incomes, expanding construction activity, and a greater emphasis on energy efficiency.
• In 2023, the Construction Association of Korea reported that the value of domestic construction orders from private owners in South Korea reached about KRW 125.5 trillion (USD 0.091 trillion), making private owners the primary contributors to the total value of construction orders received. The total value of domestic construction orders was approximately KRW 190 trillion (USD 0.14 trillion).
• Furthermore, the government's rising initiative to increase the private housing sector is expected to drive the country's demand for HVAC equipment and services. For instance, in September 2023, the South Korean government plans to provide an additional 120,000 public homes on top of the current initiative to construct 2.7 million new homes by 2027 to counteract the decrease in private-sector home supply due to increased lending rates.
• 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 the market’s growth.
• The HVAC market in South Korea is fragmented, with a large number of players occupying a small market share. Prominent vendors operating in the HVAC market are focusing on new product development, strategic partnerships, acquisition, and expansion to meet the growing customer demand, further supporting the market’s growth.
• Moreover, ground source heat pumps (GSHP) are gaining popularity in South Korea for both space heating and cooling. With the country's limited availability of high-temperature geothermal energy sources, the primary direct geothermal uses are public baths (25-40°C) and geothermal heat pumps (~15°C) that utilize low-temperature groundwater or ground sources.
• In March 2023, South Korean researchers successfully developed a heat trading system for district heating during peak solar production hours. This innovative system includes a ground-source heat pump, solar thermal collectors, a fuel-cell system, and two heat storage tanks. These advancements are expected to contribute to the market's growth.
• Moreover, the HVAC market in South Korea is highly affected by macroeconomic factors such as government regulations and new initiatives to boost the adoption of energy-efficient equipment. In addition to this, the increase in inflation typically results in higher expenses for materials, labor, and energy in the production and installation of HVAC systems, often resulting in higher prices for new installations.

South Korea 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 South Korean 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 during 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 South Korean HVAC market is segmented by components (HVAC equipment [heating equipment and air conditioning/ventilation equipment] and HVAC services) and by end-user industry (residential, commercial, industrial). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.