WELLESLEY, Mass., Aug. 10, 2018 (GLOBE NEWSWIRE) -- Increasing adoption of smart systems and automation technology, particularly in the Asia-Pacific region, are two factors helping to boost growth of the global HVAC market, according to a report by BCC Research.

The industry expects to see a compound annual growth rate (CAGR) of 6.2% through 2023, when it could be worth more than $133.2 billion, according to the report Heating, Ventilation and Air Conditioning: Global Markets.

Major players in the market include AAON, Carrier Corp., Daikin Industries, Electrolux, Gree Electric Appliances, Haier Group, Honeywell International, Johnson Controls International, Lennox International, Mitsubishi Electric Corp., Panasonic Corp., Samsung Electronics and Siemens.

Research Highlights

• Growth will be strongest in the Asia-Pacific region, which expects a CAGR through 2023 of 8.1% and a market value of $65.5 billion. Europe expects a CAGR of 6.2% while North America anticipates a CAGR of just 2.2%.
• Smart HVAC systems anticipate a CAGR of 7.9% compared to a CAGR of 5.0% for traditional systems, though traditional systems will continue to lead the market by size with an expected 2023 value of $76.5 billion.
• For smart HVAC systems, growth will be strongest in the Asia-Pacific region, which anticipates a CAGR of 9.9% through 2023, while Europe will see a CAGR of 7.9% and North America anticipates a CAGR of 3.8%.

“The HVAC systems market is driven by growth in industrial and home automation technology, increasing demand for automated vehicle functions in the automotive sector and a surge in sensor adoption in multiple industries,” the report notes. “Additionally, advancements in the connectivity technology, Internet of Things (IoT) is expected to boost market growth in coming years. However, factors such as high regional competition, sensor pricing and difficulty in sensor-to-sensor communication techniques are some of the major hurdles expected for the market.”

Market Restrained by Competitive Pricing, Communication Challenges

The need to deliver high-performance, low-cost products is challenging manufacturers, and companies are differentiating their products by marketing them at competitive prices. This price competition, the report notes, has put pressure on manufacturers and suppliers, which have turned to market development strategies such as partnerships, new product launches and acquisitions. A further challenge is the need to ensure accurate signal exchanges between various devices. The presence of many different protocols has made integration difficult; a common protocol will need to be adopted and an effective supply chain management system must be established.

About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.