Report Overview

An increasing consumer demand for comfort and the growing focus on building and offering energy-efficient systems are projected to propel the expansion of the Australia HVAC Market during the forecast period between 2023 and 2029.

Australia HVAC Market - Industry Trends & Forecast Report, 2029

Australia HVAC Market size was estimated at USD 1.09 billion in 2022. During the forecast period between 2023 and 2029, the size of Australia HVAC Market is projected to grow at a CAGR of 6.16% reaching a value of USD 1.56 billion by 2029. Major growth drivers for the Australia HVAC Market include the rising adoption of HVAC systems in residential applications, high population, growing industrial production and increasing construction and real estate industry. In response to escalating climatic extremities, a growing number of customers in certain countries are increasingly opting for HVAC systems. This heightened demand extends to various sectors, notably the food and beverage industry, where the integration of HVAC systems is on the rise due to increased efforts by local legislators to establish efficient cold supply chains for food. The transition from conventional industrial practices to modern manufacturing processes revealed a lack of temperature control systems in industries during climatic fluctuations, leading to the widespread adoption of HVAC systems in residential, commercial, and industrial settings. The surge in construction activities, particularly in the mid-tier building sector of Australia and New Zealand, is a significant factor contributing to the increased demand for HVAC. The rising demand for smart homes in these countries, coupled with rapid urbanization and industrialization, further fuels the demand for HVAC systems. Also, technological advancements such as IoT, automated control systems, and remote access are expected to boost the expansion of the Australia HVAC Market during the forecast period.

HVAC (Heating, Ventilation, and Air Conditioning) – Overview

The Australia HVAC (Heating, Ventilation, and Air Conditioning) Market refers to the industry that encompasses the design, manufacturing, installation, and servicing of systems and technologies related to heating, ventilation, and air conditioning within the Australian context. This market addresses the demand for climate control solutions in various sectors, including residential, commercial, and industrial settings. HVAC systems play a crucial role in regulating temperature, ensuring indoor air quality, and providing thermal comfort. The market's dynamics involve factors such as technological advancements, energy efficiency, infrastructure development, and government initiatives that influence the demand for HVAC products and services. As Australia experiences diverse climatic conditions, the HVAC market becomes integral in meeting the country's heating and cooling requirements across different applications.

Australia HVAC Market

Growth Drivers

Rising Focus on Energy-Efficient Systems

The Australia HVAC Systems Market is expected for substantial growth during the forecast period, driven by a heightened emphasis on energy-efficient systems. This surge is attributed to increased investments in the infrastructure industry, constituting 20% of Australia's GDP. The sector is expected to witness a total spending of approximately USD 750 million between 2020-2025, further fueled by the execution of 5,500 ongoing infrastructure construction projects valued at USD 647 billion. The 2021 Australian Infrastructure Plan, aligning with a visionary outlook until 2036, focuses extensively on sustainability and energy efficiency, revolutionizing the country's infrastructure landscape. As a result, the strategic approach is set to propel the growth of the Australia HVAC Systems market.

Restraints

High Installation Cost of HVAC System

The Australia HVAC Market faces a notable constraint in the form of the high installation cost of HVAC systems. This factor refers to the substantial expenses associated with the design, purchase, and installation of Heating, Ventilation, and Air Conditioning systems in various settings, including residential, commercial, and industrial spaces across Australia. The elevated upfront costs of acquiring and implementing HVAC technology act as a deterrent for potential consumers and stakeholders in the market. This economic barrier can limit widespread adoption, especially in sectors where budget considerations play a crucial role in decision-making. Addressing the challenge of high installation costs becomes essential for the sustained growth and broader accessibility of HVAC solutions in the Australian market.

Impact of Escalating Geopolitical Tensions on Australia HVAC Market

The Australia HVAC Market has been significantly impacted by intensifying geopolitical disruptions in recent times. For instance, the ongoing Russia-Ukraine conflict has disrupted supply chains, hindered the production processes essential for HVAC systems. As a result, uncertainties in sourcing crucial raw materials like copper, aluminum, steel, and plastic, integral to HVAC manufacturing, have emerged. These disruptions, creating a ripple effect, have further influenced consumer sentiment and prompted notable shifts in purchasing patterns within the HVAC sector. In addition, the sanctions imposed on Russia by the United States and other countries have reverberated globally, impacting the business landscape of HVAC manufacturers. Meanwhile, calls for economic disengagement from Russia by HVAC industry leaders may affect investments and influence the key players’ budget, thereby affecting affordability and the demand for HVAC systems and components. Beyond the war zones and disputed areas, collaborative research efforts and international partnerships that are crucial for the development of HVAC systems may face strain, potentially slowing down research and development in this field. In essence, these geopolitical tensions introduce uncertainties and challenges across various dimensions of the Australia HVAC Market.

Despite the current challenges posed by geopolitical tensions, there are potential growth opportunities for the Australia HVAC Market. Solutions involve tackling labor shortages, exploring 3D printing for alternative materials, forming strategic alliances, negotiating prices, optimizing logistics, managing geopolitical impacts through consumer education, and boosting efficiency with technology and staff training. These proactive measures enhance resilience, positioning the Australia HVAC industry to navigate supply chain challenges effectively and ensure sustained growth.

Australia HVAC Market

Segmental Coverage

Australia HVAC Market – By Offering

Based on offering, the Australia HVAC Market is bifurcated into Equipment and Services segments. The equipment segment is expected to hold a higher market share during the forecast period. The equipment segment is further divided into Heating, Ventilation, and Cooling subsegments. Among them, the cooling subsegment holds the highest share in the Australia HVAC Market. It can be attributed to several factors such as the country's diverse climate, where effective cooling solutions are essential for residential, commercial, and industrial spaces. The demand for air conditioning and refrigeration systems, driven by the need for thermal comfort and climate control, significantly contributes to the cooling sub-segment's market share. Additionally, advancements in cooling technologies, energy efficiency initiatives, and the rising awareness of environmental sustainability further elevate the significance and market presence of the cooling subsegment in the Australia HVAC Market.

Australia HVAC Market – By End User

Based on end user, the Australia HVAC Market is divided into Residential, Commercial, and Industrial segments. The commercial segment holds the highest share in the Australia HVAC Market by end user, due to the increasing demand for HVAC from offices and hotels. Current statistics indicate that, as of 2023, around 942,000 square feet of office space is in the construction phase in the country, accompanied by approximately 75 hotel and resort projects at various stages of development.

Competitive Landscape

Major players operating in the Australia HVAC Market include Blue Star Ltd, Daikin Industries Ltd, ETA General Pvt. Ltd, Ingersoll-Rand Plc, LG Electronics Inc., Mitsubishi Electric Corp., Samsung Electronics Co. Ltd, and United Technologies Corp. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2023 - Valeo, a key player in HVAC systems, is expanding its electric technology focus in the Australian market. Over the past decade, Valeo has emphasized electric advancements, secured contracts and growing its presence in Australia and New Zealand. The company now offers multiple electric air-conditioning units, including the REVO-E Global model used in Custom Denning electric buses.

• In November 2023 - Hispacold is expanding its presence in the Australian HVAC market, prioritizing air quality and comfort in buses and coaches. Hispacold's Breeze range, including the Breeze 200 Diesel and Breeze 200e/200HP, addresses Australian weather conditions, emphasizing energy efficiency and sustainability.

Scope of the Report

By Offering

• Equipment

• Services

By End User

• Residential

• Commercial

• Industrial