Report Overview

A surging demand for HVAC (heating, ventilation, and air conditioning) systems for an increasing number of reconstruction and construction projects and a growing focus on energy efficiency are expected to boost the growth of Israel HVAC Market during the forecast period between 2025 and 2031.

Israel HVAC Market - Industry Trends & Forecast Report, 2031

Israel HVAC Market size was estimated to be worth USD 725.28 million in 2024. During the forecast period between 2025 and 2031, Israel HVAC Market size is projected to grow at a CAGR of 4.5%, reaching a value of USD 987 million by 2030. Major growth factors for Israel HVAC Market include a spurring demand for HVAC systems and an increasing number of sustainable and energy-efficient commercial and industrial buildings driven by climate change. In addition, the increasing integration of advanced technologies, including IoT and artificial intelligence (AI), and growing launches of smart HVAC systems are projected to provide lucrative growth opportunities to the players in Israel HVAC Market during the period in analysis.

HVAC Systems – Overview

HVAC (heating, ventilation, and air conditioning) is a system for maintaining and controlling the temperature, humidity, and air purity in a room or enclosed space. HVAC systems are used in a wide range of commercial, residential, and industrial facilities, such as family homes, apartments, hotels, hospitals, trains, airplanes, and ships. Ventilation is an important aspect of HVAC as it helps in maintaining indoor air quality, which involves the removal of moisture, odors, smoke, and dust, temperature control, and oxygen replenishment.

Israel HVAC Market

Growth Drivers

Integration of Advanced Technologies

HVAC original equipment manufacturers (OEMs) are now launching smart HVAC assets that can be remotely monitored and managed through integration of advanced technologies, such as AI and the Internet of Things (IoT). Predictive algorithms leverage database information to facilitate IoT HVAC system control, monitoring, and support. In addition to offering ever-increasing convenience, IoT helps consumers save a significant amount of energy. Implementing advanced technologies is expected to further drive Israel HVAC Market in the coming years.

Challenges

High Cost of HVAC System Maintenance and Installation

The installation of costly and complex integrated systems could restrict the growth of Israel HVAC Market. Air conditioning systems include a heating system, water heater, circulation pump, boiler, and controls, among other components that raise maintenance costs and could cause leaks. The average cost of a heat pump ranges around USD 3,700 and USD 11,000 and central AC costs around USD 5,750. As a result of the prohibitive cost, the HVAC system is still concentrated among consumers in higher income groups, which could limit the growth of Israel HVAC Market.

Impact of Escalating Geopolitical Tensions on Israel HVAC Market

Intensifying and further spreading of geopolitical tensions across Israel and the Middle East could hinder the growth of Israel HVAC Market. Prolonging Russia-Ukraine war and further escalation of geopolitical tensions in the country and the Middle East could further affect the building and construction sector across Israel. Trade restrictions and sanctions resulting from geopolitical crises cause disruptions in supply chains and manufacturing operations related to HVAC systems in Israel. It might lead to a lack of vital parts needed to produce HVAC systems, which would raise the cost of commodities. Additionally, it may discourage foreign investments, especially in unstable areas, which might have a detrimental effect on the market for HVAC systems. The geopolitical tensions also directly affect the purchasing power of the consumers, which results in the direct and significant demand for non-essential goods and services, including HVAC systems.

Israel HVAC Market

Segmental Coverage

Israel HVAC Market – By Offering

Based on offering, Israel HVAC Market is split into equipment and services segments. The equipment segment is further divided into heating (furnaces, heat pumps, and boilers), ventilation (humidifiers/dehumidifiers, air cleaners, and ventilation fans), and cooling (ducted split/packaged units, split units, and chillers). The services segment, on the other hand, is further divided into upgradation/replacement, maintenance and repair, installation, and consulting.

The equipment segment holds a larger market share of Israel HVAC Market by offering. Among the equipment sub-segments, the cooling segment accounts for the highest share due to the rising temperatures and rising disposable income of consumers, particularly in middle-income and lower-income groups.

Israel HVAC Market – By End User

Israel HVAC Market by end user is divided into commercial, industrial, and residential segments. The commercial segment accounts for the largest market share in Israel HVAC Market by end user. The high energy consumption and peak electricity demands are fueling the demand for energy efficiency in commercial buildings. Additionally, it is expected that governments’ incentives and allowance programs designed to promote the use of energy-efficient equipment would bolster the growth of the HVAC industry in the commercial sector. HVAC systems are also used in creative construction and remodeling of residential, commercial, or industrial structures.

Competitive Landscape

Major players operating in the highly competitive Israel HVAC Market include Carrier Global Corporation, CoolAutomation, Daikin Industries, Ltd, OpenBlue Technologies, Honeywell International Inc., Bosch Thermotechnology, Setpoint, and O General Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Offering

1. Equipment

• Heating

1. Furnaces

2. Heat pumps

3. Boilers

• Ventilation

1. Humidifiers/Dehumidifiers

2. Air Cleaners

3. Ventilation Fans

• Cooling

1. Ducted Split/Packaged Unit

2. Split Units

3. Chillers

2. Services

• Upgradation/Replacement

• Maintenance & Repair

• Installation

• Consulting

By Sales Channel

• Direct Sales

• Distributors

• Retail

• Online

By End User

• Commercial

• Residential

• Industrial