Report Overview

A spurring demand for energy-efficient HVAC systems and integration of smart HVAC systems are expected to boost the growth of South Africa HVAC market during the forecast period between 2023 and 2029.

South Africa HVAC Market - Industry Trends & Forecast Report, 2029

South Africa HVAC market size was estimated to be worth USD 1.05 billion in 2022. During the forecast period between 2023 and 2029, the South Africa HVAC market size is projected to grow at a CAGR of 5.28%, reaching a value of USD 1.43 billion by 2029. Major growth factors for the South Africa HVAC market include its underdeveloped nature compared to other countries, which provides opportunities for HVAC system penetration. Furthermore, rising demand for energy-efficient systems among residential, industrial, and commercial buildings is anticipated to drive the South Africa HVAC market during the forecast period.

South Africa HVAC Market – Overview

Heating, ventilation, and air conditioning, or HVAC, is a system for maintaining and controlling the temperature, humidity, and purity of the air in a room or enclosed space. These systems are used in a wide range of commercial, residential, and industrial facilities, such as family homes, apartments, hotels, hospitals, trains, airplanes, ships, etc. Ventilation is a very 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.

South Africa HVAC Market

Growth Drivers

Rising Demand For Energy-Efficient HVAC Systems

Energy usage for electric heating and cooling systems may be cut by 50% by replacing it with equipment that is more energy efficient. The HVAC industry is adopting smart technology to achieve greater energy efficiency. These cutting-edge gadgets provide precise scheduling and temperature control, maximizing energy efficiency. They also include capabilities such as learning algorithms and remote access. Smart HVAC systems enable users to change settings depending on occupancy patterns, weather conditions, and personal preferences, increasing comfort while reducing energy waste.

Restraints

High Installation and Maintenance Costs of HVAC Systems

The installation and maintenance of HVAC systems are expensive since They entail robust, intricate machinery like furnaces, central air conditioners, and ductwork that runs throughout the house’s interior framework. This significantly hinders the expansion of the market.

Impact of COVID-19 on South Africa HVAC Market

The unprecedented COVID-19 pandemic negatively impacted the growth of the South Africa HVAC market. According to the International Food Policy Research Institute, the South African economy witnessed a 5 percent decline in its GDP by the end of 2020. Additionally, according to Statistics South Africa (2020), the unemployment rate increased from 23.3% to 30.0% in the third quarter of 2020, making it the highest rate recorded since 2008. This significant decline in the average disposable income of consumers or families directly resulted in slow demand for the HVAC system, particularly in the residential segment.

South Africa HVAC Market

Segmental Coverage

South Africa HVAC Market – By Offering

Based on offering, the South Africa HVAC market is split into equipment and service segments. The equipment segment is further classified into heating, ventilation, and cooling. The services segment is also classified into upgrade/replacement, maintenance and repair, installation, and consulting. Equipment accounts for the highest market share. Heating and cooling equipment, such as air conditioners, has strong demand in the South African market owing to the country’s subtropical and temperate climate conditions.

South Africa HVAC Market – By Implementation Type

Based on implementation type, the South Africa HVAC market is bifurcated into new construction and retrofits segments. New construction accounts for the largest share of the South Africa HVAC market, owing to the rising construction of residential complexes as well as industries and commercial facilities for economic development. The retrofits also cover a substantial market share owing to the increasing developments in HVAC technologies and the rising penetration of smart home equipment equipped with technologies such as sensors.

South Africa HVAC Market – By End User

Based on end user, the South Africa HVAC market is segmented into residential, commercial, and industrial. The residential segment dominates the South Africa HVAC market owing to government projects and investments in construction of residential complexes. According to the official website of the South African Government, A total of ZAR 4 billion worth of projects has already been finished by January 2023, which included the construction of new human settlements in Gauteng.

Competitive Landscape

Major players operating in the South Africa HVAC market include Legend HVAC (Pty) Ltd, Kwikot Manufacturing Ltd, Daikin Air-Conditioning South Africa (Pty) Ltd, Econo Heat Energy Efficient Appliances (Pty) Ltd, Rapid Allweiler Pumps (Pty) Ltd, Samsung Electronics, LG Electronics, Daikin Industries Ltd, Midea Group Co. Ltd, and Whirlpool Corporation.

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 January 2023, JOHN Thompson, a global HVAC solutions provider, expanded its products and services, which include industrial heating, ventilation, and air conditioning (HVAC) systems.

Scope of the Report

By Offering

• Equipment

1. Heating

• Heat Pumps

1. Air-source

2. Water-source

3. Ground-source

• Furnaces

1. Gasoline
2. Propane
3. Electric

• Boilers

1. Water-tube

2. Fire-tube

• Unitary heaters

2. Ventilation

• Air-Handling Units (AHUs)

1. Terminal units

2. Makeup air units

• Ventilation Fans

1. Centrifugal fans

2. Axial fans

3. Domestic exhaust fans

4. Power roof fans

• Fan Coil Units (FCUs)

1. Two-pipe

2. Four-pipe

• Humidifiers/dehumidifiers
• Air cleaners

1. Type 1: High-efficiency particulate air (HEPA) + carbon

2. Type 2: HEPA + carbon + ionizer

3. Type 3: HEPA + carbon + ultraviolet (UV)

4. Type 4: HEPA + carbon + ionizer + UV

5. Type 5: Other technologies

3. Cooling

• Room air conditioners (ACS)

1. Mini splits

2. Window ACs

• Split units
• Ducted splits

1. Water-cooled condensers

2. Air-cooled condensers

• Packaged units

1. Water-cooled condensers

2. Air-cooled condensers

• Variable refrigerant flow (VRF) systems

1. Heat Pump Systems

2. Heat Recovery Systems

• Chillers

1. Centrifugal
2. Screw
3. Scroll
4. Absorption
5. Reciprocating

• Service

1. Upgradation/replacement
2. Maintenance and repair
3. Installation
4. Consulting

By Implementation Type

1. New Constructions
2. Retrofits

By End User

1. Residential
2. Commercial
3. Industrial