HVAC Fan and Evaporator Coil Market Analysis

HVAC Fan and Evaporator Coil Market Analysis

The HVAC fan coil application crossed the valuation of USD 4.6 billion in 2019 and is projected to observe 5% growth rate till 2026. HVAC fans are used for cooling and to provide warm air during winter propelled by which they find applications in the industrial, commercial, and residential sectors.

These HVAC fans play a vital role in ensuring the safety of vital components, such as engines. The growing temperature and urban population across the globe are also paving the way for air-conditioned homes, which will ultimately spur the HVAC fan coil demand.

The commercial segment is predicted to account for over 30% HVAC fan and evaporator coil market share in 2026 driven by the rapid urbanization coupled with the IT industry in countries including China, India, and Vietnam. However, increasing dominance of the e-commerce sector is set to hamper product demand in the commercial industry to some extent.

Growing renovation activities in North America and Europe are likely to boost product demand in the residential sector. According to the European Union, buildings are responsible for 40% energy consumption and 36% CO₂ emission. To make them more environmental-friendly, several countries are upgrading their current infrastructure.

The OEM segment in the HVAC fan and evaporator coil market exceeded USD 5.5 billion in 2019 driven by increasing rate of coil replacement in the HVAC industry. Traditionally, OEM is the major distribution channel for fan & evaporator coils in the HVAC industry. However, with the rising life of air conditioning systems, coil replacement rate in the industry is growing rapidly from the past few years.

The aftermarket product sale is poised to expand at more than 5% CAGR through 2026 impelled by the increasing rate of replacement. The industry supply chain has also improved over the period credited to the availability of original equipment has increased at the service stores.

The demand for less energy-intensive and more environmental-friendly coils is growing rapidly in North America due to the increasing environmental regulations in the region. Major manufacturers are spending highly on R&D to launch new products, which can work more efficiently with less energy consumption. Furthermore, reduced tax rates in the U.S. on industries by the Trump administration are anticipated to fuel domestic production in the country, which, will spur product demand in the industrial sectors.

Asia Pacific HVAC fan and evaporator coil market size crossed over USD 3.2 billion in 2019. Large manufacturing industries in China and growing urbanization were the major attributes behind it. Low production cost owing to the easy availability of raw materials and competitive labor charges is poised to drive the regional market expansion.