Australia HVAC Market Size, Share, Growth Analysis Report and Forecast Trends (2024-2032)

Australia HVAC Market Trends

The Australia HVAC market offers numerous benefits, beginning with energy efficiency, which reduces both energy consumption and utility bills. It also improves air quality by filtering allergens and pollutants and provides reliable climate control to ensure year-round comfort in Australia's diverse climate. The rise of energy-efficient HVAC systems supports sustainability by contributing to green building initiatives. Government regulations further promote market growth, encouraging energy efficiency, carbon reduction, and compliance with energy ratings. In July 2024, Daikin Australia launched the "Daikin UMini Series," an energy-efficient air conditioning solution for small residential spaces, designed to meet the demand for sustainable HVAC options.

The growth of the Australia HVAC market is driven by systems that improve indoor comfort, ensuring stable environments in both residential and commercial sectors. Technological advancements, such as smart systems with remote control and automation, improve efficiency. Economic growth in the construction sector is spurring HVAC demand, while the integration of renewable energy, such as solar, improves environmental impact. Despite high initial installation costs, energy-efficient systems result in long-term savings on energy and maintenance. Mitsubishi Electric launched the "P-Series VRF System" in June 2024 for commercial buildings, offering enhanced efficiency, cooling, and heating control with significant energy savings, making it an ideal solution for Australia's commercial HVAC market.

Australia HVAC Market Growth

The demand of Australia HVAC market is increasing as they offer flexible solutions for various building types, from residential homes to commercial complexes. New technologies have helped reduce noise pollution, creating quieter, more productive spaces. Automation and control features allow for precise temperature and humidity management, improving energy efficiency. The HVAC sector is growing, providing opportunities for businesses and professionals, with strong residential demand, particularly in hot climates like northern and western Australia. Samsung Australia launched its "Wind-Free" air conditioning systems in June 2023, designed to cool spaces without direct airflow, reducing energy consumption and enhancing comfort.

Energy-efficient HVAC systems are further providing several opportunities in the Australia HVAC market by lowering demand on the energy grid and enhancing energy security. These systems also increase property values for both residential and commercial properties. The HVAC market supports a robust service industry, offering maintenance, repairs, and upgrades. These systems contribute to better health and well-being, particularly in healthcare settings. The rising demand for HVAC systems in commercial and industrial sectors continues to drive innovation and expansion. In April 2023, Fujitsu General introduced its "Lifestyle Inverter" range, designed for residential use with a focus on reducing carbon emissions while providing efficient heating and cooling.

Australia HVAC Market Insights

• According to the Australian Bureau of Statistics, the value of non-residential buildings rose by 12.4% to USD 4.92 billion in January 2024, compared to December 2023.
• Industry reports show that Australia's building and construction sector manages projects worth over USD 162 billion each year, contributing around 10% to the country's GDP, making it the fifth-largest sector in the economy.
• The Australian Bureau of Statistics also reports that the value of new residential construction in January 2024 increased by 19.4%, reaching USD 7.14 billion.
• The HVAC market share in Queensland is projected to grow significantly, with a forecasted CAGR of 19.4% from 2024 to 2032.
• The Australian Capital Territory is expected to grow at a CAGR of 6.3% from 2024 to 2032.

Industry News

March 2024

LG Electronics introduced its new "Dual Inverter" air conditioning systems. These units are praised for their faster cooling and enhanced energy efficiency, offering Australian homeowners an affordable, environmentally friendly solution for year-round comfort, while helping to lower electricity costs.

May 2023

Panasonic unveiled its latest "EcoNavi" air conditioner range. The systems use advanced sensors to monitor room conditions and adjust settings automatically, making them highly energy efficient. Ideal for the Australian climate, EcoNavi systems help reduce environmental impact while enhancing indoor comfort.

Australia HVAC Market Drivers

Energy Efficiency and Sustainability

A significant trend of Australia HVAC market is the increasing emphasis on energy-efficient systems, driven by environmental concerns and government regulations. There is a rising demand for HVAC solutions that consume less energy, reduce carbon footprints, and comply with sustainability standards. Systems with higher SEER (Seasonal Energy Efficiency Ratio) ratings are gaining popularity across both residential and commercial sectors. Furthermore, the integration of renewable energy sources, such as solar power, with HVAC systems is improving their environmental benefits. This shift aligns with Australia’s efforts to reduce emissions and achieve climate action goals. In November 2023, Trane Australia launched the "Trane TruEfficiency" air conditioning units, featuring advanced variable-speed technology for energy efficiency and high-performance cooling, addressing the demand for sustainable HVAC solutions.

Smart HVAC Systems and Automation

The integration of smart technology into HVAC systems is rapidly influencing the Australia HVAC market dynamics and trends. These systems, powered by Internet of Things (IoT) technology, allow users to remotely control heating, ventilation, and cooling via smartphones or tablets. Automation features, such as adjusting temperatures based on occupancy or time of day, improve both energy efficiency and comfort. The rise of smart homes and interconnected devices is driving the demand for HVAC systems that seamlessly integrate with home automation platforms, offering users enhanced convenience and control. In December 2022, Carrier Australia launched its "Infinity Series" HVAC system, featuring advanced filtration and smart connectivity, designed to provide superior air quality and energy efficiency for both residential and commercial markets.

Opportunities in the Australia HVAC Market

Regulations and Incentives for Energy Efficiency

Government regulations are playing a key role in shaping the Australia HVAC market, particularly regarding energy efficiency and environmental standards. Stringent building energy performance regulations have been implemented, with energy efficiency ratings and carbon reduction targets driving market expansion. HVAC systems are increasingly required to meet high energy efficiency standards to minimise greenhouse gas emissions and comply with building codes. To encourage adoption, both state and federal governments offer incentives such as rebates and tax credits to businesses and homeowners invest in energy-efficient HVAC systems, further stimulating market growth. The National Construction Code (NCC), as outlined by the Australian Building Codes Board (ABCB) in 2022, sets mandatory energy efficiency standards for HVAC systems in new buildings, ensuring their optimisation for energy use and emissions reduction.

Market Restraints

The Australia HVAC market faces several key restraints. High initial installation costs for energy-efficient systems are a significant barrier for both residential and commercial consumers, limiting market growth. Rising energy prices further discourage investment in HVAC systems, especially in regions with extreme weather. Additionally, there is a shortage of skilled workers, delaying installations and increasing costs.

The complexity of modern HVAC systems increases maintenance challenges, with limited availability of service professionals and spare parts. Finally, stringent government regulations on energy efficiency and environmental impact present compliance difficulties for both manufacturers and consumers, especially small businesses, hindering market adoption. These factors collectively slow the growth and expansion of the HVAC sector in Australia.

Australia HVAC Industry Segmentation

“Australia HVAC Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Equipment

• Heating
  • Heat Pumps
  • Furnaces
  • Boilers
• Ventilation
  • Air-Handling Units
  • Air Filters and Purifiers
  • Ventilation Fans
  • Dehumidifiers and Humidifiers
  • Others
• Cooling
  • Unitary Air Conditioners
  • VRF Systems
  • Chillers
  • Coolers
  • Cooling Towers
  • Others

Market Breakup by End Use

• Residential
• Commercial
• Industrial

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia HVAC Market Share

By Equipment Insights

According to the Australia HVAC market analysis, ventilation plays a crucial role in enhancing indoor air quality by eliminating pollutants and moisture, which helps prevent mould and allergens. It ensures a consistent flow of fresh air, improving comfort and health. Well-designed ventilation systems also support energy efficiency by minimising the need for excessive heating and cooling. In June 2023, Panasonic Australia launched its "Smart Ventilation System," which integrates with smart home technologies. This system offers automated control over ventilation based on air quality and occupancy, enhancing both energy efficiency and indoor air quality for residential and commercial spaces.

The growth of the Australia HVAC market is also driven by cooling systems, which are essential in managing temperature in the country’s hot climate, ensuring comfort in both residential and commercial settings. The cooling segment is expected to grow at a CAGR of 6.6% from 2024 to 2032. Energy-efficient cooling systems help reduce electricity consumption, cutting utility bills. These systems are vital for improving indoor air quality by regulating humidity and preventing heat-related health issues during extreme heatwaves. Samsung Australia introduced its "Wind-Free" cooling system in March 2024, featuring advanced technology that provides efficient cooling without direct airflow, ideal for homes and offices. The system offers energy-efficient performance and comfort without cold drafts, helping to lower energy consumption.

By End Use Analysis

According to the Australia HVAC market report, residential HVAC systems are essential for maintaining temperature control and ensuring comfort throughout hot summers and cold winters. The residential segment is projected to grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2032. They improve indoor air quality by filtering pollutants, dust, and allergens, promoting healthier living spaces. Energy-efficient systems also help homeowners reduce energy consumption and lower utility bills in the long run. The Australian residential HVAC market grew by 7.6% annually in 2022, as reported by DISER, with a shift towards energy-efficient systems driven by government incentives and growing consumer demand for more sustainable and cost-effective heating and cooling solutions, particularly in areas with extreme climates.

The growth of the Australia HVAC market is driven by the essential role of commercial HVAC systems in ensuring a comfortable and productive atmosphere in offices, retail spaces, and industrial environments. They regulate temperature, humidity, and air quality, ensuring employee comfort and safety. Additionally, energy-efficient systems help businesses reduce operational costs while complying with sustainability and energy regulations, benefiting both the environment and the company’s bottom line. According to the 2021 AEMO report, demand for energy-efficient HVAC solutions in commercial buildings increased by 8.4%, driven by environmental regulations and the need for improved energy management. Many commercial properties are adopting smart HVAC systems to meet energy consumption reduction goals.

Australia HVAC Market Regional Insights

New South Wales HVAC Market Overview

According to the Australia HVAC industry analysis, the HVAC market in New South Wales is supported by a diverse range of applications, covering both residential and commercial sectors. Demand is primarily driven by energy efficiency, climate control requirements, and government sustainability initiatives. In 2023, there was a notable increase in new residential and commercial constructions, boosting HVAC demand. The residential sector grew by 9.7%, supported by ongoing government initiatives, according to the Australian Bureau of Statistics (ABS).

Queensland HVAC Market Trends

Queensland's HVAC market is influenced by the region's warm climate, which fuels the demand for cooling solutions. The market in Queensland is expected to grow at a CAGR of 5.5% from 2024 to 2032. The rapid growth in residential and commercial development has heightened the need for energy-efficient HVAC systems. In 2023, new residential construction increased by 15%, and commercial construction grew by 7%, significantly contributing to HVAC market expansion according to the Department of Housing and Public Works (Qld).

Western Australia HVAC Market Dynamics

Western Australia is projected to experience a CAGR of 6.0% from 2024 to 2032. The growing demand for HVAC systems in the region is driven by increased needs across the mining, commercial, and residential sectors. The growing emphasis on energy efficiency and sustainability further drives the market. In 2023, new residential and industrial construction saw notable growth, with residential construction up by 5%, while industrial and commercial construction increased by 3% according to the Department of Planning, Lands and Heritage (WA).

Competitive Landscape

The Australia HVAC market key players provide energy-efficient climate control solutions across residential, commercial, and industrial sectors. Their product range includes air conditioners, heat pumps, and ventilation systems, all recognised for their cutting-edge technology, dependability, and environmental sustainability. These systems optimise energy efficiency while ensuring precise temperature regulation. With a strong focus on innovation, these companies are expanding their global footprint, providing customised HVAC solutions tailored to diverse climatic conditions and industry requirements.

Key Industry Players

Haier Inc.: Founded in 1984, is a global leader in home appliances and HVAC systems. Headquartered in Qingdao, China, Haier specialises in manufacturing energy-efficient cooling, heating, and refrigeration products, offering smart home solutions. The company has expanded its global footprint through acquisitions and partnerships, including its purchase of GE Appliances.

Carrier Global Corporation: Established in 1902, is a multinational leader in heating, ventilation, and air conditioning (HVAC) systems. Headquartered in Palm Beach Gardens, Florida, USA, Carrier is renowned for its innovative, energy-efficient HVAC solutions across residential, commercial, and industrial markets, with a focus on sustainability and smart technologies.

DAIKIN INDUSTRIES, Ltd.: Daikin Industries, established in 1924 and headquartered in Osaka, Japan, is a global leader in the HVAC industry. Daikin is known for producing high-quality, energy-efficient air conditioning systems, offering solutions for residential, commercial, and industrial sectors. The company is a pioneer in variable refrigerant flow (VRF) technology.

Johnson Controls International plc: Johnson Controls, founded in 1885 and headquartered in Cork, Ireland, is a global leader in building technologies and HVAC systems. The company offers energy-efficient products and solutions, focusing on improving building performance, comfort, and sustainability. Johnson Controls serves industries worldwide, integrating HVAC with building automation and energy management systems.

Other key players in the Australia HVAC market report are LG Electronics Inc., Mitsubishi Electric Corporation, Midea Group Co. Ltd, Fujitsu General Ltd., Hitachi Ltd., and Samsung Electronics Co. Ltd., among others.

Recent Developments

November 2023

Trane Australia introduced its "Trane TruEfficiency" air conditioning units. These units incorporate advanced variable speed technology, providing energy savings and high-performance cooling to meet Australia’s increasing demand for sustainable, energy-efficient HVAC solutions.

June 2022

ActronAir launched the "SmartAir" HVAC system. Equipped with smart home integration, the system allows users to remotely control heating, cooling, and air quality. Specifically designed for Australian homes, SmartAir ensures optimal comfort while minimising environmental impact.