Deallab analyzes the global market share, market size, industry ranking and M&As of the HVAC industry.
We also provide an overview of Japan’s Daikin, Mitsubishi Electric, and Panasonic, the three U.S. companies Carrier, York, and Trane Technologies, and the three Chinese companies Gree, Midea, and Haier.
Mitsubishi Electric’s acquisition of Italy’s Delclima, and Daikin’s acquisition of Goodman and OYL are just a few examples of ongoing industry reshuffles.
Global market share of HVAC industry in 2021
The market shares can be estimated using the FY2021 revenue of each HVAC company relative to the overall market size estimated in the following section.
On that basis, Daikin appears to be the global market leader, followed by Midea Group and Gree Electric Appliances.
| Ranking | Company | Market Share |
|---|---|---|
| No.1 | Daikin | 12.3% |
| No.2 | Midea Group | 11.3% |
| No.3 | Gree Electric Appliances | 10.5% |
| No.4 | Trane Technologies | 7.1% |
| No.5 | Carrier | 5.7% |
| No.6 | Mitsubishi Electric | 3.5% |
| No.7 | Johnson Controls | 3.1% |
| No.8 | Panasonic | 3.0% |
| No.9 | Hisense | 2.4% |
| No.10 | Haier Electronics | 2.2% |
| No.11 | Emerson | 2.0% |
| No.12 | BOSCH | 2.0% |
| No.13 | Lennox | 1.8% |
| No.14 | Danfoss | 1.6% |
| No.15 | Vaillant | 1.5% |
Daikin secured its No.1 position in 2021. Daikin is aiming for global expansion including the U.S, Europe, Japan, SEA and China.
The industry rankings have fluctuated significantly since 2018. Gree and Midea are the fast growing companies backed by a strong footprint in the Chinese market, mainly in the home air conditioner segment.
The three former big three companies in the U.S. (Trane, Carrier, and York) are in the process of restructuring.
Ingersoll Rand has spun off its air conditioning business as Trane Technologies.
United Technologies has split into three independent entities – aircraft parts and engines, elevators (Otis), and HVAC (including freezers and fire&security).
While Johnson Controls has integrated its fire protection and security business with Tyco, it has also spun off its auto parts business (Adient) and is in the process of portfolio reshuffle.
In sixth place, Mitsubishi Electric has surpassed Johnson Controls by capturing mainly industrial needs.
No.8 is Panasonic, which is strong in the Japanese home market.
No.10 is Haier of China. In Europe, where latitude has historically prevented the need for air conditioning in the summer, Bosh is the highest ranked companies at No.12.
Market Size
Based on third-party market research data laid out below, Deallab estimates the global market size of the HVAC industry to be $200 billion in 2021.
According to research firm Grand View Research, the market for this industry is valued at $136.3 billion in 2021 and is expected to grow at a compound annual growth rate of 6.3% through 2030.
According to research firm Expert Market Research, the market for this industry was worth $198.4 billion in that year, and is expected to grow at a compound annual growth rate of 5.1% through 2027.
According to MarketsandMarkets, the industry is valued at $202 billion in 2020 and is expected to grow at a CAGR of 6.5% through 2025.
According to research firm Grand View Research, the market was worth $127.4 billion in 2020 and is expected to grow at 5.9% through 2028.
According to research firm Expert Market Research, the market for this industry is valued at $241 billion in the same year, and is expected to grow at a compound annual growth rate of 4% through 2026.
| Year | Market Size | Growth Rate |
|---|---|---|
| 2021 | 136.3 – 198.4 USDbn | 5.1 – 6.3% |
| 2020 | 127.4 – 241 USDbn | 5.9 – 6.5% |
Key M&As
- 1979 Acquisition of Carrier by United Technologies
- 2007 Acquisition of Flakt Woods in Switzerland by an investment fund
- 2007 Acquisition of Trane Technologies by Ingersoll-Rand
- 2009 Baxi and De Dietrich Remeha merge to form BDR Therma
- 2011 Aesthetic Group’s acquisition of Carrier’s South American business
- 2011 LG’s acquisition of LS Mtron
- 2011 Acquisition of AIRFEL in Turkey by Daikin
- 2012 Acquisition of Goodman Global by Daikin
- 2014 Acquisition of Air Distribution Technologies in the US by Johnson Controls
- 2014 Acquisition of GEA Heat Exchngaers in France by an investment fund
- 2015 Mitsubishi Electric’s acquisition of Italy’s DeLclima
- 2015 Establishment of an air conditioner joint venture between Johnson Control and Hitachi
- 2016 Acquisition of Flanders by Daikin
- 2016 Acquisition of Tyco by Johnson Controls
- 2017 Acquisition of Airmaster, an Austrian air conditioning maintenance company, by Daikin
- 2018 Establishment of a joint venture by Mitsubishi Electric and Ingersoll Rand to sell ductless air conditioners
- 2018 Acquisition of commercial refrigeration equipment manufacturer AHT by Daikin
- 2018 Spin-off of Carrier by United Technologies
- 2020 Spin-off of Trane Technologies by Ingersoll-Rand
- 2020 Acquisition of air conditioning dealers Abco, Robinson, and Stevens by Daikin
- 2021 Acquisition of Toshiba’s stake in Toshiba Carrier by Carrier
- 2021 Acquisition of Thermal Supply and AirReps by Daikin
Trends of the world’s leading HVAC manufacturers
Daikin
Daikin is Japan's leading HVAC manufacturer, founded in 1924. It is one of the world's top manufacturers of industrial heating and air conditioning equipment. It has expanded its business globally by acquiring Goodman Global, which is strong in duct systems, and OYL, a major air conditioner manufacturer in Malaysia. The company is also engaged in the fluorinated compound and other chemical products business.
Carrier Corporation
Carrier Corporation is a leading U.S.-based HVAC manufacturer. In 2020, Carrier air conditioning operations were spun off from United Technologies, together with elevator (Otis) and aircraft components businesses. The company also has strengths in transportation refrigeration equipment and fire alarms.
Johnson Controls (York International Corporation)
York is a U.S.-based HVAC manufacturer and a subsidiary of Johnson Controls.
Johnson Controls is a U.S.-based company founded in 1885 that provides commercial HVAC control systems, security systems, fire detection systems, and building management services. The company invented the electric thermostat. In 2015, Johnson Controls formed a joint venture with Hitachi Appliances in the HVAC field. In 2016, it merged with Tyco International, which is strong in the fire alarm field. The company operates in 150 countries around the world, offering energy efficiency solutions and various automation businesses. It was strong in the field of automotive batteries but sold the business in 2018.
Trane Technologies
Trane Technologies is a U.S.-based HVAC manufacturer. The company was a subsidiary of Ingersoll-Rand, a U.S.-based manufacturer of transportation temperature control equipment, golf carts, and air compressors, and was spun off as Trane Technologies in 2020.
Panasonic
Panasonic is one of Japan’s leading electronics manufacturers, founded in 1917 by Konosuke Matsushita. It has integrated with Matsushita Electric Works and Sanyo Electric, and has a global presence as a general electronics manufacturer. Appliance (home appliances, air-conditioning, audio-visual equipment, batteries with a 90-year history of selling a total of 200 billion units, etc.), Automotive (storage batteries, audio equipment, etc.), Industrial (batteries, motors, etc.), Life Solutions (lighting, water equipment, etc.), Connected Solutions (flight, entertainment, aircraft electronics, surveillance, etc.) Entertainment, electronic devices for aircraft, surveillance cameras, etc.). In 2022, Panasonic Holdings was established, and the business units will become independent subsidiaries under the holding company.
Lennox International
Lennox is a U.S.-based HVAC manufacturer founded in 1895. The company's strengths lie in the residential and commercial air conditioning as well as commercial refrigeration businesses. In the refrigeration business, Lennox supplies unit coolers, fluid coolers, air-cooled condensers, air handlers and refrigeration rack systems to supermarkets, convenience stores, restaurants, warehouses, and distribution centers.
Midea Group
Midea is a China-based home appliance manufacturer founded by He Xiangjian in 1968, and listed on the Shenzhen Stock Exchange in 1993. It has strengths in home air conditioners and washing machines, and in 2016 it expanded its business by acquiring Toshiba’s home appliance division and German industrial robotics giant KUKA. The company’s founder, He Xiangjian, is a major shareholder through a holding company.
Haier
Haier, founded in 1984 and based in Qingdao, China, is one of the world’s largest manufacturers of white goods. In 2011, Haier acquired the white goods business of Japanese manufacturer Sanyo Electric. In 2016, the company also acquired the home appliance division of U.S. manufacturer GE to expand its business. The company operates under the brands Haier, Casarte, Leader, GE Appliances, Fisher & Paykel, AQUA, and Candy.
Gree Electric Appliances
Gree is a Chinese manufacturer of home air conditioners founded in 1991. In 2016, Dong Mingzhu, the founder and chairman of the company, was dismissed over the company’s entry into the EV car market.
Mitsubishi Electric
Mitsubishi Electric was established in 1921 and is one of Japan’s leading general electronics manufacturers. The company operates in the segments of Heavy Electric Systems, Industrial Mechatronics, Information and Communication Systems, Electronic Devices, and Home Appliances. Elevators are developed in the Building Systems business of Heavy Electric Systems. Industrial robots are included in the Industrial Mechatronics segment, while air conditioning and air conditioners, famous for the Kirigamine brand, are included in the Home Appliances segment. The air conditioning segment is particularly active in M&A. In the commercial air conditioning segment, the company acquired De’Longhi’s Italian subsidiary, DeLclima, in 2015, aiming to expand its business in the European market. In North America, we established a joint venture for the sale of ductless air conditioners by Ingersoll Rand in 2018.
Danfoss
Danfoss is a Danish conglomerate that produces hydraulic pumps, electric motors and compressors for construction and material handling equipment, various components for air conditioning and refrigeration, AC/DC drivers, etc. It is a family business owned by the Clausen family.
Bosch Themotechnology
Bosch is a major German manufacturer of industrial goods and automotive components. The company is also involved in home appliances. Bosch Themotechnology is involved in air conditioning.
Vaillant
Vaillant is a German manufacturer of refrigeration equipment. It is involved in boilers, heat pumps, radiators, and air conditioning products. It is a family-owned company.
