Market Forecast
Several key trends are shaping the HVAC industry in 2025, with a focus on energy efficiency, smart technologies, and improved indoor air quality. These trends are driven by both consumer demand for sustainable solutions and changing regulatory requirements
In particular, accelerating decarbonization and the use of environmentally friendly refrigerants are irreversible trends. Green and sustainable development is becoming a significant global trend. Europe is likely to accelerate the transition to natural refrigerants. Meanwhile, heat pump technologies, including air-to-air heat pumps, are creating new markets. Inverter air conditioners with high heating efficiency will continue to show significant growth.
Europe's quota system has fostered a switch to R32 refrigerant, which is widely used in Japanese and European residential and semi-industrial air conditioners and is increasingly being used in Australia, Southeast Asia, India and China.
Latin American countries, such as Brazil, are also switching to R32 as they upgrade their equipment to meet new energy efficiency standards. The International Energy Agency (IEA) has approved changes to safety standards that allow higher charge limits for flammable category A3 refrigerants.
While consumer demand is diversifying
High-end products, such as residential multi-split systems and mini-split systems, will continue to grow in many regions. With the development of artificial intelligence technology, the ‘intelligence’ of air conditioners will continue to improve. Features such as voice control, self-cleaning, and intelligent sensor customization will become key areas of focus for consumers.
The growth potential of markets including India, Southeast Asia, Latin America, and the Middle East is significant. The US market will continue to grow steadily. The Chinese market is expected to remain stable, while the European market faces significant uncertainty. The rapid development of the tourism industry has led to higher than expected demand in the hotel, restaurant and catering sector, while the market for semi-industrial air conditioners will continue to expand. Overall, the market is expected to grow quite strongly in 2025.
