Ductless Heating & Cooling Systems Market

Ductless Heating & Cooling Systems Market Outlook (2022-2032)

[309 Pages Report] The global ductless heating & cooling systems market size was estimated to be worth around US$ 98 Billion in 2021 and is forecast to grow at a robust CAGR of 8% between 2022 and 2032, reaching around US$ 228 Billion by 2032.

Growth of the market is supported by the following factors:

• Increasing demand for energy efficient and power saving heating and cooling equipment
• Rising expenditure on public and private infrastructure projects, attributed to growing urbanization
• The quest to reduce energy costs is also prompting end use industries to opt for ductless heating & cooling systems
• Demand is expected to remain robust in residential infrastructure, especially in regions with a temperate climate

Due to the enforcement of stringent lockdowns and curbs on public gatherings, demand for ductless heating and cooling systems surged manifold throughout the duration of the COVID-19 pandemic. Mandatory stay-at-home directives led to an increase in electricity consumption, which provided a major boost to the HVAC industry. This elevated demand has continued to prevail in the post-pandemic era.

Market Outlook:

Smart Homes to Pave Way for Ductless Heating & Cooling Systems Uptake

Ductless systems are used in smart homes for controlling air temperature, humidity, and fresh air intake. Moreover, the energy consumption level of a ductless system can be optimized to a large extent by utilizing various components such as smart thermostats, sensors, control valves, heating and cooling coils, dampers, actuators, pumps, and fans.

These smart devices save energy and control the working of ductless heating & cooling systems with the help of technologies such as wireless communication, Internet connectivity, handheld devices, and cloud computing.

For example, ENERGY STAR certified ductless mini split systems use 60% less energy for heating and 30% less energy for cooling as compared to conventional room air conditioners. The energy-saving is possible as more sophisticated compressors and fans are used that can adjust speed to save energy.

The continuous development in technology and rapid innovation in various devices has increased the interest of customers toward the use of ductless systems in smart homes. Hence, the market is expected to show considerable potential in the coming years.

North America to exhibit Credible Growth Potential

The presence of prominent HVAC equipment manufacturers and a transition towards sustainable and green building construction are some key factors that are expected to open opportunistic doors for the North American ductless heating & cooling systems market.

Over the last few years, demand for ductless heating and cooling systems has risen at a significant rate due to fluctuations in climatic conditions, changing lifestyles and rapid growth of the residential sector.

According to the most recent results from the 2020 Residential Energy Consumption Survey, 88% of U.S. households use air conditioning (AC). Two-thirds of U.S. households use central AC or a central heat pump as their main AC equipment. In 2020, the Midwest Census Region and South Census Region had the highest percentages of households using AC, at 92% and 93%, respectively.

The lowest percentage of households using AC was 73% in the West Census Region; this census region includes households in several climate areas, such as the marine climate region along the Pacific Coast, where residential AC use was 49%.

As the climatic conditions across the world continue to change drastically, demand for energy-efficient systems like ductless heating and cooling systems is set to rise at a healthy pace during the forthcoming years.

For instance, as per a report published by NASA, the Intergovernmental Panel on Climate Change (IPCC) has predicted a temperature rise of 2.5 to 10 degrees Fahrenheit over the next century. This will continue to generate growth opportunities in markets like cooling management system market, ductless heating & cooling systems market, and cooling systems market in the future.

Ductless heating and cooling systems are innovative energy systems used across various end-use verticals for maintaining temperature. These systems offer various advantages such as easy installation, lower operating expenses, greater efficiency, reduced carbon footprint and greater flexibility which makes them ideal alternatives to other heating and cooling solutions.

Demand for ductless heating and cooling systems is especially high in the residential sector where they are used to maintain a specific temperature. Rapid expansion of residential sector due to population explosion, changing lifestyle, and rising disposable income coupled with increasing consumer preference for energy efficient ductless heating and cooling systems will therefore continue to boost ductless heating and cooling systems market growth during the forecast period.

Similarly, emerging HVAC systems market trends such as rising demand for energy-efficient and sustainable heating and cooling technologies and the introduction of stringent government norms and regulations for reducing greenhouse gas emissions are expected to shape the growth of the ductless heating and cooling systems market during the forthcoming years.

Nikhil Kaitwade

Principal Consultant

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Sales Analysis of Ductless Heating & Cooling Systems From 2015 To 2021 Vs Market Outlook For 2022 To 2032

The global sales of ductless heating & cooling systems are slated to grow at a CAGR of 8% during the forecast period from 2022 and 2032.

Factors such as rising demand for energy-efficient heating and cooling systems in residential, commercial, and industrial verticals, incorporation of IoT in HVAC systems, growing investments in the residential sector across developing countries, rapid expansion of the air condition systems market, booming HVAC systems market, and increasing consumer awareness about the benefits of ductless systems are some of the major factors driving growth in the global ductless heating & cooling systems market.

Ductless heating and cooling systems have become suitable temperature management solutions used across residential buildings due to their various attractive features. These systems manage temperature, humidity, and fresh air intake in smart homes without consuming too much energy. They provide highly adaptable heating and cooling solutions for zones and enclosed areas.

Recent advancements in ductless heating and cooling technologies have paved the way for the development of smart ductless heating and cooling systems which are perfect for usage in smart homes. These HVAC systems are incorporated with Internet of things which enables access to real-time HVAC system performance data and accurately interprets it.

Rising consumer awareness about the benefits of these smart ductless systems will help HVAC systems manufacturers to increase their sales, thereby creating room for the expansion of ductless systems market and ductless heat pump market size.

Similarly, rising consumer preference for smart homes is projected to boost the sales of ductless heating and cooling systems like Lennox HVAC systems during the forecast period.

Additionally, development of ecofriendly refrigerant with low GWP, emerging trends in ductless heating and cooling systems in commercial and residential buildings, and increase in new energy efficient solutions will further boost the sales of ductless heating and cooling systems in the future.

Which Factors are Restraining the Growth of Ductless Heating & Cooling Systems Market?

Although ductless heating and cooling systems are gradually replacing traditional heating and cooling systems, various factors are challenging the market growth.

Some of these factors are the rising environmental concerns due to the massive upsurge in the adoption of ductless heating and cooling systems and a lack of understanding about the benefits of ductless heating and cooling systems across low economies.

Country-Wise Insights

What Makes the U.S. a Promising Market for Ductless Heating & Cooling Systems?

“Rising Need for Energy-Efficient and Sustainable Buildings Encouraging Adoption Across the U.S”

The U.S. ductless heating & cooling systems market is forecast to grow at a healthy CAGR over the forecast period, owing to the flourishing HVAC systems market, heavy presence of HVAC systems manufacturers, growing trend of energy-efficient and sustainable buildings, and expansion of ductless heat pumps market size.

Over the last few years, demand for ductless heating and cooling systems has risen at a significant rate due to fluctuations in climatic conditions, changing lifestyles, and rapid growth of the residential sector. According to the U.S. Energy Information Administration (EIA), space heating and cooling accounts for more than half of all residential energy consumption.

Why is Demand for Ductless Heating and Cooling Rising Across China?

“Rapid Urbanization Creating Demand for Ductless Heating and Cooling Systems in China”

As per FMI, the ductless heating and cooling systems market is China is poised to grow at a relatively higher CAGR over the forecast period, owing to the expansion of residential and industrial sectors, surge in the sales of ductless heat pumps, growing consumer awareness about the recent HVAC systems market tends, and flourishing cooling system market.

Similarly, rising investments by government and private companies in building and construction will further create sales prospects for heating and cooling systems across the country during the forecast period.

Category-Wise Insights

Which is the Top Selling Product Type in the market?

“Demand for Mini-Split Systems to Remain High in the Market”

As per FMI, mini-split system segment is likely to grow at a strong pace during the forecast period. This is attributed to the rising adoption of mini-split ductless heating and cooling systems in residential sector on account of their lower capacity and operating cost. It is estimated that ductless mini-split systems use 60% less energy to heat and 30% less energy to cool than standard room air conditioners.

Similarly, increasing investments in residential sector and expansion of the HVAC systems market across emerging economies will further assist the growth of this segment in the future.

Which is the Most Lucrative Application for Ductless Heating & Cooling Systems?

“Most of the Ductless Heating & Cooling Systems Sales to Remain Concentrated in Residential Sector”

Based on application, the residential building segment accounted for the largest revenue share of the global ductless heating & cooling systems market in 2021 and is forecast to grow at a considerable pace during the forecast period.

Booming residential sector worldwide, expansion of HVAC systems market, and rising adoption of energy ductless heating & cooling systems are some of the factors triggering the segment growth.

People throughout the world are showing a keen inclination towards reducing energy consumption in their homes for a sustainable future. According to the U.S. Energy Information Administration (EIA), energy consumed in the buildings sector (which includes residential and commercial end users) accounted for around 20.1% of the total delivered energy consumed worldwide. Thus, rising focus on minimizing energy consumption in the residential sector is likely to encourage the adoption of energy efficient ductless heating and cooling systems in the future.

However, with the robust expansion of the district cooling market and rapid industrialization across emerging economies, demand for ductless heating and cooling systems is expected to rise at a significant pace in commercial and industrial building segments during the assessment period.

Competitive Landscape

Key ductless heating & cooling manufactures include Hitachi Ltd, LG Electronics, Mitsubishi Electric Co, Daikin Industries Ltd, Trane Technology, Johnson Controls, Lennox International Inc., Nortex, and Whirlpool Corporation.

These leading players are increasingly focusing on introducing novel products with better features. Besides this, they have adopted various strategies such as mergers, partnerships, acquisitions, strengthening of distribution channels, and price reduction to gain a competitive edge in the market.

For instance,

• In 2021, Carrier launched new fully communicative ductless heating and cooling products including the 40MAHB indoor unit and 38MARB outdoor unit.
• In 2021, Durastar, a Ferguson heating and cooling brand launched a new line of mini-split systems on the Power Equipment Direct stores.

Scope of the Report

FMI’s latest analysis examines how drastic change in global temperature is creating space for the growth of ductless heating and cooling systems market. It provides comprehensive details on how market players are innovating to meet the end user demands.

The report is intended to enlighten customers with significant details about market drivers, restraints, prevailing trends, and emerging opportunities. It gives a comprehensive analysis of the overall market dynamics intended to enrich customer experience.

While North America and Europe remain at the epicenter of ductless heating and cooling systems market growth, the report highlights factors that will help Asia Pacific to take over the spotlight during the forecast period.

The study also highlights how growth in radiant heating and cooling systems market is influencing sales prospects of ductless heating & cooling systems. Besides this, impact of flourishing residential and commercial sectors on ductless systems market is being discussed in a detailed manner.

The Ductless Heating & Cooling Systems Market Analysis Includes:

• A 10-year realistic sales forecast for ductless heating & cooling systems across various end use verticals.
• Comprehensive information on demand forecasting and sales prospects across 25 countries
• Market dynamics including drivers, restraints, and emerging opportunities
• Recent developments and advancements in ductless heating & cooling systems
• Key insights into leading regional markets and product segments along with their respective shares, growth forecast and market potential.
• Information about leading ductless heating & cooling systems manufacturers and their growth strategies that allow them to penetrate attractive markets
• Pricing analysis
• The winning imperatives in this market
• Insights into ductless air conditioning market forecast.
• Interrelationship between HVAC systems market and ductless heating & cooling systems market.

Ductless Heating & Cooling Systems Market - Key Segments

By Product Type:

• Split System
• Mini Split System
• Multi Split System
• VRF system
• Window Air conditioning System

By Application:

• Residential Building
• Commercial Building
• Industrial Building

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa