South Korea HVAC Market Report and Forecast 2024-2032

South Korea HVAC Market Size

The South Korea HVAC market reached approximately USD 2.92 billion in 2023. The market is projected to grow at a CAGR of 6.10% between 2024 and 2032, reaching a value of around USD 5.01 billion by 2032.

South Korea HVAC Market Outlook

• As per the industry reports, South Korea ranked as the 9th largest exporter of air conditioners in the world in 2022.

• An average HVAC system accounts for around 12 per cent of the overall usage of energy in households.

• The HVAC Korea 2024, set to take place from May 22 to May 24, 2024, in Seoul, South Korea, aims to provide the market players valuable insights and aid them in gaining a competitive edge in the market.

South Korea HVAC Market Growth

The rapid urbanisation, increase in infrastructure development, and government regulations encouraging the adoption of eco-efficient HVAC systems in the country are some of the major factors driving the market growth. For instance, the South Korean government mandated the display of Cooling Seasonal Performance Factor (CSPF) on the energy efficiency labels of air conditioners to offer proper guidance to customers so they can make an informed decision.

There is also an increased emphasis on the installation of high-end HVAC systems which offer air filtration and ventilation properties, due to the rising health concerns related to poor air quality. The increasing purchasing power of middle-class consumers and the rising demand for a comfortable environment in households and the commercial sector also boost the market.

Technological advancements such as the development of smart HVAC systems as well as inverter-driven compressors are expected to witness an upward trajectory in the South Korean market as they offer superior performance and increased efficiency. For example, motion-activated HVAC systems use motion sensors to detect when a person enters the room, turning the air conditioners on or off autonomously, which results in higher energy savings.

Moreover, ductless HVAC systems are gaining popularity due to their ease of installation, space-saving design, and energy-efficient nature. These systems are readily implemented in the renovation or retrofitting projects in the country. HVAC systems with in-built diagnostics and predictive maintenance features that can reduce downtime, optimise performance, and increase the longevity of the equipment are also high in demand.

South Korea HVAC Industry Segmentation

“South Korea 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
  • Unitary Heaters
• 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 Implementation Type

• New Constructions

• Retrofits

Market Breakup by End Use

• Residential

• Commercial

• Industrial

South Korea HVAC Market Share

The residential HVAC market is witnessing significant growth due to a rise in single-family and multi-family housing. The desire for cozy living spaces has surged due to factors such as urbanisation, rising disposable incomes, and growing awareness of energy efficiency. During the forecast period, these factors are expected to drive the adoption of HVAC systems, including air conditioning, air filtration, air purifiers, and dehumidifiers.

Leading Companies in South Korea HVAC Market

The market players are engaging in the development of innovative HVAC products to gain a competitive edge in the market.

• LG Corp.

• Robert Bosch GmbH

• Hitachi Ltd.

• Samsung Electronics Co. Ltd.  

• Haier Smart Home Co. Ltd.

• Mitsubishi Electric Corporation

• Panasonic Holdings Corp.

• Daikin Industries Ltd.

• Johnson Controls International Plc 

• Trane Technologies Plc

• Others

Key Highlights of the Report