The Australian HVAC market is expected to reach approximately $3 billion by 2022 growing at a CAGR of nine per cent from 2016 to 2022, according to a new report by Research and Markets.

The overall demand for HVAC products in the Australia and New Zealand region are estimated to remain high for various applications including commercial, residential, industrial, and institutional segments, among others.

Various government initiatives, emerging green/smart building and growing consumer concerns are driving HVAC manufacturers, developers and system integrators to build and provide energy efficient and technologically advanced HVAC units for major commercial, residential, institutional and industrial applications, the report said.

The Australia and New Zealand HVAC markets have been covered by both value and volume.

The market by value is growing at a CAGR of 9.82 per cent from 2016 to 2022, while the market by volume is growing at a CAGR of 7.33 per cent from 2016 to 2022 in which Australia is a dominant player.

Research and Markets has further classified the report on the basis of different types of HVAC products including window & portable air conditioners, split air conditioners, single packaged units, chillers and fan coil units (FCU) & air handling units(AHU).

"The Australia HVAC product market by volume is witnessing a gradual emergence of new cost-effective and energy efficient technologies that meet the required standards and regulations, as well as attempts to fulfill growing customer concerns," the report said.

"Major products that have widespread usages across different end-use applications include window, portable and split units for residential purposes. Chillers are growing at a very high growth rate followed by VRFs."

While the Australian HVAC market is growing at 6.99 per cent, New Zealand HVAC market volume is expected to reach a volume of 271.40 thousand units by 2022. The demand for HVAC products in the Australina market is mainly driven by factors such as rising population, developments in the residential markets, and growing commercial and industrial units.

Many leading HVAC manufacturers, including global as well as regional players are increasing their product presence in the region by expanding distribution outlets and launching products specifically designed for the local population.