Report Overview

Vietnam HVAC Market - Industry Trends & Forecast Report, 2029

Vietnam HVAC market size was estimated to be worth USD 0.784 billion in 2022. During the forecast period between 2023 and 2029, the Vietnam HVAC market size is projected to grow at a CAGR of 5.25%, reaching a value of USD 1.066 billion by 2029. Major growth factors for the Vietnam HVAC market include rising disposable income along with increasing awareness and focus toward energy-efficient systems. Furthermore, infrastructural development and the increasing construction of residential and commercial spaces in this emerging economy are anticipated to provide a lucrative growth opportunity for the Vietnam HVAC market.

Vietnam HVAC Market – Overview

Heating, ventilation, and air conditioning, or HVAC, is a system for maintaining and controlling the temperature, humidity, and purity of the air in a room or enclosed space. These systems are used in a wide range of commercial, residential, and industrial facilities, such as family homes, apartments, hotels, hospitals, trains, airplanes, ships, etc. Ventilation is a very important aspect of HVAC as it helps in maintaining indoor air quality, which involves the removal of moisture, odors, smoke, and dust, temperature control, and oxygen replenishment.

Vietnam HVAC Market

Growth Drivers

Increasing Disposable Income and Economic Development

According to a report by Nikkei Asia, Vietnam's GDP per capita in 2017 was USD 2,300, although it exceeded USD 4,000 in Ho Chi Minh City and over USD 3,000 in Hanoi. The increase in disposable income created new consumers for air conditioners and other HVAC systems. The economy of the nation has been expanding at the fastest rate in Southeast Asia, at about 7% annually. The first white goods to gain popularity in a developing market are often refrigerators and washing machines, with the demand for air conditioners rising sharply after the gross domestic product per capita reaches USD 3,000. The Vietnam HVAC market is projected to witness lucrative growth opportunities with rapid economic development during the forecast period.

Restraints

High Installation and Maintenance Costs of HVAC Systems

The installation and maintenance of HVAC systems are expensive since They entail robust, intricate machinery like furnaces, central air conditioners, and ductwork that runs throughout the house’s interior framework. According to Vietnam Plus, the most often used machines are 1-1.5 HP LG and Panasonic models that cost VND 8–12 million (USD 345–515) and have inverters, timers, and touch controls. The customers are also required to pay annual maintenance and repair expenses, which range from around VND 2–4 million (USD 120–180) each year. This significantly hinders the expansion of Vietnam HVAC market.

Impact of COVID-19 on Vietnam HVAC Market

In 2020 and early 2021, Vietnam had the fewest COVID-19 cases worldwide, according to a World Bank report. However, a significant decline in income as a result of job losses negatively impacted the growth of the Vietnam HVAC market. The restrictions on the manufacturing activities and supply chain of HVAC equipment, along with limited operations in the construction industry due to the shortage of labor, are linked to the stagnation of the Vietnam HVAC market. Due to the nation's economic crisis, people's purchasing power was also impacted. All of these factors led to a sharp decline in the demand for HVAC systems in Vietnam, which had an effect on the market's overall growth.

Vietnam HVAC Market

Segmental Coverage

Vietnam HVAC Market – By Offering

Based on the offerings, the Vietnam HVAC market is split into equipment and service. The equipment segment is further classified into heating, ventilation, and cooling. The services segment is also classified into upgrade/replacement, maintenance and repair, installation, and consulting. Room air conditioners dominate the Vietnam HVAC market because of the hot and humid climate of the country. The average temperature is approximately 34°C but can often go up to 40°C, according to Vietnam Travel. As a result, air conditioners are emerging as a necessary appliance rather than a luxury, contributing to their market growth.

Vietnam HVAC Market – By Implementation Type

Based on implementation type, the Vietnam HVAC market is bifurcated into new construction and retrofits. New construction holds a larger market share. According to the Vietnam Briefing, Vietnam is one of the top spenders on infrastructure development in the world, allocating 6% of its GDP to this sector right now. The construction of residential and commercial buildings to meet the housing needs of the growing population and flourishing economic activities is directly influencing the growth of the Vietnam HVAC market.

Vietnam HVAC Market – By End User

Based on end user, the Vietnam HVAC market is segmented into residential, commercial, and industrial. The residential segment accounts for the highest share of the Vietnam HVAC market. Consumers' rising disposable income and improving living standards are emerging as the key drivers of market expansion. As a result, there is a growing need for HVAC systems and appliances to be installed in small homes. However, because of the increased development of commercial facilities like offices, retail centers, and hotels. throughout the nation, the commercial segment is predicted to record the highest growth rate during the projection period.

Competitive Landscape

Major players operating in the Vietnam HVAC market include Panasonic Vietnam Co, Ltd, Daikin Air Conditioning Vietnam JSC, LG Electronics Vietnam Haiphong Co, Ltd, Toshiba Carrier Vietnam Air Conditioning Co, Ltd, Sharp Electronics (Vietnam) Company Limited, Mitsubishi Electric Vietnam Co, Ltd, Munters, Fujitsu General, and Nortek Air Solutions. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2022 – Hira Industries, a UAE-based provider of HVAC and building supplies, inaugurated an HVAC manufacturing factory in Vietnam, which will produce thermal insulation and acoustic solutions.

Scope of the Report

By Offering

• Equipment

1. Heating

• Heat Pumps

1. Air-source

2. Water-source

3. Ground-source

• Furnaces

1. Gasoline
2. Propane
3. Electric

• Boilers

1. Water-tube

2. Fire-tube

• Unitary heaters

2. Ventilation

• Air-Handling Units (AHUs)

1. Terminal units

2. Makeup air units

• Ventilation Fans

1. Centrifugal fans

2. Axial fans

3. Domestic exhaust fans

4. Power roof fans

• Fan Coil Units (FCUs)

1. Two-pipe

2. Four-pipe

• Humidifiers/dehumidifiers
• Air cleaners

1. Type 1: High-efficiency particulate air (HEPA) + carbon

2. Type 2: HEPA + carbon + ionizer

3. Type 3: HEPA + carbon + ultraviolet (UV)

4. Type 4: HEPA + carbon + ionizer + UV

5. Type 5: Other technologies

3. Cooling

• Room air conditioners (ACS)

1. Mini splits

2. Window ACs

• Split units
• Ducted splits

1. Water-cooled condensers

2. Air-cooled condensers

• Packaged units

1. Water-cooled condensers

2. Air-cooled condensers

• Variable refrigerant flow (VRF) systems

1. Heat Pump Systems

2. Heat Recovery Systems

• Chillers

1. Centrifugal
2. Screw
3. Scroll
4. Absorption
5. Reciprocating

• Service

1. Upgradation/replacement
2. Maintenance and repair
3. Installation
4. Consulting

By Implementation Type

1. New Constructions
2. Retrofits

By End User

1. Residential
2. Commercial
3. Industrial

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam HVAC Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing Tourism and Hospitality Sector
         2. Rising Investment in Sustainable Energy Technologies
      2. Restraints
         1. Lack Of Skilled Professionals
         2. Energy Efficiency and Sustainability Concerns
      3. Opportunities
         1. Increasing Technological Innovations
         2. Expanding Residential And Commercial Building Development
      4. Challenges
         1. Cost of Installation and Maintenance
         2. Competition and Market Saturation
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Vietnam HVAC Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Offering
         1. Equipment
            1. Heating
               1. Heat Pumps
                  1. Air-source
                  2. Water-source
                  3. Ground-source
               2. Furnaces
                  1. Gasoline
                  2. Propane
                  3. Electric
               3. Boilers
                  1. Water-tube
                  2. Fire-tube
               4. Unitary heaters
            2. Ventilation
               1. Air-Handling Units (AHUs)
                  1. Terminal units
                  2. Makeup air units
               2. Ventilation Fans
                  1. Centrifugal fans
                  2. Axial fans
                  3. Domestic exhaust fans
                  4. Power roof fans
               3. Fan Coil Units (FCUs)
                  1. Two-pipe
                  2. Four-pipe
               4. Humidifiers/dehumidifiers
               5. Air cleaners
                  1. Type 1: High-efficiency particulate air (HEPA) + carbon
                  2. Type 2: HEPA + carbon + ionizer
                  3. Type 3: HEPA + carbon + ultraviolet (UV)
                  4. Type 4: HEPA + carbon + ionizer + UV
                  5. Type 5: Other technologies
            3. Cooling
               1. Room air conditioners (ACS)
                  1. Mini splits
                  2. Window ACs
               2. Split units
               3. Ducted splits
                  1. Water-cooled condensers
                  2. Air-cooled condensers
               4. Packaged units
                  1. Water-cooled condensers
                  2. Air-cooled condensers
               5. Variable refrigerant flow (VRF) systems
                  1. Heat Pump Systems
                  2. Heat Recovery Systems
               6. Chillers
                  1. Centrifugal
                  2. Screw
                  3. Scroll
                  4. Absorption
                  5. Reciprocating
         2. Service
            1. Upgradation/replacement
            2. Maintenance and repair
            3. Installation
            4. Consulting
      2. By Implementation Type
         1. New Constructions
         2. Retrofits
      3. By End-User
         1. Residential
         2. Commercial
         3. Industrial
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. Vietnam HVAC Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
6. Impact of Covid-19 on Vietnam HVAC Market Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
   1. Panasonic Vietnam Co Ltd
   2. Daikin Air Conditioning Vietnam JSC
   3. LG Electronics Vietnam Haiphong Co., Ltd
   4. Toshiba Carrier Vietnam Air Conditioning Co Ltd
   5. Sharp Electronics (Vietnam) Company Limited
   6. Mitsubishi Electric Vietnam Co Ltd
   7. Munters
   8. FUJITSU GENERAL
   9. Nortek Air Solutions
   10. Other prominent players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents
   5. Assumption & Limitation

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Vietnam HVAC Market Segmentation

Figure 2       Vietnam HVAC Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2021

Figure 4       Vietnam HVAC Market Size, By Value (USD Billion), 2019–2029

Figure 5       Vietnam HVAC Market Share, By Offering, By Value, 2019–2029

Figure 6       Vietnam HVAC Market Share, By Implementation Type, By Value, 2019–2029

Figure 7       Vietnam HVAC Market Share, By End-User, By Value, 2019–2029                 

List of Tables      

Table 1        Vietnam HVAC Market Size, By Offering, By Value, 2019−2029

Table 2        Vietnam HVAC Market Size, By Implementation Type, By Value, 2019−2029

Table 3        Vietnam HVAC Market Size, By End-User, By Value, 2019−2029

Table 4        Panasonic Vietnam Co Ltd Company Overview

Table 5        Panasonic Vietnam Co Ltd Financial Overview

Table 6        Daikin Air Conditioning Vietnam JSC Company Overview

Table 7        Daikin Air Conditioning Vietnam JSC Financial Overview

Table 8        LG Electronics Vietnam Haiphong Co., Ltd Company Overview

Table 9        LG Electronics Vietnam Haiphong Co., Ltd Financial Overview

Table 10      Toshiba Carrier Vietnam Air Conditioning Co Ltd Company Overview

Table 11      Toshiba Carrier Vietnam Air Conditioning Co Ltd Financial Overview

Table 12      Sharp Electronics (Vietnam) Company Limited Company Overview

Table 13      Sharp Electronics (Vietnam) Company Limited Financial Overview

Table 14      Mitsubishi Electric Vietnam Co Ltd Company Overview

Table 15      Mitsubishi Electric Vietnam Co Ltd Financial Overview

Table 16      Munters Company Overview

Table 17      Munters Financial Overview

Table 18      FUJITSU GENERAL Company Overview

Table 19      FUJITSU GENERAL Financial Overview

Table 20      Nortek Air Solutions Company Overview

Table 21      Nortek Air Solutions Financial Overview