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2023

Asia-Pacific Marine HVAC Market

Asia-Pacific Marine HVAC Market Size, Share, Competitive Landscape and Trend Analysis Report by Vessel Type (Passenger, Cargo, Fishing, and Others), Capacity (Less Than 20 RT, 20-90RT, and Greater Than 90RT), and Technology Type (Marine Ventilation Systems, Marine Air Conditioning, Marine Heating Systems, and Marine Refrigeration Systems): Regional Opportunity Analysis and Industry Forecast, 2022-2031

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Author's: Gunjan Malani | Lalit Janardhan Katare
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Marine Heating, Ventilation, and Air Conditioning (HVAC) Market in Asia-Pacific:

The Asia-Pacific marine HVAC market was valued at $764.3 million in 2021 and is projected to reach $1,284.6 million in 2031, registering a CAGR of 5.5%. 

The systems used to control the temperature, humidity, and air quality onboard ships and boats are referred to as marine Heating, Ventilation, and Air Conditioning (HVAC). Marine HVAC systems are primarily used to provide a comfortable and healthy atmosphere for the crew and passengers as well as to safeguard delicate cargo from high temperatures and levels of humidity. The transfer of heat is the essential principle of marine air cooling. An air conditioner absorbs heat from the cabin's air and passes it to the system's refrigerant gas. The heat from the refrigerant gas is subsequently transferred to the sea water via the marine air conditioner. Reverse cycle air conditioning allows the air conditioner to do the opposite of this process, drawing heat from the ocean and transferring it to the cabin.

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The method for developing and installing an HVAC system for a ship is complicated and necessitates a careful evaluation of the specifications and requirements of the ship. The design process is influenced by a variety of elements, including the amount of available space, the environment, the type of cargo, and the type of vessel.

The shipbuilding sector in the Asia-Pacific region has expanded dramatically. Major players in the industry include China, Japan, South Korea, and Singapore, which have continued to spend considerably in their shipbuilding skills. The governments of several APAC countries are looking into innovative ways to help their shipbuilding companies with the increase in demand for shipbuilding. Moreover, many countries have made significant investments in offshore exploration and production, to fulfil the region's expanding energy demands. HVAC systems that are highly dependable and effective are essential to support operations, offshore exploration, and production facilities.

As a result, the increase in offshore and gas exploration is likely to boost market expansion. In addition, marine Heating, Ventilation, and Air Conditioning (HVAC) systems are critical components of vessels and boats, offering an appealing place to live and work for crew members and passengers while also ensuring optimal conditions for equipment and cargo. However, one of the primary restraints of the Asia Pacific marine HVAC market is the high initial investment required for the installation of these systems. Maritime HVAC systems are complex and require specific equipment, materials, and experience to install, which can result in relatively high installation costs. Furthermore, ships and vessels come in a range of sizes and configurations, and HVAC systems must be designed to match the individual needs of each vessel, which can raise installation costs even further.

Moreover, Japan has major technologically advanced maritime industries in the Asia-Pacific, and marine HVAC systems are essential to maintaining the efficiency, comfort, and safety of ships operating in Japanese seas. Japan has some of the most stringent requirements for marine safety and environmental preservation, and marine HVAC systems must adhere to these standards. For example, International Maritime Organization (IMO) laws mandate vessels to cut greenhouse gas emissions, which has increased demand for energy-efficient marine HVAC systems.

The Asia-Pacific marine HVAC market is segmented on the basis of vessel type, capacity, technology type and country. By vessel type, it is divided into passenger, cargo, fishing, and others. By capacity, it is classified into less than 20 RT, 20-90 RT, and greater than 90 RT. By technology type, it is categorized into marine ventilation systems, marine air conditioning, marine heating systems, and marine refrigeration systems. By country, the market is analyzed across India, Australia, Japan, South Korea, Indonesia, Thailand, Philippines, Singapore, Malaysia, Hong Kong, Taiwan, and rest of Asia-Pacific.

Some leading companies profiled in the Asia-Pacific marine HVAC market report comprises Daikin Industries, Ltd., Dometic Group AB (publ), Marcotex - Engineers & Consultants, Johnson Controls International plc, Heinen & Hopman Engineering BV, Carrier Global Corporation, NADI Airtechnics Pvt. Ltd., HI AIR KOREA. Co., Ltd, Rapid Offshore & Marine Pte Ltd., and Webasto Group.

Rise in seaborne trade activities

Ships carry around 90% of goods transported globally, and the shipping sector accounts for around 3% of the global greenhouse gas emissions. According to United Nations Conference on Trade and Development (UNCTAD), annual growth in maritime trade between 2022 and 2026 will slow to 2.4% as compared to 2.9% between 2000 and 2020. However, increase in the seaborne trade activities owing to increase in consumer spending on goods and growth of the e-commerce industry during the forecast period is projected to boost the adoption of HVAC systems in marine vessels.

COVID-19 pandemic accelerated growth of the e-commerce industry, which transformed consumer habits and spending patterns and boosted demand for distribution facilities and warehousing that are digitally enabled. In addition, it has also increased demand for ships with increased capacity to carry more goods for transportation to fulfill the customer demand, driving the demand for marine HVAC systems.

Increase in demand for shipbuilding

The shipbuilding industry in the Asia-Pacific region has experienced significant growth. Countries such as Japan, South Korea, and Singapore are major players in the industry and have continued to invest heavily in their shipbuilding capabilities. The government of various countries in the Asia-Pacific region are exploring new methods to support their shipbuilding industries with the rise in demand for shipbuilding. For instance, in August 2022, South Korean government announced to focus on measures in the areas of expanding the workforce, and developing technology for the shipbuilding industry.

Moreover, the South Korean shipyards received the highest percentage of shipbuilding orders in the first seven months of 2022. Ship orders in 2021 reached 17.44 million CGT, an increase of 112% compared to the same period in 2020. In addition, in March 2022, the Australian government announced to invest up to $4.3 billion to deliver Western Australia’s first large-vessel dry berth at the Henderson shipyard to boost naval shipbuilding capacity. The rise in demand for shipbuilding drives the need for increasingly sophisticated HVAC systems to maintain temperature and humidity control, air quality, and energy efficiency in vessels. Furthermore, Shipyards and HVAC manufacturers work together to design and install HVAC systems for specific needs of the ships. Therefore, the surge in the demand for the shipbuilding industry is expected to drive the growth of the Asia-Pacific marine HVAC market.

Rise in offshore oil and gas exploration

Various countries in the region are investing heavily in offshore exploration and production to meet the growing energy requirements. Numerous companies conduct drilling operations to contribute to improving Japan’s energy self-sufficiency rate. For instance, in January 2022, Inpex Corporation announced its plans to implement exploratory drilling operations offshore Shimane and Yamaguchi prefectures in Japan to explore the possibility of locating oil and natural gas resources.

Modern HVAC systems are required for offshore drilling platforms and vessels to keep personnel safe, comfortable, and healthy. These systems support optimum temperature and humidity levels, regulate the quality of the air, and stop the accumulation of dangerous gases and particles. Moreover, the need for specialized HVAC products and services to maintain optimum temperature in the offshore oil and gas sector drives the demand for marine HVAC systems. HVAC systems that are extremely dependable and effective are required to support operations, offshore exploration, and production facilities. Therefore, the surge in offshore and gas exploration is expected to propel the growth of the Asia-Pacific marine HVAC market.

Asia-Pacific Marine HVAC Market
By Vessel Type
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Passenger vessels is projected as the most lucrative segment

Stringent environmental regulations

The marine industry is subjected to a variety of environmental rules to reduce pollution and safeguard marine ecosystems, including shipping and offshore exploration and production. For instance, In June 2021, the International Maritime Organization (IMO) adopted key short-term measures aimed at reducing the carbon intensity of all ships by at least 40% by 2030. These measures integrate technical and operational approaches to improve the energy efficiency of ships. These new requirements from the IMO are expected to encourage ship owners and ship operators to install energy-efficient HVAC systems to reduce their carbon footprint, resulting in rise in demand for environment friendly low-emission refrigerants.

Asia-Pacific Marine HVAC Market
By Capacity
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Marine HVAC with capacity less Than 20RT is projected as the most lucrative segment

Vessels and offshore facilities are required by environmental standards to reduce their emissions of greenhouse gases such as carbon dioxide and methane. The use of highly efficient HVAC components and systems, such as heat recovery systems and variable speed drives in ships lowers the demand for fuel usage and assists in reducing emissions. Marine HVAC systems play a key role in reducing emissions from ships and offshore installations. Marine HVAC systems help businesses meet emissions reduction goals, comply with environmental regulations, and reduce carbon footprint by improving energy efficiency, optimizing indoor air quality, and utilizing alternative and renewable energy sources. Therefore, stringent environmental regulations drive the demand for HVAC systems which is expected to boost the growth of the Asia-Pacific marine HVAC market.

High initial investment costs

Installation of marine HVAC systems can be expensive as the construction of marine HVAC is critical and complex. Ships and other vessels are available in a variety of shapes and sizes, therefore, it is necessary to tailor the HVAC systems to the particular requirements of ships, which can raise installation costs. Moreover, marine HVAC systems must abide by the stringent rules and requirements that apply to the marine industry in terms of safety, effectiveness, and environmental impact. This necessitates that the tools and supplies used in marine HVAC systems adhere to strict regulations and certifications, which raises the installation costs. Therefore, high initial investment required for the installation of marine HVAC systems can be a significant barrier to the growth of the Asia Pacific marine HVAC market.

Asia-Pacific Marine HVAC Market
By Technology Type
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Marine Refrigeration Systems is projected as the most lucrative segment

High maintenance costs

Marine HVAC systems tend to be more complex than land-based HVAC systems, requiring multiple components and subsystems to work seamlessly together. This complexity makes maintenance and repair more difficult and may require special skills and expertise. Marine HVAC systems are installed in remote or offshore locations. This also increases the maintenance costs as access to these locations can be difficult and expensive, requiring specialized equipment and personnel. Therefore, it can increase the overall cost of routine maintenance and repairs, as well as emergency repairs and replacements. Therefore, high maintenance cost is expected to hamper the growth of the Asia-Pacific marine HVAC market during the forecast period.

COVID-19 Impact Analysis

The outbreak of COVID-19 resulted in disruptions in supply chains, reduced demand for marine vessels, and led to delays or cancellations of new ship construction projects. Travel restrictions and physical distancing measures impacted the maintenance and repair of existing marine HVAC systems. Moreover, post-pandemic, there is growth in the tourism and cruise industry in different countries of the region. There is also a surge in the resumption of international cruise ship activities. For instance, in December 2022, International cruise ship operations resumed in Japan after an almost three-year suspension due to the coronavirus pandemic. Such developments are expected to support market growth during the forecast period.

Asia-Pacific Marine HVAC Market
By Country
2031
Rest Of Asia-pacific 
India
Australia
Japan
South Korea
Indonesia
Thailand
Philippines
Singapore
Malaysia
Hong Kong
Taiwan

India would exhibit the highest CAGR of 9.1% during 2022-2031.

Key Benefits For Stakeholders

  • This study presents the analytical depiction of the Asia-Pacific marine HVAC market analysis along with the current trends and future estimations to depict imminent investment pockets.
  • The overall marine HVAC market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  • The report presents information related to the key drivers, restraints, and opportunities of the Asia-Pacific marine HVAC market with a detailed impact analysis.
  • The current marine HVAC market is quantitatively analyzed from 2021 to 2031 to benchmark financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Asia-Pacific Marine HVAC Market Report Highlights

Aspects Details
Asia-Pacific Marine HVAC Market By Vessel Type
By Vessel Type
  • Passenger
  • Cargo
  • Fishing
  • Others
Asia-Pacific Marine HVAC Market By Capacity
By Capacity
  • Less Than 20RT
  • 20-90RT
  • Greater Than 90RT
Asia-Pacific Marine HVAC Market By Technology Type
By Technology Type
  • Marine Ventilation Systems
  • Marine Air Conditioning
  • Marine Heating Systems
  • Marine Refrigeration Systems
Asia-Pacific Marine HVAC Market By Country
By Country
  • India
  • Australia
  • Japan
  • South Korea
  • Indonesia
  • Thailand
  • Philippines
  • Singapore
  • Malaysia
  • Hong Kong
  • Taiwan
  • Rest Of Asia-Pacific
Asia-Pacific Marine HVAC Market By KEY PLAYERS
By KEY PLAYERS
  • Daikin Industries, Ltd.
  • Dometic Group AB (publ)
  • Marcotex - Engineers & Consultants
  • Johnson Controls International plc
  • Heinen & Hopman Engineering BV
  • Carrier Global Corporation
  • NADI Airtechnics Pvt. Ltd.
  • HI AIR KOREA. Co., Ltd
  • Rapid Offshore & Marine Pte Ltd.
  • Webasto Group

Analyst Review

The Asia-Pacific marine HVAC market is expected to witness growth owing to rise in demand for luxury cruises, and yachts. Moreover, there has been an increase in the shipping industry and the registry of ships in the region. For instance, the Singapore Registry of Ships (SRS) continues to be one of the world's five largest registries of ships with a quality fleet. In 2022, the gross tonnage of Singapore-flagged vessels was nearly 96 million GT, an increase of around 4% compared to 2021. Rise in number of registered ships in Asia-Pacific is expected to accelerate the demand for marine HVAC systems during the forecast period.

In addition, there has been a surge in water freight in various countries of the region. For instance, the growth rate of Inland waterways (IWT) on National Waterways in India from 2009-10 to 2013-14 was 1.5%, and the growth rate increases to 13.5% in 2020-21 annually. Cargo is sensitive to temperature changes and must be shipped within a certain temperature range to maintain quality and prevent spoilage. HVAC systems are increasingly being used to regulate the temperature of freight with the rise in maritime cargo transportation which is expected to drive the demand for marine HVAC.

Author Name(s) : Gunjan Malani | Lalit Janardhan Katare

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Asia-Pacific Marine HVAC Market

Regional Opportunity Analysis and Industry Forecast, 2022-2031