In 2021, the Southeast Asia HVAC market was worth around $18,745.5 million. Moreover, it is expected to witness a compound annual growth rate of 6.4% from 2021 to 2030 and reach $32,824.1 million by 2030. The expansion of the hospitality industry and increase in the number of infrastructure projects are leading to the market's growth. Further, the environmental concerns and push for sustainable development are positively impacting the market by influencing people to replace their conventional HVAC appliances with smart, energy-efficient ones.

The fastest growth in the Southeast Asia HVAC market is predicted to be witnessed by residential end users. The increased number of residential construction projects in Southeast Asia is the primary driver for the market. For instance, the construction of 830,000 housing units by 2025 has been planned by South Korea. The Myanmar government has also initiated several infrastructure projects with China, Japan, and Thailand. Moreover, China has planned financial aid of $596 million for environmental, rural transportation, and medical facilities.

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Energy-efficient technologies and IoT are positively impacting the AC market. The climate change caused by global warming and depletion of the ozone layer due to the emission of chlorofluorocarbons by refrigerators and ACs is a leading cause for the mass adoption of energy-efficient HVAC systems. In the Philippines, for instance, the Department of Energy (DoE) has published guidelines for the energy efficiency of refrigerators, TV sets, and lights. It further leads to the implementation of the EEPR system, including specific MEP standards that AC products must adhere to.

The cooling category will experience the fastest growth in the Southeast Asia HVAC market due to the high humidity that characterizes the regional climate. This positively influences the demand for cooling appliances, such as room ACs, split units, ducted splits, and VRF systems. Further, only 15% of the households in the region have air conditioners, according to the IEA. Thus, there is a great potential for HVAC appliance manufacturers, distributors, and retailers to penetrate Southeast Asia. Moreover, the increase in the per capita income will favorably impact the sales of cooling products.