HVAC Market Size, Share, Forecast, & Trends Analysis by Offering, System, Distribution Mode, Type (Split System, Packaged System), Portability, Sales Channel, Application (Cooling, Heating, Filtering), End User (Industrial, Residential, Commercial), and Geography - Global Forecast to 2031

HVAC Market Size & Forecast

The HVAC Market is expected to reach $456.6 billion by 2031, at a CAGR of 7.8% from 2024 to 2031. The growth of this market is attributed to the increasing urbanization & indoor air pollution levels, consumers' growing inclination toward convenience and comfort, the rapid growth of the e-commerce industry, and increasing government initiatives to improve air quality. Moreover, technological advancements in HVAC systems and the rising adoption of air conditioners with inverter & air purification technologies are expected to offer growth opportunities for the players operating in this market.

HVAC Market Growth Drivers

• Consumers Growing Inclination Toward Convenience and Comfort

Consumers are actively looking for convenience, which is a key objective in home automation systems, including HVAC systems. HVAC systems play an important role in enabling a comfortable ambiance. HVAC manufacturers are implementing smart IoT solutions that allow consumers to remotely manage HVAC systems, adjust temperature on a single platform, and save electricity without compromising on comfort. Thus, allows people to adjust the temperature from anywhere, using their smartphones, offering comfortable temperature to users.

Moreover, to enhance the consumers' experience and their comfort level several companies are offering new products in the market. For instance, in April 2022, Mitsubishi Electric Corporation (Japan) developed airflow-control technology for visualizing and analyzing airflow from air-conditioning systems and temperature distribution to optimize room-wide comfort. Such developments support the growth of the HVAC market during the forecast period.

Click here to: Get Free Sample Pages of this Report

• Increasing Urbanization & Indoor Air Pollution Levels

Rapid urbanization has led to increased air pollution levels. Air pollution has been progressively recognized as a serious problem for cities, with hazardous effects on public health and well-being. Cities are hubs for transportation and industry, with high emissions of pollutants like nitrogen oxide, particulate matter (PM2.5), and Volatile Organic Compounds (VOCs). These pollutants are present in outdoor environments but also infiltrate buildings through windows, ventilation systems, and cracks.

As urbanization continues, addressing indoor air pollution has become even more critical. Hence, market players are constantly innovating and launching HVAC systems for air purification. For instance, in November 2023, Qubo (U.S.) launched three new smart air purifiers designed for residential use in India, namely, Q200, Q400, and Q500, with advanced 4-layer purification and HEPA H13 filters. Also, in May 2021, Daikin Industries Ltd. (Japan) launched two new series of air purifiers for the Middle East & Africa region to enhance Indoor Air Quality (IAQ) and comfort levels for residential, commercial, and industrial customers. Such developments are supporting the growth of the HVAC market.

HVAC Market Opportunity

• Rising Adoption of Air Conditioners with Inverter & Air Purification Technologies

The most recent improvement in compressor electromotor technology is inverter technology. The compressor motor's speed is controlled by an inverter, which allows the temperature to be changed. The ability to adjust the speed of the compressor motor is the key feature of an inverter air conditioner. The unit can keep the temperature constant without turning off its motor owing to the controlled speed. Further, the compressor of an inverter air conditioner doesn't operate at full capacity because of how it operates, preventing consumers from having to pay a significant sum for electricity units. Since this helps customers significantly reduce their electricity bill, it is significantly more efficient than a non-inverter AC.

Furthermore, the rising concerns over air quality resulting in serious health implications have compelled the key players to innovate their product offerings. For instance, in September 2022, Shark (U.S.) revolutionized and disrupted air purification with two new air cleaning innovations that offer heating and a cooling fan, bringing consumers the confidence of clean air with the comfort of the perfect air temperature. These air purifiers continuously deliver clean air at the ideal temperature for comfort all year long for all four seasons. Thus, the rising adoption of air conditioners with inverter and air purification technologies is expected to provide lucrative opportunities for the market to grow in the upcoming years.

HVAC Market Analysis: Key Findings

By Offering: In 2024, the Components Segment to Dominate the HVAC Market

Based on offering, the global HVAC market is segmented into components and services. In 2024, the components segment is expected to account for the larger share of above 84% of the global HVAC market. The large market share of this segment is attributed to the increasing adoption of ventilation systems to improve indoor air quality, reduce humidity levels, and eliminate indoor odors; the growing use of heating pumps to provide comfortable temperatures during cold weather; and the rising adoption of HVAC systems to optimize airflow distribution to minimize energy consumption. In August 2022, Carrier Global Corporation (U.S.) collaborated with Gallipolis City School District (U.S.) to design and install a multi-building HVAC solution to boost indoor air quality (IAQ) and energy efficiency.

However, the services segment is projected to register the highest CAGR during the forecast period. The segment's growth is attributed to the increasing need for HVAC services to increase productivity, improve well-being, and enhance the quality of life for occupants; the growing use of maintenance & repairing services of HVAC to identify potential issues in the early stage and improve operational efficiency; and the rising need of HVAC services to ensure compliance with building codes and regulations related to indoor air quality and ventilation standards.

By System: In 2024, the Secondary HVAC Systems Segment to Dominate the HVAC Market

Based on system, the global HVAC market is segmented into primary and secondary HVAC systems. In 2024, the secondary HVAC systems segment is expected to account for the larger share of above 66% of the global HVAC market. The large market share of this segment is attributed to the increasing adoption of air handling units to enhance indoor air quality by effectively filtering dust, allergens, and pollutants from incoming air and the increasing adoption of secondary HVAC systems to reduce energy costs up and improve ventilation effectiveness, indoor air quality and employee comfort. Moreover, this segment is also projected to register the highest CAGR during the forecast period.

By Distribution Mode: In 2024, the De-centralized System Segment to Dominate the HVAC Market

Based on distribution mode, the global HVAC market is segmented into centralized systems and de-centralized systems. In 2024, the de-centralized systems segment is expected to account for the larger share of above 72% of the global HVAC market. The large market share of this segment is attributed to the increasing adoption of de-centralized systems in smaller areas or zones to reduce energy consumption by providing heating, cooling, or ventilation and the growing adoption of de-centralized systems due to its redundancy & reliability for maintenance and repair procedures. Moreover, this segment is also projected to register the highest CAGR during the forecast period.

By Type: In 2024, the Split Systems Segment to Dominate the HVAC Market

Based on type, the global HVAC market is segmented into split systems, dual fuel heat pump systems, ductless mini-split systems, packaged systems, and other types. In 2024, the split system segment is expected to account for the largest share of above 28% of the global HVAC market. The large market share of this segment is attributed to the growing adoption of split systems to reduce energy consumption and lower utility bills compared to older HVAC systems; the rising use of split systems to support zoning and allow different areas or rooms within a building to be controlled independently; and the increasing adoption of split systems in buildings where space is limited. In March 2022, Blue Star Ltd (India) launched its range of affordable split ACs to provide high quality, reliability, and durability to consumers.

However, the ductless mini-split system segment is projected to register the highest CAGR during the forecast period. The segment's growth is attributed to the rising demand for energy-efficient and sustainable ductless air conditioning systems in developing countries and the growing adoption of ductless systems due to faster and less installation and maintenance compared to traditional ducted HVAC systems.

By Portability: In 2024, the In-duct/Fixed Segment to Dominate the HVAC Market

Based on portability, the global HVAC market is segmented into standalone/portable and in-duct/fixed. In 2024, the in-duct/fixed segment is expected to account for the largest share of above 59% of the global HVAC market. The large market share of this segment is attributed to the technological advancements in in-duct/ fixed HVAC systems and increasing investments for in-duct/ fixed HVAC systems by commercial users in improving air quality in working spaces.

However, the standalone/portable segment is projected to register the highest CAGR during the forecast period. The segment's growth is attributed to the increasing sales of portable HVAC units in the residential sector due to their versatility, ability for targeted air cleaning, and increasing disposable incomes, allowing consumers to invest in air purification products.

By Sales Channel: In 2024, the Offline Segment to Dominate the HVAC Market

Based on sales channel, the global HVAC market is segmented into online and offline. In 2024, the offline segment is expected to account for the larger share of above 73% of the global HVAC market. The large market share of this segment is attributed to the availability of in-store guidance while buying HVAC systems, consumer preference for brand stores, and the advantage of immediate product takeaways offered by offline stores.

However, the online segment is projected to register the highest CAGR during the forecast period. The segment's growth is attributed to the rapid growth of the e-commerce industry, the 24/7 availability of online stores, and the advantages of online stores, such as a larger variety of products, easy comparison between features and prices, and customer reviews across different retailers.

By Application: In 2024, the Cooling Segment to Dominate the HVAC Market

Based on application, the global HVAC market is segmented into cooling, heating, ventilation, filtering, humidification & dehumidification, and air purification. In 2024, the cooling segment is expected to account for the largest share of above 32% of the global HVAC market. The large market share of this segment is attributed to the increasing adoption of centralized HVAC systems to provide uniform cooling throughout a building and office spaces, the rising adoption of air conditioners with inverter & air purification technologies and technological advancements in HVAC systems, and the increasing government initiatives to improve air quality. Moreover, this segment is also projected to register the highest CAGR during the forecast period.

By End User: In 2024, the Residential Segment to Dominate the HVAC Market

Based on end user, the global HVAC market is segmented into IT & telecommunication, data centers, agriculture, residential, industrial, and commercial. In 2024, the residential segment is expected to account for the largest share of above 26% of the global HVAC market. The large market share of this segment is attributed to the rising disposable incomes and living standards, consumers’ increasing focus on ensuring a healthy home environment, and the increasing use of portable air purifiers in HVAC systems for the residential sector. In March 2022, Voltas Limited (India) launched its PureAir Inverter AC powered with a HEPA filter and PM1.0 sensor to strengthen its portfolio of cooling products and home appliances.

However, the commercial segment is projected to register the highest CAGR during the forecast period. The segment's growth is attributed to the growing strategic developments from market players for HVAC systems, the implementation of increasingly stringent government regulations for indoor air quality in commercial buildings, and increasing public awareness regarding health risks related to poor air quality.

Geographical Analysis

In 2024, the Asia-Pacific Region to Dominate the HVAC Market

In 2024, Asia-Pacific is expected to account for the largest share of above 45% of the global HVAC market. Asia-Pacific’s significant market share can be attributed to the presence of key market players in the region & easy availability of their forthcoming products, rapid industrialization & urbanization, increasing spending on infrastructure and construction projects, and technological advancements in HVAC systems. In February 2022, Godrej Appliances (a business unit of Godrej & Boyce Mfg. Co. Ltd.) (India) launched its premium range of Air Conditioners with advanced cooling, air purification technology, IoT controls, and differentiated aesthetics to offer comfort for tech-savvy consumers.

The rising standards of living and increasing awareness about the importance of indoor air quality are also supporting the growth of this market. In addition, the growing government emphasis and investment in several large-scale infrastructure projects, including hospitals, airports, and railways, particularly in developing countries, is expected to fuel the growth of this market in the coming years. Moreover, APAC is also projected to record the highest CAGR of above 9% during the forecast period.

HVAC Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the HVAC market are Daikin Industries, Ltd. (Japan), Atlas Copco AB (Sweden), Lennox International Inc. (U.S.), LG Electronics Inc. (South Korea), Johnson Controls Inc. (U.S.), ABB Ltd. (Switzerland), Trane Technologies Company, LLC (Ireland), Carrier Global Corporation (U.S.), Mitsubishi Electric Corporation (Japan), Samsung Electronics Co., Ltd. (South Korea), Siemens AG (Germany), Toshiba Corporation (Japan), Rheem Manufacturing Company (U.S.), Blue Star Limited (India), and Emerson Electric Co. (U.S.).

HVAC Industry Overview: Latest Developments from Key Industry Players

• In May 2024, SAMSUNG ELECTRONICS Co., Ltd. (South Korea) announced that it has agreed to form a joint venture with Lennox International Inc. (U.S.), a leading provider of innovative climate solutions in the HVACR industry, to sell ductless and variable refrigerant flow (VRF) HVAC systems to customers in the U.S. and Canada.

• In April 2024, Voltas Limited (India) launched its new HVAC line-up at the ACREX India 2024. The company also introduced a total of 6 IOT enabled SKUs, of which 3 SKUs in the 5-Star Inverter Split AC and 3 in the 3-Star Inverter Split AC.

• In March 2024, Walmart Inc. (U.S.), the second largest e-commerce provider in the U.S., partnered with Bryant Heating & Cooling dealers (U.S.) to enable local Bryant dealers connect with Walmart customers looking for HVAC solutions and services.
• In February 2023, Armstrong Fluid Technology (Canada) partnered with Hydronic System Optimisation (Hysopt) NV (Belgium) for HVAC Digital Twin Modelling. The new partnership provides customers with more robust scientific simulation and verification of HVAC system energy and carbon savings.
• In February 2022, Carrier China (China) launched the new XCT8 variable refrigerant flow (VRF) series to meet the needs of Chinese and global customers in the light commercial HVAC segment.

HVAC Market Research Summary

Key questions answered in the HVAC market report: