HVAC Controls Market Share | Demand Analysis & Opportunity Outlook 2023-2035

Global HVAC Controls Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global HVAC controls market is estimated to garner a revenue of ~USD 45 Billion by the end of 2035 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2035. Further, the market garnered revenue of ~USD 16 Billion in the year 2022. The growth of the market can be attributed to the increasing ratio of smart homes throughout the world, coupled with the significant expansion in the demand for heating, ventilation, and air conditioning systems. For instance, the proportion of smart homes surpassed around 178 million across the globe in the year 2022, and this ratio is estimated to increase by nearly 578,20 million smart homes throughout the world by 2025.

In addition to these, factors that are believed to fuel the market growth of HVAC controls include the rise in the use of smart home devices, along with the surge in home, and building automation throughout the world. In current times, automation is highly implemented in the home and commercial buildings as of the globally increasing trend of smart buildings. Hence, such an increase in the use of smart home devices is also anticipated to accelerate market growth in the coming years. Based on a survey report, more than a 61 million households in the United States are regularly using smart home devices in 2023. This shows a boost of nearly 4% from 2022 when around 56 million households used smart home devices. In addition to this, an upsurge in technological advancement in HVAC control units is also estimated to drive market growth further throughout the projected time frame.

Global HVAC Controls Market: Growth Drivers and Challenges

Growth Drivers

Globally Rising Construction of Residential Buildings – A radical increase in worldwide population has been observed which has doubled the construction of residential buildings within the past few decades in various regions of the world. Urban areas have been densely populated as a result of such massive increase in the construction of residential buildings. Such an increase has been influencing the rise in the demand for HVAC control systems for the smooth functioning of several heating, ventilation, and cooling devices. Thus, the upsurge in the construction of residential buildings is projected to propel the market growth during the forecast time across the globe. For instance, new residential construction in the United States was predicted to soar by approximately USD 89 billion in 2022.
Worldwide Increase in Urbanization - Urbanization is the procedure by which cities develop and a rising proportion of the population migrates there to live. Increasing population growth in cities necessitates the conversion of land for residential, commercial, industrial, and transportation needs, which is estimated to spur the market growth of HVAC Controls in the coming years. Based on the United Nations report, the proportion of the global population living in cities is anticipated to rise to 68% by 2050. Furthermore, the steady change in human population resident status from rural to urban areas, along with the worldwide rise in population is estimated to bring another 2.5 billion people to urban areas by 2050, with Asia and Africa accounting for about 90% of this expansion.
Global Effect of Climate Change – Massive rise in industrialization, and urbanization has increased the ratio of carbon emissions in the environment. The issue of carbon has doubled the problem of climatic change within the past few decades. Owing to rising temperatures and the unpredictability of the weather, HVAC equipment has become a utility rather than a luxury, which is anticipated to fuel the market growth during the projected time frame. For instance, the earth's surface temperature in 2020 was about 0.97 Celsius degrees higher than it was on average during the 20th century.
Escalating Adoption of Smart Thermostats – A smart thermostat is completely a Wi-Fi enabled device that can manage and control the heating and cooling of a smart home for optimal performance and tracking of energy consumption. As of these multiple advantages the integration of smart thermostats has been growing in residential, and commercial spaces, which is also projected to skyrocket market growth in the coming years. According to a survey statistic, in Germany, approximately 18% of homes had fitted smart thermostats by 2021.
Advantage of Energy Saving with HVAC Controls – According to a study, integrating HVAC control systems estimated is to reduce energy usage by around 22-30%.

Challenges

Associated Complexities in Upgradation of HVAC Control Systems – HVAC controls have varied types of sensors and equipment that regulate airflow, temperature, and so on. Such complex configuration is also very sensitive to electrical issues. Thus, such complexities make it difficult to upgrade the existing HVAC control systems, which is estimated to hinder market growth in the coming years.
High Cost of HVAC Controls
Lack of Skilled Professionals for Appropriate Installation and Retrofitting of HVAC Controls

Global HVAC Controls Market Segmentation

The global HVAC controls market is segmented and analyzed for demand and supply by type into temperature & humidity control, ventilation control, integrated control, and others. Out of these four segments, the temperature & humidity control segment is estimated to gain the largest market share of about ~48% in the year 2035. The growth of the segment can be attributed to the increasing adoption of heating and cooling systems such as air conditioners, furnaces, storage water heaters, and so on throughout the world. For instance, in the United States, the total shipments of gas-warm air furnaces reached approximately 379,295 units in December 2020. Whereas, the worldwide demand for room air conditioners grossed nearly 96.5 million units in 2021. Presently, businesses are more focused to cater the demand for smooth control of heating and cooling systems, hence these companies are now providing such types of versatile temperature & humidity control systems that have a single unit with the capacity to efficiently regulate temperature and humidity.

The global HVAC controls market is also segmented and analyzed for demand and supply by end-user into commercial, residential, industrial, and others. Amongst these four segments, the commercial segment is expected to garner a significant share of around ~50% in the year 2035. The growth of the segment can be attributed to the surge in globalization, along with the increasing ratio of commercial construction. Moreover, expanding investment for the development of commercial infrastructure is also estimated to propel the segment growth during the forecast period. On the other hand, the residential segment is projected to witness a notable CAGR during the forecast period, owing to the rising housing construction activities throughout the world which are estimated to lead the HVAC controls demands in the residential array. Besides this, several initiatives have been introduced by the government of nations to conserve energy. This, as a result, is surging the adoption and demand for energy-efficient HVAC control systems. Hence, this is anticipated to create numerous opportunities for the growth of the segment in the projected time frame.

Our in-depth analysis of the global HVAC controls market includes the following segments:

By Type	Temperature & Humidity Control Ventilation Control Integrated Control Others
By Implementation	Retrofit New Construction
By End-User	Commercial Residential Industrial Others

Global HVAC Controls Market Regional Synopsis

The Asia Pacific HVAC controls market, amongst the market in all the other regions, is projected to hold the largest market share of about ~45% by the end of 2035. The growth of the market can be attributed majorly to the expanding industrialization in the various countries of the region, along with the growing construction of commercial and residential buildings in the region. For instance, Bangladesh's industrial sector expanded by around 7.2% in 2020. In contrast, Vietnam saw a nearly 5% boost in the same. Further, the increasing regional population, especially in China and India, exceptional growth in commercial spaces, and the radically expanding proportion of startups in several developing countries of the region are also anticipated to boost the market growth during the forecast period.

The North American HVAC controls market, amongst the market in all the other regions, is projected to hold the second largest share of about ~25% during the forecast period. The growth of the market can be attributed majorly to the increasing frequency of commercial construction activities, coupled with the surging ratio of the urban population. For instance, in 2020, the proportion of commercial buildings in the United States increased to around 6 million. Further, the presence of key manufacturers, and OEMs in the region is also anticipated to contribute to the market growth in the region. In addition, the colder climate of the region is another factor estimated to boost the HVAC controls market growth.

Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share of about ~15% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for smart HVAC controls to maintain the indoor temperature at an optimum level, followed by the growth in construction activities in the region. In addition to this, the escalating demand for building automation systems is another significant factor anticipated to skyrocket the market growth in the region throughout the forecast period.

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Top Featured Companies Dominating the Global HVAC Controls Market

Schneider Electric SE
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

Honeywell International Inc.
Siemens AG
Daikin Industries, Ltd.
Carrier Global Corporation
Emerson Electric Co.
Lennox International Inc.
Delta Controls Inc.
Johnson Controls International plc
Danfoss A/S

In The News

Honeywell International Inc. has collaborated with DunAn Environment Co., Ltd. to facilitate the adoption of the non-flammable, low-GWP refrigerant Solstice N41 for the HVAC industry. Solstice N14 is a substitution for R-410A in static air conditioning systems, with global warming mitigation at almost 65%.
Lennox International Inc. introduced the Lennox S40 Smart Thermostat and accessories, along with the Lennox Smart Air Quality Monitor and the Lennox Smart Room Sensor, to its industry-leading portfolio of smart devices.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the HVAC controls market?

Ans: Globally rising construction of residential buildings, worldwide increase in urbanization, and escalating adoption of smart thermostats are the major factors driving the market growth.

2) What would be the CAGR of HVAC controls market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the HVAC controls market growth?

Ans: Associated complexities in upgradation of HVAC control systems, and lack of skilled professionals for appropriate installation and retrofitting of HVAC controls are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of HVAC controls market in future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the HVAC controls market?

Ans: The major players in the market are Schneider Electric SE, Honeywell International Inc., Siemens AG, Daikin Industries, Ltd., Carrier Global Corporation, Emerson Electric Co., Lennox International Inc., and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the HVAC controls market?

Ans: The market is segmented by type, implementation, end-user, and by region.

8) Which segment captures the largest market size in the type segment in the HVAC controls market?

Ans: The temperature & humidity control segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~9%
Base Year Market Size (2022)	~ USD 16 Billion
Forecast Year Market Size (2035)	~ USD 45 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)