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.
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 |
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Growth Drivers
Challenges
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 |
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By Implementation |
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By End-User |
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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.
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.
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.
Author Credits: Rushikesh, Richa Gupta
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.
Ans: The market is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2035.
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.
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.
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.
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.
Ans: The market is segmented by type, implementation, end-user, and by region.
Ans: The temperature & humidity control segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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