HVAC Systems Market size is anticipated to surpass USD 136 Billion by the end of 2035, growing at a CAGR of 6.6% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of HVAC systems was around USD 301 Billion. The market expansion is anticipated to be fueled by the growing demand for sustainable and energy-efficient buildings. According to the United Nations Development Programme (UNDP), buildings and construction were in charge of 36% of final energy consumption and 39% of energy- and process-related carbon dioxide emissions in 2018.
The main cause of the increased consumption to meet the cooling demand from buildings, which increases the burden on air conditioners, is long-term climate change. According to a recent IEA estimate, as the world economy rapidly rebounded from the COVID-19 crisis and was heavily dependent on coal to power that growth, global energy-related carbon dioxide emissions rose by 6% to 36.3 billion tons in 2021, their highest level ever.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 6.6% |
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Base Year Market Size (2022) |
~ USD 136 Billion |
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Forecast Year Market Size (2035) |
~ USD 301 Billion |
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Regional Scope |
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Cooling Equipment (Unitary Air Conditioners, VRF Systems)
The VRF systems segment is expected to hold the largest share of the HVAC systems market. For increased control and efficiency, VRF systems can be combined with smart building technologies. This tendency is also present in the US, where approximately 24% of VRF sales are being made for residential use. To benefit from these technologies and enhance the overall performance of their buildings, businesses are investing in VRF systems. Homeowners may manage a wide range of systems, such as white goods, gas and smoke sensors, and security and comfort systems, from one platform, for example, by connecting the Samsung SmartThings application and ABB home automation solutions. Residents can now manage and keep an eye on their own electronics. These factors are driving the growth of the VRF segment.
Application (Residential, Commercial, Industrial)
Residential HVAC systems market is estimated to garner a revenue of 40.2% by 2035. The single-family and multi-family housing sectors are expanding as a result of this. The demand for domestic HVAC (Heating, ventilation, and air conditioning) is anticipated to remain more or less stable in developed regions of the world; however, the demand from newer markets, particularly developing economies, will be slightly greater.
Our in-depth analysis of the global market includes the following segments:
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Cooling Equipment |
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Heating Equipment |
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Ventilation Equipment |
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Implementation Type |
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Application |
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APAC Market Forecast
Asia Pacific dominated the HVAC systems market and accounted for a revenue share of 46.5% in 2022. The region has experienced enormous growth throughout the years due in large part to expanding urbanization, population expansion, and rising consumer disposable income. Recently, the commercial sector has expanded, opening doors for potential future regional growth. Smart houses are in extremely high demand in nations like China, South Korea, and Japan. Moreover, legislative initiatives like Australia's Commercial Building Disclosure (CBD) Program.
European Market Statistics
Europe HVAC systems industry is expected to hold 20% of the share by the end of 2035. Sales of HVAC equipment in Europe are increasing average construction costs, industrial development, and rising government spending on environmentally friendly building development, in European countries. These factors are all contributing to the market growth.
Author Credits: Mohd Shadab, Yashika Karodiwal
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