HVAC Systems Market Size & Share, by Cooling Equipment (Unitary Air Conditioners, VRF Systems); Heating Equipment (Heat Pumps, Furnaces); Ventilation Equipment (AHUs, Air Filters); Implementation Type (New Installation, Retrofit); Application (Residential, Commercial, Industrial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5207
  • Published Date: Sep 01, 2023
  • Report Format: PDF, PPT

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

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.

HVAC Systems Market Overview
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HVAC Systems Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Construction Activities – In the residential sector, the increasing demand for housing units has led to the construction of smart homes and apartments, thereby driving demand for HVAC systems. Since HVAC systems are designed to be energy efficient, this can help residents save money on their energy bills. From a roughly 14.9% decline, it is predicted that the construction industry will grow impressively by 11.6% in 2021.
  • Rapid IoT Transformation in the HVAC Sector IoT technology has enabled intelligent HVAC systems to be created in the HVAC sector that can be remotely controlled, watched over, and managed by a centralized system. Real-time data on energy use, temperature, humidity, and other environmental factors are provided by IoT-enabled HVAC systems, allowing for more precise and effective HVAC system control.
  • Favourable Governing Authorities – The need for services to replace old models and the utilization of HVAC equipment has expanded along with the demand for green technology equipment. The industry's ongoing growth in the commercial and industrial building sectors may be influenced by the government's increasing budgetary assistance for sustainable community development. 


  • Lack of Skilled Labours – It's anticipated that a shortage of skilled labourers for HVAC systems will restrain industry expansion. The Bureau of Labour Statistics estimates that from 2010 to 2020, 25% of the US workforce will retire.  Additionally, during the next four years, the businesses anticipate hiring 115,000 new HVACR-trained technicians.
  • High Maintenance Cost
  • Lack of knowledge of the advantages of HVAC

HVAC Systems Market: Key Insights

Base Year


Forecast Year



~ 6.6%

Base Year Market Size (2022)

 ~ USD 136 Billion

Forecast Year Market Size (2035)

 ~ USD 301 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)
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HVAC Systems Segmentation

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:

          Cooling Equipment

  • Unitary Air Conditioners
  • VRF Systems

          Heating Equipment

  • Heat Pumps
  • Furnaces

          Ventilation Equipment

  • AHUs
  • Air Filters

          Implementation Type

  • New Installation
  • Retrofit


  • Residential
  • Commercial
  • Industrial

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HVAC Systems Industry - Regional Synopsis

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.

Research Nester
HVAC Systems Market Region
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Companies Dominating the HVAC Systems Landscape

    • Trane Technologies
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Carrier Global Corporation
    • Johnson Controls International
    • Lennox International Inc.
    • Electrolux
    • Daikin Industries, Ltd.
    • Toshiba Corporation
    • Panasonic Corporation
    • KDDI Corporation
    • Mitsubishi Electric Corporation


In The News

  • May 2023 - Johnson Controls, the global leader in smart, healthy, and sustainable buildings, has expanded its collection of residential and commercial contractor resources with the new Johnson Controls Ducted Systems (DS) Solutions App. To simplify installation, troubleshooting, and maintenance processes, the App makes it easy for contractors to gain access to information on Commercial and Home Equipment instantly.
  • August 2023 - With a new high outdoor air system, a light commercial rooftop unit capable of conditioning up to 100% of the outdoor air, the company is expanding its line of WeatherExpert packaged rooftop units. Carrier is an international leader in intelligent solutions for climate and energy, part of a global company called Carrier Global Corporation.

Author Credits:  Mohd Shadab, Yashika Karodiwal

  • Report ID: 5207
  • Published Date: Sep 01, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing construction activities, rapid IoT transformation in the HVAC sector, and favourable governing authorities are driving the market growth.

The market size of HVAC systems is anticipated to attain a CAGR of 6.6% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Trane Technologies, Carrier Global Corporation, Johnson Controls International, Lennox International Inc., Electrolux, Daikin Industries, Ltd., Toshiba Corporation, Panasonic Corporation, KDDI Corporation, Mitsubishi Electric Corporation, and others.

The residential segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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.
HVAC Systems Market Report Scope

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