Global HVAC Equipment Market Size, Share, Growth Analysis Report - Forecast 2034

HVAC Equipment Industry Prospective:

The global HVAC equipment market size was worth around USD 138.19 Billion in 2024 and is predicted to grow to around USD 254.33 Billion by 2034 with a compound annual growth rate (CAGR) of roughly 6.29% between 2025 and 2034. The report analyzes the global HVAC equipment market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the HVAC equipment industry.

The report analyzes the global HVAC equipment market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the HVAC equipment market.

Request Free Sample

HVAC Equipment Market: Overview

The HVAC equipment industry deals with the sales of heating, ventilation, and air conditioning (HVAC) products for residential, commercial, or industrial settings. It works as a ground for businesses that deal with the production and distribution of heating and cooling systems. It includes products like furnaces, air conditioners, heat pumps, boilers, and other devices that regulate indoor settings, such as humidity, temperature, and air quality.

The increasing consumption of the products and the growing demand for managing air quality and other attributes for residential and commercial spaces is driving the demand for industry growth. However, at the same time, it is also subjected to various growth constraints and restrictions. During the forecast period, the industry players can expect steady growth while having to navigate through specific challenges that may arise in the global economy.

Key Insights

• As per the analysis shared by our research analyst, the global HVAC equipment market is estimated to grow annually at a CAGR of around 6.29% over the forecast period (2025-2034).
• Regarding revenue, the global HVAC equipment market size was valued at around USD 138.19 Billion in 2024 and is projected to reach USD 254.33 Billion by 2034.
• The HVAC equipment market is projected to grow at a significant rate due to increasing construction activity, rising demand for energy-efficient systems, and climate change-related temperature variations boosting heating and cooling needs.
• Based on Equipment Type, the Heating (Furnaces segment is expected to lead the global market.
• On the basis of Application, the Residential segment is growing at a high rate and will continue to dominate the global market.
• Based on the Technology, the Manual segment is projected to swipe the largest market share.
• By End-user, the Construction segment is expected to dominate the global market.
• Based on region, Asia-Pacific is predicted to dominate the global market during the forecast period.

Request Free Sample

HVAC Equipment Market: Growth Drivers

Growing demand for energy-efficient solutions to provide market growth

The global HVAC equipment market is projected to grow owing to the increasing demand for energy-efficient solutions and systems. The energy-efficient HVAC systems are designed to consume less energy as compared to traditional counterparts but provide the same or improved level of performance in terms of maintaining indoor room temperature and quality of air. They make use of advanced tools, such as variable speed motors, smart controls, and high-efficiency compressors to achieve a better rate of energy savings. High-efficiency air conditioners are one of the most commonly used HVAC equipment along with heat pumps and smart thermostats. Heat pumps use integrated mechanisms to cool or heat a setting using only a single tool. These are known to achieve excellent levels of efficiency when used with geothermal technology.

HVAC Equipment Market: Restraints

Changing season-based demand to restrict market expansion

The demand for several heating, ventilating, or air conditioning equipment is highly dependent on the weather conditions or the season. For instance, certain equipment is known to have more demand in one particular season than the rest. Air conditioners sell more during summer while heaters are known to have more demand during winter weather. This leads to continuous fluctuation in the sales and revenue of the overall global HVAC equipment industry. In addition to this, energy-efficient HVAC systems are more expensive than traditional systems and hence their demand suffers an even higher loss of revenue due to changing requirements in the consumer segment.

HVAC Equipment Market: Opportunities

Increasing demand for smart HVAC systems to provide excellent growth opportunities

One of the main attributes in which the global HVAC equipment market players can expect more growth is in terms of higher demand for smart HVAC systems. These devices are equipped with advanced technology and can be controlled remotely. They are also capable of making self-scalability depending on the external environment. They do not need human intervention as smart HVAC systems can make changes to energy consumption and output by analyzing indoor room settings.

HVAC Equipment Market: Challenges

Rapidly changing technology to challenge market growth

The global HVAC equipment industry is changing rapidly and this has made it difficult for companies to keep up with the ever-evolving new additions or changes in the market. The number of new product launches, the inauguration of new product lines, the addition of advanced features, and other such factors may make it impossible for some companies to survive in the industry in the long run.

HVAC Equipment Market: Segmentation

The global HVAC equipment market is segmented based on end-user, product, and region.

Based on end-use, the global market segments are commercial, residential, and industrial. In 2024, the industry witnessed the highest growth in the commercial segment since all major units, such as office buildings, shopping malls, hospitals, hotels, and other public buildings make use of all types of HVAC equipment regularly. The consumption rate in the commercial segment remains high with large values since these units cater to the needs of multiple people at once and have more demand for energy-efficient and smart HVAC systems. Residential is another important segment for the industry and it is steadily registering more growth as people are willing to spend extra for higher comfort. During the forecast period, the residential sector may lead with 40.1% of the industry share.

By Technology, the global HVAC equipment market is split into Manual, Semi-Automatic, Fully Automatic.

Based on Equipment Type, the global HVAC equipment market is divided into Heating (Furnaces, Heat Pumps), Ventilation (Air Handlers, Exhaust Fans), Air Conditioning (Split ACs, Packaged ACs, Chillers).

Based on product, the global HVAC equipment market segments are ventilation, heating, and cooling. In 2024, the industry witnessed the highest CAGR in the cooling segment as it dominated more than 54.12% of the market share. The segment comprises all the cooling equipment that is required for the cooling of buildings and spaces. It includes different types of temperature-lowering systems, such as packaged air conditioners, window air conditioners, split air conditioners, central air conditioning systems, and chillers. It also includes installation, maintenance, and repair of air conditioning systems. The heating segment and the ventilation segments may also register high CAGR during the forecast period.

Recent Developments:

• In February 2023, Hisense, a producer of smart entertainment systems, announced the launch of a new smart air conditioner in the Indian market. The starting price of the AC is INR 31000 and is launched in 2 series, namely CoolingXpert, and IntelliPro. They offer features, such as a 5-in-1 Convertible Pro, and WiFi Voice Control, and come with a warranty of 10 years for its compressor. These AC units are expected to save up to 36% of energy
• In January 2023, Cielo WiGle Inc., a leading provider of smart controls for ductless systems, launched Cielo Breez Lite. The latest edition is a smart controller for AC units and adds advanced functionalities to portable, mini-split, and window ACs. It can also be integrated with Alexa, Siri Shortcuts, Google Assistant, and other voice command assistant
• In December 2022, Flipkart, India’s leading e-commerce website announced a partnership with Nokia. They will jointly work toward developing a new conditioner for the domestic market

HVAC Equipment Market: Report Scope

HVAC Equipment Market: Regional Analysis

Asia-Pacific to witness tremendous growth

The global HVAC equipment market is projected to witness the highest growth in Asia-Pacific as it already contributed to more than 44% of the global market share in 2022. Factors such as a growing population, rising urbanization, an increasing number of product launches targeting both rural and urban markets, along with increasing dual-income families are the leading reasons for regional growth. In addition to this, countries like Japan, India, and China are home to some of the largest manufacturing units across the globe and hence are in constant need of air ventilation for temperature control systems. Furthermore, the growing interest of Western companies to target the unexplored segment of Asian countries could lead to more growth.

Request Free Sample

North America is crucial for the overall market expansion as many important companies originate from the regions of the US and Canada. However, the smart system segment may witness more growth as concerns over the environmental impact of energy consumption are on the rise.

HVAC Equipment Market: Competitive Analysis

HVAC Equipment Market: Competitive Analysis

The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the HVAC equipment market on a global and regional basis.

The global HVAC equipment market is dominated by players like:

• Johnson Controls International plc
• Daikin Industries
• Mitsubishi Electric Corporation
• Carrier Global Corporation
• Trane Technologies
• Lennox International Inc.
• Samsung Electronics
• LG Electronics
• Fujitsu General Ltd.
• Panasonic Corporation
• Hitachi Ltd.
• Rheem Manufacturing Company
• Bosch Thermotechnik GmbH
• Gree Electric Appliances Inc. of Zhuhai
• Ingersoll Rand Inc.
• Nortek Global HVAC LLC.
• Midea Group Co. Ltd.
• Honeywell International Inc.
• Zamil Air Conditioners
• and United Technologies Corporation amongst many others.

The global HVAC equipment market is segmented as follows;

By Equipment Type

• Heating (Furnaces
• Heat Pumps)
• Ventilation (Air Handlers
• Exhaust Fans)
• Air Conditioning (Split ACs
• Packaged ACs
• Chillers)

By Application

• Residential
• Commercial
• Industrial

By Technology

• Manual
• Semi-Automatic
• Fully Automatic

By End-user

• Construction
• Healthcare
• Education
• Retail
• Hospitality
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America