Heating, Ventilation and Air-Conditioning Systems (HVAC) Market by System Type (Central and Decentralized), by Implementation type (New Construction and Retrofit), by Heating Equipment (Heat pumps, Furnaces, Boilers, and Unitary Heaters), by Ventilation Devices (Humidifiers & Dehumidifiers, Air Filter, Ventilation Fan, and Others), by Cooling Equipment (Single Split Systems, Variable Refrigerant Flow (VRF) Systems, Chillers, and Others), and by Applications (Commercial, Residential, and Industrial) – Global Opportunity Analysis and Industry Forecast 2022-2030

Heating, Ventilation and Air-Conditioning Systems Market

Industry:  Semiconductor & Electronics | Publish Date: Sep 2023 | No of Pages:  N/A | No. Tables:  N/A | No. Figures:  N/A

Market Definition

The Heating, Ventilation and Air-Conditioning Systems Market size was valued at USD 148.70 billion in 2021 and is predicted to reach USD 222.30 billion by 2030 with a CAGR of 5.1% from 2022-2030.

The HVAC system is an all-in-one system installed inside a building or establishment to ensure good air quality, proper airflow, and comfort for its occupants. This device controls the operations of heating, ventilation, and cooling components. HVAC is used to transfer fresh air from the outdoors to provide high indoor air quality. The components of an HVAC system include air return, filter, exhaust outlets, ducts, electrical elements, outdoor unit, compressor, coils, and blower. This system is used to filter and improve indoor air quality. The purification of indoor environment is done by removing moisture, smoke, heat, carbon dioxide, and other unwanted pollutants as well as controlling humidity at an optimal comfort level and replenishing oxygen. HVAC system is a vital part of modern infrastructures such as apartment buildings, hotels, vehicles, and others.

Market Dynamics and Trends

The rapid increase in construction of smart homes that uses high-tech systems such as ductless HVAC systems coupled with rising disposable income of individuals in developing countries such as India, China, and Brazil is driving the growth of HVAC Market. Also, growing number of data centers and their highly sensitive electronic components such as servers, storage systems, and others that are required to be kept at an appropriate temperature and humidity levels to prevent system failure is further driving the commercial HVAC market growth in the forecast period.

Moreover, ongoing climate change is increasing the demand for HVAC systems, which has replaced the image of HVAC systems from luxury to necessity is driving the market of HVAC systems. Furthermore, the growing use of energy-efficient HVAC systems that use geothermal technology and cooling methods is driving the market for eco-friendly HVAC systems. These HVAC systems use a mixture of gas and solar energy when fitted into buildings enabling users to switch between these two energy sources to control high power costs.

However, high cost involved in the installation of the HVAC systems and lack of skilled labour for installation are factors that are expected to restrain the growth of market during the forecast period. On the contrary, the introduction of internet of technology (IoT) based HVAC systems are expected to drive the market in coming years. This technology will enable repair and maintenance of HVAC systems using apps from remote places as all data related to the system is stored in cloud which save cost by minimizing system failures.


Market Segmentations and Scope of the Study

The HVAC system market share is segmented on the basis of system type, implementation type, heating equipment, ventilation devices, cooling equipment, applications, and geography. On the basis of system type, the market is divided into centralized and decentralized. On the basis of implementation type, the market is classified into new construction and retrofit. On the basis of heating equipment, the market is categorized into heat pumps, furnaces, boilers, and unitary heaters. Heat pumps are further segmented into air-to-air, air-to-water, and water-to-water.

Furnaces are further segmented into oil, gas, and electric. On the basis of ventilation devices, the market is bifurcated into humidifiers & dehumidifiers, air filter, ventilation fan, and others. On the basis of cooling equipment, the market is divided into single split systems, variable refrigerant flow (VRF) systems, chillers, and others. On the basis of application, the market is classified into residential, commercial, and industrial. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and RoW.


Geographical Analysis

Asia-Pacific holds the lion share of HVAC system market and is expected to continue its dominance during the forecast period. This is attributed to factors such as rising urbanization and increasing disposable income of individuals that led to the growing interest in high-tech cooling infrastructures in this region. Also, the presence of major key players such as Daikin Industries Ltd., Mitsubishi Electric Corporation, Toshiba Carrier Corporation, and LG Electronics Inc. boosts the market growth in this region.

For instance, in May 2021, Daikin Industries Ltd. collaborated with 75F and leveraged 75F’s wireless cloud-based technology in the manufacture of smart building automated HVAC. This venture aimed at designing new generation wireless controls and sensing HVAC systems.

On the other hand, North America is expected to show a steady rise in HVAC market due to the adoption of eco-friendly HVAC systems along with growing several government policies in terms of environmental concerns that harm the environment in a negative way. For instance, in February 2017, the U.S. Department of Energy (DOE) announced efficiency standards such as SEER2, EER2, and HSPF2 for the manufacture of sustainable heating and cooling equipment to be implemented from January 2023.

Also, the presence of an abundance of world-class electronic equipment manufacturing industries in this region is expected to boost market growth in this region. For instance, in August 2022, Trane technologies acquired Farrar Scientific, a leader in ultra-low temperature control for biopharmaceutical and other life for a total transaction value of USD 365 million. This acquisition expanded Trane technologies product portfolio to meet fast-growing demands for ultra-low temperature processes in manufacturing and storage of medicines, vaccines, and other life science products.


Competitive Landscape

Various market players operating in the HVAC system market include Honeywell International Inc, Johnson Controls, Schneider Electric, Siemens, Carrier Global Corporation, Emerson Electric, Trane Technologies Plc, Lennox, Mitsubishi Electric, and Daikin Industries. These market players are adopting various strategies such as investment and acquisition across various regions to maintain their dominance in the HVAC Market.

For instance, in May 2022, Mitsubishi Electric invested USD 113 million in its subsidiary air-conditioner production base to boost production in Turkey. This investment is aimed at expanding annual capacity for air-to-water (ATW) heat pumps to 300,000 units from the current capacity, and room air conditioners to 1,100,000 units.

Moreover, in February 2022, Carrier acquired Toshiba’s Global VRF and Light Commercial HVAC business. The ownership of 95% stake in Toshiba leveraged Toshiba’s R&D and made Carrier a global leader in heating and cooling sustainability transformation, thereby strengthening Carrier's portfolio of innovative, highly efficient, and environmentally responsible electric products.


  • The HVAC system market report provides the quantitative analysis of the current market and estimations from 2022 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.

  • The study comprises of a detailed analysis of the HVAC system market trends including the current and future trends for depicting the prevalent investment pockets in the market.

  • The information related to key drivers, restraints, and opportunities and their impact on the HVAC system market is provided in the report.

  • The competitive analysis of the market players along with their market share in the HVAC system market is mentioned.

  • The SWOT analysis and Porter’s Five Forces model are elaborated in the study.

  • The value chain analysis in the market study provides a clear picture of the stakeholders’ roles.


By System Type

  • Centralized 

  • Decentralized

By Implementation Type

  • New Construction

  • Retrofit

By Heating Equipment

  • Heat pumps 

    • Air-to-air 

    • Air-to-water

    • Water-to-water

  • Furnaces

    • Oil

    • Gas

    • Electric

    • Others

  • Boilers

  • Unitary Heaters

By Ventilation Equipment

  • Humidifiers & Dehumidifiers

  • Air Filter

  • Ventilation Fan

  • Others

By Cooling Equipment

  • Single Split Systems 

  • Variable Refrigerant Flow (VRF) Systems 

  • Chillers

  • Others

By Application

  • Residential

  • Commercial

  • Industrial

By Geography

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Italy

    • Germany

    • Spain

    • Netherlands

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Taiwan

    • Vietnam

    • Rest of Asia Pacific

  • RoW

    • Latin America

    • Middle East 

    • Africa




Analysis Period


Base Year Considered


Forecast Period


Market Size Estimation

Billion (USD)

Market Segmentatio

By System Type (Centralized, Decentralized) By Implementation Type (New Construction, Retrofit) By Heating Equipment (Heat pumps, Furnaces, Boilers, Unitary Heaters) By Ventilation Equipment (Humidifiers & Dehumidifiers, Air Filter, Ventilation Fan, Others) By Cooling Equipment (Single Split Systems, Variable Refrigerant, Flow (VRF) Systems, Chillers, Others) By Application (Residential, Commercial, Industrial)

Geographical Segmentation

North America (U.S., Canada, Mexico) Europe (Germany, UK, Spain, Italy, Netherlands, Rest of Europe), Asia-Pacific (Australia, China, India, Japan, South Korea, Vietnam, Taiwan, Rest of Asia-Pacific), Rest of the World (Latin America, Middle East, Africa)

Companies Profiled

Honeywell International Inc, Johnson Controls, Schneider Electric, Siemens, Carrier Global Corporation, Emerson Electric, Trane Technologies Plc, Lennox, Mitsubshi Electric, Daikin Industries 


  • Honeywell International Inc

  • Johnson Controls

  • Schneider Electric

  • Siemens

  • Carrier Global Corporation

  • Emerson Electric

  • Trane Technologies Plc

  • Lennox

  • Mitsubshi Electric

  • Daikin Industries 

Frequently Asked Questions
What will be the worth of global HVAC market by the end of 2030?

According to the report published by Next Move Strategy Consulting, the HVAC market business is expected to hit at $222.30 billion (USD) by 2030.

Which region is expected to hold the highest market share in the HVAC market?

Asia Pacific is expected to hold the highest market share in the global market. The region is expected to witness remarkable growth as it houses the major key players in the market.

Which are the top companies in the HVAC industry?

Honeywell International Inc, Johnson Controls, Schneider Electric, Siemens, Carrier Global Corporation, Emerson Electric, Trane Technologies Plc, Lennox, Mitsubshi Electric, Daikin Industries

What are the market segmentations and scope of the study?

The global HVAC share analysis is based on type, implementation type, heating equipment, ventilation equipment, cooling equipment, application, and geography.

What are the factors restraining the growth of the HVAC market?

High cost involved in the installation of the HVAC systems and lack of skilled labour for installation are factors that are expected to restrain the growth of HVAC market.