Global HVAC Equipment Market is projected to reach the value of USD 212.98 billion by 2030.
Global HVAC Equipment Market was valued at USD 159.6 billion in 2025 and is projected to reach USD 212.98 billion by 2030, registering a CAGR of 5.94% over the forecast period 2026–2030.
Hyderabad, Telangana, India, 27th Nov 2025 – The Global HVAC Equipment Market was valued at USD 159.6 billion in 2025 and is projected to reach USD 212.98 billion by 2030, registering a CAGR of 5.94% over the forecast period 2026–2030.
The HVAC industry continues to expand steadily as commercial, residential, and industrial end-users increasingly prioritize indoor air quality, energy-efficient systems, and climate-responsive technologies. Rising construction activities, severe weather variations, enhanced building regulations, and global demand for thermal comfort are major factors fueling long-term market growth.
A critical long-term driver of this market is the worldwide shift toward energy-efficient and environmentally sustainable HVAC systems. With increasing focus on reducing carbon emissions, governments are implementing stringent efficiency standards, phasing out old equipment, and incentivizing the adoption of high-efficiency air conditioners, heat pumps, and ventilation systems. Further, the integration of smart technologies, IoT-driven monitoring, and automated HVAC controls is improving system performance and reducing energy consumption, making modern HVAC solutions highly attractive across multiple sectors.
The COVID-19 pandemic highlighted the essential role of HVAC systems in maintaining healthy indoor environments. While supply chain disruptions initially slowed production, demand surged for ventilation systems, air purifiers, and advanced filtration solutions as buildings prioritized cleaner indoor air. Post-pandemic, businesses and institutions continue investing in upgraded air-handling units and advanced ventilation systems to ensure compliance with air quality standards and occupant safety.
In the short term, rising urbanization and construction are driving immediate market expansion. Growth in commercial infrastructure, such as hotels, offices, hospitals, and mixed-use buildings, is generating strong demand for new HVAC installations. A significant opportunity lies in the increasing adoption of heat pumps, supported by global decarbonization targets and government subsidies. A key trend reshaping the industry is the shift toward refrigerants with lower global warming potential (GWP), alongside digitalization of HVAC systems for predictive maintenance and real-time energy management.
Customization : https://virtuemarketresearch.com/report/hvac-equipment-market/customization
Market Segmentation:
By Equipment Type: Heating Equipment, Ventilation Equipment, Air Conditioning Equipment, Others
Air conditioning systems remain the largest and most influential segment holding 45% in the HVAC Equipment Market. Their dominance is driven by extreme temperature variations, growing demand for indoor cooling, and the rising number of commercial and residential constructions globally. AC systems, including central systems, split units, window units, and variable refrigerant flow (VRF) systems, are increasingly preferred due to their energy efficiency, wide availability, and adaptability. The adoption of inverter-based technologies and smart cooling solutions has further elevated demand, making air conditioning equipment the pivotal component of modern HVAC infrastructure.
The fastest-growing segment during the forecast period is Heat Equipment. These devices offer dual functionality, heating and cooling, making them highly energy-efficient alternatives to conventional heating equipment. Regulatory support in Europe, the U.S., and parts of Asia promotes the use of heat pumps as a sustainable replacement for boilers and fossil-fuel-based systems. As building decarbonization accelerates globally, heat pump demand is expected to surge significantly across residential and commercial settings.
By End-User: Residential, Commercial, Industrial
The commercial sector represents the largest end-user segment holding 53% of the market share. Office complexes, hospitals, retail centers, hotels, educational institutions, and public buildings rely heavily on HVAC systems to maintain indoor comfort and comply with air quality standards. Increased construction of commercial structures and the expansion of service industries continue to drive substantial demand for advanced HVAC solutions. Furthermore, large commercial spaces require high-capacity systems, contributing to the segment’s dominant revenue share.
The industrial sector is the fastest-growing segment. Manufacturing factories, warehouses, data centers, chemical plants, and other industrial facilities require HVAC systems for equipment cooling, process temperature control, and occupational safety. The growth of data centers, which require continuous, high-efficiency cooling, has significantly accelerated industrial HVAC demand. Increased industrial automation and stricter workplace safety regulations are also contributing to rapid expansion.
Regional Analysis:
North America holds the largest share of the global HVAC Equipment Market, accounting for 35% of total revenue. The region benefits from high technological adoption, harsh climatic variations, and strict standards for energy-efficient HVAC systems. The U.S. alone recorded a high market value, supported by rising home renovations, commercial building upgrades, and strong demand for heat pumps. The ongoing shift towards high-efficiency heat pumps, low-GWP refrigerants, and green buildings supports the region’s long-term market outlook.
Asia-Pacific is the fastest-growing region, with a projected CAGR of 6.2% through 2030. Rising urbanization, large-scale industrialization, and growing construction of residential complexes are fueling HVAC demand in China, India, Japan, and Southeast Asia. Hot and humid climates across several APAC countries also make HVAC systems essential for both comfort and industrial processes.
Major Companies: Johnson Controls, Daikin Industries, Ltd., Hitachi Ltd, Honeywell International, Inc., LG Electronics Inc., Emerson Electric Co., Honeywell International, Inc., Mitsubishi Electric, Carrier Corporation, Trane Technologies.
Latest Industry Developments:
- Shift Toward Low-GWP Refrigerants: Global HVAC manufacturers are transitioning away from traditional refrigerants with high global warming potential, such as R410A, toward eco-friendly alternatives like R32, R454B, and CO₂-based systems. This transition is being driven by international climate commitments, F-Gas regulations, and sustainability demands from end-users. Low-GWP refrigerants not only reduce environmental impact but also enhance system efficiency and operational safety. Manufacturers are investing heavily in redesigning HVAC units to accommodate these next-generation refrigerants, aligning with global climate goals.
- Expansion of Smart, Connected HVAC Systems: IoT-enabled HVAC systems equipped with intelligent sensors, remote controls, and real-time analytics are becoming a defining trend in the industry. Smart HVAC solutions can automatically optimize energy use, detect performance issues, and support predictive maintenance, reducing system downtime and operational costs. Commercial buildings and industrial facilities are adopting intelligent climate control systems to meet energy compliance standards and improve occupant comfort. This trend is reshaping HVAC operations by integrating AI-driven decision-making and cloud-based monitoring platforms.
- January 1, 2025 — In the U.S., new regulatory mandates came into effect under the AIM Act: manufacturers cannot use R-410A refrigerant in newly manufactured residential and light-commercial AC and heat pump units.
- Rapid Growth of All-Electric Heating Solutions: Government incentives promoting electrification are accelerating the shift from traditional fossil fuel heating systems to all-electric HVAC solutions, especially heat pumps. This trend is particularly strong in Europe and North America, where decarbonization targets require replacement of gas and oil heaters. Modern heat pumps deliver high efficiency, lower emissions, and consistent performance across varying temperatures. Manufacturers are developing advanced models such as cold-climate heat pumps, variable-speed compressors, and hybrid heat pump systems to serve diverse environments and reduce carbon footprints.
- May 13, 2025 — Samsung Electronics announced it would acquire German HVAC company FlaktGroup for about €1.5 billion (~US$1.68 bn), to build out its cooling-system business, especially for data centers.
November 3, 2025 — Vertiv Holdings said it would acquire PurgeRite, an HVAC-services firm, for ~$1 billion to enhance its liquid-cooling portfolio (important for data-center cooling).
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