The global heating, ventilation, and air conditioning (HVAC) market is projected to reach about ***** billion U.S. dollars by 2030, based on a compound annual growth rate (CAGR) of *** percent between 2020 and 2030. A more recent projection estimates that the market volume of the HVAC market will reach ***** million units by 2024. Growth in the HVAC market is likely due to continued growth in construction sector revenues, from both publicly and privately funded projects. Air conditioning Mini split air conditioners generate over half of the HVAC market sales revenue, likely due to its early and widespread adoption within the residential sector. Split air conditioner systems have an outdoor and indoor unit. Installation for split air conditioners tend to be much easier as it does not require ductwork and instead, just uses electric wires and tubing to connect the indoor and outdoor units. The demand for air conditioning is increasing worldwide as global temperatures increase. HVAC systems promote improved quality within indoor environments through thermal comfort and acceptable air quality.

HVAC Market Share by Efficiency and Capacity: Beginning 2017 dataset is based on heating, ventilation, and air conditioning (HVAC) sales data reported to D+R International by Heating, Air-conditioning & Refrigeration Distributors International (HARDI) members participating in the Unitary HVAC Market Report. Participation in the report is voluntary for distributors. The dataset covers New York State and the Northeast (includes Maine, New Hampshire, Vermont, Massachusetts, Connecticut, and Rhode Island). Blank cells represent data that are not currently available.

The Commercial HVAC Market report segments the industry into By Type Of Component (HVAC Equipment, HVAC Services), By End-User Industry (Hospitality, Commercial Buildings, Public Buildings, Other End-User Industries), and By Geography (North America, Europe, Asia, Australia And New Zealand, Latin America, Middle East And Africa). It provides historical data for five years and forecasts for the next five years.

This statistic represents the projected global market volume for the heating, ventilation, and air conditioning (HVAC) industry in 2017 and with forecasted figures until 2024. This market is expected reach a volume of around *** million units by 2024.

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Commercial HVAC Market Size 2025-2029

The commercial HVAC market size is forecast to increase by USD 28.8 million, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing number of data centers and the emergence of smart and connected HVAC systems. The proliferation of data centers necessitates advanced cooling solutions to maintain optimal operating temperatures, leading to increased demand for Commercial HVAC systems. Furthermore, the integration of IoT technologies in HVAC systems enables remote monitoring, predictive maintenance, and energy efficiency, making them an attractive investment for businesses. However, the market faces formidable competition, with numerous players vying for market share. This intense competition necessitates continuous innovation and differentiation to gain a competitive edge.
Additionally, the integration of new technologies into HVAC systems can pose challenges, such as high implementation costs and the need for specialized expertise. Building management systems and IoT integration facilitate data analytics and remote monitoring, allowing for real-time performance optimization. Companies seeking to capitalize on market opportunities must focus on delivering cost-effective, energy-efficient, and technologically advanced solutions while navigating these challenges effectively. By staying abreast of market trends and addressing customer needs, businesses can position themselves for long-term success in the market.

What will be the Size of the Commercial HVAC Market during the forecast period?

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The market continues to evolve, driven by the need for carbon footprint reduction, improved air filtration, and enhanced indoor air quality. HVAC systems, including air handlers, packaged units, and rooftop units, are being integrated with advanced technologies such as variable speed drives, flow sensors, and demand response programs. These innovations enable energy efficiency, optimized performance, and demand response capabilities. New construction projects and building renovations are embracing sustainable design, adhering to codes and standards, and implementing green building practices. HVAC systems are being modeled and simulated to ensure optimal energy usage and carbon footprint reduction.

Air conditioning systems are being augmented with air filtration and indoor air quality solutions, such as air purifiers, UV air treatment, and humidity sensors. Water systems are being optimized for energy efficiency and carbon footprint reduction through the use of heat pumps and cooling towers. Variable refrigerant flow and VAV systems are gaining popularity for their energy efficiency and ability to adapt to changing environmental conditions. Smart controls and building automation systems are being employed to enhance overall system performance and reduce energy consumption. Carbon dioxide monitoring and temperature sensors are becoming essential components of HVAC systems, ensuring optimal indoor air quality and maintaining a healthy environment for building occupants.

HVAC software and cloud-based platforms are facilitating the integration of these advanced technologies, enabling building owners and operators to make data-driven decisions and maximize their return on investment.

How is this Commercial HVAC Industry segmented?

The commercial HVAC industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Equipment
  Services


Type

  Heat pump
  Furnaces
  Boilers
  Unitary heaters


Technology

  Conventional HVAC systems
  Smart HVAC systems


Variant

  Retrofit and replacement
  New installation


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The Equipment segment is estimated to witness significant growth during the forecast period. HVAC equipment, which includes heating, ventilation, and air conditioning systems, is experiencing significant demand due to the construction boom in the Middle East and Asian economies. In Europe and North America, where harsh winters necessitate heating, underfloor heating (UFH) systems are increasingly popular due to their energy savings and minimal space requirement. Split systems, a type of air conditioning equipment, are also gaining traction due to their energy efficiency and flexibility. Cloud-based platforms and building management systems are

The Residential HVAC Market report segments the industry into By Equipment (Air Conditioning/Ventilation Equipment, Heating Equipment) and By Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). Five-year historical data and five-year forecasts are covered.

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HVAC Market Size 2025-2029

The HVAC market size is forecast to increase by USD 90.5 billion, at a CAGR of 7% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the expanding construction sector. The increasing adoption of building automation systems is a key trend, as energy efficiency and cost savings become top priorities for property developers and managers. However, the market also faces challenges, including frequent failure issues with HVAC equipment. These malfunctions can lead to costly repairs and disruptions, necessitating a focus on preventative maintenance and quality control in manufacturing processes. Companies seeking to capitalize on market opportunities should prioritize innovation in energy-efficient technologies and building automation solutions, while addressing the challenges of equipment reliability and maintenance through robust quality control measures and customer support services.
By staying attuned to these market dynamics, HVAC industry players can effectively navigate the competitive landscape and position themselves for long-term success.

What will be the Size of the HVAC Market during the forecast period?

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The market continues to evolve, driven by advancements in technology and shifting market dynamics. Integration of IoT and smart technologies is transforming traditional HVAC systems, enabling real-time monitoring, predictive maintenance, and energy efficiency gains. In the residential sector, energy recovery systems and high-efficiency air conditioning units with SEER and HSPF ratings are gaining popularity. Commercial HVAC applications encompass a wide range of systems, from VAV and demand-controlled ventilation to BIM modeling and performance analysis. Sustainable design, including geothermal heat pumps and solar heating, is increasingly important in both residential and commercial sectors. Energy audits and building codes ensure compliance with evolving energy efficiency standards.

HVAC software, including CAD design and building automation, streamlines design and maintenance processes. Industrial HVAC applications require robust, reliable systems, while air filtration and cooling towers address specific industrial needs. HVAC systems must meet stringent Ashrae standards for indoor air quality and energy efficiency. The market's continuous dynamism is reflected in the ongoing unfolding of market activities, from repair services and maintenance contracts to retrofit projects and the adoption of sustainable technologies.

How is this HVAC Industry segmented?

The hvac industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  HVAC equipment
  HVAC services


End-user

  Non-residential
  Residential


Heating Equipment

  Heat pumps
  Furnaces
  Unitary heaters
  Boilers


Ventilation Equipment

  Air handling units
  Air filters
  Dehumidifiers
  Ventilation fans
  Humidifiers
  Air purifiers


Cooling Equipment

  Unitary air conditioners
  VRF systems
  Chillers
  Room air conditioners
  Coolers
  Cooling towers


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

.

By Type Insights

The HVAC equipment segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to increasing population and industrialization, rising construction expenditure, and the increasing sales of commercial and residential buildings. This market includes the sub-segments of air conditioning, heating, and ventilation. In the air conditioning segment, both residential and non-residential buildings are witnessing increased demand for heat pumps, air conditioners, and unitary ACs. HVAC manufacturers are focusing on producing energy-efficient and eco-friendly equipment to meet regulations and consumer demands. Sustainable design, such as the use of geothermal heat pumps and solar heating, is becoming increasingly popular. Additionally, the integration of IoT technology, variable speed drives, and smart thermostats is enhancing the performance analysis and energy efficiency of HVAC systems.

The commercial HVAC sector is also embracing Building Information Modeling (BIM) and Building Automation for efficient design and maintenance services. Energy audits, demand-controlled ventilation, and performance analysis are essential for optimizing energy usage and indoor air quality. The market is also witnessing the adoption of ASHRAE standards,

In 2023, the Latin America HVAC Systems Market reached a value of USD 6.52 billion, and it is projected to surge to USD 9.14 billion by 2030.

This statistic displays the market value of the heating, ventilation, and air conditioning (HVAC) industry worldwide as of 2017, broken down by region. At this time, the HVAC industry in Asia was valued at 114.36 billion U.S. dollars.

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Industrial HVAC Market Size 2025-2029

The industrial hvac market size is forecast to increase by USD 6.81 billion at a CAGR of 7.9% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing demand for energy-efficient systems that cater to the expanding industrial sector. This trend is further fueled by the growing adoption of advanced refrigerants in air conditioning systems, which offer improved thermal efficiency and reduced environmental impact. However, the market faces regulatory hurdles that impact adoption, with frequent changes in regulations governing the use of certain refrigerants and emissions standards. These regulatory shifts necessitate continuous innovation and adaptation from market players. Additionally, supply chain inconsistencies temper growth potential due to the complex nature of the industrial HVAC value chain, which involves multiple stakeholders and components. To capitalize on market opportunities and navigate these challenges effectively, companies must stay informed of regulatory developments and invest in robust supply chain management strategies. By focusing on energy efficiency, regulatory compliance, and supply chain resilience, players can differentiate themselves in the competitive landscape and seize growth opportunities in the market.

What will be the Size of the Industrial HVAC Market during the forecast period?

Request Free SampleThe market in the US is witnessing significant growth, driven by the increasing demand for high-performance systems in various sectors, including food and beverage production. Energy management and air quality are key priorities, leading to the adoption of demand-controlled ventilation, airside economizers, and energy recovery units. Thermal energy storage and evaporative cooling systems are also gaining traction due to their energy efficiency. HVAC design is focusing on airflow management, pressure control, and zone control to optimize energy usage and enhance precision air conditioning. Energy audits are essential for identifying areas of improvement and implementing energy-saving measures. HVAC services are essential for maintaining the performance of HVAC equipment, including fan coil units, air conditioning coils, and refrigerant systems. Data centers require specialized HVAC solutions, such as humidity control systems and cooling towers, to maintain optimal operating conditions. Industrial refrigeration systems are another critical application, requiring efficient and sustainable HVAC technology, including heat exchangers and condensing units. Cloud-based HVAC management and remote monitoring systems are increasingly popular for enhancing system performance and reducing maintenance costs. The building envelope, including window glazing and exhaust systems, plays a crucial role in HVAC system design and efficiency. Air curtains and thermal storage are also essential components for maintaining temperature control and reducing energy consumption. HVAC innovation continues to drive advancements in HVAC technology, including new designs for air conditioning coils, heat exchangers, and pressure control systems.

How is this Industrial HVAC Industry segmented?

The industrial hvac industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userProcess industryAutomotiveData CentersHealthcareEnergy & PowerCommercial BuildingsMiningPulp & PaperTypeHVAC equipmentHVAC servicesEquipmentHeat PumpFurnaceUnitary SystemsBoilersAir PurifierDehumidifierAir HandlingUnitsVentilation FansChillersCooling TowersRooftop UnitsHumidifiersDuct SystemsControls/Control SystemsFiltersGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKMiddle East and AfricaUAEAPACChinaJapanSouth KoreaSouth AmericaBrazilRest of World (ROW)

By End-user Insights

The process industry segment is estimated to witness significant growth during the forecast period.The market encompasses various sectors, including food and beverage, data centers, heavy industries, and more. In the food and beverage industry, demand-controlled ventilation and energy management systems are essential for maintaining optimal indoor air quality and reducing energy consumption. Energy efficiency is a top priority for data centers, leading to increased adoption of smart HVAC systems, IoT integration, and building automation. Heavy industries, such as oil and gas, power generation, and manufacturing, are implementing energy-efficient solutions like variable refrigerant flow and VAV systems to minimize energy usage and meet sustainability goals. The integration of renewable energy sources and predictive maintenance strategies further enhances the efficiency of HVAC systems in these industries. Industrial ventilation systems are crucial

The Aircraft HVAC (Heating, Ventilation, and Air Conditioning) market is a critical segment of the aviation industry, ensuring optimal air quality and comfort for passengers and crew during flights. As air travel continues to expand globally, the demand for efficient and reliable HVAC systems in aircraft has surged.

The Differential Pressure Sensor market for HVAC (Heating, Ventilation, and Air Conditioning) systems has emerged as a crucial segment within the broader HVAC industry, playing an indispensable role in maintaining optimal indoor air quality and energy efficiency. These sensors are specifically designed to measure th

Analysis of ‘HVAC Market Share by Efficiency and Capacity: Beginning 2017’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://catalog.data.gov/dataset/b80e5928-b8a6-49bb-98c5-f90883ec2284 on 27 January 2022.

--- Dataset description provided by original source is as follows ---

HVAC Market Share by Efficiency and Capacity: Beginning 2017 dataset is based on heating, ventilation, and air conditioning (HVAC) sales data reported to D+R International by Heating, Air-conditioning & Refrigeration Distributors International (HARDI) members participating in the Unitary HVAC Market Report. Participation in the report is voluntary for distributors. The dataset covers New York State and the Northeast (includes Maine, New Hampshire, Vermont, Massachusetts, Connecticut, and Rhode Island). Blank cells represent data that are not currently available.

--- Original source retains full ownership of the source dataset ---

The HVAC Services Market is Segmented by Implementation Type (New Construction, Retrofit Buildings), End User (Residential, Commercial, Industrial), Service Type (Installation and Replacement Services and More), System Type (Heating Services and More), Application Vertical (Data Centers and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

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HVAC Industry Analysis - Forecast Period 2023-2027

The HVAC market is predicted to grow at a CAGR of 6.5% during the forecast period 2022-2027 by Technavio data and research experts. This market research report also predicts the statistics about the market size growth that will grow by USD 74.02 billion. There are several key factors that directly influence the HVAC market growth such as growing construction sector, the growing demand for the condensing boilers, and rising demand for the refurbishment and replacement.

The predicted growth momentum seems incremental thus gives a positive outlook for the market as well as its respective investors. Consequently, such market conditions will further reinforce the position of vendors in the market.

Our researchers conclude the statistical predictions about some key market drivers via thorough data and information analysis. One such market driver is a significant growth in the construction sector, and it turns into one of the reasons for the HVAC market growth. Although there are other factors such as lesser availability of skilled labour may affect the market growth negatively.

Additionally, there are some key vendors operating in the market, listed below:

Arkema Group
Honeywell International Inc.
Daikin Industries Ltd.
Fujitsu General Ltd.
Emerson Electric Co.
Gree Electric
Danfoss AS
Haier Smart Home Co. Ltd.

The HVAC market analysis is illustrated in the given statistic report. However, you can also avail the subscription to cutting-edge market intelligence and lifetime access to 17,000+ market reports. So, don’t miss out on the latest market updates and upcoming trends analysis.

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HVAC System Market Size 2024-2028

The HVAC system market size is forecast to increase by USD 56.3 billion, at a CAGR of 6.78% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing demand for industrial HVAC systems and energy-efficient air conditioning systems. The industrial sector's expansion is fueling the need for reliable HVAC solutions to maintain optimal temperature and humidity levels. Additionally, the trend toward green buildings is boosting the adoption of energy-efficient HVAC systems. However, the lack of skilled labor poses a challenge to market growth. HVAC rental services have emerged as a viable solution to address this issue, providing temporary HVAC systems and skilled technicians on demand. Compressors continue to be a crucial component of HVAC systems, with advancements in technology leading to more energy-efficient and durable options. Overall, the market is poised for continued growth, driven by these trends and challenges.

What will be the Size of the HVAC System Market During the Forecast Period?

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The market encompasses heating, ventilation, and air conditioning systems used in residential, commercial, and industrial buildings. This market is driven by various factors, including climatic changes leading to increased demand for temperature control solutions. Energy consumption data indicates that HVAC systems account for a significant portion of global energy usage, making energy efficiency a key trend. Smart HVAC systems, incorporating advanced technologies such as air filters and indoor air quality sensors, are gaining popularity for enhancing comfort and improving energy savings.
Affordable housing units and commercial infrastructure development also contribute to market growth. The standard of living and increasing demand for comfort in various sectors continue to fuel the market's expansion. Commercial HVAC systems, including hybrid heating solutions and green building strategies, are increasingly being adopted for energy savings and reduced environmental impact. HVAC systems play a crucial role in managing moisture, smoke, heat, dust, and bacteria, making them essential for maintaining a healthy indoor environment.

How is this HVAC System Industry segmented and which is the largest segment?

The HVAC system industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Non-residential
  Residential


Type

  Split system
  Ductless system
  Packaged system


Heating Equipment

  Heat pumps
  Furnaces
  Unitary heaters
  Boilers


Ventilation Equipment

  Air-handling units
  Air filters
  Dehumidifiers
  Ventilation fans
  Humidifiers
  Air purifiers


Cooling Equipment

  Unitary air conditioners
  VRF systems
  Chillers
  Room air conditioners
  Coolers
  Cooling towers


Geography

  APAC

    China
    Japan


  Europe

    Germany
    UK


  North America

    US


  Middle East and Africa



  South America

By End-user Insights

The non-residential segment is estimated to witness significant growth during the forecast period. The market encompasses residential and non-residential sectors. The non-residential segment, which includes commercial and industrial HVAC systems, is currently the market leader and is projected to maintain steady growth. Factors fueling this expansion include the expansion of the construction industry, increased infrastructure investments, and rising demand for office spaces. Urbanization and supportive policies for commercial real estate development are major contributors to the increasing need for office spaces. Furthermore, the emergence of start-ups and the availability of co-working spaces are anticipated to boost HVAC system demand. Climatic changes and sustainability concerns have led to the adoption of energy-efficient solutions, such as smart HVAC systems, heat pumps, air filtration, UV C sterilization, and ventilation systems.
Energy consumption data indicates that HVAC systems account for a significant portion of energy expenditures, making energy efficiency a crucial consideration. HFOs, air filtration, and air purifiers are among the green technologies being integrated into HVAC systems to improve indoor air quality and address environmental regulations. The market is also witnessing the integration of machine learning systems, hybrid heating, and green building strategies to enhance building sustainability. HVAC systems cater to various applications, including moisture, smoke, heat, dust, bacteria, carbon dioxide, and pollutants control in residential, commercial, and industrial buildings.

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The global HVAC equipment market size reached USD 231.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 356.9 Billion by 2033, exhibiting a growth rate (CAGR) of 4.66% during 2025-2033. The market is driven by significant technological advancements, energy efficiency regulations and environmental sustainability awareness. This, along with the rising trend for smart and connected systems and urbanization in emerging economies and increasing number of green building initiatives are further driving HVAC equipment market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type, system type and end user.

Global Commercial HVAC Market size was valued at USD 50.27 billion in 2022 and is poised to grow from USD 51.7 billion in 2023 to USD 66.52 billion by 2031, growing at a CAGR of 2.84% in the forecast period (2024-2032).

The global commercial HVAC market, valued at $41.79 billion in 2025, is projected to experience robust growth, driven by increasing urbanization, rising construction activities in commercial sectors, and stringent government regulations promoting energy efficiency. The market's compound annual growth rate (CAGR) of 8.80% from 2025 to 2033 indicates significant expansion potential. Key drivers include the escalating demand for energy-efficient HVAC systems in commercial buildings like offices, hotels, and retail spaces, coupled with technological advancements such as smart HVAC solutions and the integration of IoT devices for improved control and monitoring. Growth is further propelled by the expanding hospitality and public building sectors, creating a strong demand for sophisticated climate control solutions. While the market faces some restraints, such as fluctuating raw material prices and potential supply chain disruptions, these are expected to be offset by the overall positive market trends and the continuous innovations in the industry. The market segmentation reveals a significant share held by HVAC equipment (heating and air conditioning/ventilation), followed by HVAC services. Geographically, North America and Europe currently dominate the market, but Asia is projected to witness substantial growth due to rapid infrastructural development and economic expansion. Major players like Johnson Controls, Daikin, Lennox, and Carrier are aggressively investing in research and development, strengthening their market positions through technological innovation and strategic partnerships. The forecast period (2025-2033) indicates a continued upward trajectory for the commercial HVAC market, with a projected market size exceeding $80 billion by 2033. This growth will be influenced by a number of factors. Increased focus on sustainable building practices and reduced carbon footprint are driving the adoption of green HVAC technologies. The ongoing development of energy-efficient solutions, such as heat pumps and variable refrigerant flow (VRF) systems, along with improved building automation systems, will further contribute to market expansion. Furthermore, the growing awareness of indoor air quality (IAQ) and the need for improved ventilation in commercial spaces are expected to fuel the demand for advanced HVAC systems with enhanced filtration and air purification capabilities. Competition among key players will likely intensify, driving innovation and offering diverse product choices to consumers. Commercial HVAC Market: A Comprehensive Analysis (2019-2033) This in-depth report provides a comprehensive analysis of the global commercial HVAC market, encompassing the period from 2019 to 2033. It offers invaluable insights into market size, growth drivers, challenges, and key trends, enabling businesses to make informed strategic decisions in this dynamic sector. The report utilizes data from the historical period (2019-2024), with 2025 serving as the base and estimated year, and projecting the forecast period (2025-2033). The market is segmented by type of component (HVAC equipment – including heating and air conditioning/ventilation equipment – and HVAC services), end-user industry (hospitality, commercial buildings, public buildings, and other end-user industries), and key players including Johnson Controls International PLC, Daikin Industries Ltd, Lennox International Inc, LG Electronics Inc, Danfoss A/S, Carrier Corporation, Midea Group Co Ltd, Robert Bosch GmbH, BDR Thermea Group, and Panasonic Corporation. Recent developments include: March 2024: Daikin announced the acquisition of BKF Klima in Denmark to drive Europe's carbon reduction efforts and expand installer upskilling opportunities. At Daikin's new offices in Brondby, Denmark, the company will also open two new facilities, including a Daikin Installer Training Center and a Daikin Experience Center for consumers. This strategic acquisition will enable Daikin to leverage its extensive research and development expertise in low-carbon HVAC solutions further., February 2024: Voltas announced the introduction of a new line of commercial air conditioning products for business space. A cooling capacity of 12-72 TR with eco-friendly refrigerants is available for the new Scroll Inverter Chillers. The product is enabled by the Internet of Things, is BMS-compatible, has silent operation, and is user-friendly as it can be used via a cell phone application. The company aims to further enhance its objective of promoting commercial spaces and the use of cutting-edge scroll technology to integrate energy-efficient solutions into its operations by means of this new line of inverter chillers.. Key drivers for this market are: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Potential restraints include: Data privacy and security concerns, High installation and maintenance costs. Notable trends are: Air Conditioning /Ventilation Equipment Witnessed Increasing Demand.

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China HVAC Equipment Market Size 2024-2028

The China HVAC equipment market size is forecast to increase by USD 13.4 billion, at a CAGR of 8.01% between 2023 and 2028.

The market is experiencing significant growth, driven primarily by the increasing demand for centralized heating, ventilation, and air conditioning systems. This trend is being fueled by the country's rapid urbanization and infrastructure development, as well as the growing awareness of indoor air quality and energy efficiency. Furthermore, the advent of smart HVAC systems is transforming the market, offering enhanced comfort, convenience, and energy savings to consumers. Another trend is the advent of smart HVAC systems, which offer advanced features such as remote monitoring, automation, and energy management, making them increasingly popular among consumers. However, the market also faces challenges, including frequent failure issues with HVAC equipment due to the harsh climate and poor maintenance practices. Companies seeking to capitalize on the market opportunities must focus on providing reliable, high-quality products and services, while also addressing the challenges through innovative solutions and robust after-sales support. 
Additionally, partnerships and collaborations with local players can help international companies navigate the complex regulatory environment and build a strong market presence. Overall, the market presents significant growth potential, with opportunities for companies to differentiate themselves through technology, innovation, and customer service.

What will be the size of the China HVAC Equipment Market during the forecast period?

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The market is witnessing significant advancements, driven by the integration of smart technologies and sustainable practices. Wireless communication and CFD modeling enable remote monitoring and optimization of HVAC systems, while smart building technology enhances energy efficiency and thermal comfort. Building envelope design focuses on reducing energy consumption, and machine learning algorithms facilitate predictive analytics for performance monitoring. Noise control and vibration reduction ensure occupant comfort, and refrigerant recovery systems promote carbon footprint reduction. Hybrid HVAC systems, including heat recovery units and variable speed drives, optimize energy usage and improve overall system efficiency.
AI and energy modeling facilitate net zero energy buildings, and refrigerant leak detection systems ensure regulatory compliance. Predictive analytics and performance monitoring are essential for maintaining optimal HVAC system functionality and reducing maintenance costs.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Non-residential
  Residential


Product

  Air conditioning equipment
  Heating equipment
  Ventilation equipment


Geography

  APAC

    China

By End-user Insights

The non-residential segment is estimated to witness significant growth during the forecast period.

The non-residential HVAC market in China is witnessing significant growth, driven by the expansion of manufacturing facilities, commercial and industrial buildings, data centers, retail stores, healthcare institutions, and educational institutions. Compliance with energy efficiency regulations and the increasing need for sustainable and eco-friendly solutions are key factors influencing the market. The commercial segment dominates the HVAC equipment market, accounting for a substantial revenue share. Energy efficiency is a top priority for commercial entities, as HVAC and lighting systems consume a considerable portion of energy in commercial buildings. In response, HVAC equipment manufacturers in China are focusing on developing energy-efficient systems that adhere to both national and international regulations.

Split systems, heat pumps, and ducted systems are popular choices for commercial applications due to their energy efficiency and cost-effectiveness. The integration of IoT technology, data analytics, and smart HVAC systems is also gaining traction, enabling remote monitoring and optimization of energy consumption. Maintenance contracts and certification bodies play a crucial role in ensuring the safety and performance of HVAC systems. LEED certification and Ashrae standards are widely adopted in China, emphasizing the importance of energy efficiency and indoor air quality. Industrial HVAC systems, geothermal HVAC, and renewable energy integration are emerging trends in the market.

R-410a refrigerant and HS