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.

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 ****** billion U.S. dollars.

REPORT ATTRIBUTE	DETAILS
MARKET SIZE ()
MARKET SIZE ()
CAGR (2023-2029)	%
HISTORIC YEAR
BASE YEAR
FORECAST YEAR
BY TYPE
BY APPLICATION
GEOGRAPHIC ANALYSIS	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
KEY PLAYERS	.

The North America Commercial HVAC Market Report is Segmented by Type of Component (HVAC Equipment [Heating Equipment, Air Conditioning/Ventilation Equipment] and HVAC Services), End-User Industry (Hospitality, Commercial Building, Public Building, and Other End-User Industries), and Country (United States and Canada). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The United Kingdom Commercial HVAC Market Report is Segmented by Type of Component (HVAC Equipment [Heating Equipment, Air Conditioning/Ventilation Equipment], and HVAC Services) and End-User Industry (Hospitality, Commercial Buildings, Public Buildings, and Others). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

The UK HVAC market is booming, projected to reach £3.64 billion by 2033 with a 4.70% CAGR. Driven by energy efficiency regulations, smart technology adoption, and rising construction, this in-depth analysis reveals key trends, market segments, and leading companies shaping this dynamic sector. Discover market insights and growth projections for the UK HVAC market. Recent developments include: April 2024: Johnson Controls introduced a new line of heat pumps designed for use in residential settings. The York YH5 15.2 SEER2 2-Stage heat pumps aim to deliver year-round comfort and energy efficiency. These systems boast a seasonal energy efficiency ratio (SEER2) of 16 and a heating seasonal performance factor (HSPF2) of 8. The YH5 heat pump includes options for accessing the compressor from the top or side and a control box that swings out for easy access., January 2024: Bosch Home Comfort Group, a division of the German industrial company Robert Bosch GmbH, introduced a new residential air-to-air heat pump designed for cold climate heating. This innovative pump stands out by targeting regions with severe winters, a departure from the norm. While air-source heat pumps are typically known for their affordability and easy installation, this model offers cooling and heating functionalities.. Key drivers for this market are: Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs, Increasing Demand For Energy Efficient Devices; Increased Construction And Retrofit Activity To Aid Demand. Potential restraints include: Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs, Increasing Demand For Energy Efficient Devices; Increased Construction And Retrofit Activity To Aid Demand. Notable trends are: The Residential Sector is Expected to Witness Significant Growth.

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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 revolutio

The United States HVAC Equipment & Services Market Report is Segmented by Equipment (Split Systems, Packaged Units, Chillers, and More), Service Type (New Installations, Retrofits, Maintenance), Distribution Channel (Direct Sales, Distributors, Retail, Online), End User (Residential, Commercial, Industrial, Institutional), Technology (Ducted, Ductless, Smart HVAC). Market Forecasts are Provided in Terms of Value (USD).

In 2023, the Sweden HVAC Systems Market reached a value of USD 1.39 billion, and it is projected to surge to USD 2.33 billion by 2030.

The Commercial HVAC Preventive Maintenance market is a vital segment of the broader HVAC industry, focusing on the regular upkeep and servicing of heating, ventilation, and air conditioning systems in commercial spaces. This ongoing maintenance is essential for ensuring energy efficiency, extending equipment lifespa

The Residential HVAC Market Report is Segmented by Equipment (Cooling and Ventilation Equipment and Heating Equipment), Technology (Conventional, Low-GWP Refrigerants, and More), Installation Type (New Construction and Retrofit and Replacement), Housing Type (Single-Family Homes and Multi-Family Apartments and Condominiums), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The Europe Commercial HVAC Market Report is Segmented by Type of Component (HVAC Equipment [Heating Equipment, Air Conditioning/Ventilation Equipment], HVAC Services), End-User Industry (Hospitality, Commercial Building, Public Building, Other End-User Industries), and Country (United Kingdom, Germany, France, Italy). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The Indonesia HVAC market report segments the industry into Product Type (Heating Equipment, Ventilation Equipment, Air Conditioning Equipment), By End-user Industry (Residential, Commercial, Industrial). Get five years of historical data alongside five-year market forecasts.

The Asia-Pacific Commercial HVAC Market Report is Segmented by Component (HVAC Equipment and HVAC Services), System Type (Heating Equipment, Cooling and Ventilation Equipment, and More), End-User Industry (Hospitality, Offices and Commercial Buildings, Retail and Shopping Centers, and More), Refrigerant and Technology (Traditional HFC Systems, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

In 2023, the HVAC Systems Market reached a value of USD 209.37 billion, and it is projected to surge to USD 332.17 billion by 2030.

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HVAC Services Market Size 2025-2029

The hvac services market size is valued to increase USD 46.04 billion, at a CAGR of 8.8% from 2024 to 2029. Rapidly growing surface temperature will drive the hvac services market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 45% growth during the forecast period.
By Service Type - Air conditioning services segment was valued at USD 35.94 billion in 2023
By End-user - Non-residential segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 87.92 million
Market Future Opportunities: USD 46036.80 million
CAGR : 8.8%
APAC: Largest market in 2023

Market Summary

The market encompasses a dynamic and ever-evolving industry, driven by advancements in core technologies and applications. Rapidly growing sectors include the adoption of surface temperature advanced monitoring systems and intelligent technologies, which are transforming the way businesses and households manage their climate control needs. These innovations offer significant opportunities for market growth, yet face challenges from fluctuating prices of HVAC system raw materials. With the increasing demand for energy efficiency and sustainability, service types such as maintenance, repair, and installation continue to be in high demand.
According to recent reports, The market is expected to account for over 50% of the total HVAC market share by 2025. This underscores the importance of staying informed about the latest trends and developments in this continuously evolving sector.

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

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How is the HVAC Services Market Segmented and what are the key trends of market segmentation?

The hvac services 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.

Service Type

  Air conditioning services
  Heating services
  Ventilation services


End-user

  Non-residential
  Residential


Distribution Channel

  Online
  Offline


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Service Type Insights

The air conditioning services segment is estimated to witness significant growth during the forecast period.

Air conditioning systems have become an essential component of modern indoor spaces, with their application extending to various sectors including residential, commercial, and industrial buildings. The global market for HVAC services is experiencing significant growth due to the increasing demand for energy-efficient solutions, integration of building automation systems, and the expanding construction industry. Energy efficiency ratings play a crucial role in the selection of HVAC systems, with building energy modeling and thermal comfort standards guiding the design process. Humidity control systems, cooling system efficiency, and preventive maintenance schedules are essential considerations for maintaining optimal indoor environments. Heating system capacity and HVAC system upgrades are key areas of focus for businesses seeking to improve energy efficiency and reduce operational costs.

Air filtration systems, chilled water systems, and smart HVAC controls are increasingly popular solutions for enhancing indoor air quality and optimizing energy usage. The market for HVAC services is expected to grow substantially in the coming years, with a significant increase in demand from emerging markets. Preventive maintenance schedules, heat pump technology, and airflow optimization techniques are some of the trends driving this growth. Maintenance contract options and the HVAC equipment lifecycle are important factors influencing market dynamics. Thermal insulation materials, refrigeration cycle analysis, commissioning and testing, boiler system maintenance, energy monitoring software, and variable refrigerant flow are some of the key areas of innovation in the HVAC industry.

Retrofit projects, ductwork design standards, refrigerant charge calculations, air quality monitoring, and demand-controlled ventilation are also gaining traction as businesses seek to optimize their HVAC systems and reduce energy consumption. According to recent market research, The market is projected to grow by 15% in the next three years. Additionally, the market for building automation systems is expected to expand by 20% during the same period. These trends reflect the ongoing evolution of the HVAC industry and the increasing importance of energy efficiency and indoor environmental quality in modern building

The United Kingdom commercial HVAC market presents a robust growth opportunity, projected to be worth £1.83 billion in 2025 and expanding at a Compound Annual Growth Rate (CAGR) of 6.14% from 2025 to 2033. This growth is fueled by several key drivers. Stringent energy efficiency regulations, like those mandated by the UK Green Building Regulations, are pushing businesses to upgrade their outdated HVAC systems to more energy-efficient models. Furthermore, the increasing focus on sustainable building practices and reducing carbon footprints is driving demand for environmentally friendly HVAC solutions, such as those incorporating renewable energy sources and advanced control systems. The expansion of the commercial real estate sector, particularly in urban areas, also contributes significantly to market growth, creating a continuous need for new HVAC installations and maintenance services. Within the market segments, HVAC equipment (heating and air conditioning/ventilation) commands the largest share, followed by HVAC services. The hospitality, commercial buildings, and public buildings sectors are the primary end-users, contributing significantly to the overall market size. While challenges exist, such as the initial high investment costs associated with new technologies and potential supply chain disruptions, the long-term benefits of improved energy efficiency, reduced operational costs, and enhanced environmental performance are overriding these obstacles and ensuring continued market expansion. The market segmentation reveals a strong demand across various commercial sectors. Hospitality businesses are investing heavily in modern HVAC systems to ensure optimal guest comfort and operational efficiency. Commercial buildings are upgrading to improve indoor air quality and energy performance, impacting the bottom line and tenant satisfaction. Public buildings are prioritizing energy-efficient HVAC solutions to meet sustainability goals and reduce their carbon footprint. The competitive landscape is characterized by both global giants like Johnson Controls, Daikin, and Carrier, and regional players, indicating a diverse range of technology offerings and service capabilities available in the UK market. Continuous innovation in HVAC technology, including smart building integration and the adoption of Building Management Systems (BMS), is expected to further drive market expansion over the forecast period. The robust growth trajectory, driven by regulatory mandates, sustainability concerns, and market expansion, positions the UK commercial HVAC market as a lucrative investment and growth opportunity in the coming years. Recent developments include: March 2024 - Daikin Industries Ltd announced the launch of the next generation ‘All Seasons’ Perfera home air-to-air heat pump, also referred to as air conditioning. The indoor and outdoor units of the Perfera system have been fully redesigned to enhance the user experience, making them both easy to install and easy to use., October 2023 - Panasonic developed a new central heat pump system, the Interior 1.5 Ton Central Heat Pump, for residential space heating and cooling. The new product comes in two versions: the Interior Low-Carbon Hybrid Heating System with an outdoor heat pump unit and an indoor-cased A-coil, and the Interios All-electric Central Heat Pump System, which is an all-electric system featuring an outdoor heat pump unit and an all-electric air handler.. Key drivers for this market are: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Potential restraints include: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Notable trends are: Heating Equipment is Expected to Grow with Significant CAGR.

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.