The South Korea HVAC Market Segmented by Type of Component (HVAC Equipment, HVAC Services), End-User Industry (Residential, Commercial, Industrial), Installation Type (New Construction, Retrofit / Replacement), Capacity Range (Up To 5 KW, 5 – 20 KW, 20 – 50 KW, and More). The Market Forecasts are Provided in Terms of Value (USD).

In 2023, the South Korea HVAC Systems Market reached a value of USD 3.63 billion, and it is projected to surge to USD 5.57 billion by 2030.

The South Korea HVAC market reached approximately USD 2.92 Billion in 2024. The market is projected to grow at a CAGR of 6.10% between 2025 and 2034, reaching a value of around USD 5.28 Billion by 2034.

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

The South Korean HVAC market, valued at $10.04 billion in 2025, is projected to experience robust growth, driven by factors such as increasing urbanization, rising disposable incomes fueling demand for improved home comfort, and stringent government regulations promoting energy efficiency. The market's compound annual growth rate (CAGR) of 6.79% from 2019 to 2024 suggests a continued upward trajectory. Key market segments include HVAC equipment (heating, air conditioning, and ventilation), and HVAC services. The commercial sector, encompassing office buildings, retail spaces, and hospitality establishments, is expected to be a significant growth driver due to ongoing infrastructure development and the need for climate-controlled environments. The residential segment, although large, may experience slightly slower growth compared to the commercial sector, influenced by factors like housing market dynamics and consumer spending habits. Furthermore, the industrial sector contributes meaningfully, particularly with demands from manufacturing and logistics facilities seeking optimized thermal management solutions. Leading players like Johnson Controls, Carrier, Daikin, and LG Electronics, along with several regional companies, are actively competing for market share, leading to innovation in energy-efficient technologies and service offerings. The forecast period of 2025-2033 anticipates continued expansion, influenced by sustained economic growth in South Korea and the increasing adoption of smart home and building technologies. The government’s focus on sustainable development and carbon emission reduction is further propelling the market towards more energy-efficient HVAC solutions. Competition is expected to intensify, with companies focusing on providing customized solutions, advanced maintenance services, and integrating innovative technologies such as smart controls and IoT integration to enhance efficiency and customer experience. The market segmentation by component type (HVAC equipment and services) and end-user industry (residential, commercial, and industrial) allows for a targeted approach for both investors and businesses, providing insights into specific market niches with varying growth potential and competitive landscapes. Recent developments include: In March 2024, Panasonic Corporation announced that its Heating & Ventilation A/C Company (HVAC) plans to launch three new commercial air-to-water (A2W) heat pumps that utilize environmentally friendly natural refrigerants. These models are designed for use in multi-dwelling units, stores, offices, and other light commercial properties. With their compact designs, they are positioned at the top of the industry and are expected to expand the company's lineup of models for standalone homes to meet growing customer needs., In November 2023, Mitsubishi Electric Corporation announced that it has developed an aluminum vertical flat tube (VFT) design that improves heat exchanger performance by up to an unprecedented 40% in heat-pump air conditioners used for heating and cooling. Compared to conventional aluminum horizontal flat tube (HFT) heat exchangers, Mitsubishi Electric's new VFT heat exchanger also reduces refrigerant charge thanks to up to 20% smaller internal volume than HFT designs.. 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: HVAC Equipment Segment Holds Significant Market Share.

The Asia-Pacific Commercial HVAC market is experiencing robust growth, projected to reach $76.39 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 7.35% from 2025 to 2033. This expansion is driven by several key factors. Firstly, rapid urbanization and infrastructure development across the region, particularly in countries like China, India, and Southeast Asian nations, are fueling strong demand for commercial buildings, creating a significant market for HVAC systems. Secondly, rising disposable incomes and a growing middle class are increasing the demand for comfortable and energy-efficient commercial spaces, pushing adoption of advanced HVAC technologies. Furthermore, stringent government regulations aimed at improving energy efficiency and reducing carbon emissions are compelling businesses to invest in high-performance HVAC equipment. The hospitality sector, with its constant need for climate control, is a significant driver, followed by the expanding commercial and public building sectors. However, the market faces certain constraints. The initial high investment cost associated with installing sophisticated HVAC systems can be a deterrent for smaller businesses. Moreover, the increasing price of raw materials, particularly metals used in manufacturing, can impact profitability and potentially influence pricing. Fluctuations in energy prices also pose a challenge, impacting operational costs for businesses. Despite these challenges, the long-term outlook remains positive. The market is segmented by component type (HVAC equipment, including heating and air conditioning/ventilation, and HVAC services) and end-user industry (hospitality, commercial buildings, public buildings, and others). Key players like Daikin, Carrier, Johnson Controls, and Mitsubishi Electric are aggressively competing through product innovation, strategic partnerships, and expansion into emerging markets to capitalize on the growth opportunities. The Asia-Pacific region, particularly China, Japan, South Korea, and India, will remain the major contributors to market expansion due to their rapid economic growth and substantial construction activities. This comprehensive report provides an in-depth analysis of the Asia Pacific Commercial HVAC market, encompassing the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, this report offers valuable insights into market trends, growth drivers, challenges, and future projections. The study covers key segments including HVAC equipment (heating, air conditioning, and ventilation), HVAC services, and end-user industries like hospitality, commercial buildings, and public buildings. The report also highlights the activities of key players such as Daikin Industries, Carrier Corporation, and Johnson Controls, offering a complete picture of this dynamic market expected to reach XXX million units by 2033. Recent developments include: February 2024: ABB India launched its next-generation compact drive, ACH180, for HVACR (heating, ventilation, air conditioning, and refrigeration) equipment at ACREX 2024. The ACH180 is the latest addition to ABB's HVACR drive portfolio. It allows experts to control its highly efficient motors while using a minimal design for space savings, reduced capital expenditure, and easier installation. ABB’s new drive is designed for commercial buildings such as data centers, hotels, and shopping malls., September 2023: ECM Technologies partnered with Singapore-based AC Wise, an energy-saving company, to distribute ThermaClear, a heating, ventilation, and air conditioning anti-thermal degradation technology to reach the Asian market. Through the partnership, AC Wise will be the exclusive distributor of ThermaClear in the Asia-Pacific region, harnessing its distribution network and industry knowledge to serve key markets, including Hong Kong, Singapore, Vietnam, Taiwan, Philippines, Malaysia, Maldives, and Thailand, with substantial growth opportunities in regions like Indonesia and India.. Key drivers for this market are: Increasing Demand for Energy Efficiency and Sustainable Technology, Increasing Investment Toward Commercial Real-Estate in the Region. Potential restraints include: Increasing Demand for Energy Efficiency and Sustainable Technology, Increasing Investment Toward Commercial Real-Estate in the Region. Notable trends are: Commercial Buildings Segment is Expected to Hold Significant Share.

The South Korea Commercial Hvac report features an extensive regional analysis, identifying market penetration levels across major geographic areas. It highlights regional growth trends and opportunities, allowing businesses to tailor their market entry strategies and maximize growth in specific regions.

The South Korea HVAC report features an extensive regional analysis, identifying market penetration levels across major geographic areas. It highlights regional growth trends and opportunities, allowing businesses to tailor their market entry strategies and maximize growth in specific regions.

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Residential HVAC Market Size 2025-2029

The residential HVAC market size is forecast to increase by USD 48.82 billion at a CAGR of 8.8% between 2024 and 2029. The market is experiencing significant growth, driven primarily by the increasing demand for energy-efficient heating and cooling systems in the construction industry.

Major Market Trends & Insights

APAC dominated the market and accounted for a 49% share in 2023.
The market is expected to grow significantly in Europe region as well over the forecast period.
Based on the Type, the HVAC euipment segment led the market and was valued at USD 58.79 billion of the global revenue in 2023.
Based on the Product, the air conditioning system segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

2024 Market Size: USD 92.84 Billion
Future Opportunities: USD 48.82 Billion
CAGR (2024-2029): 8.8%
APAC: Largest market in 2023

The market is experiencing significant advancements, driven by the integration of smart grids and HVAC automation. Data analytics plays a crucial role in optimizing HVAC systems, enabling energy savings and improved customer satisfaction. HVAC innovation continues to evolve, with sustainable design and LEED certification gaining prominence in the industry. HVAC troubleshooting and repair techniques are being enhanced through remote monitoring and predictive maintenance. Building codes and regulations mandate higher energy efficiency standards, driving the demand for HVAC optimization software and commissioning services.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market is experiencing significant growth, driven primarily by the increasing demand for heating, ventilation, and air conditioning systems in the construction industry. HVAC financing, incentives, rebates, and warranties facilitate the adoption of advanced technologies. HVAC engineering and research are at the forefront of developing new solutions, while building automation systems and demand response programs enable better energy management. HVAC education and training programs ensure a skilled workforce, ensuring the industry remains at the forefront of technological advancements. The HVAC services segment is the second largest segment of the type and was valued at USD 27.24 billion in 2023.

This trend is particularly notable as new homes and renovations prioritize sustainable and technologically advanced HVAC solutions. Furthermore, the integration of power evaluation software in HVAC systems is revolutionizing energy management and efficiency, offering substantial cost savings for homeowners and property developers. However, market expansion is not without challenges. Regulatory hurdles impact adoption, as stringent energy efficiency standards and certifications necessitate considerable investment in research and development for manufacturers.

Additionally, inconsistencies in the supply chain, particularly regarding raw materials and component availability, can temper growth potential and necessitate effective risk management strategies for market participants. Companies seeking to capitalize on market opportunities must navigate these challenges while staying abreast of evolving consumer preferences and technological advancements to maintain a competitive edge. Smart home integration and home automation are transforming the industry, enabling efficiency optimization and allergen removal.

How is this Residential HVAC Industry segmented?

The residential 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.

Type

  HVAC equipment
  HVAC services


Product

  Air conditioning system
  Heating system
  Ventilating system


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    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 segment was valued at USD 58.79 billion in 2023. It continued to the largest segment at a CAGR of 7.02%. In the realm of residential and industrial HVAC systems, there is a growing emphasis on energy efficiency and sustainability. New home construction and home remodeling projects are integrating advanced HVAC technologies, such as energy-star certified heat pumps, air conditioning units with high SEER and HSPF ratings, and mini-split systems. These systems not only provide optimal temperature control but also contribute to energy savings. Addi

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South Korea HVAC Drives Market , South Korea HVAC Drives Market Size, South Korea HVAC Drives Market Trend, South Korea HVAC Drives Market ForeCast, South Korea HVAC Drives Market Risks, South Korea HVAC Drives Market Report, South Korea HVAC Drives Market Share

Statistics illustrates market overview of hvac equipment in South Korea from 2007 to 2024.

The South Korea air conditioner market was valued at USD 2.46 Billion in 2024. The industry is expected to grow at a CAGR of 3.80% during the forecast period of 2025-2034 to attain a valuation of USD 3.57 Billion by 2034.

Comprehensive dataset of 5 HVAC contractors in Busan, South Korea as of July, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

The South Korean HVAC equipment market declined to $6.6B in 2024, falling by -7.7% against the previous year. Overall, consumption, however, showed a relatively flat trend pattern. As a result, consumption attained the peak level of $7.1B, and then declined in the following year.

Comprehensive dataset of 1 HVAC contractors in Jeju-do, South Korea as of August, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

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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 South Korea Air Conditioner (AC) market is expected to grow at 6.47% CAGR from 2023 to 2028.

According to the 2025 National Brand Competitiveness Index in South Korea, the brand competitiveness index of LG Whisen measured ** out of 100. Samsung Electronics followed with an index score of ** out of 100, both rising by one point year-on-year.

The global HVAC control system market is expected to be worth around US$ 20.9 billion in 2024. A vital component of the infrastructure of contemporary buildings, HVAC control systems are in high demand due to the need for comfort optimization, environmental consciousness, and technical innovation. HVAC control system sales are expected to register a moderate 9.7% CAGR between 2024 and 2034, with a global worth of US$ 52.6 billion by 2034.

Attributes	Details
HVAC Control System Market Value for 2024	US$ 20.9 billion
HVAC Control System Market Value for 2034	US$ 52.6 billion
HVAC Control System Market Forecast CAGR for 2024 to 2034	9.7%

Historical Performance and Future Growth of the HVAC Control System Market

Historical CAGR	10.7%

Category-wise Insights

Attributes	Details
Top Type	Temperature and Humidity Control
CAGR from 2024 to 2034	9.4%

Attributes	Details
Top Implementation	Retrofit
CAGR from 2024 to 2034	9.2%

Country-wise Insights

Countries	CAGR from 2024 to 2034
United States	9.8%
United Kingdom	11.0%
China	10.6%
Japan	10.4%
South Korea	9.5%