GVR Report cover HVAC Systems Market Size, Share & Trends Report

HVAC Systems Market Size, Share & Trends Analysis Report By Product (Ventilation, Heating, Cooling), By End-use (Residential, Commercial, Industrial), By Region (APAC, North America), And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-641-7
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 134

Report Overview

The global HVAC systems market size was valued at USD 127.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028. HVAC (Heating, ventilation, and air conditioning) demand is primarily driven by the advent of novel technologically advanced products, which are energy-efficient and can be remotely accessed. The use of natural refrigerants, such as CO2, coupled with increasing efforts by various governments across the globe to promote energy-efficient products is expected to drive the market. Furthermore, a paradigm shift towards the adoption of energy-efficient air conditioners that reduce costs and power wastage is expected to upkeep HVAC demand over the forecast period.

North America HVAC systems market size, by product, 2017 - 2028 (USD Billion)

Rising customer inclination toward comfort has increased the demand for HVAC systems. In addition to addressing the customer’s comfort demands, companies are developing products that offer several added benefits. For instance, IoT-enabled heating and cooling systems offer real-time monitoring of system functionality and condition. These HVAC systems also alert customers or managers on system failure, unusual behavior, and maintenance cycle to reduce repair costs. These factors are anticipated to increase the product demand in the near future.

Climate change is one of the prominent factors influencing the growing adoption of heating and cooling equipment. Due to unpredictable climatic conditions and rising temperatures, several customers consider HVAC equipment as a beneficial investment. Moreover, HVAC units also add to the aesthetic value of residential and commercial places. Companies provide products that are aesthetically pleasing and offer several design options to choose from. The advent of improved designs and changing preferences of customers are expected to create huge product demand over the coming years.

The demand for HVAC units is growing across sectors, such as commercial, real estate, and service industries, due to the factors, such as the need for comfort, increasing global warming, and rising disposable income. The real estate industry has been one of the primary consumers of HVAC systems. The sector comprises four subsectors – retail, housing, commercial, and hospitality. The growth of the real estate industry is increasing owing to the rising demand for office space, sub-urban & urban accommodations, and the growth of the corporate sector, subsequently favoring the product demand.

Although the market is anticipated to record a steady growth owing to the aforementioned benefits, high installation and maintenance costs, high energy consumption, and other operational difficulties are expected to pose a challenge to market growth. In addition, climatic conditions in certain regions can impact the life cycle of HVAC systems. Regions with damp climatic conditions often tend to reduce the life expectancy of these systems due to their corrosive effects. This is anticipated to hinder the market growth.

The spread of coronavirus has had a negative impact on the market in 2020 but is expected to provide impetus to the market in the long run. Owing to increased awareness about the health hazards caused by the impure surrounding air, more and more customers are investing in HVAC systems for purifying the air and creating a hygienic indoor environment. Thus, the pandemic has opened up new opportunities for the market participants.

Product Insights

The cooling product segment dominated the global market with a revenue share of over 54% in 2020 and is expected to continue its dominance over the forecast period. The cooling segment comprises air conditioning units, including room air conditioners, unitary air conditioners, cooling towers, split & packaged systems, and portable units. Technological advancements, such as remote operation, IoT-integrated HVAC systems, and compact units that enable cost savings and enhance energy efficiency & comfort, are anticipated to increase demand for new cooling systems. Furthermore, changing climatic conditions in the Middle Eastern and Asia Pacific regions are expected to fuel the need for cooling units.

Heating units, such as boilers, furnaces, and heat pumps, are widely used in residential, commercial, and industrial applications. Applications of heating equipment include space heating, molding, floor & wall heating, steam generation, vaporization, and drying. Thus, regions with extreme cold climatic conditions and industries that require a heating process are the major drivers for segment growth. Ventilation units are also gaining traction due to increasing awareness about maintaining a healthy and safe environment. Demand for air purifiers and other ventilation equipment that prevent air contamination is expected to boost the ventilation product segment growth in the near future.

End-use Insights

The residential segment held the largest revenue share of over 40% in 2020. Residential HVAC units are compact and easy to install as compared to commercial or industrial units. The residential segment comprises equipment used in small spaces, such as houses and small stores & restaurants. The change in lifestyle and increasing disposable incomes are anticipated to upkeep the demand for home equipment over the coming years.

Global HVAC systems market share, by end-use, 2020 (%)

The commercial segment is anticipated to record the fastest CAGR over the forecast period owing to rising infrastructure development and increasing urbanization across major regions, creating a demand for more office spaces. Commercial HVAC units require large space and are therefore installed on rooftops of big restaurants, shopping malls, theaters, and other commercial spaces. These systems are used continuously, and therefore, the wear & tear is more in comparison to residential units. Thus, retrofitting and replacement demand of these units is expected to drive segment growth over the next seven years.

Regional Insights

Asia Pacific has been the largest consumer and accounted for over 45% of the global revenue share in 2020 due to the factors, such as rapid urbanization, rising population, and increasing disposable income levels. China, in particular, dominates the global air conditioning systems demand and accounted for the highest unit sales in 2020. The presence of companies offering low-cost equipment in China and neighboring countries is another factor contributing to regional market growth.

North America accounted for the second-highest revenue share in 2020 and is expected to grow steadily over the forecast period. The market in Europe is also expected to record healthy growth, driven by the flourishing tourism sector and real estate industry in the region. Governments of both regions are promoting the use of energy-efficient systems by providing subsidies and tax benefits. As a result, in addition to new constructions, existing customers are also upgrading to new energy-efficient systems.

Key Companies & Market Share Insights

Companies engage in inorganic growth strategies, such as mergers & acquisitions, partnerships, and geographical expansion, to sustain the market competition. For instance, In April 2020, Johnson Controls International plc opened a new HVAC rooftop center of excellence in Oklahoma. The facility serves as a location for the research, manufacturing, and testing of HVAC rooftop units.

Market players also focus on R&D to develop technologically advanced and differentiated products that comply with regional regulation norms to gain a competitive edge. For instance, in December 2019, Lennox International, Inc. expanded its ultra-low emission gas furnace line by introducing four furnaces, namely SL297NV, SL280NV, EL195NE, and EL180NE. The new products were developed to comply with the new California South Coast Air Quality Management District’s Rule 1111 and San Joaquin Valley Air Pollution Control District Ultra-Low NOx Rule 4905, which are focused on the reduction of nitrogen oxide emission. Some prominent players in the global HVAC systems market include:

  • Carrier Corporation

  • Daikin Industries, Ltd.

  • Emerson Electric Co.

  • Hitachi Ltd.

  • Johnson Controls International plc

  • Lennox International, Inc.

  • Trane Technologies

HVAC Systems Market Report Scope

Report Attribute


Market size value in 2021

USD 132.43 Billion

Revenue forecast in 2028

USD 197.50 Billion

Growth rate

CAGR of 5.9% from 2021 to 2028

Base year for estimation


Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, end-use, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; Spain; Italy; Latvia; China; India; Japan; South Korea; Australia; Brazil; Argentina; Chile

Key companies profiled

Carrier Corp.; Daikin Industries, Ltd.; Emerson Electric Co.; Hitachi Ltd.; Johnson Controls International plc; Lennox International, Inc.; Trane Technologies

Customization scope

Free report customization (equivalent to up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options.

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global HVAC systems market report on the basis of product, end-use, and region:

  • Product Outlook (Revenue, USD Billion, 2017 - 2028)

    • Heating

    • Ventilation

    • Cooling

  • End-use Outlook (Revenue, USD Billion, 2017 - 2028)

    • Residential

    • Commercial

    • Industrial

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

      • Spain

      • Italy

      • Latvia

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • South America

      • Brazil

      • Argentina

      • Chile

    • Middle East & Africa (MEA)

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