The global ductless HVAC systems market size is anticipated to reach USD 157.9 billion by 2033 and is projected to grow at a CAGR of 7.6% from 2026 to 2033, according to a new report by Grand View Research, Inc. The ductless HVAC systems industry is primarily driven by the increasing renovation and upgrade of existing buildings that lack ductwork. Many older residential and commercial structures cannot easily accommodate traditional ducted HVAC systems, making ductless units a practical alternative.
Another key factor supporting market growth is the rapid expansion of residential construction across urban areas. Developers are increasingly installing ductless HVAC systems in apartments, condominiums, and compact housing units where space limitations make conventional ducted systems less suitable. The flexibility of these systems allows builders to integrate efficient heating and cooling solutions without extensive structural modifications.
The growing demand for zoned climate control is also driving the adoption of ductless HVAC systems. These systems enable users to regulate temperature independently in different rooms or areas, which is particularly beneficial in homes, offices, hotels, and retail spaces. This capability allows occupants to maintain comfortable indoor conditions across multiple zones within a building.
Continuous technological advancements in HVAC equipment are further supporting the market. Manufacturers are introducing systems with inverter-driven compressors, advanced heat pump technology, and smart connectivity features that enable remote monitoring and control. These developments are improving system performance and expanding the application of ductless HVAC systems across modern buildings.
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Based on installation, the retrofit/replacement segment accounted for the largest market revenue share in 2025, due to the increasing need to upgrade HVAC systems in existing buildings without ductwork. The ease of installation and suitability for renovation projects supported the strong adoption of ductless systems in retrofit applications.
Based on end use, the residential segment led the market with the largest revenue share of 53.4% in 2025, driven by increasing adoption of compact heating and cooling systems in homes and apartments. Growing residential construction and renovation activities also supported the demand for ductless HVAC solutions in this segment.
Based on equipment type, the air conditioners segment accounted for the largest market revenue share in 2025, owing to the strong demand for room-based cooling solutions in residential and commercial buildings. Their easy installation and suitability for compact spaces supported widespread adoption.
In April 2025,Mitsubishi Electric Trane HVAC US launched a new lineup of heat pump and air-conditioning products designed with low global warming potential (GWP) refrigerants. The systems use R-454B refrigerant, which has about 78% lower GWP than R-410A. These products include updated indoor and outdoor units for residential and light commercial applications.
Grand View Research has segmented the global ductless HVAC systems marketbased on the installation, equipment type, end-use, and region.
Ductless HVAC Systems Installation Outlook (Revenue, USD Billion, 2021 - 2033)
New Construction
Retrofit/Replacement
Ductless HVAC Systems Equipment Type Outlook (Revenue, USD Billion, 2021 - 2033)
Air Conditioners
Heat Pump
Dehumidifiers
Ductless HVAC Systems End-use Outlook (Revenue, USD Billion, 2021 - 2033)
Residential
Commercial
Industrial
Ductless HVAC Systems Regional Outlook (Revenue, USD Billion, 2021 - 2033)
North America
U.S.
Canada
Mexico
Europe
Spain
Germany
Italy
France
UK
Asia Pacific
China
India
Japan
Australia
South Korea
Latin America
Brazil
Argentina
Middle East & Africa
Saudi Arabia
UAE
South Africa
List of Key Players in the Ductless HVAC Systems Market
Daikin Industries Ltd.
Mitsubishi Electric Corporation
Fujitsu General Limited
LG Electronics
Samsung Electronics
Panasonic Corporation
Carrier
Trane Technologies plc
Lennox International Inc.
Rheem Manufacturing Company
Gree Electric Appliances Inc.
Bosch Thermotechnology
Haier Smart Home Co., Ltd.
Midea Group
Johnson Controls International plc
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