HVAC Systems Market Size To Reach $445.73 Billion By 2033

June 2025 | Report Format: Electronic (PDF)

HVAC Systems Market Growth & Trends

The global HVAC systems market size is anticipated to reach USD 445.73 billion by 2033, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 7.0% from 2025 to 2033. The rising adoption of energy-efficient and renewable energy products is anticipated to be a significant driving factor for HVAC demand. Demand for eco-friendly systems, and advanced technology usage in products including software and automation, are a few key factors contributing to the industry’s success. The growing usage of ACs in homes, as well as offices, has favored the HVAC industry over the years. To further boost this demand, rising incomes and standard of living in several emerging economies have also driven business profitability in recent years.

The growing popularity of ductless HVAC(Heating, ventilation, and air conditioning) is also gaining traction and will create avenues for market growth over the mid-term. Installing ACs in buildings without ducts is an impossible task and this is where ductless systems come to save the day. These compact units can be installed almost anywhere devoid of ducts. Apart from new product development energy-efficient and tech-savvy products are also carving a niche for themselves in the market. For instance, products that work on geothermal technologies or renewable energy sources are helping consumers cut energy costs while benefitting OEMs meet sustainability targets.

Apart from efficiency, technology is also making this a lucrative market. Building automation systems are popular among contractors and architects. Therefore, the demand for Building Automation Systems (BAS) is gaining traction, as such creating avenues for the market. Further, ACs are no longer operated manually but can be controlled remotely with a smartphone, PC, or tablet. This functionality and smart feature is also emerging as a popular trend in the market creating revenue streams for manufacturers.

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HVAC Systems Market Report Highlights

Based on equipment, the heat pump equipment segment led the market with the largest revenue share of 38.5% in 2024. The demand for heat pumps is experiencing a notable surge driven by a growing emphasis on energy efficiency, environmental sustainability, and a shift toward renewable heating solutions.
The demand for air purifiers is witnessing a robust increase as concerns about indoor air quality and respiratory health grow worldwide. Driven by factors such as rising pollution levels, allergens, and the ongoing awareness of airborne viruses, consumers and businesses are increasingly investing in air purification technologies.
Based on application, the residential segment led the market with the largest revenue share of 41.71% in 2024. Increasing multi-family and individual homeowners is creating avenues for the residential HVAC segment.
The Asia Pacific HVAC systems market accounted for the largest revenue share of 46.8% in 2024. Factors such as improving economic conditions, rapid industrialization, and commercialization are anticipated to positively impact the market growth.

HVAC Systems Market Segmentation

Grand View Research, Inc. has segmented the global HVAC systems market report based on the equipment, application, distribution channel, and region:

HVAC Systems Equipment Outlook (Revenue, USD Billion, 2021 - 2033)

Heating
- Heat Pump
- Furnace
- Unitary Heaters
- Boilers
- Electric Baseboards
- Heating Cables
- Others
Ventilation
- Air Purifier
- Dehumidifier
- Air Handling Units
- Ventilation Fans
- Others
Cooling
- Air Conditioning
- Chillers
- Cooling Towers
- Others