Smart HVAC Systems Market To Reach $178,293.7 Million By 2033

October 2025 | Report Format: Electronic (PDF)

Smart HVAC Systems Market Growth & Trends

The global smart HVAC systems market size is anticipated to reach USD 178,293.7 million by 2033 and is projected to grow at a CAGR of 7.0% from 2025 to 2033, according to a new report by Grand View Research, Inc. The integration of IoT, AI, and cloud technologies allows for real-time monitoring, remote control, and predictive maintenance, enhancing system efficiency and user experience.

Urbanization, smart city initiatives, and stricter environmental regulations are key factors accelerating the adoption of smart HVAC systems. Rapid urban growth increases demand for efficient climate control in buildings, while smart city projects prioritize energy-saving infrastructure. Regulatory pressures push for reduced emissions and better energy performance, encouraging the shift toward intelligent, automated HVAC technologies across all building sectors.

One of the main challenges in the smart HVAC systems industry is the high initial cost and installation complexity. Although these systems offer long-term energy savings, many potential users are discouraged by upfront expenses, difficulties integrating with existing infrastructure, and the need for trained professionals. These factors hinder adoption, particularly in developing countries, slowing market growth and limiting access to advanced HVAC technologies.

Regulations significantly influence the development of the smart HVAC systems industry. Governments across the globe are enforcing stricter energy efficiency and environmental standards, promoting the shift toward smart and sustainable HVAC technologies. Initiatives like energy labeling, LEED certifications, and emissions regulations are driving innovation and compliance. These policies encourage manufacturers to create more intelligent, eco-friendly systems aligned with global climate and sustainability objectives.

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Smart HVAC Systems Market Report Highlights

Based on technology, the heating segment accounted for the largest market revenue share in 2024, due to its low cost, ease of use, and wide applicability across warehouses and retail outlets. They are a preferred choice for short-distance material handling and smaller-scale operations.
Based on application, the residential segment led the market with the largest revenue share of 35.9% in 2024, driven by the growing adoption of smart home technologies and heightened awareness of energy efficiency. Homeowners increasingly prefer IoT-enabled HVAC systems for enhanced comfort, remote access, and energy savings.
Based on distribution channel, the manual segment accounted for the largest market revenue share in 2024, particularly in developing regions where consumers value face-to-face consultations and the ability to assess products in person. Physical stores provide hands-on demos, tailored advice, and reliable after-sales service, fostering customer confidence.
In September 2025, Johnson Controls expanded its thermal management portfolio by introducing a scalable liquid cooling solution designed for high-density data centers. This innovation addresses growing cooling demands by efficiently managing heat in compact, power-intensive environments.