HVAC Systems Market Size, Share, Growth, Trends, and Global Industry Analysis: By System Type (Cooling Equipment, Heating Equipment, Ventilation Equipment), Installation Type (New Construction, Retrofit), Application (Residential, Commercial, Industrial), and By Region 2020-2031

HVAC Systems Market size was valued at US$ 98,000 million in 2024 and is projected to reach about US$ 136,000 million by 2031, expanding at a CAGR of 4.7% from 2025–2031. Moreover, the U.S. HVAC Systems Market is projected to grow steadily, reaching an estimated value of US$ 39,000 million by 2031, driven by modernization of existing infrastructure, rising energy efficiency standards, and increasing adoption of smart HVAC technologies.

The international market for HVAC products is being disrupted by unanticipated convergence of environmental imperative, digitalization, and changing end-user requirements. With the pace of climate change and urbanization increasing, demand for climate-resilient indoor air quality and energy-efficient heating and cooling is increasing at a rapid pace. Government-imposed stricter emissions and refrigerant regulations are on the rise, and end-users from residential house owners to industrial factories are pushing for smarter, connected, and cost-optimized solutions. The change has forced industry participants to retool their portfolios by emphasizing IoT-capable technologies, predictive maintenance, and eco-friendly solutions in order to remain competitive and compliant with the fast-changing regulatory and consumers' landscape.

In addition, the investment expansion in infrastructure—especially in emerging economies—and increasing prevalence of net-zero carbon aspirations are redefining the strategic trajectory of the HVAC sector. With energy recovery systems and modular mini-splits as future-generation heat pumps, companies are also testing "as-a-service" offerings to mitigate labor shortages and increased installation costs. The market is not anymore just a matter of indoor temperature management; it's a matter of providing climate insight, energy stewardship, and end value. With the Asia-Pacific region coming up as a giant, and Europe pioneering eco-regulation domains, the HVAC industry seems to be at the intersection of technology, policy, and sustainable development.

Facts & Figures

• Major HVAC industry players are integrating AI and IoT technology into their product lines so that residential as well as business customers are provided with real-time diagnosis, energy optimization, and predictive maintenance.
• More than 80% of North American residential building total installations are HVAC-based, and smart upgrading and retrofitting are influencing a significant portion of market action.
• Asia-Pacific, with China and India at the lead, is surfing a wave of new first-time installation of HVAC driven by urban residential, infrastructure outlays, and climate uncertainty.
• Policy changes toward decarbonization are fuelling low-GWP refrigerant and heat pump demand, putting HVAC systems in the forefront as the main enablers of national climate policy across mature and emerging markets.

Key Developments

• In March 2025, Samsung Electronics, is expanding its footprint in the global HVAC market by aggressively deploying inverter-based systems and heat pumps across residential, commercial, and public infrastructures. The company has recorded consistent double-digit revenue growth over the past five years and is targeting a 30% revenue increase in the current fiscal year.
• In March 2025, At ACREX India 2025, Danfoss India launched seven new sustainable HVACR solutions designed to enhance thermal regulation, energy efficiency, and fluid/gas flow control. These innovations support India’s rapidly growing HVAC manufacturing ecosystem and underline the shift toward intelligent, environmentally responsible systems.
• In August 2024, Daikin Applied introduced the SWP J-Vintage — a new-generation self-contained HVAC unit optimized for floor-by-floor configurations. It utilizes low-GWP R-32 refrigerant, balancing high performance with carbon footprint reduction and affordability.
• In April 2024, Voltas, in April 2024, unveiled its latest Inverter Scroll Chillers lineup at ACREX India, tailored for commercial applications. These IoT-enabled, mobile-operated units are BMS-compatible and use eco-friendly refrigerants, reinforcing the company’s commitment to energy-efficient climate control in commercial infrastructure.

Hvac Systems Market Segmentation

Based on the system type

• Cooling Equipment
• Heating Equipment
• Ventilation Equipment

 Among the System Type, cooling devices have the biggest market share, specifically because of its indispensability in commercial and household cooling in tropical regions. With the increased incidence of extreme heat episodes, particularly in Asia-Pacific, North America, and Europe, cooling systems have become a luxury good rather than a symbol of status. Air conditioners, chillers, and VRF-type cooling systems are gaining popularity, with inverter-based and energy-efficient technologies being the preferred ones. Technological advancements in zoned cooling systems and smart thermostats have also enhanced user control and energy efficiency further. Increased usage of cooling systems in high-performance buildings and data centres is further establishing its position as the most preferred system type in the industry.

Based on the installation type

• New Construction
• Retrofit

Retrofit systems have become the prevalent wave in the HVAC industry, especially in high-income economies as infrastructure is being retrofitted. Under pressure from regulations to cut energy consumption and transition to low-GWP refrigerants, buildings in place are being retrofit with more advanced, more environmentally friendly HVAC systems. This market has budget-friendly means of optimizing system performance without undertaking full-scale building construction. Building owners, particularly owners of commercial buildings, are also reaching increasingly for smart retrofitting smart controls and modular units, for example, to meet energy codes with minimal disruption to business. The retrofitting market is also assisted further by government incentive schemes and, therefore, is a cost-saving sustainable route.

Based on the application

• Residential
• Commercial
• Industrial

 The commercial market dominates the use of HVAC applications due to the continuous growth of offices, shopping complexes, hospitals, schools, and hospitality buildings across the globe. Climate control becomes an operations critical function in commercial buildings not only for the comfort of the occupants but also for efficiency of operation most specifically in buildings such as data Centers and health care facilities where temperature and air are tightly controlled. Companies are investing in energy-efficient, high-performance HVAC equipment with zoning, automation, and integrated air cleaning to address corporate ESG requirements and lower lifecycle cost. The market is further fuelled by regulation of indoor air quality norms by the commercial industry and growing tenant and occupant demand for more intelligent, sustainable buildings.