PUBLISHER: Guidehouse Research | PRODUCT CODE: 1826571
PUBLISHER: Guidehouse Research | PRODUCT CODE: 1826571
Residential HVAC
The global residential HVAC market is set for steady growth through 2034, propelled by demand for energy efficient, sustainable, and climate-adaptive solutions. Including equipment such as furnaces, boilers, heat pumps, and air conditioning units for single-family and multifamily homes, the market's trajectory is shaped by regional trends. Asia-Pacific currently leads in revenue, driven by room A/C adoption and rising interest in heat pumps, while Europe is expected to overtake it by 2034 due to strong decarbonization policies and a rapid shift from boilers to electrified systems. North America remains robust for central A/C and heat pumps, and Latin America and the Middle East & Africa are forecast to grow more gradually, limited by infrastructure and affordability. Across all regions, government incentives, awareness of indoor air quality, and climate adaptation needs are accelerating expansion.
In this report, Guidehouse Research analyzes the market using a bottom-up modeling approach, segmenting by region, building type, construction type, and equipment. The report draws on interviews with industry leaders and secondary research, focusing on equipment revenue from 2025 to 2034. It highlights the impact of regulations, innovation, and consumer trends, while addressing barriers such as high upfront costs, supply chain volatility, and skilled labor shortages. The competitive landscape is mapped through profiles of major manufacturers, mergers and acquisitions, and pricing strategies.
Key recommendations include prioritizing innovation in heat pumps and energy efficient solutions to align with global decarbonization trends. Policymakers should support adoption through incentives and modernized codes, while homeowners can benefit from long-term savings by choosing high-efficiency systems. Notably, the global residential HVAC market is projected to grow from US$138.9 billion in 2025 to US$180.5 billion by 2034, a compound annual growth rate of 3.0%.
Table of Contents
1. Executive Summary
- 1.1 Market Overview
- 1.2 Market Drivers and Barriers
- 1.3 Global Market Highlights
2. Market Issues
- 2.1 Introduction
- 2.2 Drivers
- 2.2.1 Increasing Demand for Energy Efficiency and Sustainability
- 2.2.2 Awareness of Poor IAQ and Health Impacts
- 2.2.3 Government Policies, Regulations, and Incentive Programs
- 2.2.4 Technological Innovation, Smart Controls, and Connected Homes
- 2.2.5 Urbanization, Housing Development, and Climate Adaptation
- 2.3 Barriers
- 2.3.1 High Upfront Costs and Payback Periods
- 2.3.2 Infrastructure Limitations and Skilled Labor Shortages
- 2.3.3 Regulatory Complexity and Compliance Costs
- 2.3.4 Supply Chain Volatility and Material Constraints
- 2.3.5 Consumer Awareness and Perception Gaps
3. Industry Value Chain
- 3.1 Competitive Landscape
- 3.1.1 M&A Activities
- 3.1.2 Pricing
4. Market Forecasts
- 4.1 Methodology
- 4.2 Global Market Forecasts
- 4.2.1 Global Market Forecast by Region
- 4.2.2 Global Market Forecast by Construction Type
- 4.2.3 Global Market Forecast by Building Type
- 4.2.4 Global Market Forecast by Equipment
- 4.3 Regional Forecasts
- 4.3.1 North America
- 4.3.2 Europe
- 4.3.3 Asia-Pacific
- 4.3.4 Latin America
- 4.3.5 Middle East & Africa
5. Conclusions and Recommendations
- 5.1 Introduction
- 5.2 Three Big Takeaways
- 5.3 Recommendations
- 5.3.1 Manufacturers
- 5.3.2 Policymakers and Regulators
- 5.3.3 Residential End Users and Property Owners
6. Appendix
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes
List of Tables
- Table 3-1. Total Market: Competitive Structure
- Table 6-1. Overview of Residential HVAC Equipment
List of Figures
- Chart 1-1. Residential HVAC Revenue by Region, World Markets: 2025-2034
- Chart 4-1. Residential HVAC Revenue by Region, World Markets: 2025-2034
- Chart 4-2. Residential HVAC Revenue by Construction Type, World Markets: 2025-2034
- Chart 4-3. Residential HVAC Revenue by Building Type, World Markets: 2025-2034
- Chart 4-4. Residential HVAC Revenue by Equipment Type, World Markets: 2025-2034
- Chart 4-5. Residential HVAC Revenue by Equipment Type, North America: 2025-2034
- Chart 4-6 . Residential HVAC Revenue by Equipment Type, Europe: 2025-2034
- Chart 4-7 . Residential HVAC Revenue by Equipment Type, Asia-Pacific: 2025-2034
- Chart 4-8. Residential HVAC Revenue by Equipment Type, Latin America: 2025-2034
- Chart 4-9 . Residential HVAC Revenue by Equipment Type, Middle East & Africa: 2025-2034
- Figure 3-1 Graphic Depiction of the Residential HVAC Market Value Chain
