Global HVAC System Market 2026-2035

Description

List of Tables

HVAC System Market Size, Share & Trends Analysis Report by Type (Heating, Air Conditioning, Ventilation, and Other Types), By Equipment Type (Unitary Equipment, Chillers, Heat Pumps, and Ductless Systems), By Applications (Commercial, Residential, Automotive, and Other), Forecast Period (2026-2035)

Industry Overview

HVAC system market was valued at $244.2 billion in 2025 and is projected to reach $479.3 billion by 2035, growing at a CAGR of 6.5% during the forecast period (2026-2035). The global HVAC system market is witnessing significant expansion driven by increasing demand for energy-efficient climate control solutions across commercial and residential sectors. Rising urbanization and rapid infrastructure development are fueling the adoption of advanced heating, ventilation, and air conditioning systems. Technological advancements, including smart HVAC solutions and IoT-enabled devices, are enhancing system performance and user convenience. Growing awareness of indoor air quality and regulatory emphasis on environmental standards are further encouraging market growth. Additionally, the rising need for temperature-sensitive storage in industries such as pharmaceuticals and food processing contributes to steady market demand.

Market Dynamics

Growing Adoption of Energy-Efficient HVAC Systems

The global HVAC system market is witnessing a significant shift toward energy-efficient solutions, driven by increasing environmental regulations and rising energy costs. Advanced HVAC technologies, including variable refrigerant flow (VRF) systems and smart thermostats, are being increasingly adopted across commercial and residential sectors. These systems not only reduce energy consumption but also enhance operational efficiency, contributing to long-term cost savings. Manufacturers are focusing on developing HVAC units with improved SEER ratings and low GWP refrigerants to meet sustainability goals. The trend is further supported by government incentives promoting green building certifications. As a result, energy-efficient HVAC solutions are becoming a key differentiator for market players.

Integration of Smart and Connected HVAC Technologies

The incorporation of IoT and AI-driven technologies in HVAC systems is transforming the market landscape. Smart HVAC systems enable remote monitoring, predictive maintenance, and real-time optimization of indoor climate conditions. This integration enhances user convenience while improving system performance and reducing operational costs. Additionally, data-driven insights from connected systems allow building managers to make informed decisions regarding energy management. The trend is particularly strong in commercial and large-scale residential projects, where automation and connectivity offer measurable benefits. Consequently, smart and connected HVAC solutions are driving innovation and competitive differentiation within the market.

Market Segmentation

Based on the type, the market is segmented into heating, air conditioning, ventilation, and other types.
Based on the equipment type, the market is segmented into unitary equipment, chillers, heat pumps, and ductless systems.
Based on the applications, the market is segmented into commercial, residential, automotive, and other.

Air Conditioning Segment to Lead the Market with the Largest Share

Air conditioning remains one of the strongest contributors to the global HVAC system market's expansion. The growing dependence on cooling solutions in residential, commercial, and industrial buildings has steadily raised installation and replacement activity. Rising temperatures and extended warm seasons in many parts of the world have also pushed demand for efficient cooling systems. Businesses are increasingly investing in upgraded units to reduce energy use and maintain consistent comfort levels indoors. Manufacturers are responding with advanced designs that offer better performance and improved refrigerants. These combined factors continue to reinforce the dominance of the air-conditioning segment in the overall market.

Commercial: A Key Segment in Market Growth

The commercial sector plays a central role in driving growth within the global HVAC system market. New developments such as office towers, retail complexes, hospitals, and institutional buildings require sophisticated heating, cooling, and ventilation systems. Existing commercial properties are also undergoing system upgrades to meet modern efficiency standards and operational needs. Large facilities rely heavily on HVAC performance to maintain workforce comfort and regulate indoor environments effectively. This has increased the adoption of high-capacity, automated systems across the segment. As a result, rising commercial activity continues to fuel consistent market expansion.

Regional Outlook

The global HVAC system market is further divided by geography, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Growing Modernization And Stricter Environmental Compliance in Europe

Europe's HVAC system market is advancing steadily as the region focuses on modernization and stricter environmental compliance. Retrofitting older buildings with efficient heating and ventilation systems has become a priority in many countries. Northern Europe's colder climate continues to sustain consistent demand for reliable heating solutions throughout the year. Commercial establishments are also upgrading their ventilation systems to meet new indoor air quality regulations. Green building initiatives across the region are encouraging wider adoption of energy-saving HVAC technologies. Together, these developments are supporting the long-term growth trajectory of the European HVAC market.

Asia-Pacific Region Dominates the Market with Major Share

The Asia-Pacific HVAC system market is experiencing strong momentum as urbanization accelerates and infrastructure projects expand. Residential housing growth across major economies has created sustained demand for cooling and heating solutions. Commercial and industrial facilities in the region are also adopting advanced systems to improve operational efficiency and indoor comfort. Higher temperatures and humidity levels in several countries have made modern cooling technologies essential for everyday living. Governments are promoting energy-efficient equipment, which has further boosted system upgrades and replacements. These combined factors position Asia-Pacific as one of the fastest-growing HVAC markets globally.

Market Players Outlook

The major companies operating in the global HVAC system market include Carrier Global Corp., Daikin Industries, Ltd., Johnson Controls International plc, Mitsubishi Electric Corp., Trane Technologies plc, among others. Market players are leveraging partnerships, collaborations, mergers and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

In August 2025, Johnson Controls International plc, a global leader for smart, safe, healthy, and sustainable buildings, announced it had completed the sale of its Residential and Light Commercial (R&LC) HVAC business in an all-cash transaction to the Bosch Group. As previously announced, the total transaction is valued at $8.1 billion, and the company's portion of the consideration is approximately $6.7 billion. Net cash proceeds to Johnson Controls were approximately $5.0 billion after tax and transaction-related expenses.
In January 2025, Panasonic Corp. announced that its Heating & Ventilation A/C Company (HVAC Company) would release the OASYS Residential Central Air Conditioning System in the US market. Considered the first of its kind in the US, this central air conditioning system consists of a Mini Split AC, ERV (Energy Recovery Ventilator), and transfer fans using DC motor-driven ventilation fans.

The Report Covers:

Market value data analysis of 2024 and forecast to 2035.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in the global HVAC system market. Based on the availability of data, information related to new products and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying 'who-stands-where' in the market.

Product Code: OMR2023734

1. Report Summary

Current Industry Analysis and Growth Potential Outlook
Global HVAC System Market Sales Analysis - Type | Equipment Type | Application | ($ Million)
HVAC System Market Sales Performance of Top Countries
1.1. Research Methodology
Primary Research Approach
Secondary Research Approach
1.2. Market Snapshot

2. Market Overview and Insights

2.1. Scope of the Study
2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key HVAC System Market Trends
- 2.2.2. Market Recommendations
2.3. Porter's Five Forces Analysis for the HVAC System Market
- 2.3.1. Competitive Rivalry
- 2.3.2. Threat of New Entrants
- 2.3.3. Bargaining Power of Suppliers
- 2.3.4. Bargaining Power of Buyers
- 2.3.5. Threat of Substitutes

3. Market Determinants

3.1. Market Drivers
- 3.1.1. Drivers For Global HVAC System Market: Impact Analysis
3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For Global HVAC System Market: Impact Analysis
3.3. Market Opportunities

4. Competitive Landscape

4.1. Competitive Dashboard - HVAC System Market Revenue and Share by Manufacturers
HVAC System Product Comparison Analysis
Top Market Player Ranking Matrix
4.2. Key Company Analysis
- 4.2.1. Carrier Global Corp.
  - 4.2.1.1. Overview
  - 4.2.1.2. Product Portfolio
  - 4.2.1.3. Financial Analysis
  - 4.2.1.4. SWOT Analysis
  - 4.2.1.5. Business Strategy
- 4.2.2. Daikin Industries, Ltd.
  - 4.2.2.1. Overview
  - 4.2.2.2. Product Portfolio
  - 4.2.2.3. Financial Analysis
  - 4.2.2.4. SWOT Analysis
  - 4.2.2.5. Business Strategy
- 4.2.3. Johnson Controls International plc
  - 4.2.3.1. Overview
  - 4.2.3.2. Product Portfolio
  - 4.2.3.3. Financial Analysis
  - 4.2.3.4. SWOT Analysis
  - 4.2.3.5. Business Strategy
- 4.2.4. Mitsubishi Electric Corp.
  - 4.2.4.1. Overview
  - 4.2.4.2. Product Portfolio
  - 4.2.4.3. Financial Analysis
  - 4.2.4.4. SWOT Analysis
  - 4.2.4.5. Business Strategy
- 4.2.5. Trane Technologies plc
  - 4.2.5.1. Overview
  - 4.2.5.2. Product Portfolio
  - 4.2.5.3. Financial Analysis
  - 4.2.5.4. SWOT Analysis
  - 4.2.5.5. Business Strategy
4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration

5. Global HVAC System Market Sales Analysis by Type ($ Million)

5.1. Heating
5.2. Air Conditioning
5.3. Ventilation
5.4. Other Types

6. Global HVAC System Market Sales Analysis by Equipment Type ($ Million)

6.1. Unitary Equipment (Site-Assembled)
6.2. Chillers
6.3. Heat Pumps
6.4. Ductless Systems
6.5. Other

7. Global HVAC System Market Sales Analysis by Application ($ Million)

7.1. Commercial
7.2. Residential
7.3. Automotive
7.4. Other

8. Regional Analysis

8.1. North American HVAC System Market Sales Analysis - Type | Equipment Type | Application | Country ($ Million)
Macroeconomic Factors for North America
- 8.1.1. United States
- 8.1.2. Canada
8.2. European HVAC System Market Sales Analysis - Type | Equipment Type | Application | Country ($ Million)
Macroeconomic Factors for Europe
- 8.2.1. UK
- 8.2.2. Germany
- 8.2.3. Italy
- 8.2.4. Spain
- 8.2.5. France
- 8.2.6. Russia
- 8.2.7. Rest of Europe
8.3. Asia-Pacific HVAC System Market Sales Analysis - Type | Equipment Type | Application | Country ($ Million)
Macroeconomic Factors for Asia-Pacific
- 8.3.1. China
- 8.3.2. Japan
- 8.3.3. South Korea
- 8.3.4. India
- 8.3.5. Australia & New Zealand
- 8.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And Other)
- 8.3.7. Rest of Asia-Pacific
8.4. Rest of the World HVAC System Market Sales Analysis - Type | Equipment Type | Application | Country ($ Million)
Macroeconomic Factors for Rest of the World
- 8.4.1. Latin America
- 8.4.2. Middle East and Africa

9. Company Profiles

9.1. Bosch Thermotechnology GmbH
- 9.1.1. Quick Facts
- 9.1.2. Company Overview
- 9.1.3. Product Portfolio
- 9.1.4. Business Strategies
9.2. Carrier Global Corp.
- 9.2.1. Quick Facts
- 9.2.2. Company Overview
- 9.2.3. Product Portfolio
- 9.2.4. Business Strategies
9.3. Daikin Industries, Ltd.
- 9.3.1. Quick Facts
- 9.3.2. Company Overview
- 9.3.3. Product Portfolio
- 9.3.4. Business Strategies
9.4. Fujitsu General Ltd.
- 9.4.1. Quick Facts
- 9.4.2. Company Overview
- 9.4.3. Product Portfolio
- 9.4.4. Business Strategies
9.5. Gree Electric Appliances Inc. of Zhuhai
- 9.5.1. Quick Facts
- 9.5.2. Company Overview
- 9.5.3. Product Portfolio
- 9.5.4. Business Strategies
9.6. Haier Smart Home Co., Ltd.
- 9.6.1. Quick Facts
- 9.6.2. Company Overview
- 9.6.3. Product Portfolio
- 9.6.4. Business Strategies
9.7. Hitachi Air Conditioning Systems Co., Ltd.
- 9.7.1. Quick Facts
- 9.7.2. Company Overview
- 9.7.3. Product Portfolio
- 9.7.4. Business Strategies
9.8. Ingersoll Rand Inc.
- 9.8.1. Quick Facts
- 9.8.2. Company Overview
- 9.8.3. Product Portfolio
- 9.8.4. Business Strategies
9.9. Johnson Controls International plc
- 9.9.1. Quick Facts
- 9.9.2. Company Overview
- 9.9.3. Product Portfolio
- 9.9.4. Business Strategies
9.10. Lennox International Inc.
- 9.10.1. Quick Facts
- 9.10.2. Company Overview
- 9.10.3. Product Portfolio
- 9.10.4. Business Strategies
9.11. LG Electronics Inc.
- 9.11.1. Quick Facts
- 9.11.2. Company Overview
- 9.11.3. Product Portfolio
- 9.11.4. Business Strategies
9.12. Midea Group Co., Ltd.
- 9.12.1. Quick Facts
- 9.12.2. Company Overview
- 9.12.3. Product Portfolio
- 9.12.4. Business Strategies
9.13. Mitsubishi Electric Corp.
- 9.13.1. Quick Facts
- 9.13.2. Company Overview
- 9.13.3. Product Portfolio
- 9.13.4. Business Strategies
9.14. Nortek Air Solutions, LLC
- 9.14.1. Quick Facts
- 9.14.2. Company Overview
- 9.14.3. Product Portfolio
- 9.14.4. Business Strategies
9.15. Panasonic Corp.
- 9.15.1. Quick Facts
- 9.15.2. Company Overview
- 9.15.3. Product Portfolio
- 9.15.4. Business Strategies
9.16. Rheem Manufacturing Company
- 9.16.1. Quick Facts
- 9.16.2. Company Overview
- 9.16.3. Product Portfolio
- 9.16.4. Business Strategies
9.17. Samsung Electronics Co., Ltd.
- 9.17.1. Quick Facts
- 9.17.2. Company Overview
- 9.17.3. Product Portfolio
- 9.17.4. Business Strategies
9.18. Toshiba Carrier Corp.
- 9.18.1. Quick Facts
- 9.18.2. Company Overview
- 9.18.3. Product Portfolio
- 9.18.4. Business Strategies
9.19. Trane Technologies plc
- 9.19.1. Quick Facts
- 9.19.2. Company Overview
- 9.19.3. Product Portfolio
- 9.19.4. Business Strategies
9.20. York International Corp.
- 9.20.1. Quick Facts
- 9.20.2. Company Overview
- 9.20.3. Product Portfolio
- 9.20.4. Business Strategies