HVAC System Global Market Report 2026

A Heating, Ventilation, and Air Conditioning (HVAC) system is a mechanical system within a building designed to provide thermal comfort for occupants while ensuring indoor air quality.

The primary components of HVAC systems are heating, ventilation, and cooling. Heating utilizes various technologies to regulate air temperature, humidity, and purity within the HVAC system. These systems can be implemented in different contexts, including new construction and retrofit projects, and are applicable in commercial, residential, and industrial settings.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the hvac system market by increasing the cost of imported compressors, sensors, electronic controllers, heat exchangers, and specialty metals. Residential and commercial markets in North America and Europe are most affected due to reliance on imported HVAC components, while Asia-Pacific suppliers face export pricing pressures. These tariffs are increasing installation costs and delaying retrofit projects. However, they are also driving localized manufacturing, alternative sourcing strategies, and innovation in modular and energy-efficient HVAC system designs.

The HVAC system market research report is one of a series of new reports from The Business Research Company that provides HVAC system market statistics, including HVAC system industry global market size, regional shares, competitors with an HVAC system market share, detailed HVAC system market segments, market trends and opportunities, and any further data you may need to thrive in the HVAC system industry. This HVAC system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hvac system market size has grown strongly in recent years. It will grow from $189.81 billion in 2025 to $202.05 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to expansion of commercial construction, residential urbanization, conventional hvac installations, rising cooling demand, building comfort requirements.

The hvac system market size is expected to see strong growth in the next few years. It will grow to $260.58 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to smart city initiatives, net zero building targets, energy efficiency regulations, growth of green buildings, digital building management systems. Major trends in the forecast period include increasing adoption of smart hvac systems, growth of retrofit and replacement projects, focus on indoor air quality enhancement, integration of energy recovery technologies, demand for climate adaptive buildings.

The increase in construction activities within the commercial and residential sectors is projected to drive the growth of the HVAC system market in the future. The construction sector encompasses both residential and non-residential infrastructure, which includes commercial, industrial, and other types of buildings. HVAC systems are essential mechanical systems that provide thermal comfort and maintain indoor air quality, commonly used in a variety of settings, including industrial, commercial, residential, and institutional buildings. For instance, in March 2024, Atradius, a Netherlands-based insurance company specializing in trade credit insurance, reported that global construction output is expected to rise by 2.0% in 2024, following a 3.7% increase in 2023. Advanced economies are projected to grow by 1.8%, while emerging markets are anticipated to see a 2.2% rise in building activity. Furthermore, non-residential output and civil engineering are expected to grow by 2.8% and 4.4%, respectively, this year. In 2025, global construction is forecasted to grow by 1.8%, with residential construction output rebounding by 2.4% due to improving economic conditions and the impact of more lenient monetary policies. Consequently, the surge in construction activities in both commercial and residential sectors is driving the expansion of the HVAC system market.

Major companies in the HVAC system market are intensifying their focus on advanced heating and cooling solutions to stay competitive. The introduction of the dual fuel system is one such innovation that optimizes energy use by utilizing two different fuel sources, such as natural gas and electricity. Johnson Controls-Hitachi Air Conditioning launched the Hitachi Air365 Hybrid dual fuel system in September 2023. This system integrates electric and gas technologies for efficient climate control in residential and commercial settings. The emphasis on advanced solutions demonstrates the commitment of HVAC industry leaders to meet evolving market demands and enhance overall system performance.

In May 2023, Daikin Applied, a prominent US-based HVAC solutions company, successfully acquired Carroll Air Systems for an undisclosed sum. This strategic acquisition is anticipated to facilitate the expansion of Daikin Applied's HVAC product offerings. Aldridge Carroll Air Systems, the acquired company, is based in the US and specializes in providing heating, ventilation, and air-conditioning (HVAC) systems and services tailored for commercial, industrial, and institutional facilities.

Major companies operating in the hvac system market are Daikin Industries Ltd., Johnson Controls International, Carrier Global Corporation, Trane Technologies PLC, LG Electronics, AAON Heating and Cooling Products, Addison HVAC, Allied Commercial, Danfoss AS, Emerson Electric Co., Honeywell International Inc., Mitsubishi Electric Corporation, Nortek Air Management, Samsung Group, Midea Group, Electrolux AB, Toshiba Corporation, York International Corporation, Nortek Global HVAC, Rheem Manufacturing Company, Goodman Manufacturing Company, Lennox International Inc., SPX Corporation, Standex International Corporation, CSW Industrials Inc., EMCOR Group Inc., Ingersoll-Rand plc (Ireland), Watts Water Technologies Inc.

Asia-Pacific was the largest region in the HVAC system market in 2025. The regions covered in the hvac system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the hvac system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The HVAC system market consists of sales of heat pumps, furnaces, unitary heaters, boilers, single splits, variable refrigerant flow (VRF) systems, chillers, room air conditioners, and other types. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

HVAC System Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses hvac system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for hvac system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The hvac system market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product: Heating; Ventilation; Cooling
• 2) By Implementation Type: New Construction; Retrofit
• 3) By Application: Commercial; Residential; Industrial
• Subsegments:
• 1) By Heating: Furnaces; Heat Pumps; Boilers; Radiant Heating Systems; Electric Heaters
• 2) By Ventilation: Exhaust Fans; Air Handling Units (AHUs); Energy Recovery Ventilators (ERVs); Demand-Controlled Ventilation Systems; Ductless Ventilation Systems
• 3) By Cooling: Air Conditioners; Chillers; Cooling Towers; Evaporative Coolers
• Companies Mentioned: Daikin Industries Ltd.; Johnson Controls International; Carrier Global Corporation; Trane Technologies PLC; LG Electronics; AAON Heating and Cooling Products; Addison HVAC; Allied Commercial; Danfoss AS; Emerson Electric Co.; Honeywell International Inc.; Mitsubishi Electric Corporation; Nortek Air Management; Samsung Group; Midea Group; Electrolux AB; Toshiba Corporation; York International Corporation; Nortek Global HVAC; Rheem Manufacturing Company; Goodman Manufacturing Company; Lennox International Inc.; SPX Corporation; Standex International Corporation; CSW Industrials Inc.; EMCOR Group Inc.; Ingersoll-Rand plc (Ireland); Watts Water Technologies Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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