HVAC System Market is expected to reach US$ 243.86 Billion by 2031

Global HVAC System Market Forecast to 2031: Key Insights

According to our latest study on "Global HVAC System Market – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Implementation, Application, Component, and Geography," the market was valued at US$ 158.33 billion in 2024 and is expected to reach US$ 243.86 billion by 2031. The HVAC system market size is estimated to register a CAGR of 6.46% during 2025–2031. Smart & IoT-enabled HVAC systems are expected to act as a future HVAC system market trend.

While they were necessary for managing temperature, air quality, and humidity, traditional HVAC systems had high energy consumption, frequent maintenance, and a limited level of user control. Through IoT technology, these systems are being changed to allow real-time monitoring, automated adjustments, and data-driven optimization. Today, intelligent HVAC systems are capable of gathering and interpreting environmental data, turning on or off a device according to a given condition, monitoring energy consumption, and notifying users when performance levels surpass a certain value.

HVAC System Market

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HVAC System Market Size, Share & Future Opportunities till 2031

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HVAC System Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Split System, Ductless System and Packaged System), Implementation (New Installation and Retrofit), Application (Residential, Commercial, and Industrial), Component (Thermostat, Air Handling Units, Central AC, Furnace, Heat Pump, Compressor, and Others), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, and South America)

As buildings become more technologically advanced and interconnected, the implementation of smart HVAC controls contributes to the reduction of operational costs and the increase of efficiency. Considering that almost 90% of people spend the majority of their time indoors, where heating and cooling are the main expenses, IoT-based HVAC systems are economically and environmentally beneficial in a very real way. By using IoT to optimize building management systems, energy savings of up to 30% on average can be achieved, thus making this technology attractive to residential and commercial users.

This movement toward intelligent, energy-efficient, and self-regulating climate control solutions is determining the future of the HVAC sector and is responsible for the increasing demand in this field.

Indoor Air Quality (IAQ) Awareness Drives Global HVAC System Market Growth

As the trend of staying indoors continues, be it in homes, offices, schools, healthcare facilities, or commercial buildings, the need for healthy indoor environments that not only provide comfort but also productivity and overall well-being is becoming more pronounced. Measures to reduce indoor pollutants, improve ventilation, and raise the level of air filtration are being targeted by governments, regulatory bodies, and public health organizations. The move to require higher air filtration standards is necessitating the adoption of sophisticated HVAC systems that have the capability to filter, purify, and recirculate indoor air. Mexico, a founding member of the Climate and Clean Air Coalition (CCAC), has acknowledged that the control of short-lived climate pollutants (SLCPs) is a prerequisite for better air quality and lessening of near-term climate impacts. The country's dedication was furthered through the General Law on Climate Change, passed in 2012, which set up a legal framework for dealing with such pollutants. In Canada, the Canadian Committee on Indoor Air Quality and Buildings considers a healthy indoor environment to promote occupant health and comfort through the provision of the right temperature and humidity, good ventilation, and the absence of contaminants such as chemicals, gases, dust, mold, and bacteria, among others. The committee points to proper cleaning, moisture control, and the involvement of building operators and occupants in ensuring that the IAQ level is maintained as the key factors for good indoor air quality.

Global HVAC System Market: Segmental Overview

Based on type, the Global HVAC system market report is divided into split systems, ductless systems, and packaged systems. The split system segment held the largest Global HVAC system market share in 2024. Split systems are the most common type of HVAC systems that are used due to their high energy efficiency, the flexible nature of their installation, and the fact that they are suitable for new buildings as well as retrofit projects. These systems typically include an outdoor unit that is linked to one or more indoor units, thereby enabling the efficient heating and cooling of a space without the need for lengthy ductwork.

Global HVAC System Market Analysis: Competitive Landscape and Key Developments

The global HVAC system market report highlights the factors driving market growth and the key developments of prominent players. Daikin Industries Ltd, Johnson Controls International Plc, Carrier Global Corp, Honeywell International Inc, Mitsubishi Electric Corp, Robert Bosch GmbH, Systemair AB, LG Electronics Inc, Emerson Electric Co, Hitachi Ltd, and Trane Technologies Plc are among the prominent players profiled in the global HVAC system market report. Market players focus on new product launches, expansion, diversification, and acquisition strategies to capitalize on prevailing business opportunities.

• Carrier Global Corporation Announces Investment Plans of US$ 1 billion in the US In May 2025, Carrier Global Corporation, a global leader in intelligent climate and energy solutions, announced plans to invest an additional $1 billion over five years in US manufacturing, innovation, and workforce expansion, incremental to its ongoing commitments to American operations.
• Daikin Applied broke ground for the construction of a new energy-efficient manufacturing facility in Mexico. In June 2024, Alliance Air, a subsidiary of Daikin Applied, a leading global commercial and industrial HVAC manufacturer, broke ground for the construction of a new energy-efficient manufacturing facility in Tijuana, Mexico, to support sustainable data center growth across North America.

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