Equipment for HVAC - Global Strategic Business Report

The global market for Equipment for HVAC was estimated at US$222.6 Billion in 2024 and is projected to reach US$304.8 Billion by 2030, growing at a CAGR of 5.4% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Equipment for HVAC market.

Global Equipment For HVAC Market - Key Trends & Drivers Summarized

How Are Technological Upgrades Reshaping Core HVAC Equipment Categories?

The heating, ventilation, and air conditioning (HVAC) sector is undergoing a phase of rapid technological transformation, driven by the dual pressures of energy efficiency mandates and user demand for intelligent climate control. Traditional HVAC equipment including chillers, boilers, air handlers, heat pumps, and rooftop units has evolved significantly with the incorporation of advanced control logic, variable speed drives (VSDs), and high-efficiency compressors. In particular, inverter-based systems are gaining market share in both residential and commercial applications due to their ability to modulate capacity in real time, thereby reducing energy consumption and enhancing occupant comfort. Scroll and screw compressors equipped with smart sensors are now standard in large-capacity chillers used in industrial facilities and data centers.

The market is also witnessing accelerated adoption of hybrid and dual-fuel HVAC units, which allow buildings to switch between electricity and gas depending on seasonal efficiency and tariff structures. On the heating side, condensing boilers and hydronic heating systems are being widely deployed in urban multifamily dwellings and institutional buildings due to their superior thermal efficiency. Advanced filtration systems, UV-C lighting, and bipolar ionization components are increasingly integrated into air handlers to meet post-pandemic indoor air quality (IAQ) standards. The convergence of HVAC hardware with building management systems (BMS) is further transforming the value proposition, enabling predictive maintenance, automated diagnostics, and real-time optimization of airflow, temperature, and humidity levels.

Where Are End-User Trends Creating Demand for Specialized HVAC Equipment?

Different segments within the HVAC end-user base are influencing equipment design and specification strategies in distinct ways. In the commercial real estate sector, the shift toward energy-efficient green buildings and the implementation of LEED and WELL certifications are creating strong demand for low-global warming potential (GWP) refrigerant-based systems, high SEER-rated air conditioning units, and heat recovery ventilation (HRV) systems. Educational institutions and healthcare facilities are emphasizing centralized air purification solutions and demand-controlled ventilation systems to maintain consistent air exchange while minimizing energy wastage. In these sectors, HVAC equipment is expected to deliver not only thermal comfort but also microbial decontamination and air sterilization.

In the industrial sector, HVAC equipment must accommodate unique operating conditions such as wide temperature ranges, high humidity, particulate-heavy airflows, and volatile compounds. Precision air conditioning (PAC) systems are being installed in electronics manufacturing cleanrooms, pharmaceutical production zones, and data centers to maintain strict environmental control. Cold storage and logistics companies are adopting multi-zone refrigeration systems with separate monitoring and control protocols for each compartment. Meanwhile, in the residential segment, smart thermostats and compact, ductless mini-split systems are gaining favor in both new constructions and retrofits, particularly in regions experiencing urban densification and space limitations. Smart home integration has become a major purchasing criterion, prompting OEMs to offer Wi-Fi-enabled units that sync with voice assistants and smartphone apps.

How Are Regulatory Pressures and Refrigerant Phaseouts Influencing Equipment Design?

One of the most decisive forces shaping the HVAC equipment market is the evolving regulatory landscape surrounding refrigerants and emissions. In line with the Kigali Amendment to the Montreal Protocol, many countries are enacting phasedowns of hydrofluorocarbon (HFC)-based refrigerants like R-410A, prompting a transition toward low-GWP alternatives such as R-32, R-454B, and natural refrigerants like CO2, ammonia, and hydrocarbons. This shift is driving significant reengineering of compressors, condensers, evaporators, and expansion devices to ensure system compatibility and safety under new pressure and flammability parameters. Manufacturers are investing in UL-certified equipment designs and retraining programs for HVAC technicians to safely install and service these next-generation systems.

In addition to refrigerant regulations, building energy codes and performance standards are raising the bar for HVAC efficiency benchmarks. The U.S. Department of Energy (DOE), European Union Ecodesign directives, and Japan's Top Runner Program have all introduced stringent requirements that are accelerating R&D in variable refrigerant flow (VRF) systems, thermal energy storage systems, and advanced economizers. HVAC equipment is also being redesigned with lifecycle sustainability in mind, using modular components that enable easy servicing, recycling, and part replacement. These regulations are influencing not just product development, but also procurement behaviors, with commercial clients increasingly demanding Environmental Product Declarations (EPDs) and lifecycle assessments before selecting equipment for large-scale installations.

What Forces Are Driving Growth in the Global HVAC Equipment Market?

The growth in the equipment for HVAC market is driven by several factors that reflect both systemic infrastructure trends and micro-level consumer expectations. One of the most critical drivers is the escalating demand for HVAC systems in emerging markets, where rapid urbanization, population growth, and rising disposable incomes are fueling construction across residential, commercial, and industrial domains. In countries across Southeast Asia, the Middle East, and Latin America, rising temperature extremes linked to climate change are catalyzing the adoption of air conditioning systems, particularly inverter-based split units and rooftop packaged units. Governments in these regions are also promoting energy efficiency through subsidies and rebates, spurring market penetration among first-time buyers.

Another powerful growth enabler is the ongoing wave of HVAC system retrofitting across mature economies. As aging infrastructure in the U.S., Western Europe, and parts of East Asia requires modernization, building owners are opting for equipment upgrades to meet tighter emissions standards, improve reliability, and lower operational costs. This includes replacing outdated chillers and boilers with high-efficiency models, integrating advanced economizers in commercial air handling systems, and adopting VRF systems in office towers and institutional buildings. Additionally, the digitization of the HVAC industry through IoT and AI is opening new service revenue streams for OEMs and contractors, who now offer remote diagnostics, performance benchmarking, and predictive maintenance as part of bundled service agreements.

Simultaneously, public health awareness is contributing to heightened demand for IAQ-centric HVAC equipment in both residential and commercial sectors. The COVID-19 pandemic accelerated the integration of air purification technologies into mainstream HVAC equipment, a trend that remains strong as occupants continue to prioritize air cleanliness in homes, offices, gyms, and schools. Investment in infrastructure resilience and climate adaptation programs such as storm-proof HVAC installations and modular systems for disaster relief shelters also adds to the growing application diversity. Together, these drivers are ensuring a robust expansion path for the HVAC equipment market, with innovation, compliance, and customization serving as the competitive pillars for manufacturers and integrators worldwide.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Pressure Switches segment, which is expected to reach US$83.2 Billion by 2030 with a CAGR of a 7.3%. The Pressure Transducers segment is also set to grow at 6.1% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $60.6 Billion in 2024, and China, forecasted to grow at an impressive 8.8% CAGR to reach $62.1 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Equipment for HVAC Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Equipment for HVAC Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Equipment for HVAC Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as AAON, Inc., Aermec S.p.A., Bosch Thermotechnik GmbH, Carrier Global Corporation, and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 43 companies featured in this Equipment for HVAC market report include:

• AAON, Inc.
• Aermec S.p.A.
• Bosch Thermotechnik GmbH
• Carrier Global Corporation
• Carel Industries S.p.A.
• Daikin Industries, Ltd.
• Danfoss A/S
• Emerson Electric Co.
• Ferguson Enterprises
• FläktGroup
• Gree Electric Appliances Inc.
• Haier Group Corporation
• Hitachi Air Conditioning
• Honeywell International Inc.
• Johnson Controls International
• Lennox International Inc.
• LG Electronics Inc.
• Midea Group Co., Ltd.
• Mitsubishi Electric Corporation
• Nortek Global HVAC LLC
• Panasonic Corporation
• Rheem Manufacturing Company
• Samsung Electronics Co., Ltd.
• Systemair AB
• Trane Technologies plc

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.