Heating, Ventilation, And Air Conditioning (HVAC) Global Market Report 2025

The heating, ventilation, and air conditioning (HVAC) market size has grown strongly in recent years. It will grow from $288.73 billion in 2024 to $310.58 billion in 2025 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to rising disposable income and living standards, increasing awareness of indoor air quality, government regulations promoting energy efficiency, expansion of the hospitality sector, and growth in healthcare infrastructure requiring HVAC systems.

The heating, ventilation, and air conditioning (HVAC) market size is expected to see strong growth in the next few years. It will grow to $410.13 billion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to rising global temperatures and climate change, increasing demand for energy-efficient HVAC systems, rapid urbanization and infrastructure development, growing construction of residential buildings, and expansion of commercial and industrial spaces. Major trends during this period include technological advancements in HVAC equipment, adoption of smart HVAC systems with IoT integration, growing use of AI-powered HVAC solutions, demand for noise-reduction HVAC technologies, and development of energy recovery ventilators and heat recovery ventilators.

Rising global temperatures are expected to drive growth in the HVAC market in the coming years. Temperature measures the average kinetic energy of particles in a substance, reflecting how hot or cold it is. The increase in temperature is primarily caused by rising concentrations of greenhouse gases in the atmosphere, which trap solar heat and prevent it from escaping, leading to a gradual warming of the Earth’s surface. This rise in temperatures is boosting demand for HVAC systems, as higher heat levels increase the need for effective cooling solutions to maintain indoor comfort and safety, especially during extended periods of extreme weather. For example, in January 2024, a report by the National Oceanic and Atmospheric Administration (NOAA), a US government agency, noted that in July, August, and September 2023, global temperatures exceeded the long-term average by more than 1.0°C (1.8°F), marking the first time any month surpassed this threshold in NOAA’s records. Therefore, rising global temperatures are expected to accelerate the growth of the HVAC market.

Key players in the HVAC market are focusing on developing advanced AI-powered HVAC solutions to enable predictive maintenance and reduce operational downtime. AI-powered HVAC systems leverage artificial intelligence to optimize heating, ventilation, and air conditioning operations, enhancing energy efficiency, comfort, and maintenance predictability. For instance, in September 2023, KOVA, a US-based HVAC manufacturer, launched the KOVA Comfort Intelligent HVAC system. It uses behavioral, environmental, and unit-specific occupancy data to personalize and optimize comfort and energy use within living spaces. Its compact design and minimal footprint make it suitable for multifamily, student housing, hospitality, and residential applications. The system combines advanced machine learning with an AI-driven processor to continuously improve performance and energy efficiency over time. Unlike traditional HVAC systems, KOVA Comfort reduces downtime and energy waste through the integration of AI technology with a variable-speed compressor and fan, resulting in enhanced productivity.

In May 2025, Samsung Electronics, a South Korean appliance and consumer electronics company, acquired FläktGroup for $1.7 billion. This acquisition strengthens Samsung’s position in the HVAC market and supports its strategy for significant business growth. FläktGroup is a Germany-based manufacturer specializing in HVAC systems.

Major players in the heating, ventilation, and air conditioning (hvac) market are Samsung Electronics Co. Ltd., LG Electronics Inc., Panasonic Holdings Corporation, Midea Group Co. Ltd., Mitsubishi Electric Corporation, Honeywell International Inc., Haier Group Corporation, Daikin Industries Ltd., Gree Electric Appliances Inc., Fujitsu General Limited, Johnson Controls International Plc, Whirlpool Corporation, Carrier Global Corporation, Trane Technologies Plc, Emerson Electric Co., Danfoss AS, Lennox International Inc., Chigo Air Conditioning Corporation, Hisense Company Ltd., Vaillant Group, LAARS Heating Systems Co., Viessmann Group, Bosch Thermotechnik GmbH, Air Innovations Inc., and AUX Group.

Asia-Pacific was the largest region in the HVAC market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in heating, ventilation, and air conditioning (HVAC) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the heating, ventilation, and air conditioning (HVAC) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Heating, ventilation, and air conditioning (HVAC) refers to the integrated systems and technologies that manage the indoor environment by regulating temperature, humidity, and air quality. These systems involve a combination of mechanical and electrical processes aimed at maintaining thermal comfort and ensuring suitable indoor air conditions. HVAC systems are essential for providing thermal comfort and maintaining air quality in residential, commercial, and industrial buildings.

The primary offerings in HVAC include equipment and services. HVAC equipment consists of the systems and devices used to control heating, ventilation, and air conditioning, ensuring optimal indoor climate and air quality across various settings. These systems can be distributed through centralized or decentralized configurations and serve functions such as cooling, heating, ventilation, filtration, humidification and dehumidification, and air purification. HVAC systems are utilized across residential, commercial, and industrial applications.

The heating, ventilation, and air conditioning (HVAC) market research report is one of a series of new reports that provides heating, ventilation, and air conditioning (HVAC) market statistics, including heating, ventilation, and air conditioning (HVAC) industry global market size, regional shares, competitors with a heating, ventilation, and air conditioning (HVAC) market share, detailed heating, ventilation, and air conditioning (HVAC) market segments, market trends and opportunities, and any further data you may need to thrive in the heating, ventilation, and air conditioning (HVAC) industry. This heating, ventilation, and air conditioning (HVAC) 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 heating, ventilation, and air conditioning (HVAC) market consists of revenues earned by entities by providing services such as installation services, system maintenance, repair services, and ductwork services. The market value includes the value of related goods sold by the service provider or included within the service offering. The HVAC market also includes sales of furnaces, thermostats, ventilation systems, refrigerants and HVAC chemicals. 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.

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