Heating, Ventilation, and Air Conditioning (HVAC) Market Report 2026

The heating, ventilation, and air conditioning (HVAC) market size has grown strongly in recent years. It will grow from $310.58 billion in 2025 to $333.55 billion in 2026 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to increasing use of mechanical climate control systems, early adoption of centralized air cooling, rise in commercial hvac deployments, steady residential hvac expansion, growth in industrial ventilation needs.

The heating, ventilation, and air conditioning (HVAC) market size is expected to see strong growth in the next few years. It will grow to $438.64 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to increasing adoption of smart hvac platforms, growing demand for low-emission heating, expansion of IOT-connected air systems, rising focus on energy efficiency regulations, development of predictive climate management solutions. Major trends in the forecast period include increasing deployment of smart hvac controls, rising adoption of energy-efficient hvac units, growth in centralized air quality monitoring, expansion of low-emission heating solutions, increasing shift toward predictive hvac maintenance.

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 companies operating 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., AUX Group.

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 influencing the HVAC market by increasing costs for imported compressors, electronic control modules, refrigerants, and metal components. Commercial and industrial users in regions dependent on global HVAC manufacturing, particularly Asia-Pacific and Europe, face rising equipment and servicing costs. Still, tariffs encourage domestic production of HVAC components and promote innovation in sustainable, energy-efficient systems.

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.

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.Asia-Pacific was the largest region in the HVAC market in 2025. 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.

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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