The South & Central America commercial HVAC market is projected to grow significantly, reaching an estimated US$ 3,494.1 million by 2031, up from US$ 2,442.0 million in 2024. This growth represents a compound annual growth rate (CAGR) of 5.4% from 2025 to 2031. The expansion of this market is largely driven by various government initiatives aimed at enhancing the construction infrastructure across the region, particularly in countries like Brazil and Colombia, which host numerous international HVAC manufacturers.
The increasing demand for energy efficiency and customer flexibility is a key factor contributing to the growth of the commercial HVAC market in South & Central America. Countries such as Brazil, Argentina, and Colombia are witnessing a surge in demand for HVAC systems as they seek to implement digital technologies and smart policies that can lead to immediate energy savings and long-term structural improvements. These initiatives are crucial for maintaining low carbon intensity in the region while supporting consumers and electricity systems.
In Brazil, the government has introduced a new project in São Paulo under the Investment Partnership Program (PPI), which facilitates alternative collaborations with the private sector. This initiative is expected to significantly boost the demand for commercial HVAC systems. Additionally, a partnership announced in April 2021 between Dannenge International and Trox do Brazil, two major HVAC manufacturers, is indicative of the growing market potential in Brazil. The luxury hotel sector is also expanding, with a record number of projects and rooms being developed. For instance, in February 2025, the luxury segment reported 129 projects and 26,077 rooms, while upper-upscale hotels recorded 115 projects and 22,509 rooms. The upscale category added 136 projects and 19,220 rooms, collectively representing 56% of all projects and 54% of total rooms in the development pipeline.
The market segmentation of the South & Central America commercial HVAC market reveals several key areas of focus. By equipment type, the market is divided into cooling, heating, and ventilation equipment, with cooling equipment holding the largest market share in 2024. Within cooling equipment, unitary air conditioners are the most significant segment, while boilers dominate the heating equipment category. In terms of ventilation, air handling units (AHUs) are the leading segment, and controlled mechanical ventilation (CMV) is the most prevalent type of ventilation system.
The implementation of HVAC systems is categorized into new installations and retrofits, with new installations accounting for the largest share in 2024. The applications of these systems span various sectors, including office buildings, hotels and restaurants, the transportation industry, hospitals and clinics, and others, with office buildings leading the market.
The demand for data centers is also a significant driver of the commercial HVAC market. The increasing need for computing power and data storage, alongside the rise of data-intensive technologies such as artificial intelligence and cloud computing, is propelling the global demand for data centers. Governments and companies are actively investing in the construction of these facilities. For example, in May 2025, Amazon Web Services (AWS) announced a US$ 4 billion investment to establish a new AWS Region in Chile, which will enhance the country's data infrastructure and create substantial opportunities for the commercial HVAC market. Efficient HVAC systems are essential for data centers to manage heat and ensure reliable operation, thus increasing the demand for these systems.
Geographically, the South & Central America commercial HVAC market is segmented into Brazil, Argentina, and the rest of the region, with Brazil holding the largest market share in 2024.
Key players in the South & Central America commercial HVAC market include Schneider Electric SE, Honeywell International Inc., Mitsubishi Electric Corp., LG Electronics Inc., Daikin Industries Ltd., Carrier Global Corp., Danfoss AS, Lennox International Inc., Trane Technologies Plc, Samsung Electronics Co. Ltd., Johnson Controls International Plc, and AAON Inc. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative solutions to consumers.
The increasing demand for energy efficiency and customer flexibility is a key factor contributing to the growth of the commercial HVAC market in South & Central America. Countries such as Brazil, Argentina, and Colombia are witnessing a surge in demand for HVAC systems as they seek to implement digital technologies and smart policies that can lead to immediate energy savings and long-term structural improvements. These initiatives are crucial for maintaining low carbon intensity in the region while supporting consumers and electricity systems.
In Brazil, the government has introduced a new project in São Paulo under the Investment Partnership Program (PPI), which facilitates alternative collaborations with the private sector. This initiative is expected to significantly boost the demand for commercial HVAC systems. Additionally, a partnership announced in April 2021 between Dannenge International and Trox do Brazil, two major HVAC manufacturers, is indicative of the growing market potential in Brazil. The luxury hotel sector is also expanding, with a record number of projects and rooms being developed. For instance, in February 2025, the luxury segment reported 129 projects and 26,077 rooms, while upper-upscale hotels recorded 115 projects and 22,509 rooms. The upscale category added 136 projects and 19,220 rooms, collectively representing 56% of all projects and 54% of total rooms in the development pipeline.
The market segmentation of the South & Central America commercial HVAC market reveals several key areas of focus. By equipment type, the market is divided into cooling, heating, and ventilation equipment, with cooling equipment holding the largest market share in 2024. Within cooling equipment, unitary air conditioners are the most significant segment, while boilers dominate the heating equipment category. In terms of ventilation, air handling units (AHUs) are the leading segment, and controlled mechanical ventilation (CMV) is the most prevalent type of ventilation system.
The implementation of HVAC systems is categorized into new installations and retrofits, with new installations accounting for the largest share in 2024. The applications of these systems span various sectors, including office buildings, hotels and restaurants, the transportation industry, hospitals and clinics, and others, with office buildings leading the market.
The demand for data centers is also a significant driver of the commercial HVAC market. The increasing need for computing power and data storage, alongside the rise of data-intensive technologies such as artificial intelligence and cloud computing, is propelling the global demand for data centers. Governments and companies are actively investing in the construction of these facilities. For example, in May 2025, Amazon Web Services (AWS) announced a US$ 4 billion investment to establish a new AWS Region in Chile, which will enhance the country's data infrastructure and create substantial opportunities for the commercial HVAC market. Efficient HVAC systems are essential for data centers to manage heat and ensure reliable operation, thus increasing the demand for these systems.
Geographically, the South & Central America commercial HVAC market is segmented into Brazil, Argentina, and the rest of the region, with Brazil holding the largest market share in 2024.
Key players in the South & Central America commercial HVAC market include Schneider Electric SE, Honeywell International Inc., Mitsubishi Electric Corp., LG Electronics Inc., Daikin Industries Ltd., Carrier Global Corp., Danfoss AS, Lennox International Inc., Trane Technologies Plc, Samsung Electronics Co. Ltd., Johnson Controls International Plc, and AAON Inc. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative solutions to consumers.
Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. Commercial HVAC Market Landscape
5. South & Central America Commercial HVAC Market - Key Market Dynamics
6. Commercial HVAC Market - South & Central America Market Analysis
7. South & Central America Commercial HVAC Market Revenue Analysis - by Equipment Type
8. South & Central America Commercial HVAC Market Revenue Analysis - by Cooling Equipment Type
9. South & Central America Commercial HVAC Market Revenue Analysis - by Heating Equipment Type
10. South & Central America Commercial HVAC Market Revenue Analysis - by Ventilation Equipment Type
11. South & Central America Commercial HVAC Market Revenue Analysis - by Ventilation Systems Type
12. South & Central America Commercial HVAC Market Revenue Analysis - by Implementation
13. South & Central America Commercial HVAC Market Revenue Analysis - by Application
14. South & Central America Commercial HVAC Market - Country Analysis
15 Competitive Landscape
16 Industry Landscape
18. Appendix
LIST OF TABLES
LIST OF FIGURES
Companies
The List of Companies - South & Central America Commercial HVAC MarketSchneider Electric SE
Honeywell International Inc
Mitsubishi Electric Corp
LG Electronics Inc
Daikin Industries Ltd
Carrier Global Corp
Danfoss AS
Lennox International Inc
Trane Technologies Plc
Samsung Electronics Co Ltd
Johnson Controls International Plc
AAON Inc
