Overview of the global HVAC system market
The global HVAC system market is in a stage of rapid expansion. With the acceleration of global construction activities, the increasing level of urbanization, and the improvement of people's requirements for indoor thermal comfort and air quality, HVAC system have become an indispensable basic technology for modern buildings.
According to Grand View Research, the global HVAC system market size reached USD 241.52 billion in 2024 and is expected to rise to USD 445.73 billion by 2033, maintaining a 7.0% CAGR during 2025 to 2033. This growth is coming from residential, commercial, and industrial sectors, where the need for efficient cooling, heating, ventilation, and air management continues to rise, making HVAC system an important solution to address climate change and improve the quality of living and the efficiency of business operations.
Source: Grand View Research
Industry structure and main characteristics
In terms of industry structure, the global HVAC system market belongs to a moderately to highly fragmented competitive landscape. The market is comprised of large multinational enterprises, regional oems, and integrators specializing in customized system design. Multinational enterprises such as Daikin, Johnson Controls, Trane Technologies and Carrier have strong influence in the fields of large-scale commercial projects, medical institutions and government infrastructure.
At the same time, regional brands play a key role in the residential and small and medium-sized commercial market. The competition among enterprises is mainly focused on energy saving performance, system automation capability, intelligent control technology, and the life cycle cost of the system. Frequency conversion compressors, high-efficiency heat pumps, low-GWP refrigerants, demand-controlled ventilation systems and AI-driven building automation are becoming the core directions of technological innovation in the industry.
Energy efficiency regulations and green build standards are becoming "mandatory" in major markets as global emphasis on net-zero targets continues to increase. Standards such as ASHRAE 90.1, EN378, LEED and BREEAM are influencing the design, implementation and update direction of HVAC system in buildings.
Source: Grand View Research
With the Kigali Amendment driving the low carbon transition of refrigerants, manufacturers are accelerating the deployment of low GWP refrigerant technologies to meet future market demand and regulatory requirements.
Key market trends and growth drivers
In 2024, Asia Pacific held the top position with a 46.8% market share, reflecting a combination of factors such as the rapid pace of urban construction, large population base, and strong residential demand in the region.
Source: Grand View Research
The US market is projected to be the fastest growing market, with a CAGR of 6.9% from 2025 to 2033. According to the equipment category, heating equipment will continue to grow at a compound growth rate of 7.4%. Among the application categories, business applications are expected to outperform at a CAGR of 7.6% over the next few years. In terms of channels, online channels showed the fastest growth rate of 7.8%.
Energy price volatility, increasing climate change and rising concerns about air quality are driving consumers to invest more in air filtration, ventilation technology and IAQ systems.
Government incentives in North America and Europe, including subsidies, tax rebates, and green heating programs, are also supporting HVAC system. In addition, IoT monitoring, AI intelligent optimization and renewable energy compatible technologies are changing the system upgrade logic of HVAC system, making them more intelligent, predictive and sustainable.
Industry trends and supply chain status
The supply chain of HVAC system relies on several key components, including efficient compressors, electronic expansion valves, advanced filtration materials, and low GWP refrigerants. Due to the small number of upstream suppliers, some raw materials are highly concentrated, which is prone to the risk of price fluctuations and affects the cost of equipment manufacturing.
Meanwhile, the tight supply of chips and the fluctuation of raw material costs may also affect the production cycle and profit margins. Despite these challenges, growth in healthcare facility construction, expanded demand for residential retrofitting, and accelerated data center construction are providing continued and substantial growth momentum to the industry. Industry leaders are investing heavily in modular system development, IoT connectivity, and remote diagnostics to improve equipment lifecycle management and operational reliability.
In the second part of this series, we will take a deeper look at:
1. How heating, cooling and ventilation segments are evolving
2. Why residential demand leads but commercial growth accelerates faster
3. How distribution channels are transforming with digital adoption
4. A detailed regional breakdown across North America, Europe, Asia Pacific, Latin America and the Middle East & Africa
5. Key company strategies and the latest industry developments shaping the future of HVAC Systems
