Equipment classification insights: the evolution of heating, cooling and ventilation technologies
Heating devices of HVAC system accounted for the largest market share of 51.4% in 2024. Heat pumps, electric heating and hybrid heating systems are accelerating to replace traditional combustion heating as demand for efficient heating technologies grows in the cold regions of North America, Europe and parts of Asia. The green transition plan in Europe and the Inflation Reduction Act (IRA) in the United States will further promote the popularity of heat pumps.
Refrigeration equipment is expected to be the fastest growing market segment in the next few years. Demand for air conditioning is rising in Asia Pacific, the Middle East, and Latin America, driven by rising global temperatures, increasing urban density, and expanding demand for residential and commercial cooling. With the increase in the construction of data centers, hospitals, and high-precision industrial facilities, the demand for precision cooling has also increased. Variable frequency compressors, smart temperature control, low GWP refrigerants and smart grid compatibility are driving the evolution of refrigeration technology.
Ventilation equipment has gradually become the focus of the market, the global emphasis on indoor air quality has promoted the growth in demand for air purifiers, dehumidifiers, air handling units (AHU) and efficient ventilation fans. Ventilation systems are increasingly being integrated into the overall HVAC management platform to enable multi-functional collaboration of air exchange, filtration, heat recovery, and humidity regulation.
Application scenario insight: comprehensive growth in residential, commercial and industrial demand
The residential segment accounted for 41.6% of the market share in 2024, driven by growth in global housing construction, rising disposable incomes in emerging markets, and increased consumer focus on energy conservation and air quality. Split air conditioners, intelligent temperature control systems, and home HVAC products that support zoning control are accelerating in popularity. The home improvement market and smart home construction have further increased the demand for replacement and upgrading of residential HVAC system.
The commercial segment is expected to be the fastest growing segment in the future. Office buildings, hotels, hospitals, retail centers, and educational facilities all require high performance HVAC system to meet air quality regulations, energy efficiency certifications such as LEED, WELL, and ESG metrics. As global enterprises promote carbon emission management and energy efficiency improvement, the demand for upgrading commercial HVAC system will continue to increase.
Industrial applications have extremely high requirements for accurate control of temperature, humidity and air cleanliness, such as pharmaceuticals, food processing, logistics and warehousing, and other industries are increasingly dependent on HVAC system. The advancement of automation and industrial digitalization also promotes the industrial HVAC to be more efficient, smarter and more reliable.
Source: Grand View Research
Channel insight: retail dominance, rapid rise of online channels
The retail channel accounted for 40.5% market share in 2024. Physical stores continue to dominate the residential and light commercial markets by offering face-to-face consultation, installation services and after-sales support. Multi-brand stores, distributor networks and chain electrical channels are still important hubs for HVAC product sales.
Although the online channel share is small, but the growth rate is the fastest. Users are increasingly inclined to learn about product specifications, energy efficiency levels and user reviews through e-commerce platforms or brand official websites. HVAC manufacturers are also promoting online services that connect directly to consumers, such as AR product previews, online customer service and customized solution recommendations, to make online purchasing more convenient. B2B markets are similarly driven by digital procurement processes, facilitating the rapid expansion of online channels.
Regional market insights: global multi-polarization development pattern
The North American market is benefiting from stringent refrigerant regulations, high energy efficiency standards, and the need for retrofitting older buildings. The US is expected to grow at a rapid CAGR of 6.9%, with the Inflation Reduction Act incentives also strengthening the adoption of efficient HVAC system in the public and commercial sectors.
The Asia-Pacific region continues to lead the world with a market share of 46.8%. China is expected to grow at a CAGR of 8.0%, driven by the promotion of green building standards and urbanization expansion. India is expected to grow at a CAGR of 8.2%, with residential and commercial air conditioning demand continuing to increase. Japan, South Korea and Australia have promoted smart and energy-efficient HVAC technologies through stringent energy efficiency regulations.
Source: Grand View Research
The European market is focused on Green transformation, with the EU Green Deal and EPBD building energy efficiency regulations driving the rapid growth of demand for heat pumps, heat recovery ventilation systems and water systems HVAC technology. The United Kingdom and France are both expected to continue expanding at a CAGR of 7.3%.
Demand in Latin America is concentrated in medical and commercial building construction, and Brazil is expected to grow at a CAGR of 6.4%. In the Middle East and Africa, extreme temperatures and large infrastructure projects such as Saudi Vision 2030 drive long-term demand for efficient cooling systems, with Saudi Arabia expected to grow by 7.4%.
Enterprise dynamics and competitive strategies
Important players in the global HVAC system market include Carrier, Daikin, Fujitsu, Haier, Panasonic, Johnson Controls, LG, Lennox, MitsubishiElectric, Samsung, Trane, Midea, Danfoss, Bosch and other companies. Enterprises improve their competitiveness by improving system efficiency, optimizing automatic control and strengthening product reliability. In 2025, Midea Group completed the acquisition of ARBONIA Climate and merged it with Clivet to form MBT Climate to strengthen its presence in Europe. Carrier Ventures has invested in ZutaCore to collaborate on liquid-cooling technology for data centers to improve heat dissipation in high-density computing environments.
Future outlook: the next decade of HVAC systems
Towards 2033, the global HVAC system market will continue to evolve in the direction of energy saving, intelligence, and sustainable innovation.Automatic control, low GWP refrigerants, high efficiency heat pumps, optimized air distribution strategies and renewable energy integration will be key features of the next generation HVAC. As countries around the world invest more in net-zero buildings, green cities and healthy indoor environments, HVAC system will continue to be a core pillar of building performance and energy management.
