INDUSTRY REPORT
An innovative focus
According to analyst , Grand View Research , the global HVAC systems market size was estimated at US $ 233.55 billion in 2023 and was projected to grow at a compound annual growth rate ( CAGR ) of 7.4 % from 2024 to 2030 .
“ Market growth is driven by the rising need for cost-effective and energy-efficient space cooling and heating applications in commercial and industrial sectors . Rising demand for the high seasonal coefficient of performance ( SCOP ) heating equipment , which can be efficient in both winter and summer , is expected to fuel product demand . The growing global population is increasing the requirements for affordable housing units and enhanced commercial infrastructure ,” outlined the analyst .
Rapid urbanisation , coupled with increasing demand for energy-efficient products , is expected to drive demand for heat pumps in the residential sector . Favourable government initiatives and tax rebates offered on the installation of energysaving products are also expected to propel product demand .
“ The market is characterised by a high degree of innovation , owing to rapid technological advancements . Moreover , companies are further adopting various organic and inorganic growth strategies ( such as product launches , geographical expansions , mergers & acquisitions and collaborations ) to strengthen their position in the global market ,” added the analyst .
Energy efficiency is a major driver for the HVAC market , influenced by stringent regulations and standards aimed at reducing carbon footprints .
“ Governments worldwide are implementing policies to encourage the use of energy-efficient HVAC systems , such as higher SEER ( Seasonal Energy Efficiency Ratio ) ratings and improved refrigerants . These regulations are pushing manufacturers to innovate and offer more sustainable solutions ,” commented Market Research Intellect .
HVAC in focus
LG won the 2025 AHR Innovation Award , in the ‘ Sustainable Solutions ’ category , for its residential cold climate heat pump .
Climate control .
Bosch heat pump production in Germany .
Smart HVAC equipment upgrades
Building operations and their hardware components are undergoing a wave of digitalisation by implementing smart technologies that enable convenience , comfort control , energy efficiency , and operational cost savings . Pressures to comply with sustainability regulations and demand for energy efficiency encourage building owners and engineers to develop optimised heating , ventilation and air-conditioning ( HVAC ) strategies to reduce operational costs .
According to global technology intelligence firm ABI Research , the current commercial HVAC hardware shipments ’ market is valued at US $ 161 billion and will grow to US $ 354- billion in 2030 , at an advancing CAGR of 11.9 %. This includes packaged systems and rooftop units , conventional systems , Variable Refrigerant Flow Systems ( VRF ) and multi-split system types .
Traditional HVAC systems have a binary function of ‘ On & Off ’. Smart HVAC systems have different modes which condition the air based upon multiple factors such as ambient temperature , occupancy , equipment scheduling and energy consumption .
“ Smart HVAC systems go beyond basic cooling and heating functions by bridging the connected and unconnected through intelligent climate control ( temperature , air quality and humidity tracking ), remote management , proactive , predictive maintenance and energy optimisation . Currently , over 75 % of the HVAC systems are hardwired . As awareness grows over the forecast period by 2030 , adoption of wireless connected Smart HVAC systems will reach over 55 %,” explained Rithika Thomas , Senior Analyst for Sustainable Technologies , ABI Research .
Building codes and energy utilisation regulations globally stress the need for efficient use of HVAC equipment , low-impact / sustainable refrigerant and optimal set points to reduce energy costs . Energy Performance of Buildings Regulations ( EPBD ); F-Gas Regulations ; the Health and Safety at Work Act 1974 ; the Control of Legionella Bacteria Regulations 2014 ; and Indoor Air Quality ( IAQ ) Regulations are a few edicts shaping the HVAC landscape with a focus on refrigerant type and use , maintenance , environmental impact and a healthy workplace .
Heating : This refers to systems and equipment used to generate warmth inside buildings . Common heating systems include furnaces , boilers and heat pumps . They help to maintain a comfortable temperature during cold weather .
Ventilation : Ventilation is about ensuring the flow of fresh air into indoor spaces and removing stale air . This is crucial for maintaining indoor air quality , controlling humidity and preventing the build-up of pollutants . It can be achieved naturally through windows and vents or mechanically by using fans and ventilation systems .
Air conditioning : This component involves cooling and dehumidifying the air to make indoor environments comfortable during hot weather . Air conditioners and heat pumps are common devices used for this purpose . They work by removing heat from the indoor air and releasing it outside .
Image : Shutterstock . com .
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