INDUSTRY REPORT
“ Energy efficiency regulations and government incentives for smart and sustainable HVAC systems are propelling demand.”
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INDUSTRY REPORT
HEATING AND COOLING
Trends, innovations and opportunities, as well as challenges, in global HVAC( heating, ventilation and air conditioning) markets come under the spotlight.
HVAC stands for heating, ventilation and air conditioning, sometimes known quite simply as‘ climate control’. The systems use advanced technologies to regulate temperature, humidity and indoor air quality in residential, commercial and industrial buildings as well as enclosed vehicles. The global HVAC systems industry is moderately to highly fragmented, characterised by the presence of wellestablished multinational corporations, regional OEMs and specialised system integrators.
Modern HVAC designs focus on energy efficiency and sustainability, especially with the rising demand for green building solutions. In modern construction, MEP( Mechanical, Electrical and Plumbing) engineers integrate HVAC systems with energy-modelling techniques to optimise system performance and reduce operational costs.
HVAC systems are installed in two main ways: new construction and retrofitting or replacement. New construction refers to installing HVAC systems in newly built structures( such as homes, offices or commercial buildings). Retrofitting and replacement involves upgrading or replacing existing HVAC systems in older buildings to improve efficiency and performance or to meet updated regulations or standards.
A growing market
According to analyst Grand View Research, the global HVAC systems market size was estimated at US $ 241.52 billion in 2024 and is projected to reach US $ 445.73 billion by 2033, growing at a CAGR of 7 % from 2025 to 2033.
“ Asia Pacific dominated the HVAC systems market with the largest revenue share of 46.8 % in 2024. However, the HVAC systems market in the U. S. is projected to grow at the fastest CAGR of 6.9 % over the forecast period. The heating equipment segment is expected to grow at a considerable CAGR of 7.4 % from 2025 to 2033 in terms of revenue. By application, the commercial segment is expected to grow at a significant
26 | ismr. net | ISMR November 2025