(MENAFN- GlobeNewsWire - Nasdaq) The global HVAC market was valued at USD 215 billion in 2025 and is projected to reach USD 292.20 billion by 2031, growing at a 5.25% CAGR. Air conditioning led with a 45% share, while heat pumps captured around 40% of heating revenue. APAC dominated with over 44% market share, and commercial HVAC is forecast to grow fastest at a 6.13% CAGR. Key growth drivers include energy-efficient VRF systems, modular HVAC solutions, building electrification, urban construction and renovation. Leading companies include Daikin, Carrier, Bosch, Mitsubishi Electric, Samsung and Trane Technologies.Dublin, Sept. 11, 2026 (GLOBE NEWSWIRE) -- "Global HVAC Market Research Report 2026-2031" has been added to ResearchAndMarkets.com's offering.
Global HVAC Market to Reach USD 292.20 Billion by 2031, Driven by Energy-Efficient Technologies and Building Electrification
The global HVAC market was valued at USD 215 billion in 2025 and is projected to reach USD 292.20 billion by 2031, expanding at a compound annual growth rate (CAGR) of 5.25%. Market growth is being supported by commercial construction, infrastructure modernization, building renovation programs, decarbonization policies, and rising investment in energy-efficient heating, ventilation, and air conditioning systems.
Global HVAC Market Highlights
Air conditioning represented approximately 45% of global HVAC market revenue in 2025. Centralized air conditioning systems accounted for the largest share of the air conditioning segment. Heat pumps generated around 40% of heating equipment revenue. Air handling units held more than 38% of the ventilation equipment market. The commercial end-user segment is forecast to record the fastest CAGR of 6.13% through 2031. Distributors and wholesalers led HVAC sales channels in 2025. Asia-Pacific accounted for more than 44% of global market revenue, making it the leading regional market.
Energy-Efficient HVAC Technologies Reshape Market Demand
Modular and decentralized HVAC systems are gaining momentum as governments advance building electrification and emissions-reduction programs. The European Union's Energy Performance of Buildings Directive, incentives under the U.S. Inflation Reduction Act, and electrification initiatives in China and Japan are accelerating the transition toward distributed, electrically powered heating and cooling infrastructure.
Manufacturers are responding with modular, low-emission product platforms designed for commercial, industrial, and district-level applications. In 2025, Daikin introduced its EWYK-QZ modular air-to-water heat pump for commercial and industrial facilities. The system uses low-global-warming-potential R-290 refrigerant and supports the industry's shift toward lower-carbon HVAC solutions.
Variable refrigerant flow systems are also experiencing strong adoption as commercial and institutional buildings prioritize zoned climate control, energy efficiency, and reduced distribution losses. Demand is reinforced by the EU F-Gas Regulation, ASHRAE 90.1 standards in the United States, China's Green Building Evaluation Standard, and broader investment in low-carbon building infrastructure.
Construction and Renovation Programs Support HVAC Market Growth
Commercial construction, airport development, healthcare investment, data center expansion, and mixed-use urban projects are creating sustained demand for high-capacity HVAC equipment. Major infrastructure programs across Asia-Pacific and Europe are increasing requirements for centralized cooling, ventilation, filtration, and building automation technologies.
Renovation activity is another important market driver. Aging building stock is generating replacement and retrofit demand, while Saudi Arabia's Vision 2030 and energy-efficiency initiatives are supporting the installation of smart HVAC systems. In Europe, the Renovation Wave Strategy seeks to increase building renovation rates through 2030, strengthening long-term opportunities for heat pumps, air handling units, controls, and high-efficiency air conditioning equipment.
Market Segmentation Insights
Air conditioning was the largest equipment category in 2025, accounting for around 45% of revenue. Growth reflects sustained cooling demand across residential and commercial buildings, particularly in warm-climate and rapidly urbanizing markets. Centralized air conditioning led the category, supported by offices, hospitals, hotels, airports, shopping centers, and large mixed-use developments.
Heat pumps accounted for approximately 40% of heating equipment revenue. Adoption is increasing across Europe and North America as governments promote building electrification, fossil-fuel heating replacement, and higher energy-efficiency standards. Key policy frameworks include the U.S. Inflation Reduction Act, the European Green Deal, China's Dual Carbon Goals, and national electrification programs.
Air handling units generated more than 38% of ventilation equipment revenue in 2025. Demand is rising across hospitals, airports, offices, industrial facilities, and other large buildings. Integration with variable-speed fans, connected sensors, automated airflow controls, and building management systems is strengthening energy performance and regulatory compliance.
The commercial end-user segment is expected to achieve the highest CAGR of 6.13% during the forecast period. Offices, retail properties, hotels, healthcare facilities, educational institutions, airports, and data centers are investing in advanced HVAC systems to meet indoor air quality, thermal performance, and energy-efficiency requirements.
Distributors and wholesalers remained the leading sales channel in 2025, supported by broad regional networks, contractor relationships, spare-parts availability, and aftermarket services. Major manufacturers, including Daikin, Carrier, Trane Technologies, Johnson Controls, and Mitsubishi Electric, continue to strengthen distributor and installer networks worldwide.
Asia-Pacific Leads the Global HVAC Market
Asia-Pacific held more than 44% of the global HVAC market in 2025. China was the region's largest contributor, while India was among its fastest-growing markets. Housing initiatives, urban development, airport construction, data centers, high-rise offices, and commercial infrastructure are sustaining regional demand.
North America ranked as the second-largest market, led by the United States. Residential replacement demand, new construction, ENERGY STAR programs, and Inflation Reduction Act incentives are supporting the adoption of high-performance HVAC systems.
Europe is benefiting from public investment, building refurbishment, and net-zero policies. Germany remains a major contributor, while Spain is positioned for strong growth amid planned airport and infrastructure upgrades. Latin America and the Middle East and Africa also present opportunities tied to urbanization, cooling demand, hospitality development, and energy-efficiency investment.
HVAC Industry Consolidation and Competitive Landscape
Merger and acquisition activity continues to reshape the competitive environment. Bosch Group completed its approximately USD 8 billion acquisition of Johnson Controls' residential and light commercial HVAC business on July 31, 2025. Midea Group and Frigicoll also announced joint ventures in Spain and France, establishing Midea Frigicoll HVAC Spain and Midea HVAC France.
Samsung Electronics further expanded its commercial cooling position through the approximately USD 1.7 billion acquisition of European HVAC solutions provider FlaktGroup from Triton. The transaction strengthens Samsung's exposure to data center and commercial cooling applications.
The global HVAC market remains fragmented, with competition centered on energy efficiency, refrigerant transition, connected controls, product innovation, acquisitions, and distribution partnerships. Leading companies include Lennox International, Midea Group, Gree Electric Appliances, Carrier Global, Bosch, Daikin, LG Electronics, Mitsubishi Electric, Panasonic, Samsung, Trane Technologies, and Vaillant Group.
The market analysis covers air conditioning, heating, and ventilation equipment; residential, commercial, and industrial end users; major sales channels; and markets across Asia-Pacific, North America, Europe, Latin America, and the Middle East and Africa.
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