HVAC Equipment Market Size, Share, Competitive Landscape and Trend Analysis Report

The global HVAC (Heating, Ventilation, and Air Conditioning) equipment market was valued at $171.8 billion in 2020 and is projected to reach $290.8 billion by 2030, growing at a CAGR of 5.3% from 2021 to 2030. HVAC systems are essential for providing heating and cooling in residential, commercial, and industrial buildings. They improve indoor air quality by regulating temperature, humidity, and air circulation, and by removing pollutants such as dust, smoke, and bacteria.

The market growth is fueled by rising urbanization, industrialization, and migration, leading to increased demand across various end users. Climate change is also a major factor, driving the need for advanced cooling systems in summer and efficient heating systems in winter. Energy regulations are further pushing the adoption of smart and energy-efficient HVAC systems, transforming building designs with integrated HVAC controls.

However, the COVID-19 pandemic disrupted production and supply chains in the HVAC sector, temporarily halting manufacturing operations worldwide. As global restrictions ease and vaccination efforts progress, companies are expected to resume full-scale operations, recovering the market by early 2022. To remain competitive, manufacturers are focusing on innovation and sustainability.

For example, in June 2021, Johnson Controls launched the Quantech QWC4 Water-Cooled System, which uses variable speed drive technology to cut energy costs and emissions by up to 30%, while reducing refrigerant leaks and environmental impact. Such advancements are driven by rising concerns over air pollution and carbon emissions.

The HVAC market is segmented by system type (central and decentralized), business type (new construction and retrofit), and end user (residential, commercial, and industrial). In 2020, the commercial segment led the market. Geographically, Asia-Pacific dominated the market, while LAMEA is expected to grow significantly during the forecast period.

Key players in the market include Daikin, Johnson Controls, LG Electronics, Mitsubishi Electric Trane, Raytheon Technologies, Emerson Electric, Hitachi, Honeywell, Nortek, and Danfoss. These companies are enhancing their product portfolios to meet evolving consumer demands and environmental standards, shaping the future of the global HVAC equipment industry.