Technology advancements and energy efficiency goals are driving the global HVAC market, which is expected to reach $382.7bn by 2030, registering a CAGR of 7.5% from 2025 to 2030, according to Grand View Research.

The rising adoption of energy-efficient and renewable energy products is anticipated to be a significant driving factor for HVAC demand. Demand for eco-friendly systems and advanced technology usage in products including software and automation are key factors contributing to the industry’s success.

The growing use of ACs in homes, as well as offices, has favoured the HVAC industry over the years. To boost this demand, rising incomes and standard of living in several emerging economies have also driven business profitability in recent years.

The growing popularity of ductless HVAC is also gaining traction and will create avenues for market growth over the mid-term. Installing ACs in buildings without ducts is an impossible task and this is where ductless systems can save the day. These compact units can be installed almost anywhere devoid of ducts. Apart from product development, energy-efficient and tech-savvy products are also carving a niche for themselves in the market. For instance, products that work on geothermal technologies or renewable energy sources are helping consumers cut energy costs while helping OEMs meet sustainability targets.

Technology is also making this a lucrative market. Building automation systems are popular among contractors and architects. Therefore, the demand for building automation systems (BAS) is gaining traction. Further, ACs are no longer operated manually but can be controlled remotely with a smartphone, PC or tablet. This functionality and smart feature is also emerging as a popular trend in the market creating revenue streams for manufacturers.

Based on equipment, the heat pump equipment segment led the market with the largest revenue share of 38.5% in 2024. The demand for heat pumps is experiencing a notable surge driven by a growing emphasis on energy efficiency, environmental sustainability and a shift towards renewable heating.

The demand for air purifiers is witnessing a robust increase as concerns about indoor air quality and respiratory health grow worldwide. Driven by factors such as rising pollution levels, allergens and the ongoing awareness of airborne viruses, consumers and businesses are increasingly investing in air purification technologies.

Based on end-use, the residential segment led the market with the largest revenue share of 39.7% in 2024. Increasing multi-family and individual homeowners are creating avenues for the residential HVAC segment.

The Asia Pacific HVAC systems market accounted for the largest revenue share of 46.8% in 2024. Factors such as improving economic conditions, rapid industrialisation and commercialisation are anticipated to impact the market growth positively.

Read the full market research report at www.grandviewresearch.com/industry-analysis/hvac-equipment-industry.