Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Advanced HVAC Control Systems Market size was USD 13.4 billion in 2024 and is estimated to reach USD 41.1 billion by the end of 2037, expanding at a CAGR of 9.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of advanced HVAC control systems is estimated at USD 14.6 billion.
The sales of advanced HVAC control systems are strongly influenced by the supply chain of components and raw materials. The U.S. Bureau of Labor Statistics (BLS) projects that the producer price index (PPI) for HVAC equipment manufacturing increased by 5.9% in 2023, and this remained prominent in the first quarter of 2025. This was mainly driven by the electronic components, copper wiring, and control sensors’ increasing costs. On the other hand, the consumer price index for household and commercial energy management products grew by 4.5% YoY during Q1’25. The increasing demand for energy-efficient solutions and carbon neutrality trends are propelling the trade of advanced HVAC control systems. According to the Census Bureau Foreign Trade study, the U.S. imported more than USD 3.4 billion worth of HVAC components in 2024.
Advanced HVAC Control Systems Market: Growth Drivers and Challenges
Growth Drivers
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Clean energy demand: The clean energy trend is expected to augment the sales of advanced HVAC control systems in the years ahead. Electrified HVAC systems are gaining traction due to the increasing aim at phasing out fossil-fueled heating. HVAC control systems with intelligent features are widely adopted in developed regions such as North America and Europe. Moreover, the clean energy subsidies and tax benefits are accelerating the sales of advanced HVAC control technologies.
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Smart city infrastructure development: The swift rise in infrastructure development activities is set to propel the sales of advanced HVAC control systems in the coming years. The smart city initiatives are also contributing to the increasing adoption of advanced HVAC control systems. The study by the United Nations reveals that around 67.5% of the global population is projected to reside in urban areas by 2050. This is set to lead to the development of smart buildings and directly boost the revenues of advanced HVAC control system manufacturers.
Technological Innovations in the Advanced HVAC Control Systems Market
The technological advancements are set to double the revenues of advanced HVAC control system manufacturers during the projected period. The infrastructure modernization activities are propelling the demand for advanced HVAC control technologies. The table below reveals the current technological trends and their outcomes.
|
Technology |
Sector |
Adoption (%) / Example |
Company Example |
Impact |
|
AI & Predictive Analytics |
Manufacturing |
52.5% of plants employ AI for HVAC fault detection in 2024 (US DOE) |
Siemens (MindSphere) |
Cut HVAC downtime by 25.4% |
|
IoT & Smart Sensors |
Telecom |
68.2% of Tier-1 telecoms use IoT sensors for climate control in 5G base stations (NTIA, 2024) |
Ericsson |
Enhanced energy usage forecasting accuracy by 32.6% |
|
Cloud-based HVAC Platforms |
Finance |
47.6% of global banks adopted cloud BMS platforms by 2024 (ECB ESG Survey) |
HSBC (via Honeywell Forge) |
Achieved 18.5% annual HVAC energy savings across branches |
AL and ML Integration in the Advanced HVAC Control Systems Market
The integration of AI and ML is poised to boost the productivity and effectiveness of advanced HVAC control platforms. The large-scale enterprises are expected to lead the sales of AI and ML-powered HVAC control systems in the years ahead. The table below underscores the importance and impact of AI and ML-powered advanced HVAC control solutions.
|
Company |
Integration of AI & ML |
Outcome |
|
Johnson Controls |
Employed AI-driven product simulation (via OpenBlue) to enhance R&D efficiency |
Cut time-to-market by 40.4% for commercial HVAC units (2024) |
|
Daikin Industries |
Introduced AI in predictive quality control at manufacturing units in Japan |
Enhanced product quality by 18.4%, lowered defect rate by 11.2% |
|
Carrier Global Corp |
Applied AI for demand forecasting and HVAC load prediction through the Abound platform |
Achieved 16.5% energy efficiency gains across U.S. real estate projects |
Challenges
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High initial capital investment: The high upfront installation costs of advanced HVAC control systems are hampering their sales growth. Many end users in the price-sensitive markets are deterred from adopting innovative energy-saving solutions due to their high costs. The significant maintenance costs also act as a major challenge. The budget concerns are expected to lower the sales of advanced HVAC control systems in undeveloped economies.
- Cybersecurity concerns: The HVAC control systems connected to IoT and cloud platforms are vulnerable to cyberthreats. The increasing incidence of online malicious activities is estimated to limit the use of advanced HVAC control systems to some extent. According to the analysis by the Cybersecurity and Infrastructure Security Agency (CISA), HVAC and building automation systems are widely targeted in cyberattacks. Such statements create resistance to the adoption of HVAC control systems among facility managers and IT departments.
Advanced HVAC Control Systems Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.6% |
|
Base Year Market Size (2024) |
USD 13.4 billion |
|
Forecast Year Market Size (2037) |
USD 41.1 billion |
|
Regional Scope |
|
Advanced HVAC Control Systems Market Segmentation
Deployment (On-Premise, Cloud-Based)
The cloud-based segment is poised to capture 60.1% of the global advanced HVAC control systems market share by 2037. The cost-effectiveness and scalability are prime factors contributing to the increasing sales of cloud-based HVAC control systems. The high need for real-time HVAC data access and centralized monitoring is also propelling the sales of cloud-based systems. Manufacturers are focusing on integrating AI and ML technologies to enhance the capabilities of cloud-based systems. The smart infrastructure trend is expected to double the profits of key advanced HVAC control systems market players in the coming years. The U.S. Department of Energy (DOE) under the Better Buildings Initiative suggests that cloud-based HVAC control offers enhanced energy efficiency and saves up to 20.4% energy. This encourages end users to invest in cloud-based HVAC control systems.
End user (Residential, Commercial Buildings, Industrial Facilities, Data Centers, Healthcare Institutions)
The commercial buildings segment in the advanced HVAC control systems market is projected to account for 39.8% of the global share throughout the forecast period. The strict regulations focused on the reduction of energy consumption and carbon emissions are fueling the use of advanced HVAC control systems in commercial buildings. Moreover, the green initiatives employed by the government are contributing to the increasing deployment of advanced HVAC control technologies in commercial buildings.
Our in-depth analysis of the advanced HVAC control systems market includes the following segments:
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System Type |
|
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Deployment |
|
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End user |
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Customize this ReportAdvanced HVAC Control Systems Industry - Regional Synopsis
North America Market Forecast
The North America advanced HVAC control systems market is estimated to hold 34.5% of the global revenue share through 2037. The high investments in digital and ICT infrastructure expansions are expected to drive innovations in the HVAC control systems. In addition, the clean energy trends and climate commitments are increasing the adoption of advanced HVAC control technologies in commercial and industrial settings. Canada and the U.S. both are projected to offer high-earning opportunities for advanced HVAC control system manufacturers.
The sales in the advanced HVAC control systems market are expected to increase at a high pace in the U.S. The increasing investments in smart energy projects are set to propel the installation of advanced HVAC control systems in the coming years. The Department of Energy (DOE) reveals that in 2024, through its Energy Efficiency & Conservation Block Grant, it allocated more than USD 550.5 million to state-level HVAC modernization projects. Such government fundings are estimated to double the revenues of advanced HVAC control system manufacturers in the years ahead.
The clean energy trends are set to accelerate the sales of advanced HVAC control systems in Canada. The green and smart buildings are gaining traction in the country, which are expected to offer fruitful earning opportunities for key players. The favorable government polices and increasing public spending are set to accelerate the production of advanced HVAC control systems in the country. The strong presence of tech-savvy consumers is fueling the adoption of advanced HVAC control technologies.
APAC Market Statistics
The Asia Pacific advanced HVAC control systems market is expected to increase at a CAGR of 8.7% from 2025 to 2037. The rapid rise in infrastructure modernization and smart city projects is estimated to increase the application of advanced HVAC control systems. The increasing adoption of the circular economy and digital transformation moves is attracting several advanced HVAC control system investors to Asia Pacific. China, Japan, India, and South Korea are set to lead the sales of advanced HVAC control systems in the years ahead.
China is the leading producer of advanced semiconductors and other electronic components. This leadership is expected to drive innovations in the production of HVAC control systems. The strong industrial base is promoting the sales of advanced HVAC control systems in the country. The China Academy of Information and Communications Technology (CAICT) reveals that more than 3.4 million enterprises adopted advanced HVAC controls in 2023. This was mainly possible due to the substantial government R&D grants. The supportive policies and funding initiatives are estimated to double the revenues of advanced HVAC control system producers.
The India advanced HVAC control systems market is expected to register a 9.5% CAGR throughout the study period. The digital infrastructure growth is accelerating the adoption of advanced HVAC control technologies. The increasing investments in the smart city projects are also fueling the demand for advanced HVAC control systems. Rapid urbanization and industrial automation are also increasing the use of advanced HVAC control systems in residential and industrial settings.
Companies Dominating the Advanced HVAC Control Systems Market
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The advanced HVAC control systems market is dominated by the larger firms owing to their leadership in innovations. The small and new companies are focusing on introducing enhanced products to stand out in the crowd. SMEs are also entering into partnership agreements with larger companies to increase their market reach. Industry giants are collaborating with high-tech companies to boost their product portfolios. Here is a list of key players operating in the advanced HVAC control systems market:
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Johnson Controls |
USA |
14.4% |
|
Honeywell International |
USA |
12.9% |
|
Siemens AG |
Germany |
10.6% |
|
Schneider Electric |
France |
9.7% |
|
Trane Technologies |
USA |
8.1% |
|
ABB Ltd |
Switzerland |
xx% |
|
Distech Controls (Acuity Brands) |
Canada |
xx% |
|
Carrier Global |
USA |
xx% |
|
Delta Controls |
Canada |
xx% |
|
Bosch Thermotechnology |
Germany |
xx% |
|
KMC Controls |
USA |
xx% |
|
LG Electronics |
South Korea |
xx% |
|
Schneider Electric Malaysia |
Malaysia |
xx% |
|
Honeywell India |
India |
xx% |
|
Delta Electronics Malaysia |
Malaysia |
xx% |
Below are the areas covered for each company in the advanced HVAC control systems market:
Recent Developments
- In January 2025, Siemens AG introduced Desigo CC Version 5.0, an integrated building management system platform. This solution focuses on enhanced cybersecurity features and AI-powered fault detection.
- In March 2024, Johnson Controls announced the launch of an enhanced version of its OpenBlue AI-driven building management platform. This innovation offers advanced predictive analytics and seamless cloud integration to optimize HVAC energy consumption.
Author Credits: Shweta Patidar
- Report ID: 7725
- Published Date: Jun 09, 2025
- Report Format: PDF, PPT
