HVAC System Market Size

HVAC System Market size was valued at USD 155.13 billion in 2024 and is expected to cross USD 355.07 billion by the end of 2037, expanding at more than 6.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of HVAC systems is estimated at USD 163.32 billion.

With the rising stringency of carbon restrictions, there will be an increasing demand for energy-efficient buildings. As per the International Energy Agency, in 2022, building energy efficiency investments climbed by almost 14% to exceed USD 250 billion. Energy-efficient HVAC systems are therefore becoming increasingly necessary for both new construction and building retrofits. For instance, buildings that have undergone retrofitting can cut their energy use for heating and cooling by 50-90%. In addition, a well-maintained and energy-efficient HVAC system can significantly cut energy usage, and enable commercial buildings to lower their operating expenses and their carbon impact. Furthermore, it is anticipated that tax breaks and government programs that encourage the installation of energy-saving devices will promote the usage of HVAC systems and will have a favorable effect on HVAC system market expansion.