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Heating, Ventilation, and Cooling (HVAC) System Market Size, Share & COVID-19 Impact Analysis, By Type (Single Split Systems, Variable Refrigerant Flow (VRF) Systems, Chillers and Others), By Application (Residential, Commercial and Industrial) and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI102664



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The global heating, ventilation, and cooling (HVAC) system market size was USD 136.15 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with this system witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 4.6% in 2020 compared to the average year-on-year growth during 2017-2019. The market is expected to grow from USD 142.57 billion in 2021 to USD 202.14 billion in 2028 at a CAGR of 5.1% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Heating, ventilation, and cooling systems are utilized to transfer air between indoor and outdoor areas. They filter the indoor air to keep the environment healthy and maintain humidity at an optimal comfort level. Increasing demand for hybrid HVAC systems is an emerging trend. The growing demand for automatic adjustment of temperature is complimenting the growth of hybrid systems. Additionally, the surge in construction activities in commercial and residential sectors and demand from food & beverage and telecom industries is anticipated to contribute significantly to the aforesaid system market growth. However, the lack of qualified professionals is expected to impact the market growth in the near future.

Adverse COVID-19 Impact Resulted in Halted Manufacturing Processes

The COVID-19 pandemic has had an unprecedented impact on the global economy since the first case was reported in December 2019. In the first quarter of 2020, the global heating, ventilation, and cooling system market growth has been adversely affected by the COVID-19 pandemic. This is attributable to the lockdown of several component manufacturing facilities across countries such as Ireland, Germany, the U.S., China, and others. The lockdown has not only halted the manufacturing process but also reduced the customer demand for these equipment.

However, the demand for air filters across residential usage, purified air supply across commercial buildings, and minimization of suffocated air over industrial areas is expected to boost the demand for HVAC systems in the forthcoming years. Additionally, governmental bodies such as the Federation of European Heating, Ventilation and Air Conditioning Association, ASHRAE, and others are employing mitigation tactics that can further reduce the possibility of this system becoming contaminated with the COVID-19 virus. This, in turn, is expected to complement the rising demand for these systems amid the current crisis.


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Rising Preference for Hybrid HVAC Systems to Propel Market Growth

The surge in demand for hybrid systems is expected to lead to the growing demand for heating, ventilation, & cooling systems. The benefits of hybrid systems such as an automatic adjustment in temperature due to change in the environment are gaining popularity. For instance, in October 2019, Carrier introduced Carrier Hybrid Heat that utilizes a gas furnace and electric heat pump as a heating source to react to changing environments. Also, the high energy efficiency of these systems results in cost reductions, thus offering high returns on initial investments. Besides, the reduced environmental impact and increased system lifespan result in the rising demand for hybrid systems. This is expected to contribute to the global HVAC system market growth.


Technological Advancements Systems to Propel the Market

The rising demand for technologically advanced heating, ventilation, and cooling systems is expected to drive market growth. The growth in green-labeled products due to increased environmental awareness has given rise to thermally driven air-conditioners. Manufacturers such as Lennox International Inc., Daikin Industries, Ltd., and others are offering these systems. These air-conditioners utilize both natural gas as well as solar energy, thus ensuring energy efficiency. The additional benefits offered are low maintenance, independent control of pipes for heating and cooling purposes, and automatic adjustments to current requirements, along with improved lifetime cost and efficiency.

Smart thermostats and sensors, which can be controlled remotely through apps, are gaining popularity among the customers, especially in commercial buildings, to gain energy- and cost-efficiency. This is expected to contribute to the global heating, ventilation, and cooling (HVAC) system market growth in the forthcoming years.


Shortage of Skilled Labor to Impact the Market Growth

The lack of qualified technicians for HVAC systems is expected to impact the market growth over the past few years. According to the Bureau of Labor Statistics, the U.S. has a shortage of more than 70,000 technicians. Besides, the companies are likely to seek around 115,000 new heating, ventilation, cooling and refrigeration qualified technicians in the next four years. Therefore, a shortage of skilled technicians is expected to hinder the growth of the market in the forthcoming years.


By Type Analysis

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Increasing Intelligent Variable Refrigerant Flow (VRF) Systems Evolution is Propelling the Market

Based on type, the market is segmented into single split, variable refrigerant flow (VRF) systems, chillers, and others.

Single-split systems are most commonly used owing to their several benefits such as easy installation, quick & silent operation, cost-effectiveness, easy maintenance, add-on heating capacity, and others.

The VRF systems sub-segment is expected to showcase the highest CAGR as these systems offer two or more controls in a single device.

By Application Analysis

Increasing Demand from the Commercial Sector to Support Growth

Based on application, the market is divided into residential, commercial, and industrial.

The increasing construction activities in the residential and commercial sectors are fueling the growth of the market. The surging demand from various sectors such as institutional buildings, data and telecom centers, hospitals, restaurants, laboratories, and office buildings in developing economies results in the commercial segment's growth.

The industrial application is expected to witness steady growth over the forecast period owing to stable HVAC system market across industrial applications.


Asia Pacific Heating, Ventilation, and Cooling (HVAC) System Market Size, 2020 (USD Billion)

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Geographically, the market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America, further grouped into countries.

Asia Pacific is expected to hold the highest position in the global market. This is owing to the increasing spending power of the customers. Thus, manufacturers focus on developing heating, ventilation, & cooling systems to cater to regional requirements.

India to Experience Highest CAGR as leading Manufacturers Focus on Facility Expansion

India is emerging as one of the leading countries across the Asia Pacific. The governmental bodies are offering foreign direct investment (FDI) schemes that benefit the manufacturers. Owing to this, manufacturers such as DAIKIN INDUSTRIES, Ltd., Johnson Controls, and others emphasize manufacturing and development facilities for these HVAC type of systems. For instance, in October 2019, Johnson Controls–Hitachi Air Conditioning launched a new state-of-art development center by investing USD 22.5 million in Gujarat, India. The focus is on developing commercially packaged air conditioners and residential air conditioners for India, Middle East, Southeast Asia, and European markets.

The increasing need for commercial heating, ventilation, and cooling systems across European countries is expected to drive the market. Moreover, stringent government norms to stabilize cost-effective units are boosting the market growth.

The market in North America is expected to showcase significant growth in the forthcoming years. This is attributed to the increasing demand from the residential sector.

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Several manufacturers are strategically planning to boost sales in Mexico, which is expected to positively contribute to the growth of the market in Latin America.

The increasing demand for VRF systems is likely to result in the growth of the market in the Middle East and Africa.


Prominent Players Focus on Strengthening High-End Product Sales and Distribution Network

Prominent key players including Johnson Controls, DAIKIN INDUSTRIES, Ltd., LG Electronics, and Carrier are planning to upgrade their heating, ventilation, and cooling (HVAC) system portfolio. This, in turn, is helping distribution channels to encourage increasing sales. For example, Daikin focuses on developing dealers across Thailand and Vietnam to promote cost-effective inverter air conditioners.

In April 2020, LG Electronics expanded its unique allergen-reducing home appliance portfolio, which is certified asthma & allergy friendly by the experts at the Asthma and Allergy Foundation of America (AAFA) for advanced sanitization and cleaning facilities in the U.S.

Johnson Controls Emphasizing on Acquisition Activities to Strengthen its Product Portfolio

Johnson Controls is emphasizing acquiring companies to expand its product portfolio and market reach. For instance, in October 2018, Johnson Controls acquired Lux Products Corporation (Headquartered in Pennsylvania, U.S.) to strengthen its smart home thermostats product portfolio. Moreover, the company has adopted inorganic strategies to continue its product expansion across the globe.


  • Johnson Controls (Cork, Ireland)

  • DAIKIN INDUSTRIES, Ltd. (Osaka, Japan)

  • Mitsubishi Electric Corporation (Tokyo, Japan)

  • Carrier (Florida, U.S.)


  • Schneider Electric (Paris, France)

  • Lennox International Inc. (Texas, U.S.)

  • Haier Inc. (Qingdao, China)

  • LG Electronics (Seoul, South Korea)

  • SAMSUNG (Seoul, South Korea)

  • Panasonic Corporation (Osaka, Japan)

  • AB Electrolux (Stockholm, Sweden)

  • Nortek Global HVAC LLC (Missouri, U.S.)

  • Emerson Electric Co. (Missouri, U.S.)

  • Danfoss A/S (Syddanmark, Denmark)

  • FERROLI S.p.A. C.F. epVA. (San Bonifacio, Italy)

  • Vaillant Group (North Rhine-Westphalia, Germany)

  • Armstrong Fluid Technology (Ontario, Canada)

  • Robert Bosch LLC (Baden-Württemberg, Germany)

  • Evapco, Inc. (Maryland, U.S.)


  • In May 2021, Johnson controls introduced ‘R-454B’, a primary low-GWP refrigerant in company’s commercial unitary and ducted residential products and air-cooled screw chillers across North America. With this, the company is re-addressing the climate change for sustainable planet.

  • In May 2021, Carrier announced the availability of ‘AquaForce 30XV, air-cooled screw chiller-variable-speed’ with evaporative pre-cooling that is increasing the overall HVAC efficiency and operates with air-cooled HVAC unit.

  • In October 2020, Austin Independent School District (ISD), U.S. teamed up with Trane to evaluate and improve the indoor air quality in schools. The ‘Trane Indoor Air Quality Assessment’ is a data-driven and fact-based analysis to evaluate the building’s indoor air quality affectivity, adheres to present-day industry and CDC recommendations for operating HVAC systems across facilities.

  • In April 2020, Mitsubishi Electric Corporation’s European subsidiary named ‘Mitsubishi Electric Europe B.V.’ acquired AQS PRODUKTER AB to strengthen selling of commercial cooling and heating products in Sweden and total solution capabilities of Mitsubishi Electric Europe B.V.


An Infographic Representation of Heating-Ventilation-and-Cooling-HVAC-System-Market

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The global heating, ventilation, and cooling system market report provides detailed insights into the market. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market, current trends, and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide the financial competency of the market. The information gathered in this report has been taken from several primary and secondary sources.

Report Scope and Segmentation



Study Period

  2017 – 2028

Base Year


Forecast Period

   2021 – 2028

Historical Period

   2017 – 2019


   Value (USD Billion)


   Type, Application and Region

By Type

  • Single Splits

  • Variable Refrigerant Flow (VRF) Systems

  • Chillers

  • Others (Multi-split systems etc.)

By Application

  • Commercial

  • Residential

  • Industrial

By Region

  • North America (By Type, Application, and Country)

    • United States (By Type)

    • Canada (By Type)

  • Europe (By Type, Application, and Country)

    • UK (By Type)

    • France (By Type)

    • Germany (By Type)

    • Italy (By Type)

    • Spain (By Type)

    • Rest of Europe

  • Asia Pacific (By Type, Application, and Country)

    • China (By Type)

    • Japan (By Type)

    • India (By Type)

    • Rest of Asia Pacific

  • The Middle East and Africa (By Type, Application, and Country)

    • GCC (By Type)

    • South Africa (By Type)

    • Rest of the Middle East and Africa

  • Latin America (By Type, Application and Country)

    • Brazil (By Type)

    • Mexico (By Type)

    • Rest of Latin America

Frequently Asked Questions

Fortune Business Insights says that the market value stood at USD 136.15 billion in 2020

In 2028, the market is expected to reach USD 202.14 billion.

The market is estimated to grow at a CAGR of 5.1% during the forecast period (2021-2028).

The single split systems segment is expected to lead the market.

Technological advancements in the systems is driving the global market.

DAIKIN INDUSTRIES, Ltd., Carrier, and Johnson Controls are the leading companies in the market.

Asia-Pacific is the fastest-growing region in this market.

The increasing adoption of the hybrid HVAC system is one of the emerging trends in the market.

Commercial application is leading this market.

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Heating-Ventilation-and-Cooling-HVAC-System-Market Size, Share and Global Industry Trend Forecast till 2026
  • May, 2021
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  • 2017-2019
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