HVAC Compressor Market Size, Share, and Industry Analysis By Type (Reciprocating, Centrifugal, Screw Rotary, Scroll, and Semi-hermetic), By Refrigerant (R-22, R-410A, R407C, R404A, R134A, R290, R744, and Others), By Application (Residential, Commercial, Healthcare, Industrial, Transportation, Chemicals and Petrochemicals, and Others), and Regional Forecast, 2026-2034

The global hvac compressor market size was valued at USD 22.8 billion in 2025. The market is projected to grow from USD 23.88 billion in 2026 to USD 34.64 billion by 2034, exhibiting a CAGR of 4.76% during the forecast period.

The global HVAC compressors market is expected to grow in the coming years, driven by factors such as energy efficiency, environmental concerns, and the need for more efficient cooling systems. There is an increasing demand for industrial cooling systems in data centers and cold storage facilities. Moreover, governments across the globe are establishing standards to improve the operation of HVAC systems.

• In January 2025, ByteDance announced the development of an AI data center to be located in Shanxi province, China. Such facilities employ HVAC systems at a large scale, which is expected to propel the demand for HVAC compressors in the near future.

Hence, the increase in industrialization in regions such as Asia Pacific and North America will boost the demand for HVAC Compressors over the forecast period.

HVAC Compressor Market Driver

Expansion of Cold Chain to Boost Market Growth

The demand for HVAC compressors in cold chains is increasing due to the growth of the industrial sector, particularly data centers and cold storage facilities. The cold chain process requires consistent temperature monitoring, which is especially important for pharmaceuticals. Moreover, the shift to inverter compressors is improving the energy efficiency of cooling systems.

• In January 2024, AP Moller–Maersk announced the development of a temperature-controlled facility covering an area of 260,000 sq. ft. in Gujrat, India, to store frozen processed food items.

Furthermore, the market is expected to grow at a significant rate, with the increasing investment and expansion of cold chain facilities across the globe.

HVAC Compressor Market Restraint

High Cost of Advanced Technology to Restraint the Market Growth

Air conditioning units consume a significant amount of electricity, which can increase energy costs. The cost of advanced air conditioning technologies, such as oil-free air conditioners, can be a barrier for small businesses, as the initial cost of installing advanced HVAC systems can be a barrier for businesses with limited budgets. Moreover, strict environmental regulations can limit the use of air compressors in certain industries, such as oil and gas.

HVAC Compressor Market Opportunity

Surging HVAC Systems Demand in Commercial and Industrial Applications

The HVAC compressor market has many opportunities for growth, including energy efficiency, green building initiatives, and the growing demand for HVAC systems in residential, commercial, and industrial sectors. There is a growing demand for energy-efficient compressors in air conditioning and heat pumps. Moreover, construction activities in emerging economies are increasing, which will also contribute to increasing demand for these compressors.

• In January 2025, the Government of Dubai announced the construction of a 17-storey commercial crypto tower with a space of 150,000 square feet, which is expected to be completed by 2027. Such developments are expected to drive the demand for HVAC compressors.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in the HVAC Compressor Market
• Key Industry Trends
• Regulatory Landscape for the Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis by Type

Based on type, the market is segmented into reciprocating, centrifugal, screw, rotary, scroll, and semi-hermetic.

The rotary segment is expected to dominate the type segment due to increased demand for energy-efficient products and the expansion of application areas. The market is also expected to benefit from government incentives and policies that encourage the use of energy-efficient systems.

• In December 2024, Daikin announced a joint venture with Rechi Precision to increase rotary compressor production in India.

Furthermore, HVAC compressors are used in air conditioning and refrigeration systems. The type of compressor used depends on the application, such as the size of the system, the desired temperature, and the noise level. Hence, the growth of end-user industries will create lucrative opportunities for market players in the coming years.

Analysis by Refrigerant

Based on refrigerant, the market is segmented into R-22, R-410A, R407C, R404A, R134A, R290, R744, and others.

The demand for R-410A refrigerant in HVAC compressors is expected to increase as the demand for air conditioning and refrigeration systems grows. This is due to the refrigerant's energy efficiency, environmental friendliness, and superior thermodynamic properties. The global shift toward stricter regulations on refrigerants with high global warming potential (GWP) has increased the demand for R-410A.

The demand for R-22 refrigerant in HVAC compressors is decreasing as the production and import of R-22 have been phased out. However, some demand still exists for R-22 to top off leaking air conditioners.

Analysis by Application

Based on application, the market is segmented into residential, commercial, healthcare, industrial, transportation, chemicals & petrochemicals, and others.

The industrial segment is expected to account for the largest share. Industrial HVAC compressors are vital components of large-scale heating, ventilation, and air conditioning (HVAC) systems. They compress refrigerant gas to cool and dehumidify air in industrial and commercial buildings. Increasing industrialization in the key regions is expected to foster market growth over the forecast period.

• In June 2024, Daikin announced a target to sell 2 million units in 2025 with the expansion of its manufacturing capacity catering to residential and industrial applications.

Moreover, HVAC compressors for residential use come in different types, including scroll, reciprocating, and rotary compressors. The type of compressor used depends on the application, the refrigerant used, and the desired performance. The residential segment is expected to increase at a significant rate owing to increasing demand for residential HVAC systems.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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The demand for HVAC compressors in North America is growing, driven by a number of factors, including energy efficiency, government regulations, and climate change. There is a growing demand for energy-efficient compressors in air conditioning and heat pumps. Furthermore, the fast expansion of the residential sector is increasing the demand for air conditioning compressors.

• In January 2025, Dominium announced plans to develop three affordable housing projects in Arizona, which will have 800 new rental units. Such development will propel the demand for compressors in the region.

The Europe market is expected to witness significant growth. The demand for HVAC compressors in Europe is expected to grow due to the increasing need for energy-efficient solutions and more reliable space heating and cooling. Moreover, the demand for air compressors is expected to grow due to the increasing demand for energy-efficient compressors, rising investment in the semiconductor industry, and the growing use of automation and robotics. Market players are adopting various initiatives to cater to increasing demand from end-use industries in the region.

• In March 2024, Copeland announced an investment of USD 23.9 million for the expansion of its compressor manufacturing facility located in Cookstown, Ireland.

Asia Pacific is expected to dominate the HVAC Compressor market. The demand for HVAC compressors in Asia Pacific is expected to grow due to rising population, urbanization, and the need for energy-efficient systems. The population in Asia Pacific countries such as China is increasing, which drives demand for HVAC systems with compressors.

The demand for HVAC compressors in Latin America is growing due to a number of factors, including environmental concerns, urbanization, and the need for sustainable transportation. Moreover, the HVAC compressor market in Latin America is expected to grow due to increased demand for energy-efficient and the growing demand for residential and commercial infrastructure in the region.

Middle East & Africa market is expected to grow at considerable rate owing to the rapid urbanization and infrastructural development. Large-scale urbanization in countries such as Saudi Arabia, UAE, and South Africa is fueling the demand for HVAC systems in the region.

Key Players Covered

The global HVAC compressor market is fragmented due to the presence of a large number of market players. The report includes the profiles of the following key players:

• Daikin Industries Ltd. (Japan)
• Danfoss Group (Denmark)
• Panasonic Corporation (Japan)
• Midea Group(GMCC) (China)
• Tecumseh Products Company LLC (U.S.)
• LG Electronics (South Korea)
• Samsung (South Korea)
• Ingersoll Rand (U.S.)
• Embraco (Brazil)
• Carlyle Compressors (U.S.)

Key Industry Developments

• In December 2024, Mitsubishi Electric Corporation announced an investment of USD 143.5 million in a manufacturing facility located in the U.S. to expand compressor manufacturing compatible with HVAC systems.
• In December 2024, Danfoss announced the expansion of local manufacturing capabilities of heating, ventilation, and AC compressors in India with an investment of USD 57 million.