Brazil’s heating, ventilation, air conditioning, and refrigeration (HVACR) sector recorded a revenue of R$ 50.15 billion (approx. USD 10.2 billion) in 2025, with expectations to reach R$ 55.62 billion (approx. USD 11.3 billion) by the end of 2026, according to a report released by the Brazilian Association for Refrigeration, Air Conditioning, Ventilation and Heating (ABRAVA).
Overall, the HVACR sector in Brazil grew by 10% in 2025. The segment with the highest growth was installation and maintenance services, which saw a 20.7% increase compared to 2024. The manufacturing segment for air conditioning units registered a 10% rise in revenue, while equipment sales grew by 8.6%. Design and consulting services increased by 8%, and commercial and industrial refrigeration rose by 4.4%.
The data was presented during the 7th edition of “ABRAVA de Portas Abertas,” an event organized by ABRAVA since 2020.
According to Toríbio Rolon, ABRAVA’s economic director, the association projects an organic growth rate of 10% for the sector over the next five to ten years.
In 2026, the installation and maintenance segment is expected to lead again, with a projected growth of 19.8%. The trade segment is forecast to grow by 16%, and the air conditioning manufacturing segment by 9.3%. Commercial refrigeration may expand by 8.8%, while design services are expected to grow 3.5%.
The production of air conditioning units (split models) continued to increase: 3.816 million units in 2023, 5.912 million in 2024, and 6.385 million in 2025.
The sector was also impacted by external factors. High production costs persisted in 2025 but were slightly lower than in 2024, contributing positively to the industry. Additionally, the partial recovery of the Brazilian real against the US dollar helped reduce the cost of imported inputs. However, uncertainty remains due to global geopolitical tensions and domestic factors such as the upcoming presidential elections, which may affect market conditions.
Despite potential slowdowns in 2026, household consumption is expected to remain strong due to low unemployment rates.
The ABRAVA event also aimed to strengthen industry connections and present institutional initiatives and opportunities for the coming year. While 2024 marked a high baseline, 2025 maintained growth momentum, partly due to fewer external climate variations.
In 2025, the confidence index in HVACR companies reached 58.6, compared to 50.9 for the overall Brazilian economy. For 2026, confidence in HVACR companies is expected to rise to 60.2, while general economic confidence is projected at 52.5.
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