The global HVAC system market is projected to grow from USD 299.28 billion in 2025 to USD 407.77 billion by 2030, at a compound annual growth rate (CAGR) of 6.4%, according to a new report by MarketsandMarkets. Growth is driven by increasing demand for energy-efficient and cost-effective heating and cooling solutions across residential, commercial, and industrial sectors.
Rising awareness of environmental impacts and energy consumption is encouraging the adoption of sustainable HVAC technologies. Government regulations mandating higher energy efficiency standards, combined with incentive programs promoting green building practices, are accelerating system upgrades. These trends are fostering widespread adoption of advanced HVAC solutions.
The report identifies the Variable Refrigerant Flow (VRF) segment as the fastest-growing category in cooling equipment. VRF systems offer energy efficiency, flexible zoning, and the ability to simultaneously heat and cool multiple zones, making them suitable for commercial buildings, hotels, and large residential applications.
Installation services are expected to capture the largest market share by service type in 2025, supported by the ongoing growth in new construction and retrofit projects. The complexity of modern HVAC systems and integration requirements with building automation systems are contributing to the demand for professional installation.
Regionally, the Asia Pacific market is forecast to register the highest CAGR from 2025 to 2030. Rapid urbanization, rising temperatures, growing disposable incomes, and government initiatives in countries like China, India, Japan, and South Korea are supporting HVAC market expansion in the region.
Key market players include Carrier (US), DAIKIN INDUSTRIES, Ltd. (Japan), LG Electronics (South Korea), Lennox International Inc. (US), Midea (China), Johnson Controls (Ireland), Trane Technologies plc (Ireland), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), SAMSUNG (South Korea), and GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI (China), among others.