Commercial HVAC Market Analysis

Global Commercial HVAC Market Overview

Commercial HVAC Market Size was valued at USD 58,399.2 million in 2023. The Commercial HVAC Market industry is projected to grow from USD 63,012.7 million in 2024 to USD 1,11,962.30 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.4% during the forecast period (2024-2032). 

Government across the global region are set to steer the commercial HVAC (Heating, Ventilation, and Air Conditioning) market worldwide. Energy efficiency and environmental sustainability in relation to commercial buildings have been increasingly recognized by governments. They are therefore putting in place regulations, incentives, and benchmarks for adoption of energy-saving HVAC systems. For example, tax refunds, rebates as well as requirements for green building certifications form part of these schemes. 

One among many is The United States where Department of Energy (DOE) has established minimum standards of energy utilization efficiency for heating ventilation air conditioner units while Environmental Protection Agency (EPA) came up with ENERGY STAR program that advocates for energy efficient products mostly used at homes but also applicable in offices too thereby expecting growth within this sector i.e., more investments will be made towards such equipment which shall drive its market demand upwards.

Figure 1: Commercial HVAC Market Value (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Commercial HVAC Market Trends

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  Technology Advancement Across Systems to Bolster Industrial Growth

  
  

The global market for commercial HVAC industry is experiencing significant growth over the years, one of the key aspect area of technological advancement is the development of smart HVAC systems. These systems can adjust the temperature, monitor, humidity, and air quality in real time, leading to greater efficiency and reduced costs. Moreover, these smart HAVC can be remotely controlled by smartphones or other smart devise, providing great convenience and flexibility. 

Additionally, the increasing demand for technology advanced heating, ventilation, and cooling system is driving the market, as the environmental awareness grows, the demand for green-labelled product is rising, leading to the emergence of thermally driven air conditioners. Additionally, company like Daikin Industries Ltd. Is working on research and development to introduce advanced HVAC system that use natural gas and solar energy, resulting in greater energy efficiency. 

Moreover, the HVAC industry and IoT blend to provide better customer-driven service program by enabling remote machine control. By integrating into these smart devices with motion sensors, HVAC workers can monitor the movement inside a building. However, when there is no movement detected for a long time, the system can suggest, through an app notification, to turndown heating or cooling to lower the power used.   Furthermore, HVAC manufacturer is trying to provide consumers with smart HVAC system and increase their market share.

Commercial HVAC Market Segment Insights:

Commercial HVAC Market Based on Equipment Segment Insights

Based on equipment, the Commercial HVAC Market has been segmented into Cooling Equipment, Heating Equipment, and Ventilation Equipment. The Cooling Equipment segment is estimated to grow at CAGR 7.6% during the forecast period, while in 2022, while it accounted for 53.8% share of the Commercial HVAC Market. In the cooling equipment segment unitary HVAC equipment can supply only cooling or only heating, or both cooling and heating. 

A direct expansion (DX) system is most commonly used for cooling, while heating can be delivered by a variety of systems, including gas (natural or propane), electric resistance, and heat pump (air-to-air). These all-inclusive solutions are intended for larger structures and spaces, rather than a single room. This includes ductless systems, such as roof top Package Units, in which all essential components are housed in a single AC unit. 

This can also include ducted split systems, such as zoned ducted systems, wall split, multi-split, cassette, and bulkhead systems that connect indoor and outdoor units to form a single system. Variable Refrigerant Flow (VRF) systems and other commercial-based air conditioning systems are also used in hotels and residential complexes. Each room can have a fan coil unit, while the outdoor unit is positioned in a separate area, such as a central plant room or rooftop, thus driving the market for cooling equipment industry.

Figure 2: Commercial HVAC Market, by Equipment, 2023 & 2032 (USD Million)

Commercial HVAC Market, Components Insights

Based on Component, the Commercial HVAC Market has been segmented into sensors, compressors, control systems, expansion valves, evaporator coils, ventilation fan and blower units, filters, dampers, tubing/piping systems, and others. The Control Systems segment is expected to grow at CAGR 7.5% during the forecast period. In 2022, the segment held a 16.8% share of the Commercial HVAC Market. 

Control Systems Components are a driving force in the Commercial HVAC Market, serving as the brain behind HVAC operations. These components encompass programmable thermostats, building automation systems, and smart controls that regulate temperature, airflow, and energy usage. By providing centralized monitoring, remote access, and data analytics capabilities, control systems empower facility managers to optimize HVAC performance, enhance occupant comfort, and minimize operational costs. The integration of intelligent control systems aligns with the market's push for energy efficiency, sustainability, and the smart building trend, fostering its continued expansion.

Commercial HVAC Market by Sales Channel Insights

Based on sales channels, the Commercial HVAC Market has been segmented into OEM and Aftermarket. The OEM segment is expected to grow at CAGR 7.0% during the forecast period. In 2022, the segment held a 77.2% share of the Commercial HVAC Market. OEM, or Original Equipment Manufacturer, sales channels are a popular way for HVAC system manufacturers to sell their products. OEM channels allow manufacturers to sell their products to other manufacturers, who then incorporate the HVAC systems into their own products. 

This can be a great way for HVAC system manufacturers to reach a wider audience and increase their sales. This streamlined supply chain enhances product quality, ensures compatibility, and fosters innovation in HVAC systems. By enabling manufacturers to access specialized components and technologies, the OEM sales channel drives the market's growth, offering efficient and cutting-edge solutions that cater to diverse commercial needs while maintaining high standards of performance and reliability.

Commercial HVAC Market by Application Insights

Based on applications, the Commercial HVAC Market has been segmented into Office, School & Colleges, Restaurants, Hotels, Shops, Apartment, Hospitals & Clinics, Sport Centers, Data Center/ Server Hub, Warehouses, Factories. The Shops segment is expected to grow at CAGR 6.4% during the forecast period. In 2022, the segment held a 26.0% share of the Commercial HVAC Market. 

In retail shops, Commercial HVAC systems are pivotal for creating inviting shopping environments and operational efficiency. These systems regulate indoor temperatures, air circulation, and air quality, ensuring a comfortable experience for shoppers and employees. As the retail sector prioritizes customer comfort and cost-effective operations, advanced HVAC technologies drive the market. Innovations such as smart zoning, air purification systems, and energy-efficient designs cater to retail-specific needs, driving market growth by enhancing shopping experiences, reducing energy consumption, and supporting sustainable retail practices.

Commercial HVAC Market Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia-Pacific Commercial HVAC Market accounted for largest market share in 2022 and is expected to exhibit a significant CAGR growth during the study period. 

The Commercial HVAC market in the APAC region is experiencing substantial growth and development, with key countries such as China, Japan, South Korea, India, and the rest of APAC actively contributing to this transformation. Governments and businesses across APAC are recognizing the importance of advanced HVAC systems in enhancing indoor comfort, energy efficiency, and environmental sustainability in commercial buildings. Several factors are driving the expansion of the Commercial HVAC market in the APAC region. 

One of the key drivers is the region's rapid urbanization and industrialization. As cities in China, India, and other APAC countries expand, there is a growing demand for modern HVAC solutions in commercial spaces, including office buildings, shopping malls, and hospitality establishments.

Figure 3: Commercial HVAC Market, by Region, 2023 & 2032 (USD Million)

North America, comprising the United States, Canada, and Mexico, is a region known for its robust commercial HVAC market. With a focus on technological innovation and sustainable building practices, the region is witnessing significant growth in the adoption of advanced commercial HVAC systems. The demand for these systems is driven by both private sector investments and government initiatives aimed at improving energy efficiency and indoor air quality in commercial spaces. 

Commercial HVAC technologies are improving quickly, with a focus on making them more energy-efficient, sustainable, and comfortable for occupants. Smart HVAC solutions and advanced control systems are being integrated to achieve this goal. However, North America is facing challenges in fully optimizing commercial HVAC systems despite these technological advancements. The future of the commercial HVAC market in North America is being shaped by the emergence of advanced HVAC standards and regulations, such as those promoting energy-efficient equipment and refrigerants with lower global warming potential.

In the United States, federal, state, and local governments have introduced various incentive programs and regulations to encourage the adoption of energy-efficient HVAC systems in commercial buildings. These initiatives incentivize businesses to invest in modern HVAC technologies and implement sustainable practices. For  instance, Federal Energy Management Program (FEMP) provides acquisition guidance for commercial central air conditioners with cooling capacities at or above a certain level. Moreover, real-time data monitoring and advanced analytics tools are becoming integral to commercial HVAC systems, allowing building owners and facility managers to make data-driven decisions. This data-driven approach leads to better HVAC system performance, optimized resource allocation, and improved cost-effectiveness. 

The commercial HVAC market in North America is not only evolving to meet energy efficiency standards but also adapting to changing environmental regulations and customer demands for improved indoor air quality and comfort in commercial spaces. Innovations such as variable refrigerant flow (VRF) systems, heat recovery systems, and air quality monitoring are gaining prominence in the region's commercial HVAC market, ensuring that buildings remain comfortable, efficient, and environmentally responsible.

Commercial HVAC Market Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Commercial HVAC Market is highly competitive and dominated by established, pure-play vendors. Many vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting innovative technologies and innovations to make rapid lubrication filters more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. 

The Commercial HVAC Market is highly competitive, with many vendors offering similar products and services. The major players in the market include Panasonic, Mitsubishi Corporation, Samsung Electronics Co. Ltd., Daikin Industries Ltd., Haier Electronics Group Co. Ltd., Ingersoll Rand, Johnson Controls, AAON, Rheem Manufacturing Company, Lennox International Inc, Trane, GREE, Carrier, LG Electronics, and Midea group. The Commercial HVAC Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Commercial HVAC Market include.

• Panasonic Corporation


• Daikin Industries LTD


• Samsung Electronics CO. LTD


• Mitsubishi Electric Corporation


• Haier Electronics Group Co. Ltd


• Ingersoll Rand


• Johnson Controls International PLC


• AAON


• Lennox International Inc.


• Rheem Manufacturing Company


• Trane


• Gree Corporation


• Midea Group


• LG Electronics


• Carrier Corporation

Commercial HVAC Market Industry Developments

• In August 2023, Carrier is expanding its line of WeatherExper packaged rooftop units with the new high outdoor air system, a light commercial rooftop unit capable of conditioning up to 100% outdoor air. The WeatherExpert high outdoor air system can operate with up to 100% outdoor air for ventilation or make-up air or building ventilation. WeatherExpert high outdoor air systems can pair with space air conditioning and heating systems, such as Carrier VRF, water source heat pumps or rooftop units, to provide a complete HVAC solution for schools, hotels, or office buildings.


• In June 2023, Trane Technologies announced a New Heat Pumps Featuring Enhanced Connectivity and Cooling Units for Mission Critical Spaces. The next-generation, all-electric Axiom Rooftop Water Source Heat Pumps from Trane integrate water-source efficiency with leading Trane rooftop models in capacities between 12.5 to 25 tons. Ideal for commercial buildings, new construction, and retrofits, the latest Axiom Rooftop Water Source Heat Pump delivers greater flexibility in meeting decarbonization goals with a solution that is configurable for geothermal, boiler/towers, or hybrid.


• In March 2023, Mitsubishi Electric Trane HVAC US announced the intelli-HEAT Dual Fuel System. This system integrates a Mitsubishi Electric heat-pump system with an existing or new gas furnace to provide consistent, reliable heat in any weather condition. With METUS' Hyper-Heating INVERTER (H2i) technology, intelli-HEAT provides 100% heating capacity down to 5° F and guaranteed operation down to -11° F. The dual fuel system empowers homeowners with a gas furnace to improve their home's comfort and sustainability by using an energy-efficient, all-electric heat pump.