North America Smart HVAC Systems Market Analysis

Smart HVAC Systems Market Overview:

North America Smart HVAC Systems Market Size was valued at USD 43.2 Billion in 2022. The smart HVAC systems market industry is projected to grow from USD 45.6 Billion in 2023 to USD 69.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2024 - 2032). The market for smart HVAC systems is expanding due to major market drivers such as industrialization, migration, and changes in urbanization. As a result, there are more businesses, manufacturing facilities, and residential complexes using smart HVAC systems.

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

Smart HVAC Systems Market Trends

Rising Demand for Smart HVAC Systems is Driving the Market Growth

One major factor driving the expansion of the smart HVAC systems market CAGR is the growing acceptance of smart HVAC systems. The use of intelligent and networked HVAC systems is growing in the market for refrigeration and air conditioning equipment. End users may now operate their HVAC systems in a far more practical and effective manner thanks to advancements in portable devices and monitoring systems. Similarly, the need for Internet of Things (IoT)-enabled devices has grown dramatically in response to data gathering and analysis aimed at resolving the intricate problems associated with maintaining residential or commercial air conditioning systems. Monitoring HVAC system operations is made easier by IoT-enabled equipment like steam trap monitors and wireless acoustic transmitters. End users are investing in Precautionary Maintenance in order to reduce overall interruptions and increase operational performance. Additionally, IoT-enabled gadgets like smart thermostats with sensors and Wi-Fi help industrial buildings' temperatures to be remotely adjusted via computers or smartphones. It is advantageous to integrate IIoT into an industrial heating system in order to lower overall energy loss and on-site service expenses. It is anticipated that the growing trend of smart HVAC system adoption will be supported by the increased emphasis on creating smart factories. During the projected period, these factors are anticipated to have a favorable impact on the North American smart HVAC systems market share.

Additionally, projects involving the development of green buildings help to strengthen the smart HVAC systems industry in North America. Installing this equipment in accordance with legislative guidelines is becoming essential to green building designs as concerns about energy use, rising harmful emissions, and occupant health become more prevalent. This idea to improve indoor air quality is being emphasized by the governments of the United States and Canada. For instance, in order to support a clean economy, the Government of Canada focused on lowering greenhouse gas (GHG) emissions in the 2019 budget by implementing energy-efficient buildings and providing industry-leading skill development. Through this program, government activities and investments in energy-efficient buildings support the Canada Green Building Council (CaGBC). In addition, owners of both residential and commercial buildings are increasingly gravitating toward the development of green buildings due to the perception that healthy structures and financial gains are related. The increasing number of green building construction projects taking place in North American countries is therefore a significant trend in the market. Thus, driving the smart HVAC systems market revenue.

Smart HVAC Systems Market Segment Insights:

Smart HVAC Systems Type Insights

The North America Smart HVAC Systems market segmentation, based on type includes Single Split, Variable Refrigerant Flow (VRF) Systems, Chillers and Others (Multi-split System). The variable refrigerant flow (VRF) systems segment dominated the market. It results from controlling the volume of refrigerant supplied to fan-coil units scattered throughout buildings. It also provides two or more controllers on a single device, which will cause its growth to exponentially increase during the projection time.

Smart HVAC Systems Application Insights

The North America Smart HVAC Systems market segmentation, based on application, includes Commercial, Residential and Industrial. The commercial category generated the most income. The growth is specifically attributed to a significant uptick in the building of new business spaces, hospitals, telecom centers, schools, and labs, all of which support the expansion of the industry.

Figure 1: North America Smart HVAC Systems Market by Application, 2022 & 2032 (USD Billion)

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

Smart HVAC Systems Regional Insights

Over the course of the forecast period, the North American market is expected to exhibit robust growth due to a number of factors, including the growing trend of green building initiatives, the rise in residential and commercial (new construction and renovated buildings), industrial facilities, government incentives, and the growing demand for energy-efficient solutions. Additionally, as the Internet of Things (IoT) becomes more widely used, more manufacturers are investing in the production of ventilation systems, air conditioning units, and smart heating offerings, which is driving market expansion in both the United States and Canada. The largest market for smart HVAC systems is the United States, and it is expanding steadily. The country as a whole benefits from the installation of systems due to the availability of high-efficiency systems, harsh weather patterns, and rising construction activity. Moreover, the presence of major manufacturers like Emerson Electric Co., Carriers, and others is supporting the future growth of the North American industry. In addition, Canada's growing construction industry contributes to the demand for equipment in a variety of Type. To assist the trend of decreasing energy use, building owners concentrate on modernizing the ventilation, air conditioning, and other systems throughout the buildings. Government subsidies for energy efficiency are also anticipated to help this business.

Figure 2: North America Smart HVAC Systems Market Share By Region 2022 (USD Billion)

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

Smart HVAC Systems Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the smart HVAC systems market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, smart HVAC systems industry must offer cost-effective items.

Key Companies in the smart HVAC systems market include

• Johnson Controls International PLC


• Daikin Industries Ltd


• Lennox International Inc.


• Electrolux AB


• Emerson Electric Co.


• Carrier Corporation


• Rheem Manufacturing Company Inc.


• Uponor Corp.


• Ingersoll Rand Inc. (Trane Inc.)


• Nortek Global HVAC, LLC

Smart HVAC Systems Market Segmentation:

Smart HVAC Systems Type Outlook

• Single Split


• Variable Refrigerant Flow (VRF) Systems


• Chillers


• Others (Multi-split System)

Smart HVAC Systems Application Outlook

• Commercial


• Residential


• Industrial

Smart HVAC Systems Regional Outlook

North America

• US


• Canada


• Mexico


• Rest of North America