Commercial HVAC Market Size (2024 - 2029)

Commercial HVAC Market Analysis

The Commercial HVAC Market size is estimated at USD 41.79 billion in 2024, and is expected to reach USD 63.70 billion by 2029, growing at a CAGR of 8.80% during the forecast period (2024-2029).

• Any commercial building, including offices, restaurants, hotels, hospitals, and schools, needs heating and cooling systems to give its occupants a comfortable space. These systems are widely used in offices to maintain the right temperature and ventilation, which enhances worker productivity and working conditions while preventing health problems brought on by incorrect humidity levels.
• The increasing government initiatives and investments in the adoption of energy-efficient equipment will drive market growth. For instance, in February 2024, the Indian government’s announcement to allocate INR 11.11 lakh crore for infrastructure in the 2024-25 budget created a conducive environment for the HVAC sector's growth. This investment, coupled with the government's focus on self-reliance through initiatives like Atmanirbhar Bharat, is expected to further fuel the industry's expansion.
• In an effort to meet climate change targets, the European Union declared that nations would have to renovate energy-guzzling buildings at a faster pace and adhere to stricter energy-saving targets. The draft proposal would require states to renovate three state-owned and occupied buildings each year to convert them into "near-zero energy buildings." This includes hospitals, government buildings, schools, and social housing, and it will amount to more than 700,000 renovated buildings per year.
• The increase in the construction of offices, rising temperature conditions, and rising adoption of IoT and green technologies are some of the driving factors contributing to the overall growth of the commercial HVAC market. In addition, according to the Office for National Statistics (United Kingdom), in the first quarter of 2023, the gross value added (GVA) of the construction industry in the United Kingdom was over GBP 4 billion higher than in the same period of the previous year.
• The market is witnessing a growing trend toward smart HVAC systems due to increased energy consumption and the need for higher system efficiency. Increasingly, buyers are looking for smart solutions with IoT integration, real-time monitoring, and improved controls. These intelligent systems maximize energy efficiency, improve comfort, and offer more control over interior spaces.
• The increasing energy prices worldwide make energy-efficient HVAC systems attractive for cost savings. Despite the potential benefits, the initial expenses of installing these systems could limit their widespread use and hinder market expansion.
• The commercial HVAC market is highly affected by factors such as government regulations and new initiatives by the governments of various regions to boost the adoption of energy-efficient equipment. For instance, over the past decade, several types of EU legislation have been introduced to minimize energy consumption, stimulate renewable energy use, and reduce CO2 equivalent emissions to decrease the impact of global warming.

Commercial HVAC Industry Segmentation

The study tracks the revenue accrued through the sale of commercial HVAC equipment and services by various players in the global market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The commercial HVAC market is segmented by type of component (HVAC equipment [heating equipment, air conditioning/ventilation equipment] and HVAC services), end-user industry (hospitality, commercial building, public building, and other end-user industries), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.