Residential HVAC Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Residential HVAC Market is Segmented by Equipment (Air Conditioning/Ventilation Equipment (Type (Single Splits/multi Splits (Ducted/Ductless), Vrf, Air Handling Units, Other Types(Fan Coils, Rooftops))) and Heating Equipment (Type (Boilers/Radiators/Furnaces & Other Heaters, Heat Pumps)) and by Geography (North America (United States, Canada), Europe (United Kingdom, Italy, Germany, France, Spain, Eastern Europe, Benelux, Nordics, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia Pacific), Latin America, Middle East & Africa). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Residential HVAC Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Residential HVAC Market Size

Residential HVAC Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 82.93 Billion
Market Size (2030) USD 112.66 Billion
CAGR (2025 - 2030) 6.32 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Residential HVAC Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Residential HVAC Market Analysis

The Residential HVAC Market size is estimated at USD 82.93 billion in 2025, and is expected to reach USD 112.66 billion by 2030, at a CAGR of 6.32% during the forecast period (2025-2030).

The market growth is attributed to the growing demand for energy-efficient and smart HVAC systems, the growing urban population, changing climate conditions, and advanced HVAC systems with cutting-edge technologies.

  • Air conditioners, including window units and through-the-wall, are gaining momentum in hot and high-income countries with the growing temperatures and increasing consumer spending. The increasing shipments of air conditioners worldwide accelerate the market growth. 
  • The growing need for space and water heating drives the adoption of heat pumps in cold regions. Further, the increased government incentives and policy support for heat pumps amid high natural gas prices and efforts to reduce greenhouse gas emissions fuel the adoption of heat pumps. For instance, according to IEA, in 2022, the global sales of heat pumps increased by 11% compared to the previous year. In Europe, the sales of heat pumps increased by around 40% compared to the previous year, reaching around 3 million units.
  • In recent years, HVAC manufacturers have been focusing on developing smart equipment with the integration of cutting-edge technologies such as AI, Analytics, and automation developed to improve their market position and stay competitive. For instance, in February 2023, Hisense launched smart air conditioners in India - IntelliPro and CoolingXpert. The new air conditioners offer a variety of features, including a 5-in-1 Convertible Pro, a WIFI Voice Control, and others. Also, it includes a sleep mode and automatically changes the temperature, which helps to save energy usage up to 36%.
  • Russia and Ukraine's war had a major impact on natural gas and electricity; the prices increased exponentially, encouraging consumers to switch to other more efficient heating options, such as heat pumps. In response to high prices for natural gas and the government export/import ban imposed on Russia, European Commission planned to double the installation of heat pumps to reduce the reliance on Russia for Natural gas. Most of the European Union countries are also incentives to make this target achievable.
  • The COVID-19 pandemic severely impacted the whole global supply chain, causing a shortage of raw materials, increased delivery time, and suspended production for a short period. The demand for air ventilators increased due to keeping the air clean and pure. The HVAC system modifications helped reduce the spread of the coronavirus by improving ventilation, purifying air, and managing airflows in rooms. According to Ensavior, the HVAC systems provider state,d the demand for high-quality air filtration systems increased during the COVID-19 pandemic as consumers wanted clean air.

Residential HVAC Industry Overview

The Residential HVAC Market appears semi-consolidated, with large vendors such as Daikin Industries Ltd., Carrier Corporation, Robert Bosch, Mitsubishi Electric, and Johnson Controls. With growing urbanization, a shift in consumer preferences, and demand for energy-efficient systems increased the investment in the market. The major market players offer advanced and smart HVAC systems and rapidly indulge in mergers and acquisitions to increase the consumer base and product offerings.

  • January 2023 - Johnson Controls-Hitachi Air Conditioning announced the launch of the air365 Max designed with energy efficiency, seamless comfort, and workable features. The air365 Max will be available in Latin America, Southeast Asia, and the Middle East in January and later in Europe, New Zealand, Australia, North America, and other regions.

Residential HVAC Market Leaders

  1. Daikin Industries Ltd

  2. Midea Group

  3. Gree Electric Appliances

  4. Trane Technologies

  5. Carrier

  6. *Disclaimer: Major Players sorted in no particular order
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Residential HVAC Market News

  • September 2023 - Johnson Controls-Hitachi Air Conditioning introduced the Hitachi air365 Hybrid dual fuel system, which combines a heat pump and furnace to provide efficient, economical home comfort year-round while reducing carbon emissions. The air365 Hybrid system features an electric Hitachi Mini VRF heat pump as the primary heating and cooling source and an innovative dual fuel module that attaches to a home's new or existing gas furnace.
  • April 2023 - The Government of India announced a plan to increase renewable energy capacity by adding 70 GW annually for the next five years, aiming to achieve the goal of 500 GW by 2030. HVACs are in high demand in the area due to the country's numerous households installing modern air conditioning equipment to comply with laws and cut energy usage.

Residential HVAC Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Bargaining Power of Suppliers
    • 4.2.2 Bargaining Power of Buyers
    • 4.2.3 Threat of New Entrants
    • 4.2.4 Threat of Substitute Products
    • 4.2.5 Intensity of Competitive Rivalry
  • 4.3 An Assessment of the impact of COVID-19 on the industry

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Growing demand for energy efficient systems
    • 5.1.2 Government incentives and programs for sustainability
    • 5.1.3 Rapid development of smart HVAC systems with cutting edge technologies
  • 5.2 Market Restraints
    • 5.2.1 Rising Competition among key vendors to limit margins
  • 5.3 Market Opportunities
    • 5.3.1 Emergence of IoT and Product innovations to aid replacements

6. MARKET SEGMENTATION

  • 6.1 By Equipment
    • 6.1.1 Air Conditioning/Ventilation Equipment
    • 6.1.1.1 Type
    • 6.1.1.1.1 Single splits/ multi splits (Ducted and Ductless)
    • 6.1.1.1.2 VRF
    • 6.1.1.1.3 Air Handling Units
    • 6.1.1.1.4 Other Types (Rooftops, Fan Coils, etc.)
    • 6.1.2 Heating Equipment
    • 6.1.2.1 Type
    • 6.1.2.1.1 Boilers/radiators/Furnaces & Other Heaters
    • 6.1.2.1.2 Heat Pumps
  • 6.2 By Geography
    • 6.2.1 North America
    • 6.2.1.1 United States
    • 6.2.1.2 Canada
    • 6.2.2 Europe
    • 6.2.2.1 United Kingdom
    • 6.2.2.2 Germany
    • 6.2.2.3 Italy
    • 6.2.2.4 France
    • 6.2.2.5 Eastern Europe
    • 6.2.2.6 Spain
    • 6.2.2.7 Benelux
    • 6.2.2.8 Nordics
    • 6.2.2.9 Rest of Europe
    • 6.2.3 Asia Pacific
    • 6.2.3.1 China
    • 6.2.3.2 India
    • 6.2.3.3 Japan
    • 6.2.3.4 Rest of Asia Pacific
    • 6.2.4 Latin America
    • 6.2.5 Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Daikin Industries Ltd
    • 7.1.2 Carrier Global Corporation
    • 7.1.3 Trane Technologies PLC
    • 7.1.4 Lennox International Inc
    • 7.1.5 Johnson Controls International
    • 7.1.6 Robert Bosch GmBH
    • 7.1.7 Mitsubishi Electric Europe B.V.
    • 7.1.8 Systemair AB
    • 7.1.9 TROX GmbH
    • 7.1.10 Hitachi, Ltd
    • 7.1.11 Blue Star, Ltd
    • 7.1.12 Swegon AB
    • 7.1.13 Ariston thermo SPA
    • 7.1.14 Danfoss A/S
    • 7.1.15 Alfa Laval AB
    • 7.1.16 Valliant Group
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. FUTURE OF THE MARKET

10. ABOUT US

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Residential HVAC Industry Segmentation

The residential heating, ventilation, and air conditioning (HVAC) systems are used for air handling and thermal comfort for residents. The market study covers heating, air conditioning, and ventilation equipment such as heat pumps, VRF, Single Splits and multi-splits, and air handling units.

The Residential HVAC market is segmented by equipment (air conditioning/ventilation equipment (type (single splits/multi splits(ducted/ductless), vrf, air handling units, other types [fan coils, rooftops, etc.])) and heating equipment (type (boilers/radiators/furnaces & other heaters, heat pumps)) and by geography (North America [United States, Canada], Europe [United Kingdom, Italy, Germany, France, Spain, Eastern Europe, Benelux, Nordics, Rest of Europe], Asia Pacific [China, India, Japan, Rest of Asia Pacific], Latin America, Middle East & Africa). The report offers the market size in value terms in USD for all the abovementioned segments.

By Equipment Air Conditioning/Ventilation Equipment Type Single splits/ multi splits (Ducted and Ductless)
VRF
Air Handling Units
Other Types (Rooftops, Fan Coils, etc.)
Heating Equipment Type Boilers/radiators/Furnaces & Other Heaters
Heat Pumps
By Geography North America United States
Canada
Europe United Kingdom
Germany
Italy
France
Eastern Europe
Spain
Benelux
Nordics
Rest of Europe
Asia Pacific China
India
Japan
Rest of Asia Pacific
Latin America
Middle East and Africa
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Residential HVAC Market Research Faqs

How big is the Residential HVAC Market?

The Residential HVAC Market size is expected to reach USD 82.93 billion in 2025 and grow at a CAGR of 6.32% to reach USD 112.66 billion by 2030.

What is the current Residential HVAC Market size?

In 2025, the Residential HVAC Market size is expected to reach USD 82.93 billion.

Who are the key players in Residential HVAC Market?

Daikin Industries Ltd, Midea Group, Gree Electric Appliances, Trane Technologies and Carrier are the major companies operating in the Residential HVAC Market.

Which is the fastest growing region in Residential HVAC Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Residential HVAC Market?

In 2025, the North America accounts for the largest market share in Residential HVAC Market.

What years does this Residential HVAC Market cover, and what was the market size in 2024?

In 2024, the Residential HVAC Market size was estimated at USD 77.69 billion. The report covers the Residential HVAC Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Residential HVAC Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Residential HVAC Industry Report

Statistics for the 2025 Residential HVAC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Residential HVAC analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.