HVAC System Market - Size, Share, Industry Trends, and Forecasts (2025 - 2032)

By Product Type:

Based on product type, the market is segmented into heating equipment, cooling equipment, and ventilation equipment.

Trends in the product type:

• Increasing trend towards adoption of cooling equipment in residential and commercial spaces to ensure improved thermal comfort is driving the market.

• Rising progressions associated with heating, cooling, and ventilation systems with advanced features, such as IoT and AI integration, are propelling the segment growth.

Heating equipment segment accounted for a substantial revenue share in the HVAC system market share in 2024.

• Heating equipment segment primarily includes heat pumps, furnaces, boilers, and others. Heating equipment is designed to generate and distribute heat for warming spaces.
• Moreover, heat pumps refer to devices that transfer thermal energy using a refrigeration cycle, moving heat from a colder area to a warmer one, or vice versa.
• Meanwhile, furnaces heat air, which is then circulated through ductwork to heat a building. They typically burn fuel or use electricity to generate heat.
• Additionally, boilers heat water, which can be circulated as hot water or steam to provide heat. The heated water or steam is then distributed through pipes and radiators or used in radiant floor systems.
• For instance, in February 2025, Carrier introduced its new AquaSnap 61AQ model of reversible heat pump, specifically for use in commercial applications. The heat pump offers several features, including increased energy efficiency, high temperatures, noise reduction, and enhanced operational performance.
• According to the HVAC system market analysis, the rising advancements associated with heating equipment are driving the market.

The cooling equipment segment is anticipated to register the fastest CAGR during the forecast period.

• The cooling equipment segment includes air conditioners, chillers, coolers, and others.
• Air conditioners are typically used for localized cooling in homes, offices, and smaller spaces.
• Meanwhile, chillers are large-scale systems used for industrial or commercial cooling, often involving a centralized cooling plant.
• Additionally, coolers are generally portable devices that are mainly used for personal or short-term cooling.
• For instance, LG Electronics launched its new ARTCOOL gallery air conditioner featuring a 27-inch LCD screen in 2023. The new model of air conditioner is capable of displaying personalized content along with delivering energy-efficient cooling and heating. The air conditioner is equipped with a dual inverter compressor and 3-way indirect airflow, which helps in providing an enhanced performance with AI Dry while offering a range of user-friendly features.
• Therefore, the increasing innovations related to cooling equipment are anticipated to boost the HVAC system market size during the forecast period.

By Sales Channel:

Based on sales channel, the market is segmented into direct sales and distributor sales.

Trends in the sales channel:

• Factors including the availability of excellent support and warranty, higher product quality, and reliable shipping and return policies are key prospects driving the direct sales channel segment.
• Factors such as higher accessibility to a variety of products, higher flexibility, and expanded reach are key trends driving the distributor sales channel segment.

The direct sales segment accounted for a significant revenue in the overall HVAC system market share in 2024.

• In direct sales channel, HVAC equipment is sold directly to customers through numerous physical outlets, including company outlets, among others.
• Moreover, the direct sales channel also consists of an online mode, wherein the manufacturers sell the HVAC equipment through its own company websites.
• Additionally, purchasing HVAC equipment from direct sales channel offers numerous benefits, including faster response time, higher product quality, higher return on investments, competitive pricing, and others, which are key determinants for increasing the purchase of HVAC equipment from direct sales channel.
• For instance, Samsung and LG Electronics are HVAC equipment manufacturers that offer a broad range of heating, cooling, and ventilation equipment for direct purchase through the company website.
• Therefore, the increasing availability of HVAC equipment in direct sales channels is driving the market.

The distributor sales segment is anticipated to register the fastest CAGR during the forecast period.

• The distributor sales channel involves an indirect distribution of HVAC equipment, wherein the systems are purchased from several regional distributors operating in multiple regions worldwide.
• Moreover, distributor sales channels provide several benefits, including increased market reach, reduced capital expenditure, increased cost efficiency, and others. The above benefits of distributor sales channels are further increasing its utilization for sales of HVAC equipment.
• For instance, Croma, Reliance Digital, Electro Siluz, Sudclimatair S.A., and others are few of the distributors of HVAC equipment.
• Hence, the increasing availability of HVAC equipment in distributor sales channels is anticipated to boost the market during the forecast period.

By End User:

Based on the end user, the market is segmented into residential, commercial, and industrial.

Trends in the end user:

• Factors including rising pace of urbanization, increasing commercial construction involving offices, hospitals, educational institutions, and others, along with growing demand for efficient thermal solutions in commercial buildings are primary aspects driving the commercial segment.
• Factors including the increasing disposable income, rising investments in residential development, and government policies including tax incentives, subsidies, and rebates are key trends driving the residential segment growth.

The commercial segment accounted for the largest revenue share of 48.05% in the market in 2024.

• HVAC equipment is primarily used in the commercial sector for maintaining comfortable and healthy environments in large buildings by regulating temperature, humidity, and air quality.
• They are essential for ensuring improved air quality and thermal comfort of various commercial spaces, including offices, shopping malls, educational institutes, and other spaces.
• Moreover, commercial HVAC equipment is designed to handle larger spaces, varying occupancy levels, and complex zoning requirements.
• For instance, according to Statistics Canada, the total commercial construction permits in Canada was valued at USD 1,682,511 in January 2024, representing a substantial increase of 29.5% in comparison to USD 1,299,688 in December 2023.
• According to the analysis, the growing development of commercial spaces is increasing the adoption of HVAC equipment, thereby driving the HVAC system market trends.

The residential segment is anticipated to register a significant CAGR during the forecast period.

• HVAC equipment plays a vital role in maintaining a comfortable and healthy living environment in residential buildings.
• It provides temperature control, air quality management, and humidity regulation for residential spaces.
• Moreover, the integration of HVAC equipment in residential spaces provides a comfortable indoor environment regardless of external weather conditions.
• Additionally, modern HVAC equipment is often designed to be energy-efficient, which potentially reduces energy consumption and utility bills.
• For instance, according to the United States Census Bureau, the total number of new residential units sold in the United States reached up to 174 thousand units during the third quarter of 2024, witnessing an increase of 4.2% in comparison to 167 thousand units in the third quarter of 2023.
• Consequently, the increasing residential construction and rising integration of HVAC equipment in residential spaces are expected to drive the market growth during the forecast period.