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The global market for Heating, Ventilation and Air Conditioning (HVAC) Systems is projected to reach US$241.8 billion by 2025, driven by the ubiquitous importance of temperature control in homes and production environments. In the residential sector, climate change is a key driving force encouraging the development of the HVAC market. Extreme weather conditions such as rising temperatures alternating between unusually cold winters is spurring the need for cooling and warming indoor spaces such as homes and office buildings. Home temperature control is aimed at keeping interiors of the house at a comfortable, uniform temperature. In the industrial sector, temperature control is vital to ensure machines operate within specified temperatures and humidity for optimal efficiency and longer life. Temperature control is also important in ensuring the desired quality of manufactured product. A case in point is the importance of plant temperature control for plastic injection molding machines, a widely used piece of technology present in most manufacturing parts to produce millions of parts and components. Incorrect maintenance of temperature can result in the production of faulty products. Plastic injection molding is therefore a major application for process chillers. Temperature control is also vital to ensure conformance to occupational safety standards. For instance, in boiler rooms, commercial kitchens, food canneries and chemical plants, temperature has to be controlled to safeguard against heat-related illnesses. Also, the progressively worsening air pollution levels the world over and the resulting concerns over indoor air quality (IAQ) is pushing up the importance of HVAC as the front line of defense against poor indoor air quality. Incorporation of high quality HEPA filters in HVAC systems ensures effective removal of airborne contaminants and microscopic particulates. Development of innovative pleated fabric filters capable of filtering contaminants as small as 3 microns also bodes well for market growth.

Given that HVACs are important and indispensable with omnipresent applications in virtually all buildings and factories, their growing carbon footprint is a major area of concern. HVAC systems utilize refrigerants to trap and transfer indoor heat to the outdoors. A majority of these refrigerants are volatile organic compounds (VOC) that emit greenhouse gasses (GHG) responsible for the depletion of the earth's ozone layer. In the United States, over 45% of CO2 emissions are generated by residential HVAC systems used for heating and cooling purposes. The scenario is helping drive replacement demand for energy efficient systems. A significant percentage of technology innovations are directed at achieving energy efficiency. From variable refrigerant flow (VRF) technology, environmentally friendly filters, more efficient air handling units (AHUs), to the use of superior insulation materials, the market is witnessing a flurry of innovations. Of noteworthy importance is the integration of Internet of things (IoT) capabilities to enhance HVAC performance by continuous monitoring, management and improved controllability. For example indoor environmental conditions can be monitored and the HVAC system that be accordingly controlled to reduce energy consumption. The growth in the number of smart homes will help make deployment of these HVAC systems more feasible. Few of the technologies under R&D include Movement-Activated Air Conditioning, Thermally Driven Air Conditioning, On-Demand Hot Water Recirculator, Ice-Powered Air Conditioning, Sensor-Enhanced Ventilation, Geothermal Heat Pumps, Dual-Fuel Heat Pumps, among others. The United States, Europe and Asia-Pacific represent large markets worldwide with a combined share of 77.3% of the market. China ranks as the fastest growing market with a CAGR of 7.1% over the analysis period supported by the expanding middle class population in the country and a robust manufacturing industry. The country ranks as the world's largest producer of room air conditioners with a 68% share.

Competitors identified in this market include, among others, Carrier Corporation, Daikin Industries Ltd., Danfoss, Emerson Electric Co., Fujitsu General Limited, Gree Electric Appliances Inc., Havells India Limited, Hitachi Ltd., Honeywell International Inc., Johnson Controls, Inc., LG Electronics Inc., Mitsubishi Electric Trane HVAC US, Panasonic Corporation of North America, Samsung HVAC, Trane Inc., Whirlpool Corp.