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The HVAC control systems market size is forecast to increase by USD 9.66 billion at a CAGR of 7.51% between 2023 and 2028. The market's expansion relies on several factors, including the rising demand for efficient and reliable HVAC controls, the inorganic growth seen in the global market, and the emergence of smart HVAC systems. Efficient and reliable HVAC controls are essential for optimizing energy use and maintaining comfortable indoor environments, driving their demand. Inorganic growth, through mergers and acquisitions, enhances market reach and technological capabilities. Additionally, the advent of smart HVAC systems, which offer advanced features like remote monitoring and automated adjustments, further propels market growth. Our report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2023-2027
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The market is transforming with IoT-enabled HVAC systems enhancing the efficiency of HVAC systems and reducing energy wastage. These systems, integrated into smart homes and offices, leverage smart building automation technologies for occupant detection and energy consumption reduction. Despite technical complexities in implementing HVAC systems, residential buyers and industrial and residential businesses are adopting these technologies. The market caters to the food and petrochemical industries, storage and warehouse facilities, and processing and storage industries, addressing temperature and humidity needs. With the rise in urban population and commercial construction, the demand for advanced heat ventilation and sensing devices is escalating, driven by the Internet of Things (IoT). Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
There is increasing growth due to the increasing adoption of smart and connected HVAC systems. One of the key reasons is the advancement in portable devices and monitoring systems such that end-users can manage their systems in a much more convenient and efficient way. Additionally, there is an increasing demand for IoT-enabled devices as these devices are used to solve complex maintenance tasks in residential and commercial HVAC systems.
Also, several system manufacturers are collaborating with startups and IoT solution providers in a bid to strengthen their offerings. For example, in June 2022, Midea Group Co., Ltd. (Midea) partnered with Taqeef Refrigeration and Air Condition Trading LLC (Taqeef), a UAE-based AC and cooling solutions provider, to offer the company's V8 Series with variable refrigerant flow rate (VRF) in the UAE, to unveil a new blueprint for developing intelligent solutions that deliver the highest energy efficiency and comfort in the industry. Hence such factors are expected to drive the growth of the global Heating, ventilation, and air conditioning (HVAC) Control Systems market during the forecast period.
Factors such as the demand for reducing operational and maintenance costs, as well as optimizing energy use in commercial and residential buildings, are increasing, resulting in advances in lighting, cooling, heating, and ventilation systems, which account for about 60% of energy consumption in buildings.
Therefore, advances such as the integration of two or more systems help to optimize energy efficiency in buildings. For example, the integration of lighting systems and HVAC systems in buildings under a single platform minimizes energy consumption and improves the efficiency of building management systems. Thus, such integration helps in regulating the internal building environment in terms of temperature, humidity, and light. Hence, such integration is expected to drive the growth of the Market during the forecast period.
As there is increasing adoption of technological advances in HVAC systems, such as wireless technologies and connectivity features, is growing rapidly across the residential, commercial, and industrial segments, it poses a significant threat to the manufacturers in terms of making these safe from cybersecurity threats.
Most of the systems, such as Wi-Fi-based thermostats, temperature sensors, relative humidity sensors, and flow sensors, are vulnerable to hacking. Hence, cyber security threats pose a significant challenge to the global market which can negatively impact the market growth during the forecast period.
The sensors segment will account for a major share of the market's growth during the forecast period. One of the key applications of sensors in HVAC is to measure and detect changes in temperature, humidity, and airflow. Also, these sensors act as communication media between HVAC systems and end-users. Some of the types of sensors in HVAC systems include temperature sensors, relative humidity sensors, flow sensors, pressure sensors, and electric sensors.
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The sensors segment was valued at USD 7.76 billion in 2018. There is an increase in investments in research and development by several companies to enhance temperature sensor functionalities. For instance, many of them have started equipping independent temperature sensor systems in place of thermostats. Thus, such type of sensors facilitates these to automatically power off if the room is unoccupied or adjust the temperature based on the change in room temperature. Thus, these types of sensors have started replacing thermostats, especially in commercial buildings, making them obsolete. Hence such applications in commercial and residential buildings are expected to drive the growth of the global market during the forecast period.
Based on end-user, the market has been segmented into automotive, residential, commercial, and industrial. There is increasing adoption across all automotive systems as almost all passenger cars are equipped with these. But, there is a significant chance of to decline in the market share in the automotive segment when compared to other sectors owing to the slowdown in the production and sales of automobiles which is expected to recover after 2020. One of the major types that is gaining more market share in the automotive sector is the programmable HVAC system due to the increasing adoption of automatic and remote access in automobiles. Hence, such factors are expected to drive the growth of the global market during the forecast period.
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APAC is estimated to contribute 43% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market growth and trends influencing the market's trajectory throughout the forecast period.
One of the key regions is APAC, including several countries such as China, India, and Japan, due to the better awareness of the benefits. Factors such as the growth of construction activities and the rise in the number of commercial office spaces are increasing the demand in the region. India, Singapore, Taiwan, and South Korea are some of the prominent players in the market as they are prime locations for investments by Western multinational companies, particularly in the fields of technology and healthcare. Thus such factors are expected to drive the growth of the global market in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Azbil Corp: The company offers ACTIVAL+ series of motorized valves and actuators, which are designed for precise control of chilled or hot water in HVAC applications.
Delta Electronics Inc: The company offers torque AC motor drives, and programmable logic controllers.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Acuity Brands Inc., Azbil Corp., Computime Group Ltd., Delta Electronics Inc., Emerson Electric Co., Fr. Sauter AG, Generac Holdings Inc., Honeywell International Inc., Johnson Controls International Plc., KMC Controls Inc., Lennox International Inc., Mass Electronics Pty Ltd., Mitsubishi Electric Corp., NanoSense, Quest Controls Inc., Reliable Controls Corp., Schneider Electric SE, Siemens AG, and Trane Technologies plc
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is revolutionizing the construction sector by replacing conventional HVAC systems with innovative HVAC control systems. These systems utilize IoT and AI devices, cloud computing, and Artificial Intelligence (AI) to enable fine tuning, preventative maintenance, and zone control systems. Technologies like smart thermostats, wireless sensors, and temperature and humidity sensors optimize temperature control systems for indoor areas, enhancing energy efficient practices in commercial applications such as shopping malls, educational institutions, healthcare institutions, and hotels.
Furthermore, driven by urbanization, economic growth, and green buildings initiatives, the market is expanding rapidly. The integration of Building Automation Systems (BASs) and smart cities initiatives further fuels demand. Retrofitting and upgradation of HVAC systems address ductwork issues like leaks and ensure compliance with guidelines and regulations. By reducing human intervention and enhancing cost savings, these systems significantly improve ventilation control systems, humidity control systems, and overall indoor air quality.
Market Scope |
|
Report Coverage |
Details |
Page number |
188 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.51% |
Market growth 2024-2028 |
USD 9.66 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.84 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, India, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Acuity Brands Inc., Azbil Corp., Computime Group Ltd., Delta Electronics Inc., Emerson Electric Co., Fr. Sauter AG, Generac Holdings Inc., Honeywell International Inc., Johnson Controls International Plc., KMC Controls Inc., Lennox International Inc., Mass Electronics Pty Ltd., Mitsubishi Electric Corp., NanoSense, Quest Controls Inc., Reliable Controls Corp., Schneider Electric SE, Siemens AG, and Trane Technologies plc |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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