HVAC Sensors Market by Application, Type, and Geography - Forecast and Analysis 2023-2027

The global HVAC sensors market size is estimated to grow at a CAGR of 5.5% between 2022 and 2027. The size of the market is forecast to increase by USD 2,498.75 million.

HVAC sensors perform an array of programmable tasks in the HVAC system automatically to provide control over temperature preferences, environmental comfort, and efficiency settings which is driving the market growth. Additionally, factors such as organic and inorganic growth are also driving market growth. Organic growth is achieved through the expansion of operations by existing players. Inorganic growth is achieved by market consolidation, M and A, divestitures, and joint ventures with various companies for incorporating technological advances. The global HVAC sensors market is witnessing strong inorganic growth, which is leading to continuous advances and new product launches. For instance, in September 2022, ABB Ltd partnered with an AI predictive maintenance platform, Samotics BV, to provide enhanced condition monitoring services. As a part of the partnership, ABB acquired a 10% stake in Samotics. Furthermore, factors such as the advent of smart HVAC systems are also driving market growth.

This report extensively covers market segmentation by application (automotive, residential, commercial, and industrial), type (temperature sensors, humidity sensors, pressure sensors, and air quality sensors), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the HVAC Sensors Market During the Forecast Period?

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HVAC Sensors Market: Key Drivers, Trends, Challenges, and Customer Landscape

The advances in temperature sensors are notably driving the market growth, although factors such as cybersecurity issues in HVAC control systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key HVAC Sensors Market Driver

The advances in temperature sensors are notably driving market growth. Tasks like controlling energy and temperature and alarm alerts can be performed by HVAC sensors. Temperature control plays a significant role in HVAC systems. Therefore, HVAC control manufacturers are focusing on continuous advances in temperature control systems. Such temperature control systems are developed by innovative devices such as temperature sensors and control valves. For instance, digital programmable temperature sensors allow HVAC control system users to schedule energy-saving temperature setbacks for a fixed time period. Similarly, zoning systems allow users to set varying heating and cooling parameters to regulate temperatures in different zones. 

Advances in temperature sensors are increasing the adoption of HVAC control systems across various industries. Advances and continuous innovation in these products are increasing the manufacturing cost of HVAC temperature sensors. As these products are at the innovation stage of the product life cycle, manufacturers can push the increased cost to consumers until economies of scale are achieved. Therefore, advances in temperature sensors are increasing the adoption of HVAC control systems, which is eventually increasing the profit margins of HVAC sensor manufacturers. These factors will drive the growth of the global heating ventilating and air conditioning sensors market during the forecast period.

Significant HVAC Sensors Market Trend

Increasing focus on integrated building management systems is an emerging trend in the market. There is an increase in the demand for reducing operational costs, maintenance costs, and energy optimization in commercial and residential buildings. This is leading to advances in lighting, cooling, heating, and ventilation systems, which account for about 60% of energy consumption in buildings. Advances such as the integration of two or more systems are significantly leading to the optimization of energy efficiency in buildings. Such integration helps in regulating the internal building environment in terms of temperature, humidity, and light.

A single sensor can be used to adjust and control both lighting and temperature in a building according to occupancy. The sensor can regulate and shut off one or more systems if the occupancy level drops below a certain cutoff. Recent trends in building management systems indicate an increase in the number of smart buildings. Such technologies are installed in smart buildings to accommodate the integration of lighting and HVAC systems with existing building automation systems or upgraded systems. The integration of two or more systems in a facility can lead to optimized energy consumption, improved profit margins, and a comfortable internal environment in buildings. Hence, these factors will drive the heating ventilating and air conditioning sensors market growth during the forecast period.

Major HVAC Sensors Market Challenge

Cybersecurity issues in HVAC control systems are major challenges impeding market growth. HVAC control systems, such as Wi-Fi-based thermostats, temperature sensors, relative humidity sensors, and flow sensors, are prone to hacking. Cybersecurity issues in HVAC control systems are negatively impacting the adoption of HVAC control systems. The adoption of technological advances in HVAC systems, such as wireless technologies and connectivity features, is growing rapidly across the residential, commercial, and industrial segments. However, the increasing adoption of such technologies is challenging HVAC control system manufacturers to make HVAC systems safe from cybersecurity threats.

Modern HVAC systems have advanced connectivity features. However, the cybersecurity threat remains persistent. For instance, in 2021, the Federal Bureau of Investigation (FBI) helped Boston Children's Hospital alleviate a cyberattack by Iranian state-sponsored hackers before any damage could be caused. The attackers contacted Databreaches.net and shared evidence of a successful cyberattack on an HVAC vendor, claiming they compromised the HVAC vendor's systems and also accessed a children's hospital system. Thus, such factors are expected to hinder the growth of the global heating ventilating and air conditioning sensors market during the forecast period.

Key HVAC Sensors Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global HVAC Sensors Market Customer Landscape

Who are the Major HVAC Sensors Market Vendors?

Vendors 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.

Fr. Sauter AG - The company operates under one segment. The company under this segment focuses on providing expertise and solutions for building management and room automation. The key offerings of the company include HVAC sensors. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• ABB Ltd.
• All Sensors Corp.
• Amphenol Advanced Sensors
• Emerson Electric Co.
• ES Systems
• Greystone Energy Systems Inc.
• Honeywell International Inc.
• Infineon Technologies AG
• Ingersoll Rand Inc.
• Johnson Controls International Plc.
• KMC Controls Inc.
• OJ Electronics AS
• Raytheon Technologies Corp.
• Schneider Electric SE
• Sensata Technologies Inc

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the HVAC Sensors Market?

The market share growth by the automotive segment will be significant during the forecast period. The adoption of HVAC systems is high in the automotive segment, as almost all passenger cars are equipped with them. Moreover, with an increase in the use of automatic temperature control systems in automobiles, especially in passenger cars, the demand for such sensors is increasing. 

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The automotive segment was valued at USD 2,311.34 million in 2017 and continue to grow until 2021. Advanced HVAC sensors, such as solar load sensors and carbon dioxide sensors, are expected to account for the highest share of the automotive segment in the global market. This is because of the increasing adoption of automatic HVAC systems and remotely accessible HVAC systems with IoT-enabled technology in automobiles. Moreover, the adoption of automated temperature control in HVAC systems is increasing in mid-segment and entry-level vehicles, which is rising the demand for solar load sensors. For instance, in India, MG Hector, a mid-segment passenger car, is equipped with in-car wireless fidelity (Wi-Fi) and an HVAC system that can be controlled through smartphones remotely. Furthermore, the manufacturers of luxury vehicles and full-size SUVs have started equipping dual-zone climate-controlled HVAC systems, which require two solar load sensors. Thus, the adoption of such HVAC systems in automobiles is expected to drive the growth of the global heating ventilating and air conditioning sensors market during the forecast period.

Which are the Key Regions for the HVAC Sensors Market?

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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The market in APAC is dominated by countries such as China, Japan, and South Korea, where awareness about the benefits of energy-efficient HVAC systems is increasing. The growing number of construction activities and commercial office spaces are increasing the demand for HVAC sensors in the region. Rapid urbanization and infrastructural development are also increasing the demand for HVAC systems and HVAC sensors.

The revenue generated by the market in APAC is increasing due to the rising adoption of technologically advanced HVAC sensors. One of the major factors that are increasing the adoption of technologically advanced HVAC sensors is the presence of government incentives and support, especially in developing countries, to install solutions that provide high energy efficiency. For instance, in China and India, the presence of government initiatives that promote the use of energy-efficient and advanced solutions in both the commercial and residential segments is increasing the demand for advanced HVAC sensors in the region. Furthermore, the automotive sector plays a major role in the growth of the market in APAC. The technological shift from manual HVAC systems to automatic HVAC systems is a crucial factor for the revenue growth of the regional market. In addition, t development of several emerging economies and the rising number of economic corridors and special economic zones (SEZs) are expected to increase the demand for HVAC sensors in APAC during the forecast period.

The COVID-19 pandemic in 2020 negatively impacted the growth of the market in APAC. However, the lockdown restrictions were lifted by the end of 2020 owing to large-scale vaccination drives across APAC. This resumed production in the manufacturing facilities. The operations in the end-user industries such as automotive, construction, food and beverages, and electronics were also restarted in 2021. This is expected to increase the demand for HVAC sensors for various applications in these end-user industries during the forecast period. Additionally, the Indian pharmaceutical industry is growing significantly. For instance, according to the annual report 2020-21 of the Department of Pharmaceuticals, India accounts for 60% of global vaccine production, contributing 40% to 70% of the WHO demand for diphtheria, tetanus, and pertussis (DPT) and bacillus Calmette-Guerin (BCG) vaccines, and 90% of the measles vaccine. Hence, such factors will drive the growth of the market in APAC during the forecast period.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook (USD Million, 2017 - 2027)
  • Automotive
  • Residential
  • Commercial
  • Industrial

• Type Outlook (USD Million, 2017 - 2027)
  • Temperature sensors
  • Humidity sensors
  • Pressure sensors
  • Air quality sensors

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Parent Market Analysis

Technavio categorizes the global heating, ventilation, and air conditioning (HVAC) sensors market as a part of the global electrical components and equipment market within the global electrical equipment market. The parent market, the global electrical components, and equipment market cover companies engaged in the manufacturing of electric cables and wires, electrical components, and electrical equipment.  Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

HVAC Sensors Market Scope
Report Coverage	Details
Page number	176
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.5%
Market growth 2023-2027	USD 2,498.75 million
Market structure	Fragmented
YoY growth 2022-2023(%)	5.3
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 51%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., All Sensors Corp., Amphenol Advanced Sensors, Emerson Electric Co., ES Systems, Fr. Sauter AG, Greystone Energy Systems Inc., Honeywell International Inc., Infineon Technologies AG, Ingersoll Rand Inc., Johnson Controls International Plc., KMC Controls Inc., OJ Electronics AS, Raytheon Technologies Corp., Schneider Electric SE, Senmatic AS, Sensata Technologies Inc, Sensirion AG, Siemens AG, and TE Connectivity Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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.

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What are the Key Data Covered in this HVAC Sensors Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the HVAC sensors market between 2023 and 2027
• Precise estimation of the size of the HVAC sensors market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of HVAC sensors market vendors

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