The global HVAC-R Market was valued at $193.6 billion in 2021 and is projected to reach $257.9 billion in 2027, following a CAGR of 5% during the forecast period 2022-2027. The growth in the global HVAC-R market is expected to be driven by increasing population and rapid urbanization, drastic change in weather conditions, and emerging innovation in HVAC-R.

Market Lifecycle Stage

The HVAC-R market is at the growing stage. There has been numerous research and development activities underway to enhance HVAC-R products and new innovative technologies in the HVAC-R has been introduced in the market.

The rise of smart technology adoption across the HVAC-R industry, technologies for smart home has also been increasing rapidly. The smart buyers are increasingly updating new homes to be equipped with the latest technological advances, and the HVAC-R system is no exception. Owing to the trend, the HVAC-R industry is undergoing a technological revolution to keep up with the demand of home buyers and builders.


  •   With an increased worldwide focus on green energy by using technologies such as geothermal, solar power, smart thermostats, even ice-powered air-conditioning, and others energy saving products brings significant sales and financing opportunities. The shift is more prominent in regions such as North America and Asia-Pacific. 
  •   Furthermore, the HVAC-R market has witnessed adoption of environment friendly refrigerants. Companies such as Chemours, Daikin, has been dominating by manufacturing environment friendly refrigerants across the globe. For example, Daikin has introduced refrigerants with lower values which are more environment friendly, such as R-134a, R-32 and R-410A which possesses a huge opportunity for the HVAC market.

Impact of COVID-19

Impact of Covid-19 on the HVAC-R market was positive in comparison to other industries across the globe. Airborne spread of Covid-19 offered opportunities to the HVAC-R market to improve the performance of indoor air quality of multi-occupancy buildings. HVAC-R strengthens the resilience of the infection control environment, in public, commercial and multi-unit residential buildings. In addition to this, Shift in the trend of work from home during and post covid-19 has witnessed demand in the Air Conditioning sector.

Market Segmentation:

Segmentation 1: by Application

  •   Industrial
  •   Commercial
  •   Residential

The global HVAC-R market in the application segment is expected to be dominated by the Commercial sector. This is due to increasing commercial projects across the globe, which includes offices, schools, colleges, hotels, restaurants, among others.

Segmentation 2: by Product

  •   Heating

     o     Heat Pumps

     o     Furnaces

     o     Boilers

     o     Others

The Heating segment is dominated by the Heat pump segment. This is due to the wide variety of application from heat pumps. Heat pumps are used for domestic and commercial heating applications such as water, space heating, drying clothes

  •   Ventilation

    o     Air Filters

    o     Humidifiers 

    o     Air Purifiers

    o     Air Handling Unit (AHU) and Fan Coil Unit (FCU)

    o     Others

The Ventilation segment is dominated by the Air Handling Unit (AHU) and Fan Coil Unit (FCU) segment. They are widely used in places including showrooms, offices, hotel rooms, condominiums, and others.

  •   Air Conditioning 

    o     Window and Portable Air Conditioning

    o     Mini-Split Air Conditioning

    o     Packaged Air Conditioning

    o     Chillers  

    o     Variable Refrigerant Flow (VRF) Systems

    o     Others

The air condition segment is dominated by mini split air conditioners segment. Mini split Air conditioners are further segmented into ducted and ductless. Ductless split systems cover a broad class of equipment such as an outdoor unit combined with single or multiple indoor units in a variety of styles like cassette, wall hung, console, under ceiling units, and others. Ducted split systems are widely used in domestic and light commercial applications.

  •   Refrigeration 

    o     By Type (Freezers and Refrigerators, Commercial Refrigerators, Refrigerated Transport)

    o     By Refrigeration Cycle Components (Compressor, Condenser, Expansion Valve and Evaporator)

Segmentation 3: by Region

  •   North America - U.S., Canada, and Mexico
  •   Europe - Germany, France, Italy, Rest-of-Europe
  •   China
  •   U.K.
  •   Asia-Pacific - Japan, India, South Korea, Australia, Singapore, Malaysia, Thailand, and Rest-of-Asia-Pacific
  •   South America- Brazil, Argentina, Rest-of-South America
  •   Middle East and Africa- South Africa, UAE, Rest-of-Middle East and Africa

Asia-Pacific and North America are dominating the market and these regions are an attractive region for the HVAC-R market because of the availability of the different market fragments.

Recent Developments in Global HVAC-R Market

  •   In April 2021, Coway, entered the Europe market by introducing the German populace with the sustainable and good quality water and air purifying devices the company manufactures.
  •   In January 2021, Samsung announced the market launch of the BESPOKE range of products starting from customized refrigerators.
  •   In February 2020, Nortek Global HVAC acquired Reznor to strengthen its presence and network in Europe.
  •   In July 2019, Munters launched a new product named Green Field Controllers which are designed to bring automation, efficiency, along with higher quality products to the agricultural industry by aiding operations of irrigation control and greenhouse climate control.

Request Sample -


How Can This Report Add Value to an Organization?

Product/Innovation Strategy: The product segment helps the reader understand the different types of HVAC-R products such as heating, ventilation, air conditioning and refrigeration available for deployment in industrial, commercial and residential sector, and their potential globally.

Growth/Marketing Strategy: The global HVAC-R market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. The favored strategy for the companies has been product development and innovation to strengthen their position in the mycelium market. For instance, in January 2022, Carrier launched a new software tool named PLV Pro to compare and provide users with free-of-cost, quick, and easy life cycle cost analysis for water-cooling chillers from many manufacturers.

Competitive Strategy: Key players in the global HVAC-R market analyzed and profiled in the study involve HVAC-R-based product manufacturers that provide heating, ventilation, air conditioning and refrigeration products. Moreover, a detailed competitive benchmarking of the players operating in the global HVAC-R market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

BIS Research Offerings -

You May Also Like -

Immersion Cooling Market - A Report by BIS Research