Commercial HVAC Market Size, Share, Trends, Growth 2032

Commercial HVAC Industry Prospective:

The global commercial HVAC market size was worth around USD 61.88 billion in 2023 and is predicted to grow to around USD 120.63 billion by 2032, with a compound annual growth rate (CAGR) of roughly 7.70% between 2024 and 2032.

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Commercial HVAC Market: Overview

Commercial heating, ventilation, and air conditioning (HVAC) perform the same role as residential HVAC solutions. They are used to improve air quality in commercial buildings.

Furthermore, commercial HVACs ensure that the occupants live in a comfortable environment. In the absence of an effective commercial HVAC system, businesses or factory owners can face monetary and non-monetary losses such as loss of productivity. Commercial-grade heating systems are powered by burning fuel such as oil, gas, or electricity.

On the other hand, air conditioning systems use hot air making them pass through refrigerants and passing the cold air in an indoor environment. Ventilation systems leverage the applications of fans for introducing outside air in indoor facilities and expelling contaminated air from the building. The process ensures that the carbon dioxide levels within a closed setting are below 1000 molecules per million.

An efficient commercial HVAC system is helpful in diluting gasses, reducing odor, and preventing respiratory diseases among building occupants. The demand for commercial HVAC systems is driven by the growing construction of new commercial centers such as entertainment facilities, supermarkets & hypermarkets.

Furthermore, technological advancements in commercial HVAC solutions will generate more expansion opportunities for the commercial HVAC industry players. The high initial cost of investment and excessive energy consumption by commercial centers will restrict the market growth rate.

Key Insights:

• As per the analysis shared by our research analyst, the global commercial HVAC market is estimated to grow annually at a CAGR of around 7.70% over the forecast period (2024-2032)
• In terms of revenue, the global commercial HVAC market size was valued at around USD 61.88 billion in 2023 and is projected to reach USD 120.63 billion by 2032.
• The commercial HVAC market is projected to grow at a significant rate due to the rising construction of new commercial and retail centers.
• Based on components, the filters segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on end-users, the hospital segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Commercial HVAC Market: Growth Drivers

Rising construction of new commercial and retail centers to drive market demand rate

The global commercial HVAC market is expected to register high growth due to the rising construction of new retail and commercial centers. Some of the most common retail facilities include supermarkets & hypermarkets along with stores selling fashion items. For instance, the United Kingdom (UK) is witnessing a surge in the number of large-scale supermarkets to meet the growing and evolving needs of its regional population.

In May 2024, Asda, a leading supermarket retailer in the UK, announced an investment of EUR 50 million to upgrade the shopping experience of its customers. The improvement plans will be carried out across 170 stores of the brand throughout the region. In addition, the rapid expansion of retail stores is predominantly experienced by emerging countries in the last few years. African nations and major Asian countries, such as India and China, are registering a change in consumer buying patterns.

Additionally, regional demand for grocery, clothing, and other essential items is growing rapidly, further fueling the development of all-in-one retail stores offering a large number of products for each category of consumer goods. In March 2024, South Africa’s prominent supermarket retailer, SPAR Group, announced its plan to launch premium and discount grocery stores while also making an entry into niche segments in the coming years.

Growing applications of HVAC systems in warehouses worldwide to generate more revenue

The global commercial HVAC market is projected to be impacted by the rising applications of heating, ventilation, and air conditioning solutions in warehouses worldwide. One of the major factors influencing the rapid expansion of highly functional warehouses is the excellent boom in the e-commerce industry, including online grocery and healthcare-related shopping.

In January 2024, Cainiao Network Technology, the logistics wing of Alibaba Group, announced that it had completed the construction of a new smart warehouse for Flash Express, a Thailand-based courier company. In September 2024, Amazon India announced the commencement of operations at three new fulfillment centers offering a combined storage capacity of 1.2 million cubic feet.

Commercial HVAC Market: Restraints

High initial cost of investment to limit the industry’s growth rate in the coming years

The global industry for commercial HVAC is projected to be restricted due to the high cost of initial investment required to create and deploy air quality-improving technologies on a large scale.

For instance, the average cost of rooftop units (RTUs) for larger facilities can start from USD 10,000 and reach over USD 25,000. In addition, commercial HVAC seekers must invest in accurately identifying the most suitable commercial HVAC systems depending on their business needs, which requires time and resources-based investments further impacting the final growth in the industry.

Commercial HVAC Market: Opportunities

Increasing the launch of improved solutions with a primary focus on energy efficiency will generate growth opportunities

The global commercial HVAC market is expected to generate growth opportunities due to the rising launch of new solutions with improved technologies. Market players are focusing on developing customized products suitable for specific commercial applications while also innovating standard products to continue providing services to a larger range of end-consumers. In addition, the primary focus is being directed toward developing energy-saving and energy-efficient commercial HVAC solutions since energy demands continue to rise.

In November 2020, Honeywell announced the launch of  Honeywell Electronic Air Cleaners (EACs) equipped with a new line of indoor air quality (IAQ) sensors and ultraviolet (UV) systems. The air cleaners not only filter the air but also disinfect thus ensuring that the air quality is improved.

In March 2023, Vaisala, a leading provider of weather, environmental, and industrial measurements-related services, announced the expansion of its HVAC portfolio with the launch of the Vaisala GMD110 carbon dioxide transmitter. The device provides performance in terms of measuring carbon dioxide in ventilation ducts and air-handling systems in commercial and industrial facilities.

Commercial HVAC Market: Challenges

Rising concern over excessive energy used by commercial HVAC systems to challenge market expansion

The global commercial HVAC industry is expected to be challenged by the rising concern of commercial centers using excessive energy.

While the development of energy-efficiency technologies continues to rise, the majority of solutions used worldwide continue to use large volumes of non-sustainable energy resourcing and also lead to excessive scale of environmental pollution.

Commercial HVAC Market: Report Scope

Commercial HVAC Market: Segmentation

The global commercial HVAC market is segmented based on components, product type, end-users, and region.

Based on the components, the global market segments are tubing/piping systems, filters, sensors, ventilation fan & blower units, expansion valves, compressors, evaporator coils, and control systems.

In 2023, the highest growth was listed in the filters segment as they are the main components of all types of HVAC solutions. They are mainly used in ductwork, air handlers, and ventilation systems.

Furthermore, they must be frequently replaced or maintained to ensure that the ventilation system works proficiency. The average replacement time for High-Efficiency Particulate Air (HEPA) filters is around 6 to 12 months.

Based on product type, the global commercial HVAC industry is divided into air conditioning, ventilation, heating, and others.

Based on the end-users, the global market divisions are hospitals, office buildings, educational institutions, hotels, retail stores, and others. In 2023, the highest growth was listed in the hospitals segment. Healthcare facilities must maintain air quality throughout the day. Patients being exposed to poor air quality can lead to further deterioration in their health. The growing launch of new strict regulatory measures to maintain air quality in hospitals will fuel segmental revenue. For instance, the temperature range for patient areas in hospitals should be maintained between 20–24°C.

Commercial HVAC Market: Regional Analysis

Asia-Pacific to generate the highest revenue during the forecast period

The global commercial HVAC market will be led by Asia-Pacific during the projection period. Countries such as India, China, Japan, Singapore, and others will lead the regional market growth rate. Asian countries are home to some of the largest number of retail stores across major economies. In addition, the presence of a growing number of massive manufacturing facilities and warehouses further contributes to regional market revenue.

For instance, in November 2024, Honda Motor Co., Ltd. unveiled its new production facility for all-solid-state batteries situated in Sakura City, Tochigi Prefecture, Japan. The total floor area of the facility is around 27,400 meters square. It will be equipped with state-of-the-art technologies, according to official sources.

North America is another prominent market generating large volumes of final revenue. The regional market growth is influenced by the existence of several strict policies concerning workplace safety.

Alongside this, the region is also governed by strict implementation frameworks ensuring that the workers in commercial spaces are not exposed to an uncomfortable working environment. The rising regional demand for energy efficiency and electric-energy-powered HVAC solutions will fuel regional demand in the coming years.

Commercial HVAC Market: Competitive Analysis

The global commercial HVAC market is led by players like:

• Rheem Manufacturing Company
• Carrier Global Corporation
• Bosch Thermotechnology
• Daikin Industries Ltd.
• LG Electronics HVAC
• Mitsubishi Electric Corporation
• Trane Technologies plc
• Fujitsu General HVAC
• American Standard Heating & Air Conditioning
• Johnson Controls International
• Goodman Manufacturing (a Daikin company)
• Lennox International Inc.
• Hitachi Cooling & Heating
• York International (a Johnson Controls brand)
• Honeywell International Inc.

The global commercial HVAC market is segmented as follows:

By Components

• Tubing/Piping Systems
• Filters
• Sensors
• Ventilation Fan & Blower Units
• Expansion Valves
• Compressors
• Evaporator Coils
• Control Systems

By Product Type

• Air Conditioning
• Ventilation
• Heating
• Others

By End-Users

• Hospitals
• Office Buildings
• Educational Institutions
• Hotels
• Retail Stores
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa