HVAC Controls Market
Report ID: SQMIG10C2060
Report ID: SQMIG10C2060
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Report ID:
SQMIG10C2060 |
Region:
Global |
Published Date: December, 2025
Pages:
177
|Tables:
114
|Figures:
71
Global HVAC Controls Market size was valued at USD 25.01 Billion in 2024 and is poised to grow from USD 27.31 Billion in 2025 to USD 55.22 Billion by 2033, growing at a CAGR of 9.2% during the forecast period (2026–2033).
The HVAC controls market is on the rise as demand for energy-efficient and automated building management grows.
Moreover, regulations supported by government initiatives and aggressive environmental standards also drive HVAC controls to adopt energy-friendly and energy-using technologies to improve a building's carbon footprint. Any changes to the building's or related HVAC system's operational methods are also regulated by continuous carbon emissions tracking and adherence policies.
The additional rise of smarter, greener, buildings and the increase of green construction and infrastructure created the additional market space for investment in HVAC controls that improve comfort while reducing energy usage. As many organizations continue to innovate within the HVAC controls sector, industry attention has been on the creation of connected innovative tools with intuitive, seamless user system interfaces and ability to be accessed remotely, opening new data driven capabilities utilized to improve systems operating performance. Overall, the value that the HVAC controls market provides across the commercial, residential, and industrial segments, the market continues to reflect positive leanings with continual innovation, favorable regulations and wider acceptance of sustainable infrastructure driving adoption.
How are AI-powered Smart Controls Enhancing User Comfort and Convenience?
The HVAC controls market is evolving rapidly using artificial intelligence (AI) to improve energy efficiency, operational performance, and comfort. In 2024, AI is one of the leading technologies driving modernization in HVAC systems for residential, commercial, and industrial applications. AI-based systems utilize real-time data from sensors, occupancy patterns, and weather forecasts to adjust the settings for heating, ventilation, and air conditioning dynamically and autonomously would lead to significant energy savings. One example of this is BrainBox AI and its ARIA platform that has been deployed in over 14,000 buildings in more than 20 countries while achieving energy savings of up to 25% while reducing greenhouse gas emissions.
AI can also assist operators with predictive maintenance to flag potential failures of HVAC equipment before they occur to reduce downtime and maintenance costs while extending the life of the HVAC equipment. AI also helps to enhance the user experience through the availability of smart thermostats and HVAC controls that learn users’ preferences, offer remote access, and allows for the addition and use of other smart home devices to enhance comfort and convenience.
Market snapshot - 2026-2033
Global Market Size
USD 22.06 Billion
Largest Segment
Commercial
Fastest Growth
Residential
Growth Rate
8.6% CAGR
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Global HVAC Controls Market is segmented by System, Component, Implementation Type, Application and region. Based on System, the market is segmented into Temperature Control System, Ventilation Control System, Humidity Control System and Integrated Control System. Based on Component, the market is segmented into Sensors and Controllers & Controlled Equipment. Based on Implementation Type, the market is segmented into New construction and Retrofit. Based on Application, the market is segmented into Residential, Commercial and Industrial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The commercial segment dominated the HVAC controls industry. Commercial buildings such as office buildings, malls, healthcare facilities, and education facilities have more robust energy optimization needs as well as expectations for tenant comfort and adherence to indoor air quality standards. Most commercial buildings deploy centralized control systems that monitor and control multiple zones and larger systems that integrate with building automation systems and allow for monitoring over time to maintain efficiency and comfort. The sheer volume of HVAC delivered in commercial facilities and the push for new energy-saving technology keeps the commercial sector at the forefront of the HVAC controls market.
The residential segment has experienced the most rapid market growth and is becoming even stronger with the growth of smart homes and the increasing rate of consumer adoption of connected devices. Homeowners are using smart thermostats, app-controlled HVAC systems, and voice-interfaced controls to better customize their comfort and reduce their energy costs. Increased urbanization, growing disposable income, and heightened awareness of sustainability are stimulating adoption of smart home technology in established, as well as developing, economies.
As per HVAC controls market outlook, the market is largely driven by the new construction segment since newer residential, commercial, and industrial projects are incorporating smart and energy-efficient HVAC systems from the design phase. To reduce energy consumption, regulations, such as those controlling the need for alternative energy sources on-site and sustainability certifications, such as LEED (Leadership in Energy and Environmental Design), are pushing the development of advanced HVAC controls systems in new buildings.
As per HVAC controls market analysis, the retrofit segment is showing fastest growth. A big driver of growth in the retrofit segment is the need to update aging HVAC infrastructure to smarter and more efficient systems. Many buildings are still using old HVAC equipment that consumes more energy and is not connected. It is likely that more building owners are becoming invested in using retrofitting solutions to improve performance with smart thermostats, zoning systems and AI-enabled controls, without replacing their whole HVAC system. Retrofit activity is likely to be driven mostly by older properties in regions such as North America and Europe that have a larger stock of older buildings. Retrofit is a high-growth segment.
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The North America HVAC controls market tends to be more mature than in other parts of the world, being more technologically advanced with the adoption of energy-efficient and smart building solutions. Government regulations promoting energy conservation, compliance and emissions reduction are encouraging different sectors residential, commercial, and industrial to invest into new advanced HVAC systems. On the other hand, with a more recent and growing awareness about sustainability, many property owners and managers have made the decision to invest in more energy-efficient systems.
The United States is a major player in HVAC controls in North America, mainly connected to rapid transition to smart thermostats, IoT-enabled HVAC systems, AI-enabled predictive controls, and of course the tremendous funding allocated to the IRS-backed homeowner rebate program. Consumers and commercial building operators are more willing to invest in systems that consume less resources, offer immediate insight into their operations, and provide seamless integration with smart building platforms.
Canada’s HVAC controls market dynamics are complicated, mainly due to its extreme cold-weather climate, the life and importance of established, energy-efficient HVAC systems for homeowners and commercial properties, and of course, the promotion at the government level for good and energy-saving technologies. Incentives offered at both the provincial and federal level for energy efficient buildings and energy saving technologies are good for supporting the deployment of smart HVAC controls into residential, and commercial buildings that need reliable heating and cooling while optimizing energy savings.
As per regional outlook, Asia-Pacific HVAC controls industry is experiencing steady growth, as rapid urbanization, increased disposable income, and increased awareness of energy efficiency continue to drive demand for HVAC controls. Both residential and commercial markets are experiencing an increasing demand for smart, connected, and AI-based HVAC systems.
The HVAC controls market in Japan is prioritizing the technological advances, energy efficiency, and smart home integration by manufacturers. Manufacturers aim to create improved HVAC control systems that are energy-efficient and maintain indoor comfort in compliance with strict environmental regulations.
South Korea is also experiencing growth in the use of intelligent HVAC systems based on AI and IoT. Increased use of "smart" HVAC control systems in urban residential and commercial buildings optimize energy consumption, provide predictive maintenance, and facilitate user convenience.
Energy-efficient regulations, incentives from governments, and the combined push towards smart and green buildings define the state of the HVAC controls market in Europe currently. The awareness of environmental sustainability is high in Europeans, this is driving the adoption of smart and efficient technological solutions across the residential, commercial, and industrial markets for HVAC.
Germany's regulations on energy efficiency and HVAC controls are particularly strict in comparison to other European countries due to the EU's energy regulation framework. Smart and connected HVAC controls are commonly used in residential and commercial buildings in Germany primarily due to lower energy consumption and connection to renewable energy offerings.
As per regional outlook, the focus of the U.K market is towards energy conservation, which in turn is driven by energy and smart building integration. Governmental policies and sustainability programs have attracted movement away from old HVAC systems to integrated low emission HVAC systems equipped with modern AI enabled controls.
As per industry analysis, Italy is steadily growing, particularly with innovative energy-efficient and technologically advanced control solutions for HVAC. As energy awareness rises in Urban households and commercial buildings it is advantageous to embrace energy efficiency systems that certify a better system performance operationally and environmentally with reduced operating costs and improved indoor comfort for residential and commercial operations.
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Rising Demand for Energy Efficiency
Increasing Smart Building and Home Automation Adoption
High Upfront Costs as a Barrier to Adoption
Technical Complexity and Limited Interoperability
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The global HVAC controls industry is a competitive and sophisticated market with global competitors focused on technological innovations, buying companies, and partnership agreements to grow their market position. Companies are investing a lot of money into their platform capabilities focused on AI, IoT, and cloud-enabled platforms to offer smarter and more energy efficient solutions that resonate with the growing demand for sustainable and smart buildings.
As per market strategies, in 2024, Carrier Global Corporation pursued a strategy to advance its smart HVAC capabilities using the integration of Viessmann Climate Solutions to expand its portfolio of sustainable solutions and advanced control technologies. Startups are significantly impacting the HVAC controls market through rapid, technology-based, innovation, sustainability, and user-centered solutions. Several startups are developing products with renewables, predictive maintenance, real-time monitoring and similar technologies, to address both cost concerns and environmental improvements. BrainBox AI: BrainBox AI is a Canadian startup launched in 2017. The company uses artificial intelligence to optimize building systems, particularly HVAC systems. BrainBox AI has developed a product known as ARIA. The ARIA platform uses live data such as temperature and humidity, to create a model of the current physical environment and occupancy within the building and identifies inefficiencies in system operation before adjusting the way the system operates autonomously. BrainBox AI provides a way for buildings to reduce energy and carbon emissions while ensuring people working and living in buildings remain comfortable and satisfied. As a demonstration of the companies technology and capabilities, BrainBox AI has launched and expanded rapidly to more than 14,000 buildings in 20+ countries, providing timely support and energy savings for numerous global decarbonization efforts.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the HVAC controls industry is booming with accelerating demand for energy-smart, automated, and smart building applications. Newer technologies such as Artificial Intelligence (AI) & smart sensors enabled with the Internet-of-things as well as smart thermostats are enabling real-time monitoring capabilities, adaptive control and predictive maintenance, these innovations are enhancing building energy performance, improving cost efficiency, preserving users’ comfort and satisfaction. To keep pace with the advances in technology from consumers and the entrance of competitors, the major players in the HVAC industry are beginning strategic integration of AI and IoT capabilities into their product and service offerings. Overall, the market is projected to have a positive trajectory, with the confluence of regulatory regimes, market demand and technology innovation creating a ripe environment for the adoption of HVAC systems that can demonstrably reduce energy consumption across all business sectors including residential, commercial and industrial.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 25.01 Billion |
| Market size value in 2033 | USD 55.22 Billion |
| Growth Rate | 9.2% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the HVAC Controls Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the HVAC Controls Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the HVAC Controls Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the HVAC Controls Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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