HVAC Control Market Size, Share & Trends Analysis Report By Component (Sensors, Controllers and Controlled Equipment), By System (Temperature control system, Ventilation control system, Humidty control system, Integrated control system), By Implementation Type (New Construction, Retrofit), By End-User (Residential, Commercial, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global HVAC control market size is valued at USD 17,321.56 million in 2023. It is expected to reach USD 24,569.60 million by 2032, growing at a CAGR of 6.2% during the forecast period (2024­–2032). The building automation and controls industry is expected to grow because of government initiatives and the creation of smart cities in developing countries. This, in turn, drives the growth of the HVAC controller market. The market is growing because of building automation systems (BASs) and HVAC systems that can connect to the Internet of Things (IoT). However, changes in the prices of raw materials could slow the growth of the market. Also, the growing demand for cloud computing in HVAC is an excellent chance for the HVAC control market to grow.

HVAC – Heat Ventilation and air Conditioning controls are installed to regulate the operation of a heating, ventilating, and air conditioning system. The sensing device and other equipment are utilized to compare the actual state, such as humidity or temperature, with a target state. HVAC control is made up of things that control how heating, cooling, and ventilation equipment works. HVAC control is used in many industrial, retail, hospitality, and residential businesses.

Market Dynamics

Drivers:

The Emergence of IoT-Enabled HVAC Systems

IoT-enabled HVAC systems are being used in more and more industries. This is because they have high operating speed, better time management, efficient use of resources, less human effort, and higher productivity. HVAC systems are often used to control humidity and temperature in the food, beverage, chemical, pharmaceutical, and petrochemical industries.

Also, improving storage and warehouse facilities means keeping an eye on the airflow and checking the temperature and humidity. So, IoT-enabled HVAC systems are being used increasingly to keep an eye on equipment in the processing and storage industries. This is expected to give players in the market in emerging countries an excellent chance to grow during the forecast period.

Booming Construction Market

In 1960, 34% of the world's population was found to be living in cities. This trend shows that the number of people living in cities has been growing rapidly. According to the WHO estimates and projections, the world's urban population is expected to grow by 1.63% per year from 2020 to 2025 and 1.44% per year from 2025 to 2030.

The growth of the market is likely to be driven by the growing need to install highly efficient HVAC systems in both homes and businesses. Also, more commercial construction has led to a rise in the demand for heating and cooling equipment in many industries. This is expected to increase the need for HVAC control. For example, between 2016 and 2022, the commercial construction industry in India is expected to grow by almost 4%. All of these things are likely to help the growth of the HVAC control market.

Growing Demand for Building Automation Systems (BAS)

Building automation systems (BASs) are getting more and more HVAC controls, which is one of the most important things driving the market growth. Also, more and more people are using BASs because wireless sensor network technology and protocols are improving. The market is also growing as the office buildings and large shopping centers need to use BASs to enhance the efficiency of their management systems. Also, the need for more energy-efficient HVAC systems and a higher standard of living are driving up the demand for HVAC control in residential building automation systems, which is helping the market grow.

Low Adoption of HVAC Controls

Industrial HVAC control systems are often used in places like food-processing and product storage to keep an eye on and control the temperature and humidity in a building. These systems are expensive to set up and require a lot of cleaning and maintenance on a regular basis. Also, installing HVAC controls requires specialized skills to ensure they work better, which adds to the cost. 

There are not enough skilled people to work in many industries worldwide. For example, the US Bureau of Labor Statistics (BLS) released a report on employment in July 2019. Based on this information, industries across the US have reported a shortage of about 434,000 skilled workers, which is expected to grow to as many as 747,000 by 2026. Small-scale industries also do not know much about HVAC controls for industrial and commercial uses, hurting their demand and slowing market growth.

Opportunities:

Upsurge in Demand for Cloud Computing in HVAC Creates Lucrative Growth Opportunities

Air conditioning is one of the most expensive things that building managers have to pay for. End users are turning to cloud computing in HVAC to control these costs and ensure the system works well. Cloud computing is becoming increasingly popular in HVAC because it is scalable, flexible, and makes it easier to work together. Also, many HVAC companies are putting a lot of effort into developing cloud computing to keep their business going and get more customers worldwide. For example, in January 2018, Advantech Co., Ltd., based in Taiwan, made software integration to help the development of HVAC applications for building HVAC systems.

The system sends data to the cloud, where it is analyzed so that users can get real-time information through a control panel or other portable device. Similarly, the US-based software company Wrightsoft made HVAC load analysis software that uses cloud technology and has much productivity-boosting potential. HVAC contractors can offer better customer service and reduce costs with this new technology. Synco IC is a cloud-based system from Siemens that lets you control your HVAC system from afar.

Regional Analysis

The global HVAC control market share is primarily segmented into three regions, namely North America, Europe, and Asia-Pacific.

Due to the presence of emerging economies, Asia-Pacific is the largest shareholder of the global HVAC control market and is expected to grow at a CAGR of 6.3% during the forecast period. In Asian countries, HVAC control systems are used in several end-use industries, such as automotive, metals and mining, and electronics. The market is likely to grow because of the growth of the electronics and aviation industries in this region.

North America is the second-largest region in the global HVAC control market and is expected to reach USD 4,314.20 million by 2032, growing at a CAGR of 5.2%. North America's HVAC control market depends on the excellent industrial infrastructure in developed economies like the US and Canada. Furthermore, as Mexico's auto, food and beverage, and chemical industries grow, there is a huge demand for HVAC control in the region.

Europe is the third and least revenue-generating region in the global HVAC control market. Strict rules about installing energy-efficient HVAC systems in European countries like the UK, France, and Italy will likely increase the demand for HVAC control systems. This, in turn, drives the growth of the HVAC control market.

Segmental Analysis

The global HVAC control market share is segmented by components, systems, implementation type and end-user. 

Based on component, the global HVAC control market is segmented into into sensors and controllers and controlled equipment.

Sensors play a vital role in HVAC control systems by facilitating the collection of data pertaining to temperature, humidity, air quality, and various other environmental factors. They provide real-time information for making adjustments to the HVAC systems.

Controllers and controlled equipment serve as the central command and operational components of HVAC systems, effectively managing the functionality of heating, cooling, and ventilation equipment. Controllers are responsible for ensuring that the desired environmental conditions are both achieved and maintained.

Based on systems, the global HVAC control market is segmented into into temperature control systems, ventilation control systems, humidity control systems, and integrated control system.

Temperature control systems
The main goal of temperature control systems is to keep a room at the appropriate temperature. They can be changed based on occupancy, weather, and user preferences.

Ventilation control systems
Air quality and appropriate air exchange are maintained via ventilation control systems, which regulate the amount of fresh air that enters indoor spaces. This is essential for maximizing oxygen levels and eliminating contaminants.

Humidity control systems
Systems for controlling humidity are in charge of controlling the amount of moisture in the air. This is crucial in both residential and commercial environments where particular humidity levels are necessary for operations or the health of occupants.

Integrated control system
An integrated control system provides a comprehensive solution for regulating interior environmental conditions by combining several HVAC management aspects. It's a comprehensive strategy that meets multiple needs at once.

Based on implementation type, the global HVAC control market is segmented into into new construction and retrofit.

New Construction is the most dominant segment, growing at a CAGR of 5.7% during the forecast period. The HVAC control systems for new apartments, buildings, commercial complexes, and industries are installed as part of new construction. One of the main things that drive the growth of the HVAC control market is the rise in new building projects. All the changes in the commercial and industrial construction industry are expected to make HVAC control systems more popular and take the market inclined on the growth chart.

Retrofitting is the process of adding or upgrading older HVAC systems with new features or technologies to make them more productive and efficient as a whole. When existing HVAC systems in industrial buildings are upgraded with HVAC control systems, the operating costs go down, the risk of downtime goes down, and safety goes up. The market is also growing because there is a rise in demand for HVAC systems that use less energy, and smart homes are becoming more popular.

Based on end-user, the global HVAC control market is segmented into into residential, commercial, and industrial.

The commercial sector is the largest market shareholder and is expected to grow at a CAGR of 6.9% during the forecast period. It includes resorts, theaters, IT parks, and other commercial buildings that use HVAC control systems. The HVAC control market is expected to grow with the increase in building more commercial installations. Due to more people moving to cities in India and China, the market is expected to grow significantly. Most prominent players are working on making rooftop HVAC units for businesses.

The Industrial sector is listed second in the end-user segmentation after the commercial sector. Industrial HVAC control systems are used in the manufacturing and food and beverage industries to control and monitor temperature, humidity, and other vital parameters. The growth of the HVAC control market is expected to be driven by countries like India and China, which are becoming more industrialized and building up quickly.

The Residential sector studies the use of HVAC controls in homes, apartments, and other living spaces. The market is growing because people want heating and cooling appliances that are highly efficient, safe, and energy-saving. The growth of the HVAC control market is expected to be driven by a rise in the number of new buildings being built, which increases the need for air heating appliances.

Impact of covid-19

The COVID-19 pandemic has affected a number of economies in different ways, such as by hurting companies' finances, upsetting markets and supply chains, and changing how much is made and how much is spent. Supply chain problems like not getting raw materials and ingredients from third-party logistics caused a lot of trouble and affected both the market's operational and financial performance. Due to the fact that many countries around the world shut down for long periods of time, both the demand for finished products and the manufacturing plants suffered.

 So, both ends of the supply chain had an effect on the market. As Doctors are putting more effort into treating Covid-19, the demand is not likely to have gone away completely. This is because chondroitin sulfate is used in nutraceuticals and pharmaceuticals to treat and manage conditions like dry eyes, heart disease, osteoarthritis, and urinary tract infections. Since chondroitin sulfate will be used in research and development in the coming years, the market is expected to grow a lot. Also, as the global vaccination campaign moves forward and the virus spreads less, the market is likely to grow because there will be more demand for end-user products.

Recent Developments

• April 2022- Diakin Industries acquired Duplomatic MS S.P.A, an Italian Comprehensive Hydraulic Manufacturer.
• January 2022- Carrier Global Corporation launched the Certified healthy air systems program to drive healthy indoor air quality.
• January 2022- Delta Electronics Inc acquired Universal Instruments to enhance smart electronics manufacturing.
• January 2022- Danfoss A/S expanded its production capacity by 130% and launched the next-generation pressure transmitter.