René Muschter
Research Expert covering Industry & Mobility
HVAC industry worldwide - statistics & facts
Heating, ventilation, and air conditioning (HVAC) technologies provide environmental comfort through thermal manipulation (heating and air conditioning) and acceptable indoor air quality (ventilation). Sometimes refrigeration is also included as a supplementary segment of the industry, naming it HVAC-R. The size of the HVAC industry is different across regions. Asia and North America have some of the largest HVAC market sizes, with the largest demand for air conditioners worldwide. China alone makes up more than a third of global demand.
While in many markets they did not compete yet with air conditioners and traditional heating systems, heat pumps are a type of HVAC equipment that has gained prominence in the past years. In France alone, which was the European country with the largest stock of heat pumps in 2024, there were roughly 6.5 million units. The HVAC industry is forecast to grow in the upcoming years. Increased demand through energy transition processes or even increased cooling needs in data centers contribute to the trend.
Growing industry, but challenges persist
It is generally assumed that growing concerns worldwide about climate change and awareness of energy efficiency will lead to a growing demand for climate control systems. In some countries, this development has been further propelled by government initiatives providing tax cuts for such systems on top of home upgrades or refurbishments. However, the industry is also facing important challenges. The issue of skilled labor shortages has affected the HVAC market and many other industries that require many skilled professionals. It is forecast that there will be roughly 139,300 plumbing and HVAC workers in the UK by 2029, a figure that only accounts for the number of people working on construction-related activities, such as installing equipment. Rising prices for energy and electricity are also a concern amidst global crises and wars that lead to market shocks.
Smart homes and data centers drive industry growth
Roughly half of the energy consumed by residential buildings in the U.S. in 2024 was used for space heating and cooling, water heating, and refrigeration, with these uses also making up a sizable share of the energy usage of commercial buildings. To decrease the carbon footprint of the building sector, it is increasingly critical to use more environmentally friendly HVAC equipment and install smart home tools. In 2025, 41 percent of realtors considered smart and connected buildings an important feature for their clients. Smart thermostats and HVAC equipment connected through the Internet of Things can control and automatically regulate the temperature of a room, which in turn allows a more efficient usage of energy. In addition to that, thermal insulation and other similar features of green buildings can help maintain a home at the ideal temperature using less energy. Another reason for the current industry growth is global investment into AI and data centers. Power and cooling solutions are the most important capability sought by IT leaders for their data centers. With the number of data centers increasing fast, the need for large-scale cooling solutions will likely support the growing demand in HVAC even further.
