The HVAC market is one of the most vital and fast-growing industries in building infrastructure and climate management, with strong growth fueled by urbanization, climate change issues, and rising demand for energy-efficient heating, ventilation, and air conditioning systems. Job growth for heating, air conditioning, and refrigeration mechanics and installers is projected to increase by 9% from 2023 to 2033, a rate much faster than the average for all occupations.

This large market has various subcategories such as air handling units, compressors, district heating and cooling, filters, furnaces, heat pumps, heating and cooling systems, induction heating systems, machinery, ovens, radiators, refrigerants, spacers, underfloor heating, and water heaters, each solution being very important for climate control needs in residential, commercial, and industrial usage. The heat pump application showcases outstanding growth prospects, with the air source heat pump industry surpassing USD 47.7 billion in 2023 and projected to achieve a CAGR of 14.4% during the period from 2024 to 2032, supported by the increasing trend towards the use of cleaner refrigerants with low global warming potential.

The United States heat pump market exceeded USD 11.2 billion in 2024 and is anticipated to record 8.4% CAGR over the period 2025-2034, attributed to growing demand for energy-efficient systems. Support equipment records impressive growth, with the market for heat pump compressors reaching USD 13.9 billion in 2023 and projected to grow at a 13.7% CAGR between 2024 and 2032. Applications of water heating record impressive growth, with the market for heat pump water heaters crossing USD 10.7 billion in 2023 and projected to grow at a 9.2% CAGR between 2024 and 2032.

Primary drivers in the market are increasing global temperatures that demand effective cooling, regulatory requirements for energy efficiency and environmental sustainability, and developing technologies in smart HVAC systems with IoT capabilities. Smart thermostats, predictive maintenance, and AI-driven optimization increasingly transform HVAC system performance, energy usage, and operational effectiveness across all subcategories.