The global commercial HVAC market is experiencing significant growth, driven by rapid urbanization, increased construction, and demand for energy-efficient, smart (IoT-enabled) systems to improve indoor air quality, with Asia-Pacific holding the largest market share. Key players include Daikin Industries, Carrier Global, Trane Technologies, and Lennox International.
Chicago, Jan. 30, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the global commercial HVAC market was valued at US$ 62.79 billion in 2024 and is projected to hit the market valuation of US$ 120.59 billion by 2033 at a CAGR of 7.52% during the forecast period 2025–2033.
Governments worldwide are increasingly enforcing rigorous energy efficiency standards, acting as a powerful catalyst for the modernization of commercial HVAC equipment. These regulations are compelling building owners and manufacturers alike to upgrade to more efficient systems, fundamentally transforming the market landscape. In response, the demand for new, compliant equipment is surging, spurring widespread adoption of cutting-edge HVAC technologies designed to meet stricter environmental benchmarks.
Instantly Access the Sample Report: https://www.astuteanalytica.com/request-sample/commercial-hvac-market
To align with new efficiency mandates, an estimated 4.5 million commercial HVAC rooftop units (RTUs) are projected to be installed across North America and Europe in 2025. These installations represent a significant upgrade wave, replacing older, less efficient models with units engineered for enhanced energy performance and reduced emissions. The scale of this replacement effort highlights the urgency and breadth of the market’s response to tightening regulatory frameworks.
Technological Advancements Fueling Commercial HVAC Demand
The evolving technological landscape is generating substantial new demand streams within the commercial HVAC market. As digital infrastructure expands rapidly, the need for specialized cooling solutions has become paramount. One of the most striking examples is the planned development of 150 new hyperscale data centers in 2025, each requiring highly precise cooling capabilities.
Alongside digital expansion, the global push for electrification is shaping HVAC market dynamics, particularly through the increased adoption of commercial heat pumps. In Europe alone, projections indicate that over 600,000 commercial heat pumps will be installed in 2025. This surge reflects a broader commitment to reducing carbon emissions and transitioning away from fossil fuels.
Variable Refrigerant Flow (VRF) systems are also playing an increasingly important role in meeting diverse commercial cooling demands. In 2024, VRF installations worldwide are expected to reach a total capacity of 20 million tons. VRF technology offers flexible, scalable cooling solutions that adapt to varied building sizes and usage patterns, making it highly attractive for modern commercial developments. Its efficiency and precision align well with the market’s evolving priorities for sustainability and operational excellence.
Transforming Business Models: The Rise of Heating and Cooling as a Service (HaaS)
A profound transformation is sweeping through the commercial HVAC industry as companies shift away from traditional high-capital equipment sales toward long-term operational contracts. This evolution is embodied in the Heating and Cooling as a Service (HaaS) model, which redefines how clients access and pay for HVAC solutions. Instead of large upfront investments, clients now pay a predictable monthly fee that covers not only the provision of heating and cooling outcomes but also ongoing maintenance and energy performance guarantees.
The adoption of the HaaS model is gaining significant traction, with projections indicating that by 2025, over 15,000 commercial buildings across North America will be managed under such agreements. This rapid uptake reflects growing demand for flexible, cost-effective HVAC solutions that reduce capital expenditure while ensuring reliable performance. The ability to outsource HVAC system management allows building owners to focus on their core operations, confident that their heating and cooling needs are met by expert providers.
One of the defining advantages of the HaaS model lies in its transfer of ownership risk from clients to service providers. By assuming responsibility for equipment operation, maintenance, and energy efficiency, providers absorb the uncertainties associated with system performance and lifecycle costs. This risk shift creates a stable and predictable revenue stream for providers, enabling better financial planning and investment in technology and service innovation.
Embracing Circular Economy Principles in Commercial HVAC
The commercial HVAC market is increasingly adopting circular economy principles as a strategic approach to reduce waste and promote sustainability. This shift reflects a growing recognition that extending the life of existing assets not only conserves resources but also offers economic benefits to manufacturers and operators alike. By focusing on refurbishment, remanufacturing, and responsible end-of-life processing, the industry is actively transforming traditional practices to align with environmental goals.
A key trend in 2025 involves the certified refurbishment of commercial chillers and rooftop units. Rather than opting for costly replacements, an estimated 75,000 such units are expected to undergo professional refurbishment, restoring them to like-new condition. This approach maximizes the value extracted from existing equipment, reduces material consumption, and minimizes environmental impact. Certified refurbishment also ensures that refurbished units meet stringent quality and performance standards, providing reliable service life extensions.
The remanufacturing of critical HVAC components, such as compressors, is scaling rapidly. In 2024 alone, projections indicate sales of over 300,000 remanufactured commercial compressors. This process involves restoring used compressors to full operational capacity through meticulous rebuilding and testing, offering a cost-effective and resource-efficient alternative to producing new units. By integrating remanufactured parts, the HVAC industry supports circularity while maintaining high performance and reliability in commercial systems.
Cooling Equipment: The Powerhouse of the Commercial HVAC Market
Cooling equipment holds a commanding 54% share of the commercial HVAC market, making it the largest and most influential segment. This dominance is no coincidence but rather a reflection of the indispensable role that reliable and efficient cooling plays in maintaining smooth commercial operations. From retail spaces to office buildings, the demand for robust cooling solutions is fueled by the need to ensure comfortable environments, protect sensitive equipment, and comply with regulatory standards.
Among the cooling category’s staples, rooftop HVAC units stand out for their durability and long service life, typically ranging from 15 to 20 years. This extended lifespan translates into significant long-term investments for commercial property owners, who must carefully plan replacement cycles to maintain system efficiency and avoid costly downtime. The reliability of these units underscores their critical role in sustaining building operations, especially in climates with high cooling demands.
Packaged chillers represent another vital component within the cooling equipment segment, with lifespans often extending between 20 and 23 years. These units provide high-capacity, centralized cooling solutions for large commercial spaces, hospitals, and industrial facilities. Their durability and performance make them valuable assets, justifying substantial capital expenditures. The longevity of packaged chillers reinforces the segment’s prominence and highlights the importance of continued innovation to improve energy efficiency and reduce operational costs.
North America: Dominating the Global Commercial HVAC Market
North America commands a leading position in the global commercial HVAC market, holding over 34.30% of the total market share. This dominance is the result of a powerful synergy between stringent regulatory frameworks and an extensive wave of building modernization projects. Together, these forces are shaping a dynamic environment that prioritizes energy efficiency and sustainability, driving widespread adoption of advanced HVAC technologies across commercial sectors.
A key driver behind North America’s HVAC market growth is the proactive role of federal initiatives, particularly under the Inflation Reduction Act. This landmark legislation allocates substantial funding to support deep energy retrofits in more than 30,000 commercial buildings in 2025 alone. By incentivizing upgrades that significantly reduce energy consumption and carbon footprints, these programs are accelerating the modernization of aging infrastructure and promoting the deployment of high-efficiency HVAC systems.
Canada is contributing to the region’s momentum through an aggressive push toward electrification. Projections indicate that sales of commercial and residential heat pumps will surge from a baseline of 487,080 units in 2024 to an impressive 762,435 units by 2030. This rapid growth reflects government policies aimed at reducing reliance on fossil fuels and enhancing energy sustainability. The heat pump market’s expansion underscores the critical role of electrification in Canada’s broader climate and energy strategy.
Top Companies in the Commercial HVAC Market
- Carrier Corporation
- Daikin Industries LTD
- Gree Corporation
- Haier Electronics Group Co., Ltd
- Ingersoll Rand
- Johnson Controls International PLC
- Lennox International Inc.
- LG Electronics
- Midea Group
- Mitsubishi Electric Corporation
- Panasonic Corporation
- Rheem Manufacturing Company
- Samsung Electronics Co., Ltd.
- Trane
- Other Prominent Players
Market Segmentation Overview
By Equipment
- Cooling Equipment
- Heating Equipment
- Ventilation Equipment
By Sales Channel
- OEM
- Aftermarket
By Component
- Compressor
- Control Systems
- Expansion Valve
- Evaporator Coils
- Ventilation Fan and Blower Unit
- Filters, Dampers
- Sensor
- Tubing/piping Systems
- Others
By Application
- Office Building
- School & Colleges
- Hotels & Restaurants
- Shops
- Apartment
- Hospitals & Clinics
- Sport Centers
- Data Center
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
For more information about this report visit: https://www.astuteanalytica.com/industry-report/commercial-hvac-market
About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: [email protected]
Website: https://www.astuteanalytica.com/
Follow us on: LinkedIn | Twitter | YouTube
CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: [email protected] Website: https://www.astuteanalytica.com/
Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.