HVAC Controls Market

Market Definition

The market focuses on systems and devices that regulate heating, ventilation, and air conditioning to ensure indoor comfort and energy efficiency. These controls include sensors, thermostats, controllers, and actuators that monitor temperature, humidity, airflow, and pressure. 

Applications extend to smart buildings, data centers, and manufacturing units, where precise environmental control is critical. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

HVAC Controls Market Overview

The global HVAC controls market size was valued at USD 26.72 billion in 2024 and is projected to grow from USD 29.26 billion in 2025 to USD 56.27 billion by 2032, exhibiting a CAGR of 9.71% during the forecast period. The growth of the market is driven by the expansion of smart building infrastructure and the integration of Building Automation Systems (BAS). These trends enhance energy efficiency and operational control, making HVAC systems more responsive and cost-effective, which significantly supports overall market growth.

Major companies operating in the HVAC controls industry are Honeywell International Inc., Johnson Controls, Siemens, Schneider Electric, Emerson Electric Co., Lennox International Inc., Trane, Delta Electronics, Inc., Abbott, Robert Bosch GmbH, Danfoss A/S, Eaton, Mitsubishi Electric Corporation, Rheem Manufacturing Company, and BELIMO AIRCONTROLS (USA), Inc.

The growing focus on reducing energy consumption in buildings is fueling the growth of the market. HVAC control systems enable the precise regulation of temperature, humidity, and airflow, optimizing energy usage. Businesses and homeowners are adopting advanced control technologies to cut down their energy bills and meet regulatory standards. The need for sustainable solutions across residential, commercial, and industrial sectors continues to support the expansion of the market.

• In January 2024, the U.S. Department of Energy (DOE) implemented new minimum efficiency requirements for residential and commercial HVAC equipment. These changes include updated testing procedures and nomenclature to better reflect real-world energy usage, aiming to enhance overall system efficiency.

Key Highlights

1. The HVAC controls market size was valued at USD 26.72 billion in 2024.
2. The market is projected to grow at a CAGR of 9.71% from 2025 to 2032.
3. Asia Pacific held a market share of 35.05% in 2024, with a valuation of USD 9.37 billion.
4. The Sensors segment garnered USD 16.59 billion in revenue in 2024.
5. The Smart & Automated segment is expected to reach USD 33.18 billion by 2032.
6. The Retrofit segment secured the largest revenue share of 61.58% in 2024.
7. The Commercial segment is poised for a robust CAGR of 9.82% through the forecast period.
8. North America is anticipated to grow at a CAGR of 10.17% during the forecast period.

Market Driver

Expansion of Smart Building Infrastructure

The rapid development of smart buildings is contributing significantly to the growth of the market. These buildings rely on automated systems to improve energy management and occupant comfort. HVAC controls play a crucial role in these environments by integrating with IoT platforms and building management systems. 

With governments and developers investing in intelligent infrastructure, the demand for responsive and connected HVAC control solutions is growing steadily across global markets.

• In January 2024, Honeywell introduced Advance Control for Buildings, an innovative platform developed for automating building operations and supporting energy efficiency strategies. As part of the launch, Honeywell partnered with semiconductor leader NXP Semiconductors N.V. Through this partnership, the company aims to strengthen machine learning capabilities and autonomous decision-making, enabling improved energy management, enhanced convenience, and elevated security within and around building environments.

Market Challenge

High Initial Investment and Integration Complexity

A significant challenge limiting the HVAC controls market is the high upfront cost and complexity involved in integrating advanced control systems into existing buildings. Several facility owners hesitate to invest due to concerns regarding installation expenses and disruptions.

To address this, key players are developing scalable and modular solutions that simplify installation and reduce costs. Additionally, providers offer flexible financing options and comprehensive support services to ease the transition. These efforts help in increasing adoption by making advanced HVAC controls more accessible and manageable for new constructions and retrofits.

Market Trend

Integration of Building Automation Systems (BAS)

The widespread implementation of building automation systems is advancing the growth of the market. HVAC controls are critical components of BAS, which allow the centralized management of heating, ventilation, and air conditioning across large facilities. 

Facility managers are prioritizing automated controls to improve energy efficiency, streamline maintenance, and meet compliance targets. This increasing reliance on automation in commercial and institutional buildings is fueling demand for intelligent HVAC control solutions.

• In June 2024, the Building Controls Industry Association (BCIA) in the UK advocated for the mandatory implementation of Building Automation and Control Systems (BACS) in non-domestic buildings. The proposal suggests the need for having BACS for properties with HVAC systems above 180kW capacity, aiming to reduce energy demand and carbon emissions. The BCIA estimates that such measures could save up to £16.9 billion in energy bills and 39.6 Mt of CO₂e by 2040.
• In September 2024, Johnson Controls released Metasys 14.0, an updated version of its industry-leading Building Automation System (BAS). This iteration enhances commercial building performance and sustainability by offering improved user experience, network efficiency, flexibility, and security. It introduces custom energy dashboards for real-time energy consumption visualization and supports up to 800 IP devices, which facilitate scalable and efficient building management.

HVAC Controls Market Report Snapshot

Segmentation	Details
By Component	Sensors, Controllers & Controlled Equipment
By Type	Manual, Smart & Automated
By Implementation	New Construction, Retrofit
By Application	Residential, Commercial, Industrial
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Component (Sensors and Controllers & Controlled Equipment): The Sensors segment earned USD 16.59 billion in 2024, owing to its critical role in real-time data collection for temperature, humidity, occupancy, and air quality. This enabled precise and efficient system performance across various applications.
• By Type (Manual and Smart & Automated): The Smart & Automated segment held 59.85% of the market in 2024, due to rising demand for energy-efficient systems that offer real-time monitoring, remote access, and seamless integration with building automation platforms.
• By Implementation (New Construction and Retrofit): The Retrofit segment is projected to reach USD 33.82 billion by 2032, on account of the rising demand for energy-efficient upgrades in aging commercial and residential buildings without the need for full system replacement.
• By Application (Residential, Commercial and Industrial): The Commercial segment is poised for significant growth at a CAGR of 9.82% through the forecast period, attributed to the rising demand for energy-efficient systems in office buildings, malls, hospitals, and educational institutions.

HVAC Controls Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia Pacific HVAC controls market share stood at around 35.05% in 2024 in the global market, with a valuation of USD 9.37 billion. Major cities across Asia Pacific are experiencing the accelerated development of urban infrastructure, including high-rise buildings, airports, shopping centers, and industrial parks. 

These projects demand integrated HVAC control systems to ensure energy efficiency and indoor comfort, contributing to the growth of the regional market.

Moreover, several companies in the region are investing in the local development and manufacturing of HVAC controls, offering cost-effective and customized solutions. The availability of region-specific technologies and scalable systems is improving adoption among small and mid-sized facilities, expanding the reach of the market.

• In May 2025, LG Electronics began building a new manufacturing plant in Andhra Pradesh, with operations expected to start by the end of 2026. This facility will produce a variety of products such as AC compressors, refrigerators, washing machines, and air conditioners. The state government has allocated 247 acres of land for the project, and LG Electronics intends to invest around USD 600 million over the next four years.

The North America HVAC controls industry is poised for significant growth at a robust CAGR of 10.17% over the forecast period. North America has implemented strict building energy codes and environmental standards, including ASHRAE guidelines and ENERGY STAR certifications. 

These frameworks require advanced HVAC systems that are capable of optimizing energy use. To meet compliance and avoid penalties, building owners are investing in smart HVAC control solutions, driving the growth of the market in the region. Furthermore, the rise in cloud services and data-driven operations has led to rapid growth in data center construction across North America. 

These facilities need precise temperature and humidity control, supported by advanced HVAC systems with automated control features. The growing demand for thermal management in digital infrastructure is boosting the market.

• In April 2025, Schneider Electric introduced EcoConsult for Data Centers, a pioneering consulting service aimed at enhancing operational efficiency and maximizing uptime in data centers. This service targets key industry challenges such as increasing uptime, lowering total cost of ownership, and meeting sustainability goals. Beginning with a thorough evaluation of power distribution, IT/server room infrastructure, and cooling systems, this innovation identifies risks and inefficiencies and offers practical recommendations to modernize and maintain data center operations effectively.

Regulatory Frameworks

• The HVAC controls industry in the U.S. is regulated under the Department of Energy (DOE) energy conservation standards and the Environmental Protection Agency’s (EPA) ENERGY STAR program. The DOE sets minimum efficiency requirements for HVAC equipment and controls under the Energy Policy and Conservation Act (EPCA). Additionally, the ASHRAE Standard 90.1 outlines energy efficiency guidelines for commercial buildings, which include requirements for HVAC control systems. Local jurisdictions may impose additional codes, such as California’s Title 24, which enforces stringent energy standards for HVAC systems and controls.
• The European Union regulates HVAC controls through the Energy Performance of Buildings Directive (EPBD), which mandates member states to improve building energy performance by integrating smart control technologies. The Ecodesign Directive sets minimum energy efficiency standards for HVAC products, including control systems. Additionally, the EU’s Energy Efficiency Directive promotes demand-side management and smart metering, influencing HVAC control adoption.
• China’s Ministry of Housing and Urban-Rural Development (MOHURD) enforces building energy efficiency standards, such as GB 50016, which includes guidelines for HVAC controls. The government promotes green building certifications like the China Green Building Evaluation Standard (GB/T 50378), which encourages the use of intelligent HVAC systems to reduce energy consumption in new constructions.
• Japan’s Building Energy Efficiency Act mandates energy-saving measures in buildings, requiring HVAC systems to meet efficiency criteria supported by advanced control technologies. The Ministry of Economy, Trade and Industry (METI) supports smart building initiatives, including standards for HVAC automation and energy management.

Competitive Landscape

Major HVAC controls market players are focusing on strategies like launching innovative product lines and forming strategic partnerships to strengthen their position and drive growth. Introducing advanced solutions that comply with evolving environmental regulations helps companies meet customer demands for efficiency and sustainability. 

These efforts support the transition to greener technologies, enhancing product portfolios while addressing regulatory requirements. Such proactive moves contribute significantly to expanding the market by offering more efficient and environmentally friendly HVAC control options.

• In January 2025, Mitsubishi Electric Trane HVAC US LLC launched a new line of low Global Warming Potential (GWP) all-electric heat pumps. These systems utilize the R-454B refrigerant, which has approximately 78% lower GWP than the previously used R-410A, aligning with the American Innovation and Manufacturing (AIM) Act's mandate to phase down high-GWP refrigerants. The new products offer enhanced efficiency and environmental benefits.

List of Key Companies in HVAC Controls Market:

• Honeywell International Inc.
• Johnson Controls
• Siemens
• Schneider Electric
• Emerson Electric Co.
• Lennox International Inc.
• Trane
• Delta Electronics, Inc. 
• Abbott
• Robert Bosch GmbH
• Danfoss A/S
• Eaton
• Mitsubishi Electric Corporation
• Rheem Manufacturing Company
• BELIMO AIRCONTROLS (USA), Inc

Recent Developments (Product Launches)

• In February 2025, Samsung Electronics showcased its full range of Heating, Ventilating, and Air-Conditioning (HVAC) products at the 2025 International Air-Conditioning, Heating and Refrigerating Exposition (AHR Expo) in Florida. The company unveiled its offerings, such as the Hylex universal inverter-driven heat pumps, EHS Mono air-to-water heat pumps, and R32-based DVM S2 variable refrigerant flow (VRF) systems, presented across four zones: Featured Products, Light Commercial, Commercial, and Residential/Controls/Compressor.
• In November 2024, Johnson Controls revealed major enhancements to the AI capabilities within its OpenBlue Enterprise Manager suite, a key component of the OpenBlue digital ecosystem. The update introduced the first customer-facing generative AI applications, increased autonomous building controls, and a greatly improved user experience. It also featured advanced indoor air quality monitoring and sensor analytics to promote smarter and healthier buildings.