HVAC Control System Market Size, Share & Industry Analysis, By Product (Traditional HVAC Control Systems, Smart HVAC Control Systems), By Application (Residential, Commercial and Industrial), and Regional Forecast, 2019-2032

The global HVAC control system market size was valued at USD 14.50 billion in 2018 and is projected to grow worth USD 52.56 billion by 2032, exhibiting a CAGR of 9.0% during the forecast period. Asia Pacific dominated the HVAC control system market with a market share of 49.17% in 2018. The HVAC control systems  market in the U.S. is projected to grow significantly, reaching an estimated value of USD 10.21 Bn  by 2032, driven by the rapid growth in the smart building automation for residential and commercial sector.

The increasing product use in building automation control systems (BACS) is resulting in the growth of the HVAC control system market. The growing demand for low-cost and energy efficient systems is driving the building automation and control systems adoption. Furthermore, increasing government initiatives with respect to smart cities is resulting in the growth of smart buildings. For instance, the government of India launched its smart cities mission in 2015 and is expected to roll out smart cities mission 2.0 by the end of 2020. The consumer technology association, the global spending on smart cities by 2020, is expected to reach USD 34.35 billion. Also, the UN predicted that 66% of the world population would be living in urban areas by 2050 resulting in the demand for smart buildings.

MARKET TRENDS

Increasing Advancements in Green Technology Are Expected to Propel the Market

The surge in demand for green-labeled products owing to increasing environmental awareness among consumers is likely to result in growth of HVAC systems with alternative heating fuel consumption such as electricity and hydrogen. The manufacturers such as Daikin and Carrier are continuously striving to provide cleaner solutions to cater to environmentally conscious consumers. For instance, Carrier’s Hybrid Heat System combines a heat pump and smart infinity control technology and the heat pump can switch between cost-efficient energy sources with respect to outdoor conditions. Thus the increasing adoption of eco-friendly products is further expected to drive the HVAC control systems market in the near future.

Integration of Smart Technologies Within the Household Devices

The increasing spending power of the consumers is resulting in a rising shift towards the adoption of smart technology in homes. The growing connectivity in the household devices such as refrigerator and the dishwasher is resulting in increased adoption of HVAC systems. Integration of HVAC Systems with other controls such as mobile devices to provide enhanced control and monitoring is also gaining increased acceptance among consumers.

MARKET DRIVERS

Intelligent Thermostat is Resulting in Increased Adoption of the HVAC Controls 

Rising demand for smart thermostats from the commercial and residential sectors owing to various benefits provided by it is expected to drive the HVAC control system market growth. The smart thermostats provide multi-stage heating and cooling, multimedia support, and voice-controlled and are paired with smart sensors to help maintain the right room temperature. Programmable thermostats are gaining popularity among the consumers owing to the precise control through aligning the units on and off-cycle according to the customer’s schedule.

Moreover, the smart thermostat provides high flexibility and convenience through remote monitoring and control via internet connectivity. Thus one can control the home temperature while sitting at the office through a smart-phone, tablet, and computer. Manufacturers are thus offering sophisticated and functional thermostats according to customer requirements. For instance, Daikin provides ComfortNet a programmable thermostat that provides high efficiency and advanced monitoring capabilities. 

Energy Management Initiatives Taken By Several Governments are Expected to Propel the Market

Rising government activities to promote energy-efficient buildings is expected to drive the HVAC controls market revenue. In 2017, the government of India launched the Energy Efficient Buildings programme, under which Energy Efficiency Services Limited with PWD Maharashtra will retrofit more than 1000 buildings of PWD Maharashtra with energy-efficient appliances. Europe is developing an energy performance contracting model to add flexibility and energy-cost savings through energy demand response solutions. Active Managed Buildings with Energy Performance Contracting (AmBIENCe) is the name of the European project that will create improved guidelines and recommendations for the policymakers to implement active energy building energy performance contracts in different buildings such as commercial, residential, and others. The increasing customer shift towards the products with enhanced energy efficiency and conservation is thus expected to drive the HVAC control systems market in the near future.

SEGMENTATION

By Product Analysis

Smart HVAC Control Systems is Expected to Propel the Market

Based on product, the market is segmented into traditional HVAC control systems and smart HVAC control systems.

The traditional HVAC control system has significantly contributed to the HVAC market. However, the increasing popularity of smart HVAC control systems is replacing traditional HVAC systems. This is attributable advantages such as prevention of downtime, enhanced centralized monitoring & control and integration with other systems. The smart controls have more precise sensors through which they can maintain consistent climate control and send a signal to valves and dampers to regulate outside air.

Furthermore, the features such as soft starting to reduce the surge of electric current is significantly contributing to the electricity bill reduction. Improvements in maintenance scheduling capabilities and prevention of downtime are gaining popularity among customers. Smart HVAC control continuously monitors and alerts when attention is needed before the system faces emergency breakdown. Also, the smart HVAC controls analyses the trends of the HVAC usage over time to streamline the systems and get more reliable and efficient operation.

By Application Analysis 

Increasing Adoption of Commercial HVAC Control System is Expected to Drive the Market Growth

Based on application, the market is drilled down into commercial, residential and industrial.

The commercial control systems are expected to gain momentum in the coming years owing to its various benefits including lower utility bills, simplified operations, extended lifecycle, lesser downtime, and its impact on work productivity. The enhanced scheduling capabilities with complex functions are further expected to contribute to the growth of HVAC control system market positively. The systems with improved scheduling capabilities can turn the system on and off shortly before employees come and go. Also this enhanced capability can automatically adjust the systems to different schedules each day of the week. Furthermore, the integration of HVAC controls with smart technology such as building access system is gaining product popularity in the commercial sector.

The residential control systems are significantly contributing to the market growth; as a result of increasing housing construction activities in the developed and developing nations. For instance, in November 2019, the U.S. Census Bureau stated that the residential building permits increased approximately 11% over the year. Besides, in the U.S. housing completions rose by more than 7% in November 2019. In addition, the evolving government initiatives are resulting in the growth of the residential HVAC systems which in turn is driving the HVAC control system market. For instance, the National Urban Housing Fund creation of India was approved with a spending of USD 9.27 billion. The growing adoption in the industrial sector as the controls function as an automatic system is resulting in the growth of the HVAC control systems market.

REGIONAL ANALYSIS

Based on the region, the scope of the study is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America, which is further drilled down into countries.

Asia Pacific is the fastest-growing region owing to the increasing adoption of HVAC control systems in the commercial and residential sectors. This is attributed to the rise in commercial spaces. Evolving startups in developing economies such as India is expected to contribute significantly to the HVAC control in the Asia Pacific. According to the India Brand Equity Foundation, in 2018, India witnessed more than 200% of growth in the overall startups funding deals which accounted for approximately USD 3 billion in comparison to USD 847 million in 2017. The growth in the residential HVAC systems in the U.S. is expected to drive the market in North America. Also, the smart building growth in the region is positively contributing to smart HVAC controls adoption. The adoption of smart controls in Europe to meet the government regulations regarding energy efficiency is resulting in the growth of the market revenue. The surge in building automation and control systems demand as a result of increased technology adoption in the region is driving the market in the Middle East & Africa. The rise in demand from the residential and small commercial sector in Mexico is resulting in the growth of the HVAC control systems market in Latin America.

KEY INDUSTRY PLAYERS

Daikin is Focusing on the Development of New Products

In January 2019, the Daikin North America LLC launched it’s “The Daikin One + “smart thermostat and intelligent home air management controller. This controller serves as a cloud-connected hub and offers two-way communication for HVAC systems. It also allows consumers to set different temperatures for different zones. In February 2019, Daikin Industries, Ltd. acquired AHT Group, a European company, to expand its commercial refrigeration business and help strengthen its foundation in Europe.

Key Players are Focusing on Catering the Customized Requirements of Clients

Manufacturers are focusing on the development of smart HVAC controls to fulfill the needs of the customers. These smart HVAC systems leverage remote monitoring and control of HVAC systems. The customized commercial HVAC controls that do not have predictable, regular hours are gaining momentum in the market. Johnson Controls offers custom turnkey solutions in HVAC control system. Furthermore, the programmable, and network thermostat controllers offered by Johnson Controls are gaining popularity among consumers for single and multi-stage operations. Moreover, the manufacturers are developing remote monitoring applications to focus on control operations anywhere and at any time.

List of Key Companies Profiled:

• Johnson Controls


• Daikin Industries, Ltd


• Mitsubishi Electric Trane HVAC US LLC


• Emerson Electric Co.


• Schneider Electric


• Honeywell International Inc.


• DELTA CONTROLS


• Carrier Corporation


• Siemens


• JACKSON CONTROL


• ICM Controls

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Panasonic has developed a new and innovative multi site control solutions for better management and control of the HVAC System. The solution provides enterprise wide energy management platform for the energy efficient and effective operation of corporate HVAC installations


• In January 2021, Telstar has developed a HVAC System capable of automatically controlling and adjusting the operation of the HVAC system according to the room air renovations. The product can provide 40% reduction in the consumption of electricity. The cost effective offering and energy efficient operation of the solution can increase market penetration of this HVAC system across the globe.


• In May 2020, Zentrix, which is an exclusive product portfolio of Hero Electronix for technology sector has launched its HVAC Control system. This solution is claimed as a COVID ready building HVAC monitoring and control solution.


• In January 2020, American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) which operates as a largest organization for HVAC System and SolutIon manufacturer have recently updated its own standards for the industrial application compliant HVAC solutions.

REPORT COVERAGE

The HVAC control system market report highlights the leading regions across the world, with an aim to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at a global level. It further highlights some of the growth stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.

Report Scope and Segmentation