Research from DataHorizzon has valued the smart HVAC controls system at $9.4 billion in 2022 and expects it to reach $25.5 billion by 2032, with a compound annual growth rate of 10.6%.
Industry growth, according to the report, is largely attributed to government initiatives and development of smart cities worldwide. Further, financial incentives attached to energy efficiency are helping grow the market. The report cited the U.S. Energy Policy Act 2005, which provides tax benefits for energy-efficient equipment installations in new building construction, as one major financial incentive in the North American region.
Smart HVAC includes technologies such as building management systems, autonomous data collection, connectivity hardware, and more, all with the goal of increasing energy efficiency of heating and cooling. When paired with artificial intelligence and data analytics, smart HVAC may provide insights to help predict maintenance, detect system inefficiencies, or find ways to optimize overall performance.
Smart HVAC has become more widely used in food processing and supermarkets to keep refrigerators at an optimum temperature, and dependence on HVAC in smart homes has also added to market growth, according to the report.
North America was found to be the dominant force in the HVAC smart controls market, largely due to new construction and development in the region. According to the report, major players in the smart HVAC controls market include Honeywell, HID Global Corporation, Allegation PLC, Siemens, Identiv, Enterprise System Corporation, Ekran Systems, Johnson Controls, TED Systems, Imedia, Mace Security, Bosch, and others.
Smart Cities Contribute to Widespread Smart HVAC Adoption
Multiple regions worldwide have ramped up efforts to build more energy-efficient cities, especially considering the disproportionate impact cities have on the environment. According to the European Union, cities account for over 70% of global emissions and consume over 65% of the world’s energy.
In response, governments have designed initiatives to improve cities’ climate impacts, which often include installing smart HVAC in new buildings and retrofitting existing ones. One example is the EU’s Mission for Climate-Neutral and Smart Cities, which calls for cities to create plans for carbon neutrality by 2050.
The DataHorizzon report specifically cites India’s efforts toward building smart cities as a major driver of smart HVAC sector growth. The country’s Smart City Mission, launched in 2015, has completed nearly 8,000 projects involving smart systems in more than 100 cities.