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The HVAC control systems market size is forecast to increase by USD 9.66 billion at a CAGR of 7.51% between 2023 and 2028. The market is witnessing significant growth due to the increasing demand for energy-efficient and fail-proof solutions. With urbanization and economic growth, there is the new construction projects, particularly in commercial applications such as shopping malls, educational institutions, healthcare institutions, and hotels. Integrated building management systems are gaining popularity to optimize energy consumption and reduce operational costs. Smart thermostats, which are a key component of these systems, enable remote monitoring and control, leading to substantial cost savings. However, the market faces challenges from rising environmental pollution and stringent government policies on HVAC systems, necessitating the adoption of eco-friendly technologies and compliance with regulations.
The global HVAC controls market is experiencing significant growth due to the increasing adoption of HVAC controls in smart homes and commercial construction. The integration of HVAC controls in building automation systems is a key trend in the market, as it enables energy efficiency and reduces energy wastage. In the construction sector, HVAC controls are being implemented to optimize energy consumption in offices and residential buildings. The use of HVAC controls in lighting systems and occupancy detection is another major driver for market growth. These systems enable the reduction of energy consumption by automatically adjusting temperature and humidity levels based on occupancy and environmental conditions.
Moreover, the urban population's growing demand for energy efficiency and comfort is also fueling the market's growth. However, the implementation of HVAC controls in buildings comes with technical complexities, which can hinder market growth. Conventional HVAC systems are being replaced with smart HVAC controls to address these challenges and improve energy efficiency. Residential buyers are increasingly seeking HVAC controls to enhance comfort and reduce energy bills. Overall, the market for HVAC controls is expected to grow significantly in the coming years due to its ability to reduce energy consumption and improve building automation.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The sensors segment is estimated to witness significant growth during the forecast period. HVAC control systems have gained significant importance in both commercial and residential sectors due to their ability to optimize energy consumption and enhance comfort levels. One of the key components of these systems are lighting systems integrated with occupant detection sensors. These sensors play a crucial role in reducing energy consumption by automatically adjusting lighting and HVAC systems based on occupancy. The sensors segment in the market is anticipated to witness steady growth during the forecast period. Sensors used in HVAC controls are essential for measuring and detecting changes in temperature, humidity, and airflow. They act as communication media between HVAC systems and end-users.
Moreover, various types of sensors are used in HVAC control systems, including temperature sensors, relative humidity sensors, flow sensors, pressure sensors, and electric sensors. Temperature sensing and control are essential functions in every HVAC control system. Many companies are investing heavily in R&D to develop and enhance temperature sensor functionalities. Several HVAC control systems now feature independent temperature sensor control systems instead of traditional thermostats for fine-tuned climate control. Custom fabrication and installation of HVAC control systems require technical complexities, making it essential to work with experienced professionals to ensure proper functioning and energy efficiency.
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The sensors segment was valued at USD 7.75 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in Asia Pacific (APAC) is experiencing significant growth due to the increasing demand for energy-efficient solutions in both residential and commercial sectors. Occupant detection systems and lighting systems integrated with HVAC control systems are becoming increasingly popular for energy consumption reduction. Technical complexities involved in implementing HVAC systems have led to an increased preference for custom fabrication and installation services. India, China, and Japan are key markets in APAC, with rising awareness about the benefits of energy-efficient HVAC control systems. Urbanization and infrastructure development in countries like India, Singapore, Taiwan, and South Korea are driving the demand for HVAC systems and, consequently, for HVAC control systems. Western multinational companies are investing heavily in these regions, particularly in technology and healthcare sectors, further fueling the market growth.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising demand for efficient and fail-proof HVAC controls is the key driver of the market. The HVAC controls market is witnessing significant growth due to the increasing demand for energy efficiency and stable temperature maintenance in various industries. In particular, sectors such as cold storage plants, data centers, food processing facilities, healthcare, and pharmaceuticals require highly efficient HVAC control systems to maintain specific temperature levels for preserving perishable goods and sensitive materials. The adoption of automation in HVAC controls is also increasing, as these systems can operate and maintain optimal temperature and environmental conditions without human intervention, reducing energy wastage and overall energy consumption. This trend is particularly prominent in the construction sector, where smart homes and offices are becoming increasingly common, and building automation is a priority. Overall, the demand for advanced and reliable HVAC controls is expected to continue growing as industries seek to minimize energy usage and optimize their operations.
Increasing focus on integrated building management systems is the upcoming trend in the market. The HVAC controls market is witnessing significant growth due to the increasing emphasis on energy efficiency and building automation in both residential and commercial sectors. In modern buildings, particularly smart homes and offices, HVAC controls play a crucial role in optimizing energy consumption and reducing operational costs. These systems account for approximately 60% of energy consumption in buildings, making their efficient management essential. Integration of HVAC controls with other systems, such as lighting and ventilation, is a key trend in the market. This integration enables the regulation of internal building environments, including temperature, humidity, and light, while minimizing energy wastage.
For instance, synchronizing lighting and HVAC systems can lead to substantial energy savings. The construction sector is expected to be a major contributor to the growth of the HVAC controls market, as new buildings increasingly adopt advanced building management systems. Overall, the demand for energy-efficient solutions and the need for human intervention in building management are driving the adoption of advanced HVAC controls.
Rising environmental pollution and stringent government policies on HVAC systems is a key challenge affecting the market growth. The market is experiencing significant growth due to the increasing demand for energy efficiency and building automation in various sectors, including offices and the construction industry. Smart homes are also driving the market, as HVAC controls enable optimized energy consumption and reduced human intervention. However, the market growth is facing challenges due to the increasing regulations aimed at reducing greenhouse gas emissions and curbing pollution, particularly air pollution. HVAC systems contribute to both air and noise pollution, releasing hazardous gases such as hydrochlorofluorocarbons and chlorofluorocarbons into the environment. According to the International Energy Agency, global energy-related CO2 emissions grew by 1.1% in 2023, adding 410 million tonnes to the total. This increasing regulatory environment is hindering the adoption of conventional HVAC systems in many regions, potentially impacting market growth negatively.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Azbil Corp: The company offers ACTIVAL+ series of motorized valves and actuators, which are designed for precise control of chilled or hot water in HVAC applications.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The HVAC controls market is witnessing significant growth due to the increasing adoption in smart homes and the construction sector. Energy efficiency and building automation are key drivers for this market as HVAC controls help reduce energy wastage in offices, residential buildings, and other commercial applications. Conventional HVAC systems are being replaced with advanced control systems that offer fine tuning and custom fabrication, making installation more efficient and cost-effective. Smart thermostats, sensors, and controllers are integral components of HVAC control systems. These systems enable temperature and humidity control, ventilation control, and occupancy detection, leading to energy consumption reduction. However, implementing HVAC controls comes with technical complexities and requires skilled labor for installation and maintenance.
Moreover, the cloud computing, artificial intelligence (AI), and digital twin technologies are transforming the HVAC controls market. Preventative maintenance guidelines and regulations, along with environmental requirements, are driving the adoption of HVAC controls in green buildings. Ductwork leaks and temperature set points in indoor areas are critical factors affecting HVAC system performance. Zone control systems, wireless sensors, and temperature control systems are essential components of HVAC controls. Air conditioners, space heaters, coolers, and other controlled equipment are integrated into these systems to optimize energy consumption and provide comfort in various indoor environments. The economic growth, urbanization, and new construction in commercial applications, such as shopping malls, educational institutions, healthcare institutions, hotels, and smart cities, are expected to fuel the demand for HVAC controls.
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Market Scope |
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Report Coverage |
Details |
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Page number |
188 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.51% |
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Market growth 2024-2028 |
USD 9.66 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.84 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 43% |
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Key countries |
US, China, India, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Acuity Brands Inc., Azbil Corp., Computime Group Ltd., Delta Electronics Inc., Emerson Electric Co., Fr. Sauter AG, Generac Holdings Inc., Honeywell International Inc., Johnson Controls International Plc., KMC Controls Inc., Lennox International Inc., Mass Electronics Pty Ltd., Mitsubishi Electric Corp., NanoSense, Quest Controls Inc., Reliable Controls Corp., Schneider Electric SE, Siemens AG, and Trane Technologies plc |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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