HVAC Services Market: The Three Factors That Are Driving Growth

As the world population steadily migrates towards cities, the demand for professional services involved in the installation, upkeep, and improvement of heating, ventilation, and air conditioning systems is on the rise.

This is one of the reasons why experts anticipate that the global Heating, Ventilation, and Air Conditioning (HVAC) services market will enjoy consistent growth for at least the next few years, with a predicted 6.28% compound annual growth rate (CAGR) and a market size of US$94.7 billion by 2030, which represents US$25 billion more than the 2025 figure of US$69.8 billion.

What is contributing to the global HVAC services market growth?

There are several factors that can explain these positive forecasts:

1. Rising urbanization
2. More data centers
3. Wider adoption of smart technologies in buildings.

1. Urbanization and construction in emerging economies

The fastest level of urbanization is being registered in two of the most populous countries in the world, which account for 2.8 billion people – India and China. These two countries are also showing impressive infrastructure development.

The current trend is pushing the demand for HVAC systems up in both residential and commercial buildings.

How much is India investing in infrastructure development?

India has seen an exponential increase in infrastructure spending, with budgetary allocations reaching 10 lakh crore rupees (over US$117 billion) in 2023–2024, based on government data.

How much is China investing in infrastructure development?

In 2025, China intends to issue an unprecedented 3 trillion yuan (US$416 billion) in special treasury bonds to support its growing economy, with a focus on major infrastructure projects, such as the extension of high-speed rail, the installation of renewable energy generation sources, and urban development initiatives.

2. The growing number of data and digital services relies heavily on HVAC systems for climate control, which helps servers and other vital technical equipment to operate at their best.

Which countries have the most data centers?

The United States reportedly had 5,426 data centers as of March 2025 and holds the leading position in this field, while the UK was at number two with 523 data centers, and Germany with 529 data centers came third.

How much is the world investing in data centers?

Investments in global data centers increased 51% year over year to reach US$455 billion in 2024, based on a study released by Dell'Oro Group.

3. Wider adoption of smart technologies in buildings

The growth of the HVAC services market, in addition to the adoption of smart tech, will be further enabled by:

Smart HVAC Systems and IoT Integration

Smart sensors and Internet of Things (IoT) gadgets are being progressively implemented in modern HVAC systems. IoT allows for the monitoring of temperature, humidity, air quality, and occupancy in real-time.

It also allows users to automate modifications to improve indoor conditions and to use predictive maintenance with the help of sensor data to spot potential problems before they occur, thus saving time and repair costs.

Building Management Systems (BMS)

These technologies are widely implemented in new buildings because they can:

1. Give several zones centralized control over climatic settings
2. Employ machine learning to study occupancy patterns and optimize HVAC schedules
3. Permit facility managers to examine trends in energy use and put cost-cutting measures into action.

Regulatory Push for Smart and Sustainable Buildings

Governments and international organizations are establishing regulations to make buildings more energy-efficient and eco-friendly.

Smart HVAC systems allow buildings to pass the certification requirements and align with climate goals that require them to:

1. Meet or exceed LEED, BREEAM, or WELL certification requirements
2. Align with climate action targets such as the EU Green Deal and China's 14th Five-Year Plan
3. Take advantage of government grants and tax incentives for green improvements.

Comfort and Customization

Due to smart HVAC solutions, users can benefit from personalized comfort.

Some examples of this include the ability of users to control temperature, humidity, and airflow by using smartphones or voice-activated assistants. In addition, these smart systems can create microclimates inside large spaces.

Integration with Renewable Energy Systems

More and more smart HVAC systems are being designed to function together with renewable energy sources, including:

1. Solar panels that generate energy for HVAC systems.
2. Systems for thermal storage that enable the optimal use of energy during peak hours.

Final word

The HVAC services market is set for robust and multi-dimensional growth. Driven by megatrends in urbanization, digitalization, and decarbonization, the industry is rapidly evolving.

Companies that innovate, embrace sustainability, and cater to both large-scale and localized needs will be best positioned to succeed through 2030 and beyond.