International. The global HVAC controls market is estimated to grow at a CAGR of 9.2% between 2022 and 2027, rising from $17.2 billion in 2022 to $26.7 billion by 2027, according to MarketsandMarkets.
The growth of this market can be attributed to the boom in the construction sector, the increased adoption of HVAC controls, the benefits offered by IoT-enabled HVAC systems, and the growing demand for energy-efficient HVAC systems in buildings and building automation systems (BAS).
Increased government initiatives for sustainable and energy-efficient HVAC systems
Governments are executing policies to reduce greenhouse gas emissions by incentivizing sustainable technologies for new HVAC implementations, as reducing carbon emissions can reduce their impact on climate change. The main step is to implement energy-efficient HVAC systems in a way that reduces the energy consumption of these systems.
Controllers and controlled equipment are expected to have the highest market share between 2022 and 2027. Most HVAC control systems are monitored by control valves to regulate steam flows or hot/cooled water as a means of reducing heat transfer; therefore, control valves are selected based on their size. In July 2021, Warren Controls, a manufacturer of control valves and specialty fluid handling products, announced its two- and three-way electrically operated HVAC/BAC control valves, designed for domestic use and to assist in the transportation of low-pressure steam or hot/cold water within a building to regulate temperature.
Integrated control system would maintain the highest CAGR of the HVAC controls market during the forecast period
Integrated control systems are finding more use cases in smart homes. Currently, there are 175 million homes in the world, equipped with smart technologies and the number is expected to grow exponentially in the coming years. This will enhance the smart HVAC market, which includes smart thermostats, smart vents, smart humidifiers, and others. With the growing demand for smart homes, collaborations between HVAC vendors and IoT industries are predicted to become the norm in the coming years.
Commercial applications would have the highest CAGR during the forecast period
The construction boom of smart, green buildings has led to increased use of smart sensors and climate control equipment, such as programmable thermostats, which save a significant amount of energy in these buildings.
Applications of HVAC controls in commercial buildings ensure the on/off of HVAC equipment in a particular area, depending on its occupancy. In a large shopping complex, all areas are not constantly occupied by several people; HVAC controls play an important role in detecting the number of occupants in the area to ensure efficient use of energy.
The Asia-Pacific (APAC) region is expected to lead the global HVAC controls market. China had the largest size of the HVAC controls market in APAC in 2021. In February 2021, Carrier China signed a US$17 million (RMB 100 million) contract with China Eastern Airlines Investment Co., Ltd. (CES Investment) to provide XCT7 variable refrigerant flow (VRF) systems for commercial offices and residential projects throughout China. The contract is one of the largest individual VRF contracts Carrier has ever signed, representing a new milestone for the brand's light commercial business in China.
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