Green HVAC Market Size to Witness 7.0% CAGR Growth, Reaching US$ 165.1 Billion by 2035 with Sustainable Heating & Cooling Solutions | Exclusive Report by TMR

The Green HVAC market focuses on energy-efficient heating, ventilation, and air conditioning systems that reduce carbon emissions and operational costs. It includes innovations like geothermal heat pumps, solar-powered HVAC, smart thermostats, and advanced refrigerants, driven by sustainability regulations and increasing demand for eco-friendly buildings.

/EIN News/ -- Wilmington, Delaware, Transparency Market Research Inc. – , March 10, 2025 (GLOBE NEWSWIRE) -- The Global Green HVAC industry is rapidly transforming as energy efficiency and sustainability take center stage in building technologies. With a valuation of US$ 78.8 billion in 2024, the market is poised for substantial growth, driven by stringent environmental regulations and increasing adoption of smart, eco-friendly climate control systems. Forecasts indicate a CAGR of 7.0% from 2025 to 2035, propelling the industry to an impressive US$ 165.1 billion by 2035.

As businesses and homeowners prioritize carbon reduction, innovative HVAC solutions are reshaping the future of indoor climate management.

The global Green HVAC market (Mercato HVAC verde) is at a pivotal juncture, influenced by environmental concerns, technological innovations, and evolving regulatory landscapes. In 2024, the European heat pump market experienced a significant downturn, with sales plummeting by 47% in the first half of the year, totaling 765,000 units sold across 13 major European countries.

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This decline is primarily attributed to reduced government subsidies and lower gas prices, which have diminished the financial incentives for consumers to transition from traditional gas boilers to renewable energy heating systems.

Despite these challenges, the global demand for energy-efficient HVAC solutions remains robust. The urgency to address climate change has led to stringent regulations promoting the adoption of green technologies.

For instance, Germany's push to mandate that heating systems in new buildings be at least 65% powered by renewable energy has spurred interest in heat pumps. However, political uncertainties regarding subsidies have led to market fluctuations, emphasizing the need for policy stability to foster sustained growth in the sector.

Key Players

Several prominent companies are leading the charge in the Green HVAC market, offering innovative solutions and driving industry growth.

Carrier, Daikin, iAIRE, LLC, Lennox International, Mitsubishi Electric, Ningbo Deye Technology Co., Ltd., Rheem Manufacturing Company, SHINSON, TE Technology, Inc., Trane Technologies, and others are the top players in the Green HVAC market shaping the industry outlook.

These companies are driving innovation through energy-efficient solutions, smart climate control technologies, and sustainable practices. Their focus on eco-friendly advancements is set to redefine HVAC systems, aligning with global sustainability goals and regulatory standards.

Recent Developments-

Here are some recent developments from leading companies in the green HVAC market:

• Carrier Global Corporation: In September 2023, Carrier acquired Fire & Safety Research Corporation, enhancing its smart HVAC technology portfolio.
• Trane Technologies: In July 2023, Trane launched a new line of energy-efficient chillers targeting commercial buildings with reduced environmental impact.
• Lennox International Inc.: In April 2023, Lennox partnered with a leading solar provider to integrate solar technology with HVAC systems.
• Rheem Manufacturing Company: In August 2023, Rheem introduced a series of smart water heaters featuring IoT capabilities for remote monitoring.

Key Growth Drivers

• Stringent Energy Regulations: Governments worldwide are enforcing energy efficiency standards to curb emissions.
• Rising Demand for Sustainable Buildings: Green building certifications like LEED (Leadership in Energy and Environmental Design) are boosting adoption.
• Technological Advancements: Integration of IoT, AI-driven climate control, and heat recovery systems is enhancing efficiency.
• High Energy Costs: Businesses and homeowners are shifting to cost-saving, low-energy HVAC solutions.

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Industry Overview

The Green HVAC industry is driven by factors such as:

• Government regulations mandating energy-efficient buildings.
• AI-powered HVAC systems that optimize energy use.
• Increased adoption of renewable energy sources for heating and cooling.

The demand for sustainable solutions is pushing HVAC manufacturers to develop high-efficiency heat pumps, smart thermostats, and low-GWP refrigerants to meet net-zero carbon goals.

 Emerging Trends in Green HVAC

• Smart HVAC Systems: AI and IoT-powered solutions enable real-time energy monitoring and automated climate control.
• Solar-Powered HVAC: Integration with solar panels reduces dependency on conventional energy sources.
• Geothermal Heating & Cooling: A sustainable option utilizing earth’s thermal energy to maintain indoor temperatures.
• HVAC with Heat Recovery: Capturing and reusing waste heat improves efficiency and reduces emissions.
• Hydronic HVAC Systems: Utilizing water-based heating and cooling for improved energy efficiency.

Market Segmentation

By Technology

• Geothermal HVAC – Utilizes underground heat for energy-efficient climate control.
• Solar HVAC – Integrates solar energy for sustainable heating and cooling.
• Smart HVAC Systems – AI and IoT-powered solutions for automated climate management.
• Variable Refrigerant Flow (VRF) Systems – Provides precise temperature control with minimal energy consumption.
• Hydronic HVAC Systems – Uses water-based heating and cooling for efficiency.

By Component

• Heating Equipment – Heat pumps, solar heaters, geothermal units.
• Cooling Equipment – Smart air conditioners, chillers, evaporative coolers.
• Ventilation Systems – Energy recovery ventilators (ERVs), demand-controlled ventilation (DCV).
• Control Systems & Sensors – Smart thermostats, IoT-based climate monitoring devices.

By End-User

• Residential – Smart homes, eco-friendly apartments, green buildings.
• Commercial – Offices, malls, hotels, hospitals with energy-efficient HVAC.
• Industrial – Factories, warehouses, and data centers optimizing climate control.

By Region

• North America – Driven by green building certifications and stringent energy policies.
• Europe – Leading in net-zero energy and low-carbon HVAC adoption.
• Asia-Pacific – Fast-growing market with rising urbanization and eco-conscious construction.
• Middle East & Africa – Increased demand for solar-powered HVAC due to extreme climates.

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Future Outlook & Opportunities

The Green HVAC market is set to disrupt traditional climate control systems with continued advancements in AI, smart automation, and renewable energy integration. Opportunities include:

• Expansion of Smart City Projects: Green HVAC plays a vital role in energy-efficient urban infrastructure.
• Growing Preference for Net-Zero Buildings: The demand for zero-energy HVAC systems is on the rise.
• Advancements in Refrigerants: The shift toward low-GWP refrigerants is reshaping cooling technologies.
• Investment in AI-Powered HVAC: AI-driven optimization ensures predictive maintenance and maximum efficiency.

Future Prospective –

The future of the Green HVAC market is shaped by advancements in energy efficiency, smart technology, and sustainability-driven regulations. The increasing adoption of heat pumps and low-GWP refrigerants is expected to accelerate as countries push for carbon neutrality. AI and IoT integration will enhance system efficiency, enabling predictive maintenance and optimized energy consumption.

Additionally, the shift towards renewable energy-powered HVAC solutions, such as solar and geothermal heating, is gaining momentum. Stricter environmental policies and regulations are further driving demand for eco-friendly HVAC systems. With rising investments in R&D, companies are focusing on innovative, next-generation solutions, positioning the industry for significant growth and transformation in the coming years.

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