Smart building technologies such as building automation are increasingly being adopted as they automate processes and reduce human intervention, improve the efficiency of the HVAC systems, eliminate energy wastage, and diminish cost.


A new HVAC system is an important investment decision for residential buyers as the cost of the device is propagated with the lifespan of the HVAC system. Huge investments are required to upgrade control systems and develop innovative HVAC control systems.


HVAC controls market report share is estimated to be USD 17.2 billion in 2022 and is projected to reach USD 26.7 billion by 2027; it is expected to grow at a CAGR of 9.2% from 2022 to 2027.


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The increased adoption of cloud computing has offered benefits for various industry sectors by providing advanced Artificial Intelligence capabilities for various applications, including HVAC. The advanced application of cloud computing and IoT is Digital twin; a real-time-based simulation of the system model, which takes real-time operational data of the HVAC system and performs simulation to reduce operational cost; provides information on the optimal maintenance schedule of HVAC equipment and perform remote diagnostics. Digital twins can help create smarter buildings by automating processes through machine learning.


Governments of various countries have made guidelines and regulations to upgrade their existing HVAC systems as part of environmental requirements. However, the upgradation of such systems is quite complex and cost intensive and time consuming. For instance, if a user installs new HVAC equipment in the existing ductwork of the house, it can affect the installation costs, depending on its ductwork condition. It would be not recommended to install a new central air conditioner if the ductwork has leaks or if the zone control systems are malfunctioning. Since the repair work must be done before the new air conditioner can be installed, it will increase the installation costs.


Asia Pacific held the largest share of the HVAC controls market in 2021; it is expected to register the highest growth rate from 2022 to 2027. Asia Pacific has been a major contributor to the growth of the overall market as this region has a huge market for the construction industry, which is the primary end-user of HVAC controls. The growing population in developing countries of this region, along with environmental awareness, is supporting the adoption of HVAC controls. The rise in the adoption of green buildings and government initiatives to regulate energy-efficient practices across the commercial sector are also aiding the adoption of HVAC controls in the region.