How Big is the Residential HVAC Market | Size, Growth & Trends 2025-2031

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Code: MTA8638

Publication Date: Sep 2025

What is the size of Residential HVAC Market?

According to 6Wresearch internal database and industry insights, the Global Residential HVAC Market was valued at USD 50 billion in 2024 and is expected to reach USD 72.25 billion by 2031, growing at a compound annual growth rate of 5.60% during the forecast period (2025-2031).

The residential HVAC market is experiencing growth as demand for energy-efficient heating, ventilation, and air conditioning systems rises around the world. Urbanization, increasing disposable income, and building energy codes are driving the adoption and incorporation of residential HVAC systems, which are often powered by smart technologies and renewable energy sources.

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Growth Factors for Residential HVAC Market

Rising urbanization and the construction of new housing projects
More demand for energy-saving HVAC systems
Government regulations regarding environmentally-friendly refrigerants and low emissions
Consumer interest in smart-home technology and systems connected in the HVAC industry
Replacing old HVAC units in mature markets

Residential HVAC Market Trends

The residential HVAC market trends indicate the rapid evolution towards smart and connected systems. Homeowners are showing a clear preference for solutions that feature remote monitoring, predictive maintenance, and voice assistant compatibility. Energy efficiency is also undeniably part of the trend, and inverter-driven compressors and zoned systems are gaining traction. Sustainability and comfort are another set of trends in the residential HVAC market. The demand for systems with low-GWP refrigerants continues to build as regulations shift. There are also opportunities to integrate with solar energy systems, battery storage, and hybrid energy systems among eco-conscious citizens.

Emerging Developments in the Residential HVAC Market

The residential HVAC Market is seeing developments in modular HVAC configurations and integrated air purification capabilities. Manufacturers are introducing systems with air quality enhancements, including HEPA filters and UV-C disinfection. Additionally, advancements in the residential HVAC market include AI-based climate control platforms that minimize energy usage according to occupancy profiles. Energy recovery ventilation systems and hybrid HVAC systems that combine heat pumps with traditional heating and air conditioning systems are entering the market as major innovations.