Heating and Cooling Market (By Category: Heating [Electricity, Renewables, District Heating, Geothermal, Biofuels, Oil Products, Natural Gas, Coal, and Others] and Cooling; By Application: Residential, Industrial, and Service) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023– 2032


The global heating & cooling market size was estimated at US$ 266 billion in 2022 and is expected to reach over US$ 348.89 billion by 2032 with a registered CAGR of 2.80% from 2023 to 2032.

Heating and Cooling Market Size 2023 to 2032

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Heating and Cooling Market Size in the U.S. 2023 to 2032

The U.S. heating & cooling market size was valued at US$ 62.10 billion in 2022 and is predicted to hit over US$ 82.25 billion by 2032 with a CAGR of 2.90% between 2023 to 2032.

U.S. Heating and Cooling Market Size 2023 to 2032

North America dominated the global heating and cooling market in 2022. The rising integration of green energy sources along with the rising consumer expenditure on the residential and commercial sectors on the deployment of efficient cooling and heating systems is boosting the growth of the North America heating and cooling market. The rising living standards and increased demand for the luxury lifestyle is spurring the demand for the advanced heating and cooling systems. Moreover, the rising number of government initiatives to promote the adoption of renewable energy sources in the region is exponentially driving the market growth in North America. The rapid growth of the industries and the residential and commercial structures in North America has significantly driven the adoption of the advanced heating and cooling systems.

Asia Pacific is estimated to be the most opportunistic market during the forecast period. Rapid industrialization and rapid urbanization in Asia Pacific region is expected to boost the growth of the heating and cooling market. The increasing demand for the efficient heating and cooling systems owing to the elevated hot and cold climatic conditions across the Asia Pacific region is supporting the growth of the market. Moreover, the rising government initiatives to promote the adoption of green energy due to rising global warming issues is expected to foster the growth of the heating and cooling market during the forecast period.

Growth Factors

The global heating and cooling market is shaped by the stringent government regulations regarding carbon emissions and rising investments by the government on the development of infrastructure. The development of regulatory frameworks encourages the transition towards the adoption of the low carbon emission technologies, which is expected to drive the growth of the global heating and cooling market. The rising adoption of renewable energy sources and increasing demand for the green energy is expected to boost the market growth in the forthcoming years. The rapid industrialization and the rising focus towards sustainability is augmenting the demand for the renewable energy. Therefore, the rising popularity of the green energy is expected to positively impact the growth of the heating and cooling market across the globe. Moreover, the growing concerns pertaining to climate change and optimization of energy is influencing the global heating and cooling market. The increased adoption of the electrical energy has fostered the growth in the demand for heating across the globe. The stringent government regulations regarding the optimization of energy and energy consumption standards is expected to shape the future of the heating and cooling market.

The surging demand for the efficient heating and cooling solutions along with the favorable regulations regarding the HVAC systems in the residential sector is driving the market growth. The rapid urbanization and rising investments in the real estate sector is positively impacting the global heating and cooling market. Moreover, the rising demand for energy coupled with growing investments in the industries for the adoption of district heating solutions is expected to foster the market growth. The district heating and cooling segment is estimated to have a positive growth owing to its economic feasibility and sustainability feature. The rising awareness across the globe towards the benefits of adopting the district heating and cooling solutions is expected to augment the global heating and cooling market.

Scope of the Heating & Cooling Market

Report Coverage Details
Market Size USD 348.89 Billion by 2032
Growth Rate CAGR of 2.80% from 2023 to 2032
Largest Market North America
Fasetst Growing Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Category, Application, Region
Companies Mentioned Johnson Controls, Siemens, Daikin, Lennox International, Trane, Rheem Manufacturing, Engie, Mitsubishi Electric, Haier, Danfoss, Empower, Veolia, Goodman, Fortum

 

Category Insights

Based on the category, the heating segment accounted for more than 90% of the market share in 2022. The growing usage of floor heating in huge industries due to the extreme climate conditions has fueled the growth of this segment. Growing investments in urbanization and construction of huge buildings across industries is supporting the growth of the heating category. The increased demand for energy optimization and growing concerns related to the changing climatic conditions is significantly driving the growth of the heating segment across the globe. Moreover, the favorable government policies regarding the utilization of green energy is shifting the focus towards solar power, geothermal, solar PV, and biomass that would increase the utilization of sustainable sources of energy.

Heating and Cooling Market Share, By Category, 2020 (%)

On the other hand, the rising surface temperature owing to the extreme climatic conditions in the equatorial regions is expected to foster the growth of the cooling segment during the forecast period. The global warming issues and rising number of hot climate days is fueling the demand for the efficient cooling solutions across the industries and residential applications that would enhance the energy consumption. Furthermore, the rising standard of living and demand for the luxurious lifestyle is significantly boosting the demand for the advanced cooling systems across the globe.

Application Insights

The residential segment dominated the global heating and cooling market in 2020. The surging demand for the efficient and effecting heating and cooling solutions pertaining to the regulatory frameworks that favors the HVAC systems in the residential sector has propelled the market growth. The encouragement regarding the green buildings is fostering the growth of the residential segment across the globe. The integration of the energy management systems across the residential sectors coupled with the rising real estate investments is augmenting the growth of the residential segment. The growing urbanization in the developing markets like Middle East, Asia Pacific, Latin America, and Africa is estimated to significantly impact the demand for the efficient heating and cooling systems in the forthcoming years, which will sustain the dominance of the residential segment throughout the forecast period.

Key Market Development

The strategic developments like partnerships, agreements, and innovative product launches is expected to drive the market growth. The top HVAC manufacturers are operating under stringent government regulations regarding the energy efficiency. Thus the manufacturers are investing heavily on the development innovative products that caters to the need for the energy efficiency and growth in the adoption of the renewable energy sources across the globe.

  • In August 2021, the government of Canada under the Department of Natural Resources Canada announced a reward of US$165,000 to InukshukSynergie to help them to commercialize the biomass-based heating systems.
  • In 2020, the government of Japan implemented the Renewable Energy Act to promote the programs related to the renewable energy projects. This implantation involved the latest amendments to the act.

The government plays a crucial role in the growth of heating and cooling market. The rising investments in the development and deployment of the renewable energy sources such as solar energy and wind energy is triggering the adoption of the green energy in the residential, industrial, and service sectors across the global markets.

Some of the prominent players in the global heating & cooling market include:

  • Johnson Controls
  • Siemens
  • Daikin
  • Lennox International
  • Trane
  • Rheem Manufacturing
  • Engie
  • Mitsubishi Electric
  • Haier
  • Danfoss
  • Empower
  • Veolia
  • Goodman
  • Fortum

Segments Covered in the Report

By Category

  • Heating
    • Electricity
    • Renewables
    • District Heating
    • Geothermal
    • Biofuels
    • Oil Products
    • Natural Gas
    • Coal
    • Others 
  • Cooling

By Application

  • Residential
  • Industrial
  • Service

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions

What is the current size of heating & cooling market?
According to Precedence Research, the global heating & cooling market size was reached at US$ 266 billion in 2022 and is predicted to surpass over US$ 348.89 billion by 2032.
What is the CAGR of global heating & cooling market?
The global heating & cooling market is growing at a CAGR of 2.80% from 2023 to 2032.
Which are the driving factors of the heating & cooling market?
The rising government initiatives to promote the adoption of green energy and rising government investments to boost the deployment of the renewable energy sources are the major drivers of the global heating and cooling market.
Who are the major players operating in the heating & cooling market?
The major players operating in the heating & cooling market are Johnson Controls, Siemens, Daikin, Lennox International, Trane, Rheem Manufacturing, Engie, Mitsubishi Electric, Haier, Danfoss, Empower, Veolia, Goodman, Fortum.
Which region will lead the global heating & cooling market?
In 2020, North America dominated the global heating and cooling market. North America is characterized by the increased consumer expenditure on the commercial and residential heating and cooling systems.

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