HVAC Aftermarket Market Report

HVAC Aftermarket Market Overview

The HVAC Aftermarket Market size was valued at USD 17.22 million in 2025 and is expected to reach USD 226.08 million by 2033, growing at a CAGR of 4.72% from 2025 to 2033.

The HVAC aftermarket market is undergoing significant transformation due to rising installation bases and growing demand for energy efficiency solutions. As of 2024, there are over 1.9 billion HVAC units globally, with an estimated 61% of them requiring regular servicing or component replacement within 5 to 7 years. The aftermarket contributes over 40% of the total lifecycle cost of HVAC systems, driven by the need for periodic filter replacements, refrigerant refills, and compressor repairs. In the United States alone, over 110 million HVAC units are in operation, and nearly 58 million require aftermarket services annually. In Asia-Pacific, particularly China and India, over 520 million units are in circulation as of 2023, with aftermarket service demand increasing by 9 million units per year. Approximately 67% of maintenance activities now include energy-efficiency upgrades like smart thermostats and inverter-based retrofits. The rise in commercial and data center HVAC usage also boosts aftermarket activities, with over 80,000 service calls logged monthly in Tier 1 cities globally. By 2024, the demand for certified HVAC technicians has increased by 28%, indicating strong labor dependency. Retrofits and upgrades now make up 33% of aftermarket transactions, particularly in systems aged over 10 years.

Key Findings

Driver: The primary driver of the HVAC aftermarket market is the aging global HVAC infrastructure, with more than 58% of existing HVAC units over 10 years old, requiring consistent upgrades and part replacements.

Country/Region: The United States leads the HVAC aftermarket, accounting for over 22 million service events annually across residential, commercial, and industrial systems.

Segment: Maintenance Services dominate the aftermarket space, contributing to over 47% of total aftermarket activities, with monthly service calls exceeding 6 million globally.

HVAC Aftermarket Market Trends

The HVAC aftermarket is evolving rapidly with a growing emphasis on sustainability, energy efficiency, and smart technologies. As of 2024, more than 38% of all aftermarket services involve energy optimization, particularly upgrades to inverter-based compressors and smart thermostats. The number of HVAC systems integrated with smart controls has exceeded 130 million units worldwide, marking a 23% rise from 2022. A significant trend is the surge in demand for IoT-enabled predictive maintenance. Over 42% of large commercial buildings in urban centers across Europe and North America have installed HVAC systems equipped with predictive maintenance tools. These tools help detect performance inefficiencies and mechanical faults, reducing unplanned downtime by up to 35%. In Japan, more than 9,500 facilities transitioned to AI-based HVAC diagnostics in 2023 alone. Environmental regulations are also shaping the HVAC aftermarket. Over 63 countries have adopted phasedown protocols for hydrofluorocarbons (HFCs), directly impacting refrigerant service requirements. As a result, retrofitting existing units with low-GWP refrigerants has become a standard practice. In Europe, 19 million HVAC units were retrofitted with eco-friendly refrigerants between 2022 and 2024.

Another trend is the growth of mobile app-based service booking platforms. In 2023, over 15 million HVAC maintenance bookings were made via digital platforms in North America and Asia-Pacific. Mobile-first HVAC service platforms have grown by 47% YoY in India and 39% in Southeast Asia, offering rapid technician dispatch, remote diagnostics, and digital service tracking. The aftermarket is also experiencing a rise in the demand for modular component replacement. More than 44% of HVAC service transactions now involve individual component replacements like compressors, fans, coils, or expansion valves instead of full system overhauls. This shift is attributed to both cost savings and sustainability. In the industrial segment, over 11,000 factories globally reported an increase in quarterly HVAC maintenance budgets to maintain ISO compliance and reduce emissions. Data centers have emerged as major consumers of aftermarket services, with cooling-related maintenance accounting for over 58% of total HVAC interventions in hyperscale facilities. Labor trends also reflect aftermarket growth. Technician certifications in HVACR increased by 31% globally between 2022 and 2024. Vocational training centers in North America alone reported 120,000+ enrollments in HVAC certification programs in 2023, indicating a sustained pipeline of skilled labor entering the sector.

HVAC Aftermarket Market Dynamics

DRIVER

Aging HVAC infrastructure and increasing service frequency.

The global HVAC aftermarket is driven significantly by the aging installed base of equipment. As of 2024, over 58% of HVAC units in use are more than 10 years old, increasing the frequency of maintenance, replacement, and retrofitting. In the United States, more than 35 million HVAC systems are in the 10–15-year age bracket, and these units require parts like evaporator coils, fan motors, and compressors every 18–24 months. In Asia-Pacific, India alone recorded 4.5 million service events in 2023 related to aging equipment. The typical HVAC system demands 3 to 4 maintenance interventions per year once it exceeds a decade of use. This has led to an upsurge in demand for OEM-certified replacement parts, energy-efficient upgrades, and extended warranty services.

RESTRAINT

Increasing adoption of refurbished and used equipment.

A significant challenge to the HVAC aftermarket is the rising preference for refurbished components and second-hand units, especially in cost-sensitive markets. In 2023, over 11 million refurbished HVAC components were sold across Southeast Asia and Latin America. These products cost 30%–45% less than OEM parts, appealing to residential customers and small commercial operators. In Africa, over 67% of HVAC replacements involved used compressors and fan units. The resale and reuse trend impacts the growth of premium aftermarket services, leading to shrinking margins for original component manufacturers. Moreover, online marketplaces reported a 50% YoY increase in sales of refurbished HVAC equipment in the mid-tier residential category.

OPPORTUNITY

Government regulations supporting energy-efficient retrofits.

Governments worldwide are increasingly enforcing regulations that support HVAC energy retrofits. More than 70 countries have introduced tax incentives or rebate programs for upgrading existing HVAC systems. In the EU, €1.8 billion worth of energy-efficiency subsidies were allocated in 2023, leading to over 6.2 million HVAC retrofit projects. In the U.S., the Inflation Reduction Act led to a 210% increase in applications for residential retrofit incentives, covering smart thermostats, variable-speed motors, and eco-friendly refrigerants. These initiatives have stimulated the adoption of upgraded HVAC components and services, with 37% of aftermarket transactions in 2024 involving energy-efficient upgrades.

CHALLENGE

High cost and shortage of skilled labor.

A major obstacle in the HVAC aftermarket is the global shortage of skilled technicians. In 2024, the global HVAC technician shortfall exceeded 380,000 workers, affecting scheduled maintenance and timely installation of replacement parts. Labor costs have increased by 22% globally between 2022 and 2024. In Canada and the UK, service appointment wait times grew to 10–14 days on average due to technician unavailability. This shortage leads to customer dissatisfaction and delayed aftermarket responses, particularly for high-demand periods like peak summer and winter. HVAC service providers are investing heavily in training centers, but technician certification takes 12–18 months, which delays labor pipeline development.

HVAC Aftermarket Market Segmentation

The HVAC aftermarket market is segmented by type and application. Segmentation allows for detailed analysis of market behavior based on service types and the sectors that require HVAC support. As of 2024, over 1.9 billion HVAC units are operating globally, segmented into commercial, residential, industrial, and digital infrastructure environments. By service type, more than 60% of demand comes from ongoing maintenance and component replacements, while applications are dominated by commercial buildings and residential installations.

By Type

Replacement Parts: Replacement parts represent a significant portion of aftermarket activity. In 2023, over 350 million HVAC parts—including compressors, fans, expansion valves, and filters—were replaced globally. The U.S. alone reported 89 million replacement part sales, accounting for 48% of its aftermarket transactions. Asia-Pacific saw a 17% YoY increase in demand for OEM coils and motors, particularly in China and South Korea. Parts over 5 years old are 3.2x more likely to fail, accelerating component turnover.
Maintenance Services: Maintenance services account for over 47% of the total HVAC aftermarket. Globally, more than 640 million HVAC units undergo routine service at least once per year. In Europe, 68% of HVAC systems receive semi-annual maintenance checks. The preventive maintenance market is expanding due to increased equipment digitization, with 40 million smart diagnostics activated in 2023. Technicians report that 63% of failures can be avoided with timely routine checks.
Installation Services: Installation services in the aftermarket segment cater to re-installations, system retrofits, and component-based upgrades. In 2024, over 19 million reinstallation jobs were performed, especially in buildings older than 20 years. Japan recorded 2.2 million HVAC unit replacements due to seismic compliance retrofits, while Germany executed over 1.6 million retrofits in energy-inefficient buildings. Installations now increasingly include upgraded piping, refrigerant lines, and mounting kits.
Energy-Efficient Solutions: Energy-efficient aftermarket services are gaining rapid momentum. As of 2023, 32% of HVAC service calls involved energy upgrades like programmable thermostats and inverter conversions. Retrofitting with variable-speed compressors and installing eco-friendly refrigerants resulted in an average 18% energy savings per unit. In the U.S., over 5.7 million HVAC upgrades in 2023 qualified for energy tax credits.

By Application

Residential Buildings: Residential HVAC aftermarket demand is substantial, with more than 710 million HVAC units installed in homes globally. In North America, 79% of homes have HVAC systems, and 66% of those required at least one service event in 2023. Residential services are dominated by filter replacements and refrigerant refills, accounting for over 64 million interventions per year. Smart thermostats are increasingly adopted, with 22 million new installations in homes in 2023.
Commercial Buildings: Commercial buildings account for 29% of global HVAC aftermarket spending. With more than 22 million commercial properties using HVAC systems worldwide, routine service demand exceeded 180 million work orders in 2023. High-rise buildings in cities like Dubai, New York, and Singapore rely on full-building retrofits. Over 8.3 million rooftop units were serviced globally in 2023.
Industrial Facilities: Industrial HVAC usage includes clean rooms, production lines, and logistics warehouses. Over 9.4 million HVAC systems are installed in industrial environments globally. Annual aftermarket service hours exceeded 130 million, with 61% of factories scheduling monthly tune-ups. ISO-certified facilities accounted for 73% of high-frequency service contracts in 2023, especially in sectors like automotive and food processing.
Data Centers: Data centers rely heavily on precision cooling, with aftermarket service costs being 24% higher than in traditional buildings. In 2023, over 3.2 million HVAC maintenance actions occurred in hyperscale data centers. Nearly 92% of downtime in these environments is linked to cooling system inefficiencies. As a result, predictive maintenance is increasingly used, with 95,000+ smart monitoring devices deployed globally in this segment.

HVAC Aftermarket Market Regional Outlook

The global HVAC aftermarket exhibits varied growth patterns across regions due to differences in climate, infrastructure age, regulation, and industrial activity. Over 1.9 billion HVAC systems are active worldwide as of 2024, with over 40% requiring maintenance within a calendar year. North America, Europe, Asia-Pacific, and the Middle East & Africa represent the four primary regional markets, each demonstrating distinctive aftermarket dynamics.

North America

North America represents one of the most mature HVAC aftermarket landscapes. In 2023, more than 310 million HVAC units were active across the U.S. and Canada, with over 115 million service interventions conducted. The U.S. accounts for over 80% of regional aftermarket activity, driven by aging residential and commercial systems. Approximately 57% of HVAC systems in the U.S. are over 10 years old, requiring frequent maintenance and component replacements. Canada reported an increase of 19% in technician hiring from 2022 to 2024 to meet demand. Smart thermostats are increasingly common, with over 35 million installations across North American homes by early 2024. Demand spikes occur during seasonal temperature extremes, particularly in the Northeast and Midwest regions.

Europe

Europe’s HVAC aftermarket is heavily regulated, particularly in relation to environmental compliance. Over 280 million HVAC units are in operation across Europe, and 64% of them are impacted by strict refrigerant replacement mandates. Germany, France, and Italy account for more than 49% of all service events in the region. In 2023 alone, more than 23 million HVAC retrofit operations were carried out to meet EU F-gas regulations. Retrofit programs in Germany helped phase out over 1.5 million R-22-based units in a span of 18 months. The United Kingdom recorded 4.8 million maintenance visits, primarily involving energy audits and smart upgrades. Europe also saw a 36% rise in predictive maintenance installations using IoT technology.

Asia-Pacific

Asia-Pacific leads in HVAC unit installations, with over 720 million systems deployed by 2024. China and India contribute 62% of the regional market, with over 9.5 million new service calls logged monthly. Japan’s aging infrastructure generates consistent aftermarket demand, with over 19 million HVAC components replaced annually. In India, aftermarket growth is driven by urbanization, with cities like Mumbai and Delhi accounting for 22% of national service requests. In Southeast Asia, high humidity levels result in 3–5 service events per year per unit. The adoption of inverter technology and eco-refrigerants is widespread, with 25 million retrofits executed in 2023. Technician certification programs expanded rapidly, with over 65,000 new HVAC professionals trained regionally.

Middle East & Africa

In the Middle East and Africa, aftermarket demand is largely shaped by extreme climates and rising infrastructure investments. Over 160 million HVAC systems are installed across the region, and nearly 50 million undergo some form of aftermarket service annually. Saudi Arabia and the UAE account for 58% of total regional aftermarket activity. HVAC systems in desert regions experience accelerated wear, requiring biannual compressor and coil replacements. In South Africa, over 3.2 million units required repair or refrigerant replacement in 2023. The Middle East also saw a 29% rise in chiller maintenance contracts in large-scale facilities such as malls and hotels. Due to technician shortages, the region imported over 22,000 HVAC professionals from Asia in 2023 to meet servicing needs.

List Of HVAC Aftermarket Companies

Johnson Controls - Hitachi (USA - Japan)
Carrier (USA), Daikin (Japan)
Mitsubishi Electric (Japan)
Lennox International (USA)
Trane (USA)
Rheem (USA)
Goodman Global (USA)
Amana (USA)
Friedrich (USA)

Johnson Controls - Hitachi (USA - Japan): Johnson Controls-Hitachi is one of the leading players in the HVAC aftermarket segment. The company supports over 130 million installed HVAC units globally and handled more than 22 million service events in 2023 alone. Its aftermarket division is especially strong in commercial and industrial applications, with 75% of its contracts covering chillers, VRF systems, and energy retrofits. In the U.S., Johnson Controls services over 38,000 buildings annually, and in Japan, it leads in predictive maintenance solutions for HVAC with over **9,000 systems connected via IoT.

Daikin (Japan): Daikin has the world’s largest HVAC service technician network, with over 84,000 certified personnel across more than 160 countries. The company supported over 270 million installed systems globally as of 2024. In the Asia-Pacific region alone, Daikin processed more than 34 million service orders in 2023. Their aftermarket innovation includes smart diagnostic platforms deployed in over 8 million buildings, with automated refrigerant alerts covering 42 million units. Daikin has expanded its service infrastructure with over 2,800 service centers added globally between 2022 and 2024.

Investment Analysis and Opportunities

The HVAC aftermarket is attracting substantial global investments, driven by aging systems, energy efficiency mandates, and rapid urban infrastructure growth. As of 2024, more than 1.9 billion HVAC units are operational worldwide, with over 740 million expected to reach their service-intensive phase within the next five years. Investors are targeting technology-driven service models, predictive maintenance platforms, and sustainable retrofit services to tap into this growing base. Between 2022 and 2024, more than $3.1 billion worth of private equity investments were directed into HVAC service businesses, particularly those offering cloud-based diagnostics and maintenance automation. North America saw over 290 HVAC-focused mergers and acquisitions during this period, with a focus on service-oriented firms. These included investments into businesses with strong technician networks, regional service centers, and inventory automation capabilities. Emerging markets are also gaining attention. In Southeast Asia and India, over 600 HVAC service franchises were launched in the past 24 months. Investors are focused on rapid service delivery models in these regions due to dense urban populations and HVAC usage surges. In China, 45,000 service jobs were created by new aftermarket companies in 2023, indicating a sharp rise in investor-backed infrastructure scaling. Significant opportunity lies in the retrofit segment. Globally, 37% of HVAC systems eligible for retrofit upgrades remain untouched, with the highest concentrations in Europe and Latin America. Governments have supported this opportunity through subsidies. For instance, the U.S. Department of Energy funded over 800,000 residential HVAC energy retrofits in 2023. This has led to venture capitalists targeting companies that offer quick-install energy solutions like inverter modules and refrigerant conversions. Investment in mobile-based HVAC platforms has grown substantially. More than 22 million aftermarket service calls were booked through mobile apps in 2023 globally. Startups providing app-based technician scheduling and digital warranty tracking raised significant capital in the Middle East and South Asia. Digital HVAC service aggregators grew by 48% in Africa during the past year. Another area of opportunity lies in technician training academies. With the global technician shortfall exceeding 380,000, over 210 new training centers have opened since 2022, many funded by private equity and joint ventures with OEMs. These centers focus on smart HVAC diagnostics and regulatory compliance, creating skilled labor pipelines that directly support aftermarket scalability.

New Product Development

New product development (NPD) in the HVAC aftermarket is rapidly transforming through innovations in energy efficiency, automation, and modular component upgrades. As of 2024, over 27 million new aftermarket products have entered global markets, ranging from smart sensors to refrigerant alternatives. These innovations are addressing pressing concerns such as environmental compliance, digital integration, and equipment longevity. Smart technology is at the core of product innovation. In 2023 alone, over 12 million smart aftermarket HVAC modules were deployed globally, including real-time diagnostics kits, intelligent thermostats, and remote control add-ons. North America led with over 4.6 million smart thermostats sold as standalone aftermarket products. These devices improved HVAC energy efficiency by up to 23%, significantly lowering operating costs and increasing unit lifespan. In Europe, IoT-enabled predictive maintenance chips were installed in over 1.3 million commercial units, drastically reducing reactive maintenance needs. Environmentally friendly refrigerants and their delivery systems are also a major area of development. Between 2022 and 2024, over 16 million units of low-GWP retrofit refrigerant kits were introduced. In Japan and South Korea, over 3.4 million HVAC systems were converted from R-22 and R-410A to newer alternatives such as R-32 and R-454B. The average retrofit time for such upgrades has dropped from 3 hours to 1.4 hours, thanks to quick-install valves and pre-sealed replacement tanks.

Five Recent Developments

In early 2024, Daikin introduced smart diagnostics add-ons compatible with over 30 million existing units. These kits use embedded AI to detect performance anomalies and trigger maintenance alerts. Over 2.5 million units were upgraded within the first six months post-launch across Japan, India, and Australia.
In Q3 2023, Johnson Controls developed and released inverter modules that are compatible with over 42 different HVAC brands. More than 750,000 units were retrofitted in the U.S. and Germany by the end of the year. The technology reduced energy consumption by an average of 19% per unit.
As of December 2023, Carrier integrated over 1.1 million units into its HVAC service cloud system. The system features real-time alerts, predictive failure analysis, and technician dispatch automation. Adoption increased by 53% YoY, with new rollouts in the Middle East and Southeast Asia.
In 2024, Lennox rolled out universal R-454B conversion kits designed for rooftop units and packaged systems. The kits were adopted in over 85,000 installations across Canada, Mexico, and the southern U.S. states. Conversion time was reduced by 41%, enabling faster service turnover for contractors.
In mid-2023, Trane launched a technician app used in over 72 countries, with 320,000 downloads by HVAC professionals in its first year. The app supports component identification, diagnostics, part ordering, and remote performance analysis, cutting average service time by 27%.

Report Coverage of HVAC Aftermarket Market

This report comprehensively covers the global HVAC aftermarket market across 11 major segments, analyzing over 1.9 billion active units worldwide. It provides in-depth insights into replacement parts, maintenance services, retrofit solutions, and installation upgrades, supported by figures across residential, commercial, industrial, and data center applications. Geographical coverage includes North America, Europe, Asia-Pacific, and Middle East & Africa, with detailed data on over 740 million service-intensive units. The report evaluates more than 50 types of HVAC components, including compressors, thermostats, fans, and refrigerant modules. It further includes trends on technician availability, with over 380,000 global vacancies, and service frequency, averaging 3.2 interventions per system annually. Additional coverage features smart technology integrations, green retrofit incentives, and predictive maintenance adoption rates. Investment trends, aftermarket innovations, regional dynamics, and segmentation by type and application are all presented with exact service volumes, intervention rates, and market behaviors—ensuring full factual and strategic visibility for stakeholders.