HVAC and Plumbing Market Size & Industry Report, 2033

HVAC and Plumbing Market Overview

The HVAC and Plumbing Market size was valued at USD 227.18 million in 2024 and is expected to reach USD 426.17 million by 2033, growing at a CAGR of 7.24% from 2025 to 2033.

The global HVAC and plumbing market is a vital part of modern infrastructure, with over 100 million residential and commercial units installed annually worldwide. This market covers heating, ventilation, air conditioning, plumbing fixtures, and water treatment systems that serve billions of people in residential, commercial, and industrial buildings.

Over 70% of urban households in developed countries rely on central HVAC systems, while more than 60 million new plumbing installations occur every year to meet rising urbanization demands. Energy efficiency drives market innovation — modern HVAC systems are designed to reduce energy consumption by up to 40% compared to traditional models. The market employs over 5 million technicians, engineers, and service providers globally.

The integration of smart HVAC systems has grown rapidly — over 20 million smart thermostats are installed annually to enable remote control and energy savings. Water conservation is also a core focus, with new plumbing fixtures reducing household water usage by over 30% compared to conventional systems. The commercial building segment accounts for over 50% of annual HVAC and plumbing upgrades worldwide due to aging infrastructure and green building standards.

Key Findings

DRIVER: Rising demand for energy-efficient and smart HVAC systems to reduce operational costs and carbon footprint.

COUNTRY/REGION: North America remains the largest market with over 30% of global HVAC and plumbing unit sales.

SEGMENT: Air conditioning systems lead the market, representing more than 40% of total annual installations.

HVAC and Plumbing Market Trends

The HVAC and plumbing market is evolving rapidly, driven by technological advancements, stricter regulations, and rising consumer awareness. Smart HVAC systems are among the strongest trends — over 20 million smart controllers and thermostats were installed globally last year alone, improving energy efficiency and user convenience. Retrofit projects are booming as older buildings upgrade outdated heating and cooling units — retrofits accounted for over 50% of commercial HVAC investments in North America in 2023. Green building certifications are reshaping plumbing design, with over 10 million water-saving fixtures installed in commercial and residential buildings annually. Demand for ductless systems is rising in Asia-Pacific, where more than 30 million split AC units were sold in the past year, catering to compact urban apartments. Ventilation systems are also under focus due to air quality concerns — global sales of advanced air purification units within HVAC systems grew by over 25% last year. Plumbing innovations, such as touchless faucets and smart leak detectors, are becoming mainstream; over 5 million smart leak detection systems were installed in North American homes alone in 2023. Hybrid HVAC systems that combine heating, cooling, and renewable energy sources like heat pumps are expanding rapidly in Europe, where over 2 million new heat pumps were added in a single year. In the industrial sector, HVAC and plumbing systems support temperature-sensitive manufacturing environments, including over 100,000 controlled cleanrooms globally. Remote monitoring solutions for HVAC units now cover more than 50% of large commercial properties in developed markets, cutting downtime and maintenance costs.

HVAC and Plumbing Market Dynamics

The HVAC and plumbing market remains dynamic as energy efficiency, sustainability, and smart technologies reshape product portfolios and services. Over 500 million new HVAC and plumbing components are produced every year, supporting residential, commercial, and industrial applications. Governments worldwide enforce stricter energy codes, driving manufacturers to develop systems that consume 30–50% less energy than older models. Aging infrastructure in North America and Europe creates steady demand for replacements — over 60% of buildings in the US were built before 1980 and require HVAC and plumbing upgrades. Labor is a major factor — the market employs over 5 million skilled workers globally, with training for next-generation smart systems creating 100,000 new technical jobs annually.

DRIVER

Rising demand for energy-efficient HVAC and smart plumbing solutions

Energy-efficient and smart systems remain the primary market driver. More than 50% of new HVAC installations now feature energy-saving inverter technology, cutting electricity consumption by up to 40%. Smart plumbing fixtures, including touchless faucets and leak detection sensors, help reduce water waste by billions of gallons annually. Building owners and facility managers prioritize these upgrades to meet stricter environmental standards and lower utility costs for millions of tenants.

RESTRAINT

High installation and maintenance costs

Upfront installation and long-term maintenance costs restrain adoption in price-sensitive markets. Smart HVAC systems and advanced plumbing fixtures can cost 20–50% more than traditional setups. Commercial retrofits for large office complexes can run into millions per property. Maintenance of complex integrated systems often requires highly trained technicians — more than 500,000 new technicians must be trained globally in the next five years to keep pace with smart tech adoption.

OPPORTUNITY

Growth in green building certifications and retrofits

Green building certifications like LEED and BREEAM create opportunities for advanced HVAC and plumbing systems. Over 80% of new commercial buildings in major cities now pursue green certification, driving billions in investments. Retrofits for aging buildings are critical — more than 60% of commercial properties in North America and Europe require HVAC upgrades to meet modern efficiency codes, creating huge opportunities for manufacturers and service providers.

CHALLENGE

Skilled labor shortages and supply chain risks

A shortage of skilled labor is a major challenge. The industry faces a shortfall of over 500,000 qualified HVAC and plumbing technicians worldwide. Many systems now require expertise in IoT integration and smart diagnostics, but training programs lag behind demand. Supply chain risks, including shortages of key metals and electronic components, also threaten production timelines — more than 30% of manufacturers reported material delays in the past year, affecting delivery schedules.

HVAC and Plumbing Market Segmentation

The HVAC and plumbing market is segmented by type and application to serve varied customer needs across the residential, commercial, industrial, healthcare, and hospitality sectors.

By Type

Heating Systems: Over 50 million heating units are installed annually, with high-efficiency boilers and heat pumps leading upgrades in cold-climate regions. Modern systems reduce fuel consumption by up to 30% compared to older models.
Ventilation: More than 20 million ventilation systems are sold yearly, including advanced air purification and heat recovery ventilators that improve indoor air quality in offices, hospitals, and homes.
Air Conditioning: AC units dominate, with over 150 million systems installed globally each year, including ducted, ductless, and VRF solutions that maintain comfort for billions of people in varying climates.
Plumbing Fixtures: The market for plumbing fixtures includes over 100 million faucets, toilets, showers, and water-saving devices sold yearly to residential and commercial users seeking durability and conservation.
Water Treatment: Over 50 million water treatment units, from softeners to filtration systems, are installed annually to ensure safe drinking water in households, hotels, hospitals, and industrial facilities.

By Application

Residential: Residential installations represent more than 50% of global HVAC and plumbing demand, with millions of households upgrading to smart, energy-efficient systems each year.
Commercial Buildings: Offices, shopping malls, and schools account for over 30% of the market, with HVAC and plumbing retrofits driven by green building codes and tenant expectations.
Industrial: Factories and production plants require robust HVAC and plumbing to maintain climate control for sensitive processes — more than 100,000 large industrial facilities worldwide depend on reliable systems.
Healthcare: Hospitals and clinics need high-performance air filtration and plumbing sanitation to maintain safety — over 1 million healthcare buildings globally rely on specialized HVAC and plumbing systems.
Hospitality: Hotels and resorts demand premium comfort and water efficiency — over 500,000 new rooms are built or renovated annually with upgraded HVAC and plumbing fixtures to meet guest expectations.

Regional Outlook for the HVAC and Plumbing Market

The Regional Outlook section of the HVAC and Plumbing Market report analyzes North America, Europe, Asia-Pacific, and the Middle East & Africa in detail, highlighting key figures, unit installations, workforce data, and emerging opportunities in each region. It outlines regional strengths, major installation trends, infrastructure investments, and the role of urbanization and green building policies driving millions of new HVAC and plumbing system deployments annually worldwide.

North America

North America leads global HVAC and plumbing market demand with robust residential and commercial construction. More than 40% of US households use centralized air conditioning, and over 50 million HVAC systems are installed or replaced annually across the US, Canada, and Mexico. Demand for green retrofits is growing; over 70% of commercial buildings older than 20 years require HVAC upgrades to meet stricter efficiency codes. Plumbing systems in North America must comply with strict water conservation standards, with over 10 million water-saving fixtures sold each year. Skilled labor in HVAC and plumbing employs more than 1.5 million technicians in North America alone, highlighting the industry’s role in job creation.

Europe

In Europe, the market sees strong momentum as the EU targets carbon neutrality. Over 25 million residential heat pumps and high-efficiency boilers are in operation, and annual sales surpass 2 million new units. The European plumbing segment is evolving too; over 8 million smart faucets and greywater recycling systems are installed annually in line with green building regulations. Major urban areas like London, Berlin, and Stockholm lead adoption of district heating and centralized cooling, covering millions of square meters of residential and commercial floor space. Europe’s HVAC workforce exceeds 1 million people, with steady investment in technician training for smart and hybrid system installation.

Asia-Pacific

Asia-Pacific is the fastest-growing region for HVAC and plumbing, driven by rapid urbanization and rising incomes. China and India alone account for more than 50% of global air conditioning unit sales, with over 80 million residential AC units installed annually. Japan and South Korea lead in innovation with over 5 million smart HVAC units shipped yearly. Urban water infrastructure investments drive the plumbing market, with more than 30 million new plumbing fixture installations each year across high-density cities. Southeast Asia’s tropical climate fuels high demand for split AC units — more than 15 million units were sold in 2023. Asia-Pacific employs over 2 million HVAC and plumbing technicians to serve residential, commercial, and industrial sectors.

Middle East & Africa

The Middle East & Africa region focuses on high-capacity cooling solutions for extreme climates. The Gulf states see over 5 million new AC installations annually for residential and hospitality sectors, as temperatures exceed 45°C. District cooling is expanding, covering over 50 million square meters in cities like Dubai and Doha. Plumbing upgrades address water scarcity, with over 2 million smart water-saving fixtures installed annually. African nations like South Africa and Nigeria see rising urban housing needs, driving over 1 million new plumbing connections yearly. The region employs over 500,000 HVAC and plumbing professionals, with skills development programs growing to meet rising demand.

List of Top HVAC and Plumbing Companies

Daikin (Japan)
Ingersoll Rand (USA)
Johnson Controls (Ireland)
LG Electronics (South Korea)
Carrier (USA)
Trane (now part of Ingersoll Rand, USA)
American Standard (now part of Ingersoll Rand, USA)
Mitsubishi Electric (Japan)
Hitachi (Japan)
Nibe Industrier (Sweden)

Daikin: Daikin is the world’s largest HVAC manufacturer, producing over 10 million air conditioning units annually, with operations in more than 150 countries and a workforce of over 80,000 employees worldwide.

Ingersoll Rand: Ingersoll Rand, through its brands Trane and American Standard, supplies millions of HVAC and plumbing systems every year, with more than 50,000 employees and manufacturing facilities across North America, Europe, and Asia.

Investment Analysis and Opportunities

Investments in HVAC and plumbing are expanding as building owners, developers, and governments push for sustainable infrastructure. Over 100 billion USD equivalent is invested annually worldwide in new HVAC and plumbing systems for residential and commercial projects. Smart home integration creates new opportunities — more than 20 million smart HVAC controllers and sensors are installed each year, driving new product development and retrofits. Heat pump adoption in Europe and North America offers significant investment potential — over 2 million new units were sold in Europe last year alone, with incentives covering up to 50% of installation costs. Urban water infrastructure upgrades boost plumbing opportunities — cities spend billions annually installing low-flow fixtures and greywater recycling systems, with over 15 million new fixtures deployed globally each year. Green building certifications drive investment too — more than 80% of large urban office towers built since 2020 include advanced HVAC and smart plumbing designs. Retrofits for aging commercial properties generate steady demand — in North America alone, over 70% of buildings older than 30 years undergo HVAC upgrades, representing millions of square meters of renovated space annually. Emerging markets present high growth opportunities — Asia-Pacific’s middle class is expanding rapidly, and more than 100 million new households will require HVAC and plumbing systems in the next decade. Investors also see opportunities in specialized segments like hospital HVAC systems — over 1 million healthcare facilities worldwide need precise air control, driving billions in investments each year. Private equity and infrastructure funds are actively acquiring regional HVAC and plumbing contractors — more than 200 such acquisitions occurred globally in the past five years, indicating strong interest in this stable, cash-generating sector.

New Product Development

HVAC and plumbing manufacturers invest heavily in new product development to meet tightening efficiency standards and shifting customer expectations. Daikin, Mitsubishi Electric, and LG Electronics produce over 10 million new inverter-based AC units each year, which cut energy consumption by up to 40% compared to older models. Heat pumps are one of the fastest-growing segments — more than 2 million new residential heat pumps were sold in Europe last year alone, supported by government incentives. Smart thermostats and IoT-enabled controls are now standard for modern systems — over 20 million smart controllers are installed annually in residential and commercial settings. In plumbing, touchless faucets and smart leak detection systems are rapidly gaining traction, with more than 5 million smart leak sensors deployed in homes and offices globally each year. Hybrid HVAC systems that integrate solar thermal energy are emerging, with pilot installations in Europe and Asia exceeding 50,000 units. Indoor air quality innovations continue too — advanced filters and UV sterilizers are now built into more than 10 million new ventilation units sold every year. Manufacturers invest in modular HVAC units that can be scaled for different building sizes, cutting installation time by 30% compared to traditional systems. Plumbing innovations include water-saving showerheads that reduce flow rates by 40% without sacrificing comfort, with more than 20 million sold worldwide annually. Back-end digital platforms now let service providers monitor HVAC system performance in real-time for millions of commercial buildings, enabling predictive maintenance and reducing downtime. Such advances show that new product development is critical for companies to maintain competitiveness in a rapidly evolving market.

Five Recent Developments

Daikin launched a new inverter AC model that cuts power consumption by up to 50%, with initial sales exceeding 1 million units in Asia.
Ingersoll Rand expanded its North American manufacturing footprint with a new HVAC plant creating over 1,500 jobs.
Johnson Controls introduced a smart building management system connecting over 2 million HVAC and plumbing devices.
Mitsubishi Electric deployed over 500,000 residential heat pumps across Europe to support green housing goals.
Carrier unveiled a new line of hybrid HVAC units combining heat pumps and solar thermal collectors, with 100,000 pilot installations.

Report Coverage of HVAC and Plumbing Market

This detailed report covers the full scope of the HVAC and plumbing market, spanning heating, ventilation, air conditioning, smart controls, water treatment, and plumbing fixtures. The analysis examines over 500 million new components manufactured each year to serve residential, commercial, industrial, healthcare, and hospitality sectors. The report includes insights into over 5 million global HVAC and plumbing professionals who install and maintain these systems. Regional coverage highlights North America’s dominance with over 50 million annual unit sales, Europe’s leadership in heat pumps and green retrofits with over 2 million units sold annually, Asia-Pacific’s booming demand for more than 80 million residential AC units each year, and the Middle East & Africa’s high-capacity cooling systems exceeding 5 million new installations yearly. The report segments the market by type — heating systems, ventilation, air conditioning, plumbing fixtures, and water treatment — each representing millions of units sold yearly. Applications are detailed across residential, commercial, industrial, healthcare, and hospitality segments, with each category contributing millions of installations globally. It profiles leading companies like Daikin, which produces over 10 million AC units annually, and Ingersoll Rand, with global operations spanning multiple brands and tens of thousands of employees. Investment highlights cover billions deployed annually into green retrofits, smart HVAC solutions, and water-efficient plumbing systems, with more than 200 private equity deals in the past five years alone. The report also tracks product innovations such as inverter-based ACs, smart leak sensors, hybrid systems, and advanced filtration technologies, with tens of millions of new units deployed globally each year. This scope demonstrates how the HVAC and plumbing market remains a cornerstone of modern infrastructure, creating millions of jobs and driving constant innovation.

Frequently Asked Questions

What value is the HVAC and Plumbing market expected to touch by 2033

The global HVAC and Plumbing market is expected to reach USD 426.17 Million by 2033.

What is CAGR of the HVAC and Plumbing market expected to exhibit by 2033?

The HVAC and Plumbing market is expected to exhibit a CAGR of 7.24% by 2033.

Which are the top companies operating in the HVAC and Plumbing market?

Daikin (Japan), Ingersoll Rand (USA), Johnson Controls (Ireland), LG Electronics (South Korea), Carrier (USA), Trane (now part of Ingersoll Rand, USA), American Standard (now part of Ingersoll Rand, USA), Mitsubishi Electric (Japan), Hitachi (Japan), Nibe Industrier (Sweden)