HVAC Repair, Maintenance and Installation Market Size & Growth [2033]

HVAC Repair, Maintenance and Installation Market Overview

The HVAC Repair, Maintenance and Installation Market size was valued at USD 25490.63 million in 2024 and is expected to reach USD 31525.2 million by 2033, growing at a CAGR of 2.4% from 2025 to 2033.

The global HVAC repair, maintenance and installation market continues to grow as the demand for heating, ventilation, and air conditioning systems rises across residential, commercial, and industrial sectors. In 2023, more than 1.9 billion HVAC units were in operation worldwide, with over 300 million new HVAC units installed during the year. The increasing urbanization rate, which exceeded 57% globally in 2023, alongside extreme weather events and stricter indoor air quality standards, accelerated service demands. HVAC systems contribute to approximately 50% of total building energy consumption, prompting substantial attention toward maintenance and energy efficiency upgrades.

Asia-Pacific remains the largest regional market, accounting for 42% of global HVAC system installations. North America followed closely, contributing 28%, while Europe represented 20%. The Middle East and Africa collectively accounted for 10% of total market volume. Commercial applications made up 48% of global service demand, followed by residential at 42% and industrial at 10%. Centralized HVAC maintenance dominated service contracts with 62% share, while distributed HVAC maintenance services accounted for 38%. The market continues to attract significant investments as both public and private sectors recognize the need for reliable, efficient, and sustainable climate control systems.

Key Findings

Driver: Growing demand for energy-efficient systems and compliance with indoor air quality standards.

Country/Region: Asia-Pacific holds the largest share with 42% of total HVAC installations globally.

Segment: Centralized HVAC Maintenance dominates with 62% share in total repair and maintenance service contracts.

HVAC Repair, Maintenance and Installation Market Trends

In 2023, the HVAC repair, maintenance and installation market experienced significant shifts driven by growing consumer awareness, regulatory changes, and technological advancements. Globally, more than 1.9 billion HVAC systems were operational, demanding extensive service and maintenance support to ensure optimal functionality and efficiency. Over 300 million new HVAC units were installed worldwide during the year, with a growing emphasis on energy-efficient and smart systems capable of reducing energy consumption by 20-35% compared to conventional models. The rise of smart home technology and Internet of Things (IoT)-enabled devices played a pivotal role in reshaping maintenance services. In North America, more than 7.2 million smart thermostats were installed in 2023, allowing predictive maintenance through remote monitoring and automated system diagnostics. These predictive maintenance services reduced unexpected HVAC failures by 40%, significantly lowering emergency repair costs for both commercial and residential users. In Asia-Pacific, particularly in China, India, and Southeast Asia, the demand for new installations surged due to rapid urbanization, with more than 120 million new residential units added to urban centers in 2023 alone. This construction boom directly translated into new HVAC installations exceeding 150 million units in the region during the year. Additionally, stricter air pollution controls drove adoption of advanced filtration systems integrated into HVAC units, with air purification systems seeing a 23% increase in integration across newly installed units.

Europe saw widespread retrofitting of aging HVAC infrastructure across commercial buildings, with more than 3 million commercial properties undergoing HVAC system upgrades in 2023. Energy efficiency regulations such as EPBD (Energy Performance of Buildings Directive) pushed building owners to adopt high-efficiency chillers, heat pumps, and advanced energy recovery ventilators (ERVs). In addition, government incentives supported replacement of over 1.8 million gas-powered boilers with heat pump systems across the continent. In the Middle East and Africa, rising ambient temperatures exceeding 50°C in certain regions accelerated demand for high-capacity cooling systems. Over 5 million tons of cooling capacity were installed across the Gulf Cooperation Council (GCC) nations in 2023 alone. This region also witnessed increasing demand for maintenance services to ensure uninterrupted operation of critical HVAC systems during peak summer months. Across all regions, the shortage of qualified HVAC technicians remained a significant trend. In 2023, there was a global shortage of approximately 300,000 trained HVAC service technicians, particularly in emerging markets. This skills gap fueled growth in training programs and certifications, with over 500 new technical training centers established worldwide to bridge the labor shortfall.

HVAC Repair, Maintenance and Installation Market Dynamics

DRIVER

Growing Demand for Energy-Efficient Systems

As buildings contribute to over 40% of global energy consumption, the need for energy-efficient HVAC systems has become a dominant growth driver. Modern energy-efficient systems reduce energy usage by 25-40% compared to conventional models, translating into significant cost savings. Governments worldwide introduced stricter efficiency standards such as SEER (Seasonal Energy Efficiency Ratio) and EER (Energy Efficiency Ratio), mandating higher-performing systems. In 2023, more than 25 million existing HVAC units were retrofitted with high-efficiency components globally. The rising cost of electricity, which increased by 15-20% across several major economies, further incentivized commercial property owners and residential users to prioritize preventive maintenance, predictive servicing, and replacement of outdated equipment with energy-efficient models.

RESTRAINT

High Installation and Maintenance Costs

The significant capital expenditure associated with HVAC system installation and ongoing maintenance presents a restraint for many customers, particularly in emerging markets. The average cost of installing a commercial HVAC system ranges from USD 80,000 to USD 400,000 depending on system complexity and building size. Residential HVAC replacement costs averaged between USD 8,000 and USD 20,000 in 2023. Additionally, annual maintenance contracts for large commercial properties often exceed USD 10,000 per year. Smaller property owners often defer necessary maintenance due to these costs, which leads to declining system efficiency, higher energy bills, and unexpected breakdowns that may result in even higher repair expenses.

OPPORTUNITY

Growth in Smart and Predictive Maintenance Solutions

The integration of IoT, AI, and predictive analytics offers substantial growth opportunities for the HVAC repair and maintenance sector. In 2023, approximately 12 million HVAC systems globally were connected to cloud-based monitoring platforms, allowing continuous diagnostics and remote adjustments. Predictive maintenance reduced unexpected downtime by 45%, optimized part replacement cycles, and extended equipment life by up to 30%. This data-driven approach enabled service providers to schedule maintenance proactively, eliminating unnecessary service calls while maximizing customer satisfaction. As smart building technologies expand, particularly in high-rise commercial and institutional buildings, demand for predictive HVAC maintenance solutions is projected to grow rapidly, offering significant revenue potential for service providers equipped with advanced digital platforms.

CHALLENGE

Skilled Labor Shortages and Aging Workforce

One of the most pressing challenges in the HVAC repair, maintenance, and installation market is the shortage of skilled technicians. In 2023, the global industry faced a deficit of approximately 300,000 certified HVAC professionals, with the highest shortages in North America, Asia-Pacific, and parts of Europe. An aging workforce, where 35% of HVAC technicians globally are over 50 years old, threatens to worsen the labor gap in the coming decade. The complexity of modern HVAC systems, particularly those integrated with AI, smart controls, and advanced refrigerants, requires higher levels of technical expertise than ever before. Training infrastructure struggles to keep pace, as only 45% of trade schools worldwide offer comprehensive smart HVAC system curricula. The lack of qualified technicians leads to extended service wait times, inconsistent maintenance quality, and rising labor costs for HVAC service providers.

HVAC Repair, Maintenance and Installation Market Segmentation

The HVAC repair, maintenance, and installation market is segmented by both type of maintenance model and application sector.

By Type

Centralized HVAC Maintenance: Centralized HVAC Maintenance accounted for 62% of service contracts globally in 2023. This segment primarily serves large commercial and institutional buildings where a centralized plant provides heating and cooling through chilled water, hot water, and ventilation systems distributed throughout the building via extensive ductwork and air handlers. Systems often include water-cooled chillers, cooling towers, air handling units (AHUs), and multiple compressors operating at capacities between 300 to 5,000 tons per chiller. In 2023, over 500,000 centralized systems globally underwent comprehensive seasonal preventive maintenance. Key tasks included refrigerant charge optimization, coil cleaning, cooling tower descaling, pump alignment, and airflow balancing. Failures in these large systems could disrupt entire facilities, making predictive maintenance platforms essential to monitor over 5,000 sensors per site for real-time performance analytics. Centralized systems also implemented heat recovery modules that improved energy savings by 20-30%, particularly in commercial campuses and hospitals where simultaneous heating and cooling demands exist.
Distributed HVAC Maintenance: Distributed HVAC Maintenance represented 38% of total service activity, primarily across residential, retail, small commercial, and low-rise buildings. In 2023, there were more than 1.2 billion distributed HVAC units globally. These include rooftop units (RTUs), ductless mini-split systems, packaged terminal air conditioners (PTACs), window units, and decentralized heat pump systems. Maintenance tasks for distributed systems focus on coil cleaning, electrical diagnostics, refrigerant leak detection, fan motor servicing, and filter replacement. Due to their individual standalone nature, distributed units are often easier to service but require more frequent attention due to higher exposure to environmental contaminants. Distributed systems experienced 15% higher breakdown rates compared to centralized systems, especially in coastal regions where salt air corrosion affects coils and electronics. However, distributed systems have grown in popularity due to installation flexibility, particularly in retrofitting older buildings or regions with limited infrastructure for centralized systems.

By Application

Commercial: The commercial sector accounted for 48% of the total HVAC repair, maintenance and installation market in 2023. This sector includes office buildings, shopping malls, airports, hotels, hospitals, universities, and data centers. In 2023, over 3 million commercial buildings globally underwent HVAC servicing or system upgrades. Large-scale commercial buildings typically operate complex centralized HVAC systems, often exceeding cooling capacities of 2,000 tons per facility, requiring comprehensive preventive maintenance schedules. Commercial buildings frequently integrate advanced building management systems (BMS), where real-time monitoring adjusts airflow and temperature across zones serving thousands of occupants. In data centers, which consumed over 2% of global electricity in 2023, precision cooling systems maintained temperatures within 18°C to 27°C to ensure uninterrupted server operation. Hospitals and healthcare facilities required specialized HVAC maintenance to ensure air changes exceeding 12 air changes per hour (ACH) in surgical suites, minimizing airborne infection risks. Shopping malls implemented high-efficiency air purification systems capable of removing 99% of PM2.5 pollutants to meet stricter indoor air quality standards, especially across Asia-Pacific cities affected by smog.
Industrial: The industrial sector represented approximately 10% of the total HVAC market. In 2023, more than 500,000 industrial facilities globally required continuous HVAC operation, particularly in manufacturing plants, cleanrooms, pharmaceuticals, semiconductor fabrication, and food processing facilities. Industrial HVAC systems operate under more rigorous environmental conditions, with temperature, humidity, and particulate controls directly affecting product quality. For instance, pharmaceutical cleanrooms maintain relative humidity between 30-40% and particulate levels as low as ISO Class 5 (100 particles per cubic foot). Food processing plants utilize both HVAC and refrigeration integration to control temperatures within 1°C of setpoints to preserve perishable goods. Industrial facilities often deploy redundant HVAC systems with multi-stage filtration capable of removing particles down to 0.1 microns, requiring highly specialized maintenance technicians. System failures in critical environments result in production downtime costing between USD 10,000 and USD 100,000 per hour, making proactive predictive maintenance essential.
Residential: The residential segment accounted for 42% of global HVAC demand in 2023, with over 900 million residential HVAC systems requiring ongoing maintenance. Single-family homes, multi-unit apartment complexes, and high-rise condominiums make up this sector. In 2023 alone, over 200 million residential HVAC units were newly installed globally, driven by expanding urban populations. Distributed systems such as ductless mini-splits, central split systems, and packaged units dominate residential usage. Routine maintenance includes refrigerant checks, filter replacements, airflow testing, coil cleaning, and thermostat calibration. Increasing demand for indoor air quality solutions led to 20% growth in whole-home air purification system integration. Smart thermostats were installed in more than 7.2 million homes in North America, enabling predictive alerts that reduced emergency service calls by 40%. Residential HVAC failures during peak summer months caused a spike of 15% in service dispatch rates during June-August 2023 globally.

HVAC Repair, Maintenance and Installation Market Regional Outlook

North America

the HVAC repair, maintenance and installation market accounted for 28% of global activity in 2023. The United States alone added over 7 million new residential HVAC units during the year, driven by extreme temperature fluctuations and aging infrastructure. Commercial HVAC retrofits across the U.S. and Canada included more than 500,000 VRF and heat pump system installations. Preventive maintenance contracts grew by 20% as corporate sustainability targets prioritized energy savings.

Europe

held a 20% share of global market activity. Over 3 million buildings underwent HVAC upgrades in 2023 due to the EU’s EPBD energy performance mandates. European governments provided subsidies for the replacement of more than 1.8 million oil and gas boilers with heat pumps and hybrid systems. Strict carbon reduction targets fueled large-scale investments in district heating and integrated heat recovery ventilation systems.

Asia-Pacific

remained the largest regional market with a 42% share. Rapid urbanization saw over 150 million HVAC units installed in 2023 alone, led by China, India, and Japan. The Chinese government’s green building standards promoted widespread adoption of inverter-based systems that offered 30-40% greater efficiency. Demand for maintenance services rose sharply as system complexity increased.

Middle East and Africa

combined accounted for 10% of global market share. The GCC region installed over 5 million tons of cooling capacity to meet rising temperatures often exceeding 50°C. High humidity levels necessitated extensive maintenance of dehumidification systems. In Africa, urban population growth drove residential HVAC installations exceeding 4 million units in 2023, though maintenance infrastructure still lags behind in many developing nations

List Of HVAC Repair, Maintenance and Installation Companies

Gree
Daikin
Midea
Johnsoncontrols
Carrier
Trane
Haier
Panasonic
Lennox
LG
Emerson
Mitsubishielectric
Hitachi
Fujitsu
Danfoss
Electroluxappliances
Nortek
Samsung
Toshiba

Gree: maintained the largest global market share in 2023, with over 230 million HVAC units installed worldwide. Gree’s dominance was supported by its strong residential presence in Asia-Pacific, where it accounted for over 25% of total residential installations in China alone. The company deployed advanced inverter technologies across 90% of its new units, significantly improving energy efficiency while reducing maintenance frequency.

Daikin: ranked among the top companies globally, with over 170 million HVAC systems in operation across commercial, industrial, and residential sectors. Daikin led the market in commercial VRF (Variable Refrigerant Flow) systems, accounting for over 40% of global VRF installations. In 2023, Daikin expanded its global service network, completing more than 3 million preventive maintenance contracts worldwide, and deployed AI-powered predictive maintenance platforms that reduced system downtime by 35% across key markets.

Investment Analysis and Opportunities

Investments in the HVAC repair, maintenance, and installation market surged in 2023 as stakeholders prioritized energy efficiency, regulatory compliance, and technological innovation. Globally, more than USD 120 billion was invested in HVAC system installations and service expansions during the year. Asia-Pacific led investment activity, accounting for approximately USD 50 billion, with significant growth driven by urban development projects across China, India, and Southeast Asia. These projects included over 100,000 commercial buildings that integrated centralized smart HVAC systems utilizing energy recovery ventilation (ERV) and hybrid heat pump technologies. North America followed with more than USD 35 billion in HVAC investments, including large-scale commercial retrofits, new residential installations, and industrial system upgrades. The U.S. Inflation Reduction Act (IRA) allocated over USD 8 billion toward energy-efficient HVAC system incentives, resulting in the replacement of more than 1.5 million aging residential HVAC units with high-efficiency heat pumps and ductless systems during 2023. In Europe, investments exceeded USD 25 billion, with government subsidies supporting heat pump adoption and compliance with new EU efficiency mandates. Over 2 million residential homes were retrofitted with high-efficiency air source and ground source heat pumps across Germany, France, and Scandinavia. The European Commission’s carbon-neutral building targets stimulated the integration of smart maintenance systems capable of reducing HVAC energy consumption by 30% through automated fault detection and optimization algorithms. The Middle East and Africa collectively invested over USD 10 billion in new HVAC installations and modernization programs. The GCC nations upgraded HVAC systems across more than 500 large-scale infrastructure projects, including airports, shopping malls, and hospitality complexes, to accommodate peak loads exceeding 5 million tons of cooling capacity. Private sector investments in predictive maintenance platforms grew rapidly, with global venture capital funding for HVAC service automation startups surpassing USD 1 billion in 2023. New software-as-a-service (SaaS) platforms offered subscription-based monitoring, predictive analytics, and automated dispatching, enabling HVAC service companies to reduce labor costs by up to 20% while improving response times by 35%.

New Product Development

Innovation in HVAC repair, maintenance, and installation accelerated in 2023 as manufacturers focused on enhancing energy efficiency, automation, and indoor air quality. Daikin introduced its next-generation VRV LIFE systems featuring inverter compressors capable of modulating capacity from 10% to 120%, ensuring optimal performance during varying load demands. The system’s self-diagnostic algorithms proactively detected refrigerant leaks and notified service technicians before major faults occurred, reducing emergency service calls by 50% in pilot projects. Gree launched its SmartClean technology, allowing residential HVAC units to automatically flush dust and microbial buildup from heat exchanger coils, extending service intervals by 30% while improving air quality. More than 5 million SmartClean units were sold across Asia-Pacific markets in 2023, becoming one of the fastest-growing segments in self-maintaining residential HVAC systems. Carrier developed new hybrid air-cooled chillers for commercial buildings, capable of operating on multiple refrigerant blends with significantly reduced global warming potential (GWP) ratings. The units incorporated heat recovery features that allowed buildings to simultaneously produce chilled water for cooling and heated water for domestic use, achieving total system energy savings exceeding 25% compared to previous generation chillers. Johnson Controls unveiled its OpenBlue digital twin platform, enabling facility managers to create virtual replicas of entire HVAC systems. This platform simulated real-time performance scenarios using live operational data, optimizing maintenance schedules and energy usage. Pilot installations at commercial campuses in North America reduced total HVAC operational costs by 22% and extended equipment lifespans by up to 7 years. Samsung introduced fully wireless mini-split systems with integrated air purification modules utilizing UV-C light and bipolar ionization technologies. These systems improved indoor air quality by removing up to 99.9% of airborne pathogens while eliminating ductwork-related contaminants. Samsung deployed over 250,000 wireless mini-split systems across healthcare, education, and residential sectors during 2023.

Five Recent Developments

Daikin completed construction of its new USD 300 million R&D center in Osaka, Japan, focused exclusively on developing ultra-low GWP refrigerant technologies and smart service platforms.
Carrier secured a USD 1.5 billion contract to retrofit HVAC systems across 1,000 government buildings in the U.S., incorporating predictive maintenance and AI-enabled energy optimization software.
Gree announced the launch of its new AI-powered smart diagnostic app, used by over 500,000 technicians globally to remotely diagnose service issues and improve repair accuracy by 40%.
Johnson Controls expanded its OpenBlue platform integration with 15 new facility management companies, covering over 30 million square meters of commercial space under predictive HVAC maintenance agreements.
Samsung initiated pilot programs for its UV-C wireless HVAC systems across 200 hospitals and medical centers in Asia-Pacific, demonstrating a 50% reduction in nosocomial airborne infection rates during the first year of deployment.

Report Coverage of HVAC Repair, Maintenance and Installation Market

This comprehensive report provides an in-depth evaluation of the global HVAC repair, maintenance, and installation market, analyzing service volumes, installation rates, maintenance trends, and technological advancements across both developed and emerging markets. The report quantifies the operation of over 1.9 billion HVAC units globally as of 2023, with annual new installations surpassing 300 million units. The analysis includes detailed segmentation of centralized versus distributed service models, with centralized systems representing 62% of maintenance contract revenues and distributed systems accounting for 38%. It offers precise application breakdowns across commercial (48%), residential (42%), and industrial (10%) sectors, with quantifiable data on system capacities, maintenance frequencies, and service demand. The regional outlook covers Asia-Pacific’s leading 42% market share, North America’s 28% share, Europe’s 20% share, and Middle East & Africa’s 10% share, supported by facts such as units installed, cooling capacities, and regional infrastructure expansion. The report details key government initiatives, including subsidy programs in Europe, energy-efficiency mandates in North America, urbanization-driven growth in Asia-Pacific, and extreme temperature adaptations in the Middle East. Profiles of industry leaders such as Gree and Daikin include installation volumes, technology deployment rates, and service contract growth metrics, highlighting their dominant market positions. New product innovations launched in 2023 are fully documented, from AI-powered predictive maintenance platforms to self-cleaning residential units, wireless mini-split systems, and hybrid cooling-heating commercial HVAC solutions. The report further investigates ongoing challenges such as high capital expenditures, skilled labor shortages, training deficiencies, and regulatory complexities while identifying multiple growth opportunities driven by automation, IoT integration, cloud-based diagnostics, and subscription-based predictive maintenance business models. This in-depth analysis serves as a strategic roadmap for manufacturers, service providers, policymakers, and investors navigating the rapidly evolving global HVAC repair, maintenance, and installation industry.