According to the new market research report ‘HVAC Controls Market by System, Component, Implementation Type, Application, and Geography – Global Forecast to 2023’, published by MarketsandMarkets, the market was valued at USD 13.63 billion in 2018 and is expected to reach USD 27.04 Billion by 2023, at a CAGR of 12.1% between 2018 and 2023. Factors that support the growth of the market are the need for efficient use of energy in buildings, growing construction market, increasing adoption of IoT in the HVAC industry, and rising demand for building automation systems (BASs).
Temperature control system to hold the largest size of the HVAC controls market throughout the forecast period.
The temperature control system consists of sensors, controllers, and HVAC equipment. The prime example of a temperature control system is a thermostat. Thermostat constantly measures the temperature of the area and, thus, controls the operation of heater or cooler to maintain the user-defined temperature.
The major concern is maintaining energy efficiency, and the efficiency can be achieved by turning off the HVAC equipment periodically to save energy. Commercial application held a major share of the HVAC controls market in 2017. The rise in the adoption of smart buildings and green buildings increases the use of smart sensors and HVAC controls such as programmable thermostat, which would save a lot of energy in commercial buildings. The application of HVAC controls in commercial buildings ensures switching on or off the HVAC equipment in a particular area, which is not currently occupied. The Federal Energy Policy Act of 2005 set in the US provides tax credit to owners of new or existing commercial buildings on the implementation of heating, cooling, ventilation, or hot water systems, which help in reducing the overall energy consumption of the buildings.
Growing urbanization, economic growth, and rising disposable income in Asia, the Middle East, and Africa are fueling the growth of the HVAC controls market for new construction. Governments of various countries are investing in the infrastructure development, which complies with environmental standards. Along with the need for infrastructural development, governments have also realized the need to curb the adverse effects of construction activities on the environment. China, Japan, and India are the major consumers of HVAC controls. Governments of these countries have taken active measures for increasing the adoption of HVAC controls.