This report provides Transforma Insights’ view on the connected HVAC market. This includes smart and connected heating, ventilation, and air conditioning equipment, in consumer as well as enterprise contexts. These systems are generally comprised of controllers and potentially smart peripheral devices. Devices such as thermostats and air conditioning units are not included unless these devices are themselves smart and connected.
The smart HVAC market is expected to show strong growth over the coming years, majorly due to an increased focus on sustainability and upcoming regulations focused on increasing energy efficiency and decreasing carbon emissions caused by buildings. The market will also benefit from a growing demand for cooling (and consequently air conditioners) in the world on account of global warming and increased consumer demand for connectivity amongst appliances. The USA, China, Japan, and South Korea lead the market with the highest number of HVAC systems, traditional as well as connected.
The most common connectivity technology used in HVAC is Short Range, including Wi-Fi, Bluetooth, and Zigbee. LoRa also seems to be promising in this application area, due to its ability to provide low power consumption, deeper penetration through building walls, and wide coverage for connecting IoT devices in homes and buildings.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue.
A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.
The report examines key factors that are influencing the development of the market, including:
This section of the report discusses the reasons to optimise HVAC energy and the major benefits of IoT-enabled HVAC products such as minimising energy consumption in unoccupied building zones, reducing HVAC usage during peak times, and optimising the flow of conditioned air. For instance, the report cites that while HVAC accounts for almost 35-40% of buildings’ total energy consumption, IoT-enabled dynamic control of HAV can save about 20-25% of energy.
It also discusses some of the regulations that various governments have come up with – to improve energy efficiency and air quality in buildings, and in a tabular format, it describes the regulations adopted by countries including Spain, the United States of America, Europe, China, and the UK.
This section of the report focuses on one of the major issues of introducing smart HVAC systems, i.e., upgradation in older buildings. The rest of the section focuses on the option of retrofitting, the complexities (such as lack of compatibility between legacy equipment and new technologies in modern equipment), and the advantages of this option (like being cost-effective and less capital intensive).
This section charts the communication technologies that are most commonly used in HVAC devices (such as BACnet in the US and its rising prominence in Europe). It also talks about the technologies that were initially deployed across HVAC systems, how these technologies are expected to change in the upcoming time, and what their specific benefits will be. This section also discusses the challenge of interoperability (both in enterprise and consumer contexts), which can restrict the adoption of HVAC systems in large-scale projects and can slow down the penetration in the market.
This section of the report discusses how the ongoing war between Russia and Ukraine and the rising electricity costs in many European countries are a few reasons behind the rapid adoption of smart HVAC systems. It also talks about factors such as the increasing cost of raw materials (such as copper) and the rising requirement to adhere to energy efficiency ratings and standards, which are increasing the cost of HVAC products.
This section of the report first explains how smart HVAC systems are vulnerable to cyberattacks and their dangers. For instance, hackers can acess private or financial information, if they have access to such HVAC systems. It also mentions that some companies which provide customised cyber solutions to their commercial users to save them from such cyberthreats.
It also discusses some of the relevant IoT deployments in this application group, like Pillows Anna Van Den Vondel hotel in Amsterdam using Mitsubishi HVAC and
Philips Dynalite to support HVAC.
The key vendors section lists some of the main providers of products and services related to the HVAC market, such as Johnsons Controls, Danfoss, Daikin, Honeywell/Resideo, Tuya Smart, and Haier. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of HVAC devices, which will grow from 122 million in 2023 to 775 million in 2033.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other. This section discusses which technologies will be used in the HVAC application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the HVAC Application Group will grow at a CAGR of 17%.
