Smart HVAC Controls Market - By Product Type, By Application, By Deployment, and By End-use Industry - Global Forecast, 2026-2035

Smart HVAC Controls Market Size

The global smart HVAC controls market was valued at USD 44.3 billion in 2025. The market is expected to grow from USD 47.7 billion in 2026 to USD 72.3 billion in 2031 and USD 108.8 billion in 2035, at a value CAGR of 9.6% during the forecast period, according to the latest report published by Global Market Insights Inc.

The smart HVAC controls market is expanding, owing to rising adoption of smart buildings and home automation, increasing focus on energy efficiency and cost optimization, government regulations and sustainability mandates, advancements in IoT, AI, and cloud-based HVAC technologies, and expansion of commercial and industrial infrastructure.
 

Governments across the globe are increasingly prioritizing the development of smart buildings and automation as key components of their sustainability and efficiency agendas. Public sector initiatives focused on upgrading building standards and investing in smart technologies have created a favorable environment for the adoption of smart HVAC systems. For instance, in June 2024, the U.S. General Services Administration announced an USD 80 million investment to implement advanced smart building technologies, including cutting-edge HVAC controls, across numerous federal facilities. This initiative aims to reduce energy consumption, emissions, and utility costs, aligning with national sustainability goals.
 

Governments are implementing tighter energy requirement regulations on buildings and assisting with the efficiency improvement to cope with carbon emission and energy demands, hence enhancing the necessity of smart HVAC controls to manage energy consumption optimally. Policymakers acknowledge the fact that energy performance of buildings is a crucial step towards the realization of more general climate and economic goals, which underpins the implementation of intelligent HVAC management systems. As an example, in April 2025, the U.S. Department of Energy said it provided USD 90 million as competitive awards to modernize building energy codes. This grant is intended to help the states and local governments adopt the standards that cut back on greenhouse gas emissions and decrease energy expenditure, which will further prompt energy saving and advanced HVAC and building systems.
 

The smart HVAC controls market can be described as the ecosystem of the high-tech hardware and software systems, which monitor, control, and optimize heating, ventilation, and air conditioning systems through sensors, IoT and automation, and analytics. These controls allow real time optimization of energy, remote operation, predictive maintenance and enhanced indoor comfort of residential, commercial and industrial structures.
 

Smart HVAC Controls Market Trends

• Internet of Things (IoT) and cloud computing are becoming more popular in smart HVAC controls, which allows real-time monitoring and remote operation as well as automated process of heating and cooling systems based on data. Connected devices and IoT sensors can enable facility managers to track energy use and optimize the work of HVAC in real-time. The development is pushing the market towards integrated, smart building systems that improve operational efficiency and comfort of occupants.
   
• Artificial intelligence is transforming the strategies of maintenance in intelligent HVAC controllers. The sensor-driven predictive analytics will be able to predict the failures of equipment and performance problems in advance, helping to intervene in time. This is a proactive strategy that reduces downtimes, minimizes operations expenses, increases the life of equipment and eliminates energy wastage.
   
• The focus on decarbonization and increased energy efficiency of building codes is increasing the use of smart HVAC controls. With the help of these systems, temperature, ventilation, and airflow control is done intelligently depending on the occupancy rate and environment conditions, which greatly minimizes the use of energy. Moreover, they aid in adherence to the sustainability requirements where HVAC functions come in line with the green building practices and official regulations that limit carbon emissions.
   
• Already, all of these building systems are becoming part of integrated smart building systems (i.e., lighting, security, and air quality) that are controlled by HVAC. This interoperability allows centralized control and sharing of data and contributes to the visibility of its operations. These ecosystem integrations enable higher levels of analytics and automation, which is leading to operational efficiency in the long term and enhancing the experiences of occupants.
   

Smart HVAC Controls Market Analysis

Based on deployment, the market is divided into new construction and retrofit.
 

• The retrofit segment accounted for the largest market and was valued at USD 28.27 billion in 2025. Retrofitting existing buildings with smart HVAC controls enables rapid energy efficiency improvements without full system replacement, making it the preferred option for governments and building owners upgrading aging infrastructure under cost and sustainability constraints.
   
• Government-led building modernization programs are accelerating retrofit demand for smart HVAC controls to meet updated efficiency codes and emission targets. For instance, in March 2024, the U.S. Department of Energy expanded federal funding for energy-efficient retrofits across public and commercial buildings.
   
• Manufacturers should prioritize modular, interoperable retrofit solutions compatible with legacy HVAC systems, focusing on ease of installation, wireless connectivity, and rapid ROI to capture government-backed and private retrofit projects.
   
• The new construction segment was the fastest growing market during the forecast period, growing at a CAGR of 10.1% during the forecast period. New construction projects increasingly embed smart HVAC controls at the design stage to comply with energy codes, reduce long-term operating costs, and support smart building certification requirements across commercial and residential developments.
   
• Manufacturers should collaborate with architects, EPC firms, and real estate developers to embed HVAC controls into building designs early, offering scalable platforms aligned with green building and digital twin initiatives.
   

On the basis of product type, the smart HVAC controls market is divided into smart thermostats, building automation system (BAS) controllers, sensors (all types combined), actuators & valves, software & services (cloud platforms, analytics), and others.
 

• The building automation system (BAS) controllers segment accounted for the largest market and was valued at USD 12.25 billion in 2025. BAS controllers remain central to smart HVAC deployments due to their ability to centrally manage multiple building systems, optimize energy usage, and ensure compliance with increasingly complex building performance regulations.
   
• Government mandates for centralized energy monitoring in large buildings are reinforcing BAS controller adoption. For instance, in January 2024, Singapore’s Building and Construction Authority strengthened smart controls requirements for large commercial developments.
   
• Manufacturers should enhance BAS controllers with open protocols, cybersecurity features, and AI-ready architectures to support multi-system integration and government-driven smart infrastructure deployments.
   
• The sensors segment is projected to grow at a CAGR of 10.3% during the forecast period. Rising deployment of temperature, humidity, occupancy, and air-quality sensors enhances HVAC system responsiveness, enabling real-time optimization, predictive maintenance, and improved indoor environmental quality.
   
• Manufacturers should invest in multi-function, low-power, wireless sensor platforms compatible with BAS and cloud analytics to support IAQ regulations and smart building mandates.
   

Based on applications, the smart HVAC controls market is divided into residential, commercial, and industrial.
 

• The commercial segment accounted for the largest market and was valued at USD 21.92 billion in 2025. Commercial buildings adopt smart HVAC controls to manage high energy loads, meet regulatory efficiency benchmarks, and ensure occupant comfort across offices, hospitals, airports, and retail complexes.
   
• Public and private commercial infrastructure investment is driving adoption. For instance, in September 2024, India’s Ministry of Power reinforced energy management requirements for large commercial buildings under ECBC regulations.
   
• Manufacturers should deliver scalable, enterprise-grade HVAC platforms with centralized dashboards and compliance reporting to address large commercial portfolios and government-regulated facilities.
   
• The residential segment is projected to grow at a CAGR of 9.3% during the forecast period. Residential adoption is driven by rising energy costs, smart home penetration, and demand for remote climate control, particularly in urban housing and multi-dwelling developments.
   
• Government residential energy efficiency programs support smart HVAC controls. For instance, in June 2024, Australia’s Clean Energy Regulator expanded residential efficiency incentives covering smart HVAC technologies.
   
• Manufacturers should focus on affordability, ease of installation, and integration with smart home ecosystems to scale adoption through residential developers and energy-efficiency schemes.
   

North America Smart HVAC Controls Market

North America market held a market share of 39.8% in 2025 of the global smart HVAC controls industry.
 

• North America continues to lead smart HVAC controls adoption due to strong smart home ecosystems, robust commercial building automation, and supportive energy efficiency policies, with federal and state incentives accelerating retrofit and new construction upgrades.
   
• Early adoption of IoT‑enabled thermostats, sensors, and analytics across residential and commercial segments strengthens regional leadership and sustainability performance.
   
• Regulatory frameworks and voluntary certification programs enhance demand for intelligent climate control technologies.
   
• Manufacturers need to prioritize integrated IoT platforms with regional standards compliance, robust analytics, and retrofit compatibility to capture both residential and institutional demand in mature North American markets.
   

The U.S. smart HVAC controls market was valued at USD 12.5 billion and USD 13.46 billion in 2022 and 2023, respectively. The market size reached USD 15.68 billion in 2025, growing from USD 14.52 billion in 2024.
 

• In the US, smart buildings and HVAC controls benefit from energy code updates and efficiency funding, although some federal standards have recently shifted.
   
• For instance, in September 2025, Lennox became the first OEM to complete a DOE validation for advanced commercial HVAC technology under the Commercial Building HVAC Technology Challenge.
   
• This highlights government lab support for high‑efficiency systems that integrate advanced control and performance standards.
   
• Manufacturers should align product validation and R&D with DOE challenge programs and support compliance with evolving federal and state energy codes to drive adoption.
   

Europe Smart HVAC Controls Market

Europe market accounted for USD 9.3 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• Europe’s smart HVAC controls growth is driven by stringent energy performance directives, sustainability targets, and deep retrofit activity across older buildings.
   
• The EU’s Energy Performance of Buildings Directive (EPBD 2024) emphasizes improved building efficiency, encouraging intelligent controls in both renovation and new builds.
   
• National policy alignment with EPBD fosters demand for integrated HVAC systems that reduce operational energy use and emissions.
   
• Manufacturers must focus on solutions that meet or exceed EPBD energy performance criteria, enabling clients to achieve compliance and qualify for regional incentives.
   

Germany dominated the Europe smart HVAC controls market, showcasing strong growth potential.
 

• Germany’s market is increasingly influenced by national climate and energy policy priorities and industry advocacy for comprehensive building renovation.
   
• With buildings accounting for a significant share of energy use and emissions, associations have urged policymakers to prioritize energy‑efficient refurbishments of public infrastructure, including advanced HVAC control systems, to meet climate neutrality goals.
   
• These pressures amplify demand for digital control technologies that support energy savings, emissions reduction, and compliance with evolving building efficiency expectations.
   
• Manufacturers must position HVAC controls as essential components of energy‑efficient renovations, aligning with Germany’s renovation funding and public infrastructure priorities to gain project traction.
   

Asia Pacific Smart HVAC Controls Market

The Asia Pacific market is the largest and fastest growing market and is anticipated to grow at the CAGR of 10.7% during the analysis timeframe.
 

• Asia Pacific is the fastest‑growing smart HVAC controls region, propelled by rapid urbanization, smart city initiatives, and expanding commercial and residential construction activity.
   
• Countries such as China and India integrate intelligent HVAC solutions into new developments to enhance operational efficiency and meet burgeoning energy demand. Government policies supporting urban infrastructure and energy conservation further amplify this trend, while cloud‑based platforms and IoT diagnostics gain traction across commercial real estate.
   
• Broad market awareness, increasing disposable incomes, and digital transformation of building systems drive adoption of smart thermostats, sensors, and analytics, establishing Asia Pacific as a dynamic growth engine for next‑generation HVAC controls.
   
• Manufacturers should develop multilingual, scalable control platforms with cloud capabilities and strong local compliance to capture wide adoption across diverse Asia Pacific markets.
   

China smart HVAC controls market is estimated to grow with a CAGR of 11.2% during the forecast period, in the Asia Pacific market.
 

• China’s smart HVAC controls industry is expanding rapidly alongside the nation’s large‑scale urban development and energy efficiency agendas.
   
• Commercial complexes, high‑rise residential developments, and institutional facilities are increasingly deploying intelligent HVAC systems with integrated sensors, networked controllers, and analytics platforms to meet performance and sustainability objectives.
   
• Local government incentives and building standards amplify demand, making China a pivotal market for advanced HVAC solutions that enhance real‑time energy optimization, predictive maintenance, and integrated building management system capabilities.
   
• Manufacturers should tailor control solutions for China’s digital building ecosystems, ensuring local standards adherence and strong partnerships with regional integrators.
   

Latin American Smart HVAC Controls Market

Brazil leads the Latin American market, exhibiting remarkable growth during the analysis period.
 

• Brazil’s smart HVAC controls adoption is driven by expanding commercial construction, rising residential comfort expectations, and growing emphasis on energy efficiency in building operations.
   
• Climate‑driven cooling demands and rising energy costs encourage the integration of advanced HVAC control technologies to optimize performance and reduce utility expenditures. Government energy efficiency initiatives and emerging smart building policies support awareness and adoption, particularly in metropolitan infrastructure projects and institutional buildings.
   
• Increased interest in sustainability and operational cost savings broadens the market footprint for connected thermostats, BAS controllers, and sensor networks across Brazil’s commercial and residential sectors.
   
• Manufacturers should focus on climate‑adapted, reliable HVAC control solutions with strong service networks to address Brazil’s unique energy efficiency requirements.
   

Middle East and Africa Smart HVAC Controls Market

South Africa market to experience substantial growth in the Middle East and Africa smart HVAC controls industry in 2025.
 

• South Africa’s market is gaining momentum, particularly within commercial, hospitality, and institutional segments where energy optimization is critical due to high ambient temperatures and operational costs.
   
• Urban infrastructure projects and efficiency programs underscore the value of real‑time monitoring and intelligent control systems that enhance energy performance and indoor comfort.
   
• While broader adoption is moderated by cost sensitivity and infrastructure gaps, increasing awareness of long‑term savings and sustainability benefits fuels interest in smart thermostats, sensors, and integrated HVAC platforms for retrofit and new construction applications.
   
• South African manufacturers should offer cost‑effective, energy‑optimized HVAC control solutions with strong local support to address South Africa’s commercial and institutional energy challenges.
   

Smart HVAC Controls Market Share

The smart HVAC controls industry is moderately concentrated, with leading manufacturers dominating the market share. Key players such as Johnson Controls, Honeywell (BA), Carrier Global, Schneider Electric, and Siemens, together held 58.4% of the total market share in 2025, and dominated the competitive landscape through extensive building automation expertise, certified product portfolios, and global service networks.
 

These companies leverage IoT-enabled platforms, AI-driven analytics, energy-efficient control technologies, and integrated building management solutions to serve commercial, residential, and industrial clients. Strategic partnerships, software and cloud investments, and smart building certifications strengthen positioning across regional and international projects. Despite this concentration, specialized and regional providers remain active, focusing on niche applications, retrofit solutions, and energy-optimization technologies, ensuring continued innovation and competitive intensity within the market.
 

Smart HVAC Controls Market Companies

Prominent players operating in the smart HVAC controls industry are as mentioned below:

• Aprilaire
• Bosch Thermotechnology (Robert Bosch GmbH)
• Carel Industries
• Carrier Global Corporation
• Daikin Industries Ltd.
• Delta Controls Inc.
• Distech Controls Inc.
• Ecobee Inc.
• Emerson Electric Co.
• Honeywell International Inc.
• Johnson Controls International plc
• KMC Controls Inc.
• Lennox International Inc.
• LG Electronics Inc.
• Mitsubishi Electric Corporation
• Nest Labs (Google LLC)
• Regin Group
• Schneider Electric SE
• Siemens AG
• Trane Technologies plc
   
• Johnson Controls dominates the smart HVAC controls market with an 18.5% share, driven by its comprehensive portfolio of IoT-enabled, energy-efficient building management and HVAC solutions. The company emphasizes AI-driven analytics, cloud-based platforms, and integrated building automation systems. Johnson Controls collaborates closely with commercial developers, facility managers, and government clients to expand deployments across office buildings, hospitals, and industrial facilities, ensuring compliance with energy regulations while optimizing operational efficiency.
   
• Honeywell (BA) holds 15.7% of the market, offering advanced building automation solutions and smart HVAC controls with integrated sensors, predictive maintenance, and energy optimization features. Honeywell partners with large commercial and industrial clients to deploy intelligent, automated systems that improve energy efficiency, occupant comfort, and regulatory compliance.
   
• Carrier Global controls 10.4% of the market, leveraging a robust portfolio of HVAC equipment and digital control platforms. The company works with real estate developers, corporate campuses, and smart building integrators to implement scalable, reliable systems that enhance energy efficiency and indoor environmental quality.
   
• Schneider Electric holds an 8.6% share, focusing on sustainable, connected building solutions and smart HVAC controls. Schneider Electric emphasizes energy monitoring, automation, and cloud-based analytics to reduce operational costs and carbon footprint across commercial and industrial facilities.
   
• Siemens accounts for 5.1% of the market, providing advanced HVAC control systems integrated with building automation, IoT connectivity, and AI-driven analytics. Siemens collaborates with developers, facility managers, and public infrastructure projects to deploy reliable, high-performance solutions for energy-efficient and intelligent building operations.
   

Smart HVAC Controls Industry News

• In June 2025, Airzone Control, provider of intelligent and innovative HVAC control solutions, announces an integration partnership with smart home leader ecobee. This will allow the integration of Inverter (VRF/mini-split) HVAC units into the ecobee smart home ecosystem, unlocking energy-saving automations for the fastest-growing category of HVAC technology.
   
• In May 2024, Samsung Electronics and Lennox have announced a strategic HVAC joint venture that promises to revolutionize how North Americans heat and cool their homes. This partnership brings together Samsung's cutting-edge technology expertise with Lennox's deep-rooted market presence, creating exciting possibilities for homeowners and contractors alike.
   
• In September 2025, mwConnect, a leading innovator in wireless mesh technology, and Network Thermostat (NetX), a pioneer in connected smart thermostats for commercial applications, today announced a strategic partnership to advance integration between HVAC system control and networked lighting control platforms. This collaboration marks a significant milestone in the adoption of wireless mesh for building automation, enabling facility operators to unify lighting and occupancy data with HVAC controls.
   

The smart HVAC controls market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2022 to 2035, for the following segments:

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Market, By Product Type

• Smart thermostats
• Building automation system (bas) controllers
• Sensors (all types combined)
• Actuators & valves
• Software & services (cloud platforms, analytics)
• Others

Market, By Application

• Residential
• Commercial
• Industrial

Market, By Deployment

• New construction
• Retrofit

Market, By End-use Industry

• Commercial offices
• Retail
• Healthcare
• Education
• Hospitality
• Data centers
• Government & public buildings
• Others         

The above information is provided for the following regions and countries:

• North America

• U.S.
• Canada

• Europe

• Germany
• UK
• France
• Spain
• Italy
• Netherlands

• Asia Pacific

• China
• India
• Japan
• Australia
• South Korea

• Latin America

• Brazil
• Mexico
• Argentina

• Middle East and Africa

• Saudi Arabia
• South Africa
• UAE