Last edited 24 Apr 2019

Smart HVAC Controls Market

The Smart HVAC Controls Market is to hit US$25bn by 2024. The HVAC control system market will grow significantly over the forecast period due to an increasing need to reduce energy consumption.

Energy efficiency is one of the key concerns for both new construction and renovated buildings. These systems use technologies, such as Demand Control Ventilation (DCV) and Variable Air Volume (VAV), that can be extended with smart devices such as smart thermostats and monitoring tools. These systems allow the monitoring and analysis of data relating to energy consumption and future energy requirements.

The growing use of smartphones and the proliferation of Internet of Things (IoT) devices in households is driving the HVAC control system market growth. The integration of these systems with the smartphones allows remote access that enhances the user experience. Furthermore, the increasing use of sensors is allowing software integration with these systems, making them more intelligent.

HVAC control system market, by product:

HVAC control system market, by application

Lack of awareness regarding these systems will restrain the HVAC control system market growth. The initial cost of installation is high, discouraging users from implementing these systems. However, governments of several countries are setting up guidelines to encourage users and spread awareness regarding long-term cost savings from the use of these systems.

Technological advancements such as geothermal heating and cooling in these systems is one of the key trends influencing the HVAC control system market. These systems are efficient, eco-friendly solutions, as they reduce the carbon footprint substantially. They are durable and low-maintenance. Zoning systems are being increasingly used in large establishments such as commercial buildings and industry. These units are particularly designed to cool the isolated units of a building.

Smart thermostats are expected to have a significant revenue share in the HVAC control system market as they can be used with home automation devices and are highly efficient. They can be used in standalone mode by integrating with other smart home devices. Companies including Ecobee, Honeywell, and Nest Labs are developing differentiated products that use technologies such as geofencing to enhance performance. Manufacturers in the market are implementing the technology to enhance functionality of the products and improve user experience. For instance, the Emerson Sensi allows integration with smart devices such as Alexa Voice Assistant and the Apple Home Kit.

The industrial HVAC control system market is anticipated to grow significantly over the forecast time due to the high demand from industrial buildings to save energy and reduce costs. These systems intelligently match energy generation requirements with usage and distribution. The companies in industrially-developing countries including China, Japan, and India are focusing on providing a work environment conducive to enhancing the efficiency of employees, thereby propelling the demand for these systems.

The North America HVAC control system market will grow rapidly over the forecast period due to the large-scale adoption of smart homes in this region. The growing demand for enhancing energy efficiency in buildings is encouraging users to implement these systems in new buildings and retrofits.

Key vendors in the HVAC control system market include: Honeywell International, Johnson Controls, Lennox, Ecobee, Siemens, Emerson Electric, Schneider Electric, and Distech Controls. These companies are increasingly investing in developing differentiated solutions to gain a competitive advantage. Companies including Nest Labs are connecting these devices to centralised servers with BI capabilities to enhance user experience. Technology providers such as Google are entering the industry to develop high-end products. For instance, Google has developed Google Nest and Google Nest E that offers an app-based model and compatibility with smart home devices.

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