HVAC Equipment: Highlighting the Role of IoT Integration and Sustainability in the Sector

HVAC equipment includes heating, ventilation, and air conditioning systems, which aid in regulating, maintaining, and controlling temperature, humidity, and air quality within residential, commercial, and industrial spaces. These machines essentially work on the principles of thermodynamics, heat transmission, and fluid mechanics to infuse fresh air inside the room, thus enabling ventilation and air circulation. Thus, apart from temperature regulation, these systems also assist in removing pathogens, contaminants, carbon dioxide, smoke, odors, and dust, thereby promoting a healthy indoor environment.

Advent of IoT Generating New Investment Opportunities in the Industry

In the last few years, the advent of Internet of Things technology has expanded the scope of the HVAC equipment industry significantly. Consumer electronics manufacturers have started developing IoT-powered smart systems that aid users in monitoring their performance remotely. Moreover, smart HVAC systems have the ability to adjust to the changing environment automatically, thus enhancing consumer satisfaction. In addition, these devices allow users to set user preferences to improve the operational efficiency of the unit.

Integration of advanced electronic components like motion sensors has enabled companies to design HVAC systems that can detect the number of people in the room and adjust settings accordingly. These appliances automatically switch off once the room becomes empty, thus helping save energy in the long run. In addition, the use of cutting-edge semiconductor technologies has assisted businesses in developing systems that can detect the problems that are likely to disrupt their functioning in the future. The predictive maintenance capabilities offered by these HVAS equipment help bring down the cost and expenses required for repair.

Sustainable HVAC Systems Opening New Avenues for Growth

Recently, Allied Market Research published a report on the HVAC equipment market, which highlights that the industry accounted for $171.8 billion in 2020. The sector is anticipated to grow at a CAGR of $290.8 billion by 2030, rising at a CAGR of 5.3% during 2021-2030. The growth of the market is attributed to increase in awareness regarding environmental sustainability, thereby leading to rise in demand for eco-friendly HVAC systems. Furthermore, the growing use of renewable energy sources such as solar, wind, and hydropower to generate electricity for powering HVAC devices has created favorable conditions for the expansion of the market. Unlike traditional machines, innovative designs like ductless mini splits help purify indoor air, thus improving the overall health and well-being of people.

In the last few years, several leading consumer electronics companies have launched novel products to cater to the evolving demands of their consumer base effectively. For example, Voltas, an Indian home appliance manufacturer, unveiled a new line of AC products at ACREX India 2024. Held in Noida, ACREX India is one of the largest HVAC events in the country, allowing firms to showcase their innovations in front of industry experts, customers, and investors. The press release issued by the company highlighted that the newly launched products are integrated with IoT technology and can be operated through mobile applications.

Similarly, in March 2025, Danfoss India, a Danish multinational engineering company, announced the launch of seven new HVACR products at ACREX India 2025. The devices have been developed to minimize energy usage, facilitate seamless flow of liquids and gases, and monitor changes in performance efficiently. Ravichandran Purushothaman, President of Danfoss India, stated in the press statement released by the firm that the product launched is anticipated to strengthen the position of the company in the industry in the near future.

To sum it up, rise in demand for heating, ventilation, and air conditioning systems from the residential, commercial, and industrial sectors is predicted to boost the revenue share of the HVAC equipment industry. Furthermore, introduction of IoT technology and the gradual shift toward environmental sustainability are anticipated to impact the sector positively in the coming period.