Heating, ventilation, and air conditioning (HVAC) software allows HVAC contractors to optimize the management and implementation of their offered services through automation. An HVAC system is an all-in-one device set inside a building for providing proper airflow, good air conditioning, and a comfortable ambiance for residents of the building. HVAC system is used in industrial, commercial, and residential buildings. The rise in climate change and growth in awareness about environmental impact augments the need for sustainable energy, thereby increasing the demand for HVAC software. There is a range of HVAC software available for invoicing, scheduling, and service management.
Rise in inclination towards energy conservation propelled the need for eco-friendly factory automation products. In addition, the advent and integration of the Internet of Things (IoT) systems such as monitors, sensors, and mobile apps for interacting with and controlling HVAC systems are anticipated to boost their popularity in the market during the forecast period. Manufacturers in this market are engaging in new ways and means to control cost-effectiveness and improve the overall efficiency of HVAC systems to attract high business opportunities during the forecast period.
The HVAC industry is gradually shifting the emphasis toward energy efficiency. Several OEMs are focusing on green initiatives to save money while reducing greenhouse emissions. As a result, there has been a shift in recent years toward eco-friendly HVAC units. This includes products that use less power and run on renewable energy sources, lowering energy costs.
Rapid rate of urbanization has resulted in the growth of commercial and residential sectors, which is projected to aid in HVAC software market expansion. The rise in population and the increase in industrial setups are automatically augmenting the number of construction activities globally, thereby creating market demand for HVAC software.
Governments of several nations have implemented energy consumption and safety standards to keep a check on pollution levels emitting from both residential and industrial equipment. Major concern about climate change and global warming propels governments and various organizations to promote the adoption of renewable energy technology. The increase in stringent safety standards is therefore expected to help promote the global market for HVAC software during the forecast period.
Some of the primary drivers for the market include, rise in construction activities across the global; surge in demand for renewable power consumption equipment used in residential, commercial, as well as industrial applications is projected to aid in HVAC software market expansion; increase in adoption of HVAC equipment in hospitals, multiplexes, hotels, clinics, and restaurants is anticipated to be a significant market trend; and increase in adoption of smart technologies in HVAC systems is likely to promote business in the near future.
Moreover, mobile applications are becoming more popular in the HVAC industry as they allow technicians to access information and control systems remotely. This can help to improve efficiency and productivity. In addition, energy management solutions are becoming more popular as businesses look to reduce their energy costs. The market is projected to grow at a fast pace during the forecast period, due to emerging home automation market, surging demand for invertor air conditioner in China and technological advancements. In recent years, the use of geothermal cooling and heating equipment has increased, reducing reliance on fuel-based equipment.
Moreover, the customer preference for comfort is opening up new opportunities. To meet demand, OEMs are developing products that are not only energy-efficient but also incorporate cutting-edge technologies for improved connectivity. Today's buildings are "green," which has led to an increase in the installation of thermostats, sensors, and smart meters that can be controlled via smartphone or PC.
However, like other connected devices, HVAC software could also possibly be hacked. If attackers take over controls of HVAC systems, in the worst case, cities would break down and private data would be stolen. All connected devices are standing under the risk of cyberattacks. HVAC software are no exception, either. Although IoT devices such as smart meters and HVAC unit sensors are not designed for web browsing, they do need to connect to the internet for data gathering, remote control and analytics. Their direct access to the internet, not in purpose, rather makes them major targets of cyber attackers, posing serious security threats for smart buildings.
In addition, some other challenges are impeding the growth of the market such as increasing raw materials prices, growing government regulations, data infrastructure system security and retail consolidations. This rising fluctuation in the prices of iron ore and copper is restricted the availability of major raw materials (copper, iron, and steel) which are used for manufacturing of HVAC. Therefore, fluctuations in the prices of raw materials is disrupting market revenues and inturn impacting this software market.
New Product Launches
In March 2023, Schneider Electric announced the launch of EcoStruxureTM Building Operation for the Indian market, to enhance occupant comfort and increase building value. Built for use in applications such as HVAC and lighting control, energy management, fire safety, security, and access control and more, the EcoStruxureTM Building Operation (EBO2023) is compatible with third-party building systems.
In December 2022, Trane Residential (Trane) and American Standard Heating & Air Conditioning (American Standard), two residential HVAC brands, announced the national launch of Link, their communication technology, designed to simplify installation, commissioning, and remote monitoring of variable speed HVAC systems. Following a regional roll out in spring 2022, independent Trane and American Standard dealers can now sell and install Link nationwide.
In November 2022, To meet the needs of HVAC design engineers, Carrier released a new version of Hourly Analysis Program (HAP), its peak load and energy modeling software. To reduce the time and effort required to create high-quality building models, HAP v6 combines a streamlined workflow with an extensive array of advanced 3D building modeling features, all woven into a core design that continues to be easy to learn and use.
In May 2022, Daikin Applied launched SiteLine Building Controls, a portfolio of cloud-based technologies. This product is focused on the monitoring and management of individual pieces of HVAC equipment and integrated building systems. In addition, the launch has also made provisions for customers to access the technical resource center and controls engineers for ongoing support.
In April 2022, Carrier introduced TruVu zone HVAC controllers to the i-Vu building automation system. These controllers are available in three versions, VAV Zone, VVT Zone, and VVT Bypass, and provide zone-level temperature, humidity, and air quality control. TruVu zone controls are also flexible enough to work with third-party HVAC equipment.
Segmental Overview
By deployment: The global HVAC software market is bifurcated into two segments, including cloud-based HVAC software and web-based HVAC software. Cloud-based solutions are becoming increasingly popular in this industry due to their flexibility and scalability. With a cloud-based solution, HVAC businesses can access their data and applications from anywhere, at any time. Cloud-based deployment has several benefits, which are helping it gain an edge over web-based deployment. Cloud-based deployment is often much cheaper than web-based HVAC software. In May 2021, Daikin Applied Americas teamed up with 75F, a wireless cloud-based technology company.
By enterprise size: The global HVAC software market is divided into two enterprise segments, including large enterprises and small and medium enterprises (SMEs). Large enterprises benefit the most from the streamlining of operations HVAC software because they have a significantly larger number of consumers and technicians, as well as a more varied catalogue of services being provided. However, SMEs also get certain benefits from this software, due to digitizing and streamlining operations across all stages of business. In the recent past, several SMEs have opted for this software, owing to the fact that it is available at reduced costs and at the ease of use.
By region: On the basis of region, the HVAC controls market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region emerged as the leading region in this software market with the largest share. The adoption of HVAC software is aided by the region’s emerging nations’ expanding populations and environmental consciousness. The adoption of HVAC software in the area is also being aided by the development in the use of green buildings and government measures to regulate energy-efficient practices throughout the business sector. Meanwhile, The European Union announced several decarbonization policies, and there is expected to be a growth in demand as European consumers switch to more efficient products with reduction of emissions. This growth in demand for HVAC products is likely to lead to a growth in HVAC software as suppliers attempt to efficiently meet demand requirements.
Competition analysis
This report includes a competitive analysis and profiles of major players in the global HVAC software market including, Carrier, Codefied Inc., Daikin Industries Ltd., Dataform Inc, Emerson, Honeywell International Inc., Johnson Controls International plc, LG Electronics Inc., Mitsubishi Electric Co., and Nortek Inc.
Rise in inclination towards energy conservation propelled the need for eco-friendly factory automation products. In addition, the advent and integration of the Internet of Things (IoT) systems such as monitors, sensors, and mobile apps for interacting with and controlling HVAC systems are anticipated to boost their popularity in the market during the forecast period. Manufacturers in this market are engaging in new ways and means to control cost-effectiveness and improve the overall efficiency of HVAC systems to attract high business opportunities during the forecast period.
The HVAC industry is gradually shifting the emphasis toward energy efficiency. Several OEMs are focusing on green initiatives to save money while reducing greenhouse emissions. As a result, there has been a shift in recent years toward eco-friendly HVAC units. This includes products that use less power and run on renewable energy sources, lowering energy costs.
Rapid rate of urbanization has resulted in the growth of commercial and residential sectors, which is projected to aid in HVAC software market expansion. The rise in population and the increase in industrial setups are automatically augmenting the number of construction activities globally, thereby creating market demand for HVAC software.
Governments of several nations have implemented energy consumption and safety standards to keep a check on pollution levels emitting from both residential and industrial equipment. Major concern about climate change and global warming propels governments and various organizations to promote the adoption of renewable energy technology. The increase in stringent safety standards is therefore expected to help promote the global market for HVAC software during the forecast period.
Some of the primary drivers for the market include, rise in construction activities across the global; surge in demand for renewable power consumption equipment used in residential, commercial, as well as industrial applications is projected to aid in HVAC software market expansion; increase in adoption of HVAC equipment in hospitals, multiplexes, hotels, clinics, and restaurants is anticipated to be a significant market trend; and increase in adoption of smart technologies in HVAC systems is likely to promote business in the near future.
Moreover, mobile applications are becoming more popular in the HVAC industry as they allow technicians to access information and control systems remotely. This can help to improve efficiency and productivity. In addition, energy management solutions are becoming more popular as businesses look to reduce their energy costs. The market is projected to grow at a fast pace during the forecast period, due to emerging home automation market, surging demand for invertor air conditioner in China and technological advancements. In recent years, the use of geothermal cooling and heating equipment has increased, reducing reliance on fuel-based equipment.
Moreover, the customer preference for comfort is opening up new opportunities. To meet demand, OEMs are developing products that are not only energy-efficient but also incorporate cutting-edge technologies for improved connectivity. Today's buildings are "green," which has led to an increase in the installation of thermostats, sensors, and smart meters that can be controlled via smartphone or PC.
However, like other connected devices, HVAC software could also possibly be hacked. If attackers take over controls of HVAC systems, in the worst case, cities would break down and private data would be stolen. All connected devices are standing under the risk of cyberattacks. HVAC software are no exception, either. Although IoT devices such as smart meters and HVAC unit sensors are not designed for web browsing, they do need to connect to the internet for data gathering, remote control and analytics. Their direct access to the internet, not in purpose, rather makes them major targets of cyber attackers, posing serious security threats for smart buildings.
In addition, some other challenges are impeding the growth of the market such as increasing raw materials prices, growing government regulations, data infrastructure system security and retail consolidations. This rising fluctuation in the prices of iron ore and copper is restricted the availability of major raw materials (copper, iron, and steel) which are used for manufacturing of HVAC. Therefore, fluctuations in the prices of raw materials is disrupting market revenues and inturn impacting this software market.
New Product Launches
In March 2023, Schneider Electric announced the launch of EcoStruxureTM Building Operation for the Indian market, to enhance occupant comfort and increase building value. Built for use in applications such as HVAC and lighting control, energy management, fire safety, security, and access control and more, the EcoStruxureTM Building Operation (EBO2023) is compatible with third-party building systems.
In December 2022, Trane Residential (Trane) and American Standard Heating & Air Conditioning (American Standard), two residential HVAC brands, announced the national launch of Link, their communication technology, designed to simplify installation, commissioning, and remote monitoring of variable speed HVAC systems. Following a regional roll out in spring 2022, independent Trane and American Standard dealers can now sell and install Link nationwide.
In November 2022, To meet the needs of HVAC design engineers, Carrier released a new version of Hourly Analysis Program (HAP), its peak load and energy modeling software. To reduce the time and effort required to create high-quality building models, HAP v6 combines a streamlined workflow with an extensive array of advanced 3D building modeling features, all woven into a core design that continues to be easy to learn and use.
In May 2022, Daikin Applied launched SiteLine Building Controls, a portfolio of cloud-based technologies. This product is focused on the monitoring and management of individual pieces of HVAC equipment and integrated building systems. In addition, the launch has also made provisions for customers to access the technical resource center and controls engineers for ongoing support.
In April 2022, Carrier introduced TruVu zone HVAC controllers to the i-Vu building automation system. These controllers are available in three versions, VAV Zone, VVT Zone, and VVT Bypass, and provide zone-level temperature, humidity, and air quality control. TruVu zone controls are also flexible enough to work with third-party HVAC equipment.
Segmental Overview
By deployment: The global HVAC software market is bifurcated into two segments, including cloud-based HVAC software and web-based HVAC software. Cloud-based solutions are becoming increasingly popular in this industry due to their flexibility and scalability. With a cloud-based solution, HVAC businesses can access their data and applications from anywhere, at any time. Cloud-based deployment has several benefits, which are helping it gain an edge over web-based deployment. Cloud-based deployment is often much cheaper than web-based HVAC software. In May 2021, Daikin Applied Americas teamed up with 75F, a wireless cloud-based technology company.
By enterprise size: The global HVAC software market is divided into two enterprise segments, including large enterprises and small and medium enterprises (SMEs). Large enterprises benefit the most from the streamlining of operations HVAC software because they have a significantly larger number of consumers and technicians, as well as a more varied catalogue of services being provided. However, SMEs also get certain benefits from this software, due to digitizing and streamlining operations across all stages of business. In the recent past, several SMEs have opted for this software, owing to the fact that it is available at reduced costs and at the ease of use.
By region: On the basis of region, the HVAC controls market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region emerged as the leading region in this software market with the largest share. The adoption of HVAC software is aided by the region’s emerging nations’ expanding populations and environmental consciousness. The adoption of HVAC software in the area is also being aided by the development in the use of green buildings and government measures to regulate energy-efficient practices throughout the business sector. Meanwhile, The European Union announced several decarbonization policies, and there is expected to be a growth in demand as European consumers switch to more efficient products with reduction of emissions. This growth in demand for HVAC products is likely to lead to a growth in HVAC software as suppliers attempt to efficiently meet demand requirements.
Competition analysis
This report includes a competitive analysis and profiles of major players in the global HVAC software market including, Carrier, Codefied Inc., Daikin Industries Ltd., Dataform Inc, Emerson, Honeywell International Inc., Johnson Controls International plc, LG Electronics Inc., Mitsubishi Electric Co., and Nortek Inc.
Global HVAC Software Market Report Highlights
| Aspects | Details |
 By Deployment |
|
 By Enterprise Size |
|
 By Region |
|
 Key Market Players | LG Electronics Inc., Honeywell International Inc., Emerson, Daikin Industries Ltd., Johnson Controls International plc, Carrier, Nortek Inc, Mitsubishi Electric Corporation, Dataform Inc., Codefied Inc. |
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