The global heating & cooling market is expected to record substantial growth by 2027 owing to stringent regulations pertaining to CO2 emissions across key regions. Moreover, extreme climatic conditions worldwide are likely to boost product uptake over the forecast period.

Heating and cooling systems function based on a sustainable principle of moving heat from one location to another instead of burning fossil fuels to generate warmth. It pulls the warm or cool air from the source (usually outdoors) and supplies it indoors. According to a December 2020 study published in Renewable and Sustainable Energy Reviews, heating and cooling systems have been shown to be effective low-carbon solutions that significantly help in reducing carbon footprint. Subsequently, rising preference for sustainable systems and green energy building globally has fostered industry expansion in recent years.

The global heating & cooling market has been segmented based on application, category, and region. In terms of category, the market has further been divided into cooling and heating. The heating category segment is expected to progress at a CAGR of over 4.0% through the forecast period.

Based on fuel, the heating category segment has further been classified into geothermal, natural gas, electricity, coal, district heating, oil products, biofuels & waste, and renewables.

The biofuels & waste segment is slated to register gains of around 5% through the review timeline. The renewables segment was valued at nearly USD 19 billion in 2020 and is projected to observe steady expansion over 2021-2027. The global heating & cooling market from the geothermal segment is speculated to progress at a CAGR of more than 2% through the study timeframe.

Meanwhile, in 2020, the natural gas segment surpassed a valuation of USD 160 billion and is likely to witness robust growth by 2027. The oil products segment and the coal segment are anticipated to showcase considerable growth at a CAGR of approximately 2% over the estimated timeline.

With respect to application, the global heating & cooling market has been segregated into service sector, industrial, and residential. Under industrial, the market has further been categorized into specification and temperature gradient. By temperature gradient, the industrial application segment has been bifurcated into low, medium, and high.

The high segment is foreseen to register notable growth by 2027 owing to surging adoption of biomass heating systems. The medium segment is slated to grow at a considerable pace of around 4% CAGR through the stipulated timeframe. The low segment recorded a valuation of more than USD 93 billion in 2020 and is estimated to garner substantial gains over the projected timeline.

Under specification, the global heating & cooling market has been classified into energy intensive. Under energy intensive, the specification application segment has further been segmented into pulp & paper, iron & steel, non-metallic mineral product, non-ferrous metal, and chemical industry.

The iron & steel segment is set to grow at a CAGR of about 3% through the analysis timeline. In 2020, the non-ferrous metal segment was worth over USD 6 billion and is likely to exhibit optimistic growth through the forecast period.

The chemical industry segment is speculated to follow a sturdy growth trajectory, expanding at more than 4% CAGR over the review period. The non-metallic mineral product segment garnered a notable valuation of about USD 45 billion in 2020 and is estimated to expand at a significant pace over 2021-2027. Moreover, the pulp & paper segment is anticipated to grow at a CAGR of above 4% through the analysis period.

Under residential, the global heating & cooling market has been categorized into specification. Under specification, the residential application segment has further been classified into high rise, single family, and multi family. The single family segment is foreseen to garner sizable gains at nearly 3% over the estimated period. The high rise segment is likely to register considerable growth at over 7% CAGR through the projected time period.

The service sector application segment is anticipated to amass notable gains by 2027 on account of soaring demand for efficient heating and cooling systems. Under service sector, the market has been segregated into specification. Based on specification, the service sector application segment has further been segmented into shop-small, shop-large, hospitals, sports & recreation, offices, and hotels & restaurants.

The hospitals segment and the sports & recreation segment are likely to showcase substantial growth at a CAGR of approximately 7% through the projected timeline. The hotels & restaurants segment is foreseen to surpass a valuation of about USD 12 billion by the end of 2027.

In 2020, the shop-large segment was valued at more than USD 5 billion and is expected to witness optimistic expansion through the forecast timeline. The shop-small segment anticipated to grow at around 6% CAGR over the study timeline. In 2020, the offices segment exceeded a valuation of around USD 11 billion and is set to grow significantly by 2027.

From the regional perspective, the North America heating & cooling market is projected to gain traction, registering a CAGR of more than 3.5% through the forecast period. The Europe heating & cooling market is speculated to expand at a robust pace over the review period owing to extreme climatic changes in the region. Meanwhile, the Asia Pacific heating & cooling market is set to observe strong growth through the assessment period attributable to prolonged hot weather conditions and regional environment.