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Cooling and Heating as a Service Market is expected to grow at a CAGR of 10.3% through 2030F

The Global Cooling and Heating as a Service Market is increasing due to Integration of IoT and Smart Technologies and Growth in Renewable Energy Integration during the forecast period.


According to TechSci Research report, “Cooling and Heating as a Service Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F, Global Cooling and Heating as a Service Market was valued at USD 84.7 billion in 2024 and is expected to reach USD 153.9 billion by 2030 with a CAGR of 10.3% through 2030. One key driver is the increasing adoption of circular economy principles, where businesses and governments prioritize service-based models over traditional ownership to reduce waste, optimize resource utilization, and extend equipment lifespan. This shift encourages organizations to invest in pay-per-use HVAC solutions, minimizing upfront capital costs and allowing better financial planning.

Another major driver is the rising demand for indoor air quality (IAQ) solutions, especially in commercial buildings, hospitals, and educational institutions. With increasing awareness of airborne contaminants, ventilation standards, and the impact of climate change on health, businesses are integrating advanced filtration, humidity control, and real-time air monitoring within their HVAC service contracts. Additionally, the growing trend of remote work and hybrid office models has pushed companies to adopt flexible, scalable HVAC services that adjust to fluctuating occupancy rates, optimizing energy consumption.

The expansion of cold chain logistics and data centers is also fueling demand for reliable, high-performance cooling solutions. As e-commerce, pharmaceutical storage, and cloud computing industries expand, companies require efficient, uninterrupted climate control, making CHAAS an attractive alternative. Lastly, advancements in blockchain and smart contracts enable transparent, automated transactions, increasing trust and efficiency in service-based HVAC models, further accelerating market growth.


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Based on Service Type, Heating as a Service segment dominated the Cooling and Heating as a Service market, driven by rising energy costs, sustainability mandates, and the growing demand for efficient, low-emission heating solutions. With governments and industries emphasizing carbon reduction targets, businesses and residential consumers are shifting toward subscription-based heating services that provide cost-effective, energy-efficient alternatives to traditional heating systems. Stringent emission regulations across North America, Europe, and Asia-Pacific—such as the European Union’s Green Deal and various state-level energy efficiency programs in the United States—are accelerating the adoption of renewable and service-based heating solutions.

The market’s dominance is further strengthened by the expansion of district heating systems, which enable multiple buildings or entire communities to access centralized, service-based heating solutions. Countries like Denmark, Germany, and China have been at the forefront of district heating adoption, utilizing biomass, geothermal, and waste heat recovery to provide sustainable heating as a service. This model allows customers to reduce capital expenditures on heating equipment, benefit from predictive maintenance and real-time monitoring, and optimize their energy usage with minimal downtime.

Another major driver for the HaaS segment is the increasing penetration of heat pumps and hybrid heating solutions. These advanced systems provide energy-efficient heating while reducing dependency on fossil fuels, making them an attractive option for both commercial and residential users. With the growing trend of smart home and building automation, heating services are being integrated with AI-driven control systems and IoT-enabled monitoring, ensuring optimal performance while lowering overall energy consumption.

Industries such as hospitality, healthcare, manufacturing, and retail are leading adopters of heating services, as they require consistent, reliable heating without the financial burden of maintaining and upgrading traditional heating infrastructure. Additionally, the rise of flexible workspaces and hybrid office models has increased demand for scalable heating solutions, allowing businesses to adjust their heating requirements based on occupancy levels.

Furthermore, advancements in waste heat recovery technology have enabled industries to recycle excess heat generated from manufacturing processes, data centers, and power plants, further promoting energy efficiency in the heating service sector. Major players, including Johnson Controls, Trane Technologies, and Bosch Thermotechnik, are investing in AI-based heating optimization, demand-response heating, and low-carbon heating solutions, enhancing the overall market appeal of HaaS.

With ongoing innovations, regulatory incentives, and a growing preference for service-based models, the Heating as a Service segment continues to outpace traditional heating ownership, solidifying its position as the dominant force in the global CHAAS market.

Based on region, North America is the fastest-growing region for the Cooling and Heating as a Service market, driven by increasing demand for energy-efficient HVAC solutions, government initiatives, and technological advancements. The region’s stringent environmental regulations, such as the Energy Policy Act and state-level decarbonization goals, are compelling businesses to transition from traditional HVAC ownership to subscription-based, energy-efficient solutions. Additionally, the rising adoption of smart buildings and IoT-integrated HVAC systems has fueled the demand for service-based heating and cooling models, allowing businesses to optimize energy use and reduce operational costs.

The growth of data centers, cold storage facilities, and commercial spaces in the U.S. and Canada is another significant factor accelerating market expansion. With the rapid rise of cloud computing, AI applications, and e-commerce-driven warehousing, industries require reliable, high-performance cooling solutions, making CHAAS an attractive choice. Furthermore, the shift toward sustainable infrastructure and net-zero targets is encouraging companies to implement solar-powered cooling, geothermal heating, and demand-response HVAC systems, further driving service-based adoption.

The North American market also benefits from the increasing role of major HVAC service providers, such as Carrier Global, Johnson Controls, and Trane Technologies, which are expanding their CHAAS offerings through predictive analytics, AI-driven maintenance, and advanced remote monitoring. As a result, the region continues to lead in technological innovation, regulatory support, and commercial adoption, solidifying its position as the fastest-growing market for CHAAS globally.


Key market players in the Cooling and Heating as a Service Market are: -

  • Johnson Controls International plc
  • Siemens AG
  • Schneider Electric SE
  • Trane Technologies Company, LLC
  • Honeywell International Inc.
  • Daikin Industries, Ltd.
  • Carrier Global Corporation
  • Mitsubishi Electric Corporation
  • Bosch Thermotechnik GmbH
  • Lennox International Inc.


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“The Global Cooling and Heating as a Service (CHAAS) Market presents numerous opportunities driven by rising energy efficiency demands, sustainability initiatives, and smart technology adoption. With increasing urbanization and industrialization, businesses and residential consumers seek cost-effective, energy-efficient climate control solutions, boosting the adoption of subscription-based HVAC services. Governments worldwide are implementing stringent energy regulations and carbon reduction policies, creating significant demand for green and renewable HVAC technologies such as solar-powered cooling, geothermal heating, and AI-driven climate control systems. Additionally, the rise of smart cities and IoT-enabled buildings opens avenues for data-driven HVAC optimization, improving performance, predictive maintenance, and operational efficiency.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

Cooling and Heating as a Service Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service Model (Subscription-Based, Pay-per-Use, Hybrid Models, Others), By Service Type (Cooling as a Service, Heating as a Service), By End User (Residential, Commercial, Industrial, Others), By Region, By Competition, 2020-2030F has evaluated the future growth potential of Cooling and Heating as a Service Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Cooling and Heating as a Service Market.

 

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