Japan HVAC Market Size, Share, and COVID-19 Impact Analysis, By Equipment (Heating, Cooling, and Ventilation), By Application (Residential, Commercial, and Industrial), and Japan HVAC Market Insights, Industry Trend, Forecasts to 2035

Japan HVAC Market Insights Forecasts to 2035

• The Japan HVAC Market Size Was Estimated at USD 20,803.31 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 16.12% from 2025 to 2035
• The Japan HVAC Market Size is Expected to Reach USD 107,716.89 Million by 2035

According to a research report published by Spherical Insights & Consulting, The Japan HVAC Market Size is anticipated to reach USD 107,716.89 Million by 2035, growing at a CAGR of 16.12% from 2025 to 2035. The Japan HVAC market is driven by various factors, including a rise in construction activities, increased need for thermal comfort in residential, commercial, and industrial buildings, a rise in disposable income, technological advancements, and rising awareness about indoor air quality in healthcare.

Market Overview

The HVAC is the methods and technologies employed to regulate the indoor climate of a building, encompassing temperature, humidity, and air quality, to ensure thermal comfort and create a healthy environment. Heating, ventilation, and air conditioning are used in schools, hospitals, airports, residential, and commercial buildings. Japan's current urban redevelopment efforts, especially in major cities like Tokyo and Osaka, are integrating advanced HVAC systems as central elements of modern building designs. The people are becoming more health-conscious and aware of the importance of indoor air quality, which boosts the demand for air filtration and purification technologies. Ongoing advancements in HVAC technology, including the creation of intelligent systems and environmentally-friendly refrigerants, drive market expansion. The rising preferences for natural and eco-friendly refrigerants are the key trends in this market.

Report Coverage

This research report categorizes the market for the Japan HVAC market based on various segments and regions, and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan HVAC market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan HVAC market.

Driving Factors

The growing awareness about indoor air purification and ventilation increased the demand for HVAC systems, especially in schools, offices, and retail spaces is the primary factor for the growth of this market. The advancements in HVAC technology, innovations like variable refrigerant flow (VRF) systems, which provide accurate temperature regulation and enhancements in energy efficiency, are becoming increasingly popular in commercial properties. The continued emphasis on sustainability and energy efficiency, along with governmental efforts to decrease carbon emissions, is expected to increase the demand for energy-efficient HVAC systems. Additionally, the HVAC systems market in Japan is propelled by the increasing demand for cost-effective and energy-efficient heating and cooling solutions in residential, commercial, and industrial sectors.

Restraining Factors

The advanced HVAC systems are expensive, making them unaffordable for price-sensitive individuals. The competition from alternative technologies such as geothermal heating and cooling systems limit the market expansion.

Market Segmentation

The Japan HVAC market share is classified into equipment and application.

• The heating segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Japan HVAC market is segmented by equipment into heating, cooling, and ventilation. Among these, the heating segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to rising demand for sustainable and energy-efficient and sustainable heating solutions. Additionally, they are essential in residential and commercial sectors.

• The residential segment held the highest share in 2024 and is expected to grow at a substantial CAGR during the forecast period.    

The Japan HVAC market is segmented by application into residential, commercial, and industrial. Among these, the residential segment held the highest share in 2024 and is expected to grow at a substantial CAGR during the forecast period. This is due to a rise in residential building, rising disposable income, and rising awareness about indoor air quality. Additionally, there is a rise in home renovation and home adoption trends.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan HVAC market, along with a comparative evaluation primarily based on their Application offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes Application development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Daikin Industries Ltd
• Mitsubishi Electric Corporation
• Hitachi Ltd
• Panasonic Corporation
• Fujitsu General Limited
• Toshiba Carrier Corporation
•  Other

Recent Developments

• In April 2025, Carrier Japan Launched Abound HVAC Performance Providing Powerful Lifecycle Solutions for Enhanced Comfort and Equipment Health.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan HVAC market based on the below-mentioned segments:

Japan HVAC Market, By Equipment

• Heating
• Ventilation
• Cooling

Japan HVAC Market, By Application

• Residential
• Commercial
• Industrial