Product Code: 27755
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. The shift from capital-intensive models to subscription-based services is gaining traction, enabling users to reduce upfront investments and rely on operational expenditure (OPEX). Rapid urbanization, smart city initiatives, and expanding commercial infrastructure are further accelerating the need for efficient climate control solutions. Stringent environmental regulations aimed at reducing carbon footprints are also propelling market growth, as governments worldwide push for energy-efficient heating and cooling systems.
Market Overview |
Forecast Period | 2026-2030 |
Market Size 2024 | USD 84.7 Billion |
Market Size 2030 | USD 153.9 Billion |
CAGR 2025-2030 | 10.3% |
Fastest Growing Segment | Cooling as a Service |
Largest Market | Asia Pacific |
Additionally, advancements in IoT, AI-driven analytics, and smart HVAC technologies are optimizing energy consumption, enhancing predictive maintenance, and reducing overall energy waste. The integration of renewable energy sources, such as solar and geothermal heating and cooling, is also playing a crucial role in CHAAS adoption. Furthermore, the increasing prevalence of district heating and cooling networks is supporting the expansion of service-based HVAC models. Emerging markets, particularly in Asia-Pacific and the Middle East, are experiencing significant demand due to industrial growth and infrastructure development, making CHAAS a vital solution for sustainable climate management.
Key Market Drivers
Shift Towards Energy Efficiency and Sustainability
The global Cooling and Heating as a Service (CHAAS) Market is experiencing significant growth due to the increasing emphasis on energy efficiency and sustainability. With rising concerns over climate change, governments, businesses, and consumers are actively seeking solutions that reduce energy consumption and minimize carbon emissions. Traditional HVAC systems are known for their high energy demand and maintenance costs, prompting a shift towards more efficient service-based models. CHAAS allows businesses and homeowners to access state-of-the-art heating and cooling solutions without requiring large capital investments, thereby reducing financial barriers to adopting energy-efficient technology. Global energy demand for cooling is anticipated to increase by 45% by 2050 compared to 2016 levels, escalating from 7 to 12 exajoules.
One of the primary factors driving this shift is the growing implementation of stringent environmental regulations. Governments worldwide are enforcing policies such as the Paris Agreement and national energy efficiency standards, requiring industries to optimize their energy use and lower greenhouse gas emissions. The transition to CHAAS enables companies to comply with these regulations without needing to invest in expensive equipment upgrades. By offering energy-efficient solutions through advanced smart controls, automation, and real-time monitoring, CHAAS providers ensure reduced power consumption and lower operational costs for businesses. In developing economies, the cooling market is expected to expand from approximately USD 300 billion to at least USD 600 billion per year by 2050, presenting a significant opportunity for sustainable solutions.
Key Market Challenges
High Initial Setup Costs and Infrastructure Limitations
One of the biggest challenges facing the Cooling and Heating as a Service (CHAAS) Market is the high initial setup costs required to establish the necessary infrastructure. While the CHAAS model shifts capital expenditure (CAPEX) away from end-users and onto service providers, these companies must make substantial upfront investments in energy-efficient HVAC systems, IoT-enabled monitoring tools, and automation technologies. The costs associated with installing centralized district heating and cooling networks, integrating renewable energy sources, and deploying smart controls can be prohibitively expensive, particularly in developing economies where infrastructure is less developed.
In many regions, aging HVAC infrastructure poses an additional barrier to CHAAS implementation. Older buildings and industrial facilities often rely on outdated heating and cooling systems that are not compatible with modern service-based models. Retrofitting these facilities requires significant capital investment and engineering expertise, which can deter potential CHAAS providers from entering certain markets. Additionally, the lack of standardized regulations and policies for CHAAS implementation in different countries makes it difficult to create a uniform approach for service providers, further increasing costs and complexity.
Another challenge is the reliability of energy supply, especially in areas with unstable power grids or inconsistent access to renewable energy sources. Many CHAAS providers aim to offer sustainable heating and cooling solutions by integrating solar, geothermal, and waste heat recovery technologies. However, fluctuations in renewable energy availability, coupled with limitations in battery storage and energy distribution, can affect service consistency. Without proper energy management infrastructure, CHAAS companies may struggle to deliver uninterrupted heating and cooling services, leading to customer dissatisfaction and reduced market adoption.
Key Market Trends
Integration of Smart Technologies and AI-Driven Energy Management
One of the most significant trends shaping the Cooling and Heating as a Service (CHAAS) Market is the growing integration of smart technologies, IoT (Internet of Things), and AI-driven energy management systems. As digital transformation accelerates across industries, HVAC service providers are leveraging real-time data analytics, cloud computing, and predictive maintenance to optimize heating and cooling efficiency. These technologies allow for seamless automation, reducing energy wastage and ensuring HVAC systems operate at peak performance while minimizing costs for end-users.
AI-powered analytics and machine learning algorithms enable CHAAS providers to predict demand patterns, adjust energy usage dynamically, and identify potential system failures before they occur. This shift from reactive to proactive and predictive maintenance helps reduce downtime, extend equipment lifespan, and enhance customer satisfaction. IoT-enabled sensors continuously monitor temperature, humidity, air quality, and occupancy levels, allowing for precise adjustments that optimize indoor climate control while minimizing unnecessary energy consumption.
Key Market Players
- 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.
Report Scope:
In this report, the Global Cooling and Heating as a Service Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Cooling and Heating as a Service Market, By Service Model:
- Subscription-Based
- Pay-per-Use
- Hybrid Models
- Others
Cooling and Heating as a Service Market, By Service Type:
- Cooling as a Service
- Heating as a Service
Cooling and Heating as a Service Market, By End User:
- Residential
- Commercial
- Industrial
- Others
Cooling and Heating as a Service Market, By Region:
- North America
- United States
- Canada
- Mexico
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Belgium
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Indonesia
- Vietnam
- South America
- Brazil
- Colombia
- Argentina
- Chile
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Turkey
- Israel
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Cooling and Heating as a Service Market.
Available Customizations:
Global Cooling and Heating as a Service Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
Table of Contents
1. Solution Overview
- 1.1. Market Definition
- 1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations
2. Research Methodology
- 2.1. Objective of the Study
- 2.2. Baseline Methodology
- 2.3. Formulation of the Scope
- 2.4. Assumptions and Limitations
- 2.5. Sources of Research
- 2.5.1. Secondary Research
- 2.5.2. Primary Research
- 2.6. Approach for the Market Study
- 2.6.1. The Bottom-Up Approach
- 2.6.2. The Top-Down Approach
- 2.7. Methodology Followed for Calculation of Market Size & Market Shares
- 2.8. Forecasting Methodology
- 2.8.1. Data Triangulation & Validation
3. Executive Summary
4. Voice of Customer
5. Global Cooling and Heating as a Service Market Overview
6. Global Cooling and Heating as a Service Market Outlook
- 6.1. Market Size & Forecast
- 6.2. Market Share & Forecast
- 6.2.1. By Service Model (Subscription-Based, Pay-per-Use, Hybrid Models, Others)
- 6.2.2. By Service Type (Cooling as a Service, Heating as a Service)
- 6.2.3. By End User (Residential, Commercial, Industrial, Others)
- 6.2.4. By Region (North America, Europe, South America, Middle East & Africa, Asia Pacific)
- 6.3. By Company (2024)
- 6.4. Market Map
7. North America Cooling and Heating as a Service Market Outlook
- 7.1. Market Size & Forecast
- 7.2. Market Share & Forecast
- 7.2.1. By Service Model
- 7.2.2. By Service Type
- 7.2.3. By End User
- 7.2.4. By Country
- 7.3. North America: Country Analysis
- 7.3.1. United States Cooling and Heating as a Service Market Outlook
- 7.3.1.1.Market Size & Forecast
- 7.3.1.2.Market Share & Forecast
- 7.3.1.2.1. By Service Model
- 7.3.1.2.2. By Service Type
- 7.3.1.2.3. By End User
- 7.3.2. Canada Cooling and Heating as a Service Market Outlook
- 7.3.2.1.Market Size & Forecast
- 7.3.2.2.Market Share & Forecast
- 7.3.2.2.1. By Service Model
- 7.3.2.2.2. By Service Type
- 7.3.2.2.3. By End User
- 7.3.3. Mexico Cooling and Heating as a Service Market Outlook
- 7.3.3.1.Market Size & Forecast
- 7.3.3.2.Market Share & Forecast
- 7.3.3.2.1. By Service Model
- 7.3.3.2.2. By Service Type
- 7.3.3.2.3. By End User
8. Europe Cooling and Heating as a Service Market Outlook
- 8.1. Market Size & Forecast
- 8.2. Market Share & Forecast
- 8.2.1. By Service Model
- 8.2.2. By Service Type
- 8.2.3. By End User
- 8.2.4. By Country
- 8.3. Europe: Country Analysis
- 8.3.1. Germany Cooling and Heating as a Service Market Outlook
- 8.3.1.1.Market Size & Forecast
- 8.3.1.2.Market Share & Forecast
- 8.3.1.2.1. By Service Model
- 8.3.1.2.2. By Service Type
- 8.3.1.2.3. By End User
- 8.3.2. France Cooling and Heating as a Service Market Outlook
- 8.3.2.1.Market Size & Forecast
- 8.3.2.2.Market Share & Forecast
- 8.3.2.2.1. By Service Model
- 8.3.2.2.2. By Service Type
- 8.3.2.2.3. By End User
- 8.3.3. United Kingdom Cooling and Heating as a Service Market Outlook
- 8.3.3.1.Market Size & Forecast
- 8.3.3.2.Market Share & Forecast
- 8.3.3.2.1. By Service Model
- 8.3.3.2.2. By Service Type
- 8.3.3.2.3. By End User
- 8.3.4. Italy Cooling and Heating as a Service Market Outlook
- 8.3.4.1.Market Size & Forecast
- 8.3.4.2.Market Share & Forecast
- 8.3.4.2.1. By Service Model
- 8.3.4.2.2. By Service Type
- 8.3.4.2.3. By End User
- 8.3.5. Spain Cooling and Heating as a Service Market Outlook
- 8.3.5.1.Market Size & Forecast
- 8.3.5.2.Market Share & Forecast
- 8.3.5.2.1. By Service Model
- 8.3.5.2.2. By Service Type
- 8.3.5.2.3. By End User
- 8.3.6. Belgium Cooling and Heating as a Service Market Outlook
- 8.3.6.1.Market Size & Forecast
- 8.3.6.2.Market Share & Forecast
- 8.3.6.2.1. By Service Model
- 8.3.6.2.2. By Service Type
- 8.3.6.2.3. By End User
9. Asia Pacific Cooling and Heating as a Service Market Outlook
- 9.1. Market Size & Forecast
- 9.2. Market Share & Forecast
- 9.2.1. By Service Model
- 9.2.2. By Service Type
- 9.2.3. By End User
- 9.2.4. By Country
- 9.3. Asia Pacific: Country Analysis
- 9.3.1. China Cooling and Heating as a Service Market Outlook
- 9.3.1.1.Market Size & Forecast
- 9.3.1.2.Market Share & Forecast
- 9.3.1.2.1. By Service Model
- 9.3.1.2.2. By Service Type
- 9.3.1.2.3. By End User
- 9.3.2. India Cooling and Heating as a Service Market Outlook
- 9.3.2.1.Market Size & Forecast
- 9.3.2.2.Market Share & Forecast
- 9.3.2.2.1. By Service Model
- 9.3.2.2.2. By Service Type
- 9.3.2.2.3. By End User
- 9.3.3. Japan Cooling and Heating as a Service Market Outlook
- 9.3.3.1.Market Size & Forecast
- 9.3.3.2.Market Share & Forecast
- 9.3.3.2.1. By Service Model
- 9.3.3.2.2. By Service Type
- 9.3.3.2.3. By End User
- 9.3.4. South Korea Cooling and Heating as a Service Market Outlook
- 9.3.4.1.Market Size & Forecast
- 9.3.4.2.Market Share & Forecast
- 9.3.4.2.1. By Service Model
- 9.3.4.2.2. By Service Type
- 9.3.4.2.3. By End User
- 9.3.5. Australia Cooling and Heating as a Service Market Outlook
- 9.3.5.1.Market Size & Forecast
- 9.3.5.2.Market Share & Forecast
- 9.3.5.2.1. By Service Model
- 9.3.5.2.2. By Service Type
- 9.3.5.2.3. By End User
- 9.3.6. Indonesia Cooling and Heating as a Service Market Outlook
- 9.3.6.1.Market Size & Forecast
- 9.3.6.2.Market Share & Forecast
- 9.3.6.2.1. By Service Model
- 9.3.6.2.2. By Service Type
- 9.3.6.2.3. By End User
- 9.3.7. Vietnam Cooling and Heating as a Service Market Outlook
- 9.3.7.1.Market Size & Forecast
- 9.3.7.2.Market Share & Forecast
- 9.3.7.2.1. By Service Model
- 9.3.7.2.2. By Service Type
- 9.3.7.2.3. By End User
10. South America Cooling and Heating as a Service Market Outlook
- 10.1. Market Size & Forecast
- 10.2. Market Share & Forecast
- 10.2.1. By Service Model
- 10.2.2. By Service Type
- 10.2.3. By End User
- 10.2.4. By Country
- 10.3. South America: Country Analysis
- 10.3.1. Brazil Cooling and Heating as a Service Market Outlook
- 10.3.1.1. Market Size & Forecast
- 10.3.1.2. Market Share & Forecast
- 10.3.1.2.1. By Service Model
- 10.3.1.2.2. By Service Type
- 10.3.1.2.3. By End User
- 10.3.2. Colombia Cooling and Heating as a Service Market Outlook
- 10.3.2.1. Market Size & Forecast
- 10.3.2.2. Market Share & Forecast
- 10.3.2.2.1. By Service Model
- 10.3.2.2.2. By Service Type
- 10.3.2.2.3. By End User
- 10.3.3. Argentina Cooling and Heating as a Service Market Outlook
- 10.3.3.1. Market Size & Forecast
- 10.3.3.2. Market Share & Forecast
- 10.3.3.2.1. By Service Model
- 10.3.3.2.2. By Service Type
- 10.3.3.2.3. By End User
- 10.3.4. Chile Cooling and Heating as a Service Market Outlook
- 10.3.4.1. Market Size & Forecast
- 10.3.4.2. Market Share & Forecast
- 10.3.4.2.1. By Service Model
- 10.3.4.2.2. By Service Type
- 10.3.4.2.3. By End User
11. Middle East & Africa Cooling and Heating as a Service Market Outlook
- 11.1. Market Size & Forecast
- 11.2. Market Share & Forecast
- 11.2.1. By Service Model
- 11.2.2. By Service Type
- 11.2.3. By End User
- 11.2.4. By Country
- 11.3. Middle East & Africa: Country Analysis
- 11.3.1. Saudi Arabia Cooling and Heating as a Service Market Outlook
- 11.3.1.1. Market Size & Forecast
- 11.3.1.2. Market Share & Forecast
- 11.3.1.2.1. By Service Model
- 11.3.1.2.2. By Service Type
- 11.3.1.2.3. By End User
- 11.3.2. UAE Cooling and Heating as a Service Market Outlook
- 11.3.2.1. Market Size & Forecast
- 11.3.2.2. Market Share & Forecast
- 11.3.2.2.1. By Service Model
- 11.3.2.2.2. By Service Type
- 11.3.2.2.3. By End User
- 11.3.3. South Africa Cooling and Heating as a Service Market Outlook
- 11.3.3.1. Market Size & Forecast
- 11.3.3.2. Market Share & Forecast
- 11.3.3.2.1. By Service Model
- 11.3.3.2.2. By Service Type
- 11.3.3.2.3. By End User
- 11.3.4. Turkey Cooling and Heating as a Service Market Outlook
- 11.3.4.1. Market Size & Forecast
- 11.3.4.2. Market Share & Forecast
- 11.3.4.2.1. By Service Model
- 11.3.4.2.2. By Service Type
- 11.3.4.2.3. By End User
- 11.3.5. Israel Cooling and Heating as a Service Market Outlook
- 11.3.5.1. Market Size & Forecast
- 11.3.5.2. Market Share & Forecast
- 11.3.5.2.1. By Service Model
- 11.3.5.2.2. By Service Type
- 11.3.5.2.3. By End User
12. Market Dynamics
- 12.1. Drivers
- 12.2. Challenges
13. Market Trends and Developments
14. Company Profiles
- 14.1. Johnson Controls International plc
- 14.1.1. Business Overview
- 14.1.2. Key Revenue and Financials
- 14.1.3. Recent Developments
- 14.1.4. Key Personnel/Key Contact Person
- 14.1.5. Key Product/Services Offered
- 14.2. Siemens AG
- 14.2.1. Business Overview
- 14.2.2. Key Revenue and Financials
- 14.2.3. Recent Developments
- 14.2.4. Key Personnel/Key Contact Person
- 14.2.5. Key Product/Services Offered
- 14.3. Schneider Electric SE
- 14.3.1. Business Overview
- 14.3.2. Key Revenue and Financials
- 14.3.3. Recent Developments
- 14.3.4. Key Personnel/Key Contact Person
- 14.3.5. Key Product/Services Offered
- 14.4. Trane Technologies Company, LLC
- 14.4.1. Business Overview
- 14.4.2. Key Revenue and Financials
- 14.4.3. Recent Developments
- 14.4.4. Key Personnel/Key Contact Person
- 14.4.5. Key Product/Services Offered
- 14.5. Honeywell International Inc.
- 14.5.1. Business Overview
- 14.5.2. Key Revenue and Financials
- 14.5.3. Recent Developments
- 14.5.4. Key Personnel/Key Contact Person
- 14.5.5. Key Product/Services Offered
- 14.6. Daikin Industries, Ltd.
- 14.6.1. Business Overview
- 14.6.2. Key Revenue and Financials
- 14.6.3. Recent Developments
- 14.6.4. Key Personnel/Key Contact Person
- 14.6.5. Key Product/Services Offered
- 14.7. Carrier Global Corporation
- 14.7.1. Business Overview
- 14.7.2. Key Revenue and Financials
- 14.7.3. Recent Developments
- 14.7.4. Key Personnel/Key Contact Person
- 14.7.5. Key Product/Services Offered
- 14.8. Mitsubishi Electric Corporation
- 14.8.1. Business Overview
- 14.8.2. Key Revenue and Financials
- 14.8.3. Recent Developments
- 14.8.4. Key Personnel/Key Contact Person
- 14.8.5. Key Product/Services Offered
- 14.9. Bosch Thermotechnik GmbH
- 14.9.1. Business Overview
- 14.9.2. Key Revenue and Financials
- 14.9.3. Recent Developments
- 14.9.4. Key Personnel/Key Contact Person
- 14.9.5. Key Product/Services Offered
- 14.10. Lennox International Inc.
- 14.10.1. Business Overview
- 14.10.2. Key Revenue and Financials
- 14.10.3. Recent Developments
- 14.10.4. Key Personnel/Key Contact Person
- 14.10.5. Key Product/Services Offered
15. Strategic Recommendations
16. About Us & Disclaimer