Smart HVAC Controls Market Poised for Strong Growth in U.S. Through 2035

NEWARK, Delaware — The U.S. smart HVAC controls market is expected to grow steadily over the next decade, with projections showing a compound annual growth rate (CAGR) of 16.2% between 2025 and 2035, according to a report from Future Market Insights (FMI). Market value is forecast to climb from $28.1 billion in 2025 to more than $160 billion globally by 2035, with the U.S. expansion driven by retrofits, efficiency mandates, and integration with smart building platforms.

Thermostats remain the dominant product segment, accounting for more than 60% of market share in 2025. Their popularity is fueled by ease of installation, compatibility with smart home systems, and the ability to deliver measurable energy savings.

The residential segment is projected to contribute 54.2% of the smart HVAC controls market revenue in 2025, securing its place as the leading application area. This segment’s growth has been fueled by increasing consumer interest in smart home technologies and energy management solutions.

Homeowners are adopting smart HVAC controls to enhance comfort, improve indoor air quality, and reduce energy costs. The rise in new residential constructions and retrofitting of existing homes with smart systems have further boosted demand.

Additionally, government incentives and building codes encouraging energy-efficient appliances have supported the residential segment’s expansion. The convenience of remote operation and integration with other smart home devices has appealed strongly to consumers. As energy efficiency remains a top priority in residential settings, this segment is expected to sustain its market leadership.

Key drivers in the U.S. include utility rebate programs encouraging upgrades, rising demand for IoT-enabled HVAC platforms, and stricter compliance with energy efficiency standards. Growth is also tied to replacement cycles in older HVAC systems and the increasing needs of data centers and other mission-critical facilities requiring precise climate control.

For contractors, the trend suggests growing opportunities in residential retrofits, commercial building automation projects, and integration of HVAC systems with renewable and connected energy platforms.