Research Overview

The study focuses on digital solutions in buildings and IoT-based services for heating, ventilation and air-conditioning (HVAC) equipment. Digital solutions are services that are not part of equipment sales but rendered additionally. Remote monitoring, predictive maintenance, fault detection and diagnostics, energy optimization, healthy building services, digital twin, and workplace optimization are included in the scope of the report. IoT-based HVAC services focus on the revenue earned from rendering services at HVAC installations inside buildings. The services include maintenance and repairs that are carried out beyond the warranty period of HVAC equipment.

COVID-19 has accelerated the adoption of IoT-based services for HVAC in buildings. Buildings such as offices, shopping malls, schools, and universities are some of the major adopters of IoT-based HVAC services. Remote monitoring, fault detection and diagnostics, and energy optimization services are the most sought after IoT-based solutions. Remote monitoring services accounted 44.1% of digital service revenues between 2020 and 2027.

The IoT maintenance industry ecosystem is growing, comprising incumbent HVAC participants, startups, and facility management, technology, and building management companies; however, only incumbent participants and IoT-based startups are driving the market through in-house developments or collaborations. The market is characterized by strategic partnerships between technology companies, HVAC participants, and IoT startups. Some of these startups, with innovative solutions or consistent business performance, end up being acquired by the HVAC giants.