Australia Energy Efficient HVAC Systems Market

Australia Energy Efficient HVAC Systems Market Overview:

The Australia energy efficient HVAC systems market size reached USD 1,563.64 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,716.68 Million by 2033, exhibiting a growth rate (CAGR) of 6.33% during 2025-2033. Country’s energy efficiency policies, rising electricity tariffs, and consumer awareness of environmental impact are boosting demand for sustainable HVAC systems. Commercial sector retrofits, net-zero building goals, and smart technology integration further support the expansion of Australia energy efficient HVAC systems market share.

Australia Energy Efficient HVAC Systems Market Trends:

Expansion of Green Building Certifications

As per the Department of Climate Change, Energy, the Environment and Water, HVAC systems contribute up to 50% of energy use and 30% of water consumption in Australia’s commercial buildings. Given this substantial environmental footprint, improving HVAC efficiency has become a core focus of the country’s green building push. Certifications such as Green Star and NABERS increasingly drive the adoption of high-efficiency systems that can reduce energy usage—advanced rooftop units alone cut consumption by 17%, and reverse-cycle air conditioners offer 30–40% higher efficiency than standard models. These programs reward thermal performance, energy savings, and environmentally responsible technology choices, prompting developers and facility managers to upgrade systems to meet evolving benchmarks. This alignment between measurable system performance and certification criteria is significantly advancing Australia energy efficient HVAC systems market growth, especially within commercial real estate portfolios aiming for sustainability-led differentiation.

Surge in Electrification and Heat Pump Adoption

Australia is witnessing a nationwide push toward electrification, with government and state-level incentives promoting the shift away from gas-based systems. This transition has led to a marked rise in the installation of electric heat pumps, particularly in residential and small commercial settings. Heat pumps offer efficient heating and cooling, aligning well with Australia’s climate zones and sustainability objectives. The Clean Energy Finance Corporation and state schemes such as Victoria’s Energy Upgrades program have further accelerated uptake. As building codes increasingly mandate all-electric homes and offices, heat pump manufacturers are expanding their product ranges to meet evolving standards. This electrification trend is playing a pivotal role in driving Australia Energy Efficient HVAC Systems market growth, particularly through environmentally responsible retrofit solutions. For instance, in April 2025, Next Cycle launched in Australia, introducing Maxa’s advanced R290 inverter heat pump range for residential, commercial, and industrial applications. This marks a significant step toward energy-efficient HVAC and water systems, offering capacities from 6kW to 356kW with ultra-low GWP and zero ODP.

Australia Energy Efficient HVAC Systems Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country/regional levels for 2025-2033. Our report has categorized the market based on product and application.

Product Insights:

• Heat Pumps 
• Water Heating and Cooling Systems in Buildings 
• Efficient Air Conditioning Systems 
• Others 

The report has provided a detailed breakup and analysis of the market based on the product. This includes heat pumps, water heating and cooling systems in buildings, efficient air conditioning systems, and others.

Application Insights:

• Residential 
• Commercial 
• Office Buildings 
• Others 

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes residential, commercial, office buildings, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Energy Efficient HVAC Systems Market News:

• In January 2025, Sojitz acquired a 70% stake in Climatech Group via its subsidiary Ellis Air, making it a leading HVAC contractor in Australia. Combined sales of both companies total JPY 45 billion (AUD 450 million). The move supports rising demand for energy-efficient HVAC systems, especially under NABERS standards and ahead of the Brisbane 2032 Olympics. Climatech’s expertise in large-scale commercial and data center projects across multiple regions strengthens Sojitz’s energy solutions portfolio and aligns with its net-zero and CO₂ reduction goals.
• In June 2024, Hitachi Energy announced plans to invest an additional $4.5 billion by 2027 to expand manufacturing, R&D, and digital solutions supporting the clean energy transition. Investments target transformers, HVDC, grid automation, and AI-based platforms like IdentiQ™, enabling renewable integration and grid flexibility.

Australia Energy Efficient HVAC Systems Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia energy efficient HVAC systems market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia energy efficient HVAC systems market on the basis of product?
• What is the breakup of the Australia energy efficient HVAC systems market on the basis of application?
• What is the breakup of the Australia energy efficient HVAC systems market on the basis of region?
• What are the various stages in the value chain of the Australia energy efficient HVAC systems market? 
• What are the key driving factors and challenges in the Australia energy efficient HVAC systems market?
• What is the structure of the Australia energy efficient HVAC systems market and who are the key players?
• What is the degree of competition in the Australia energy efficient HVAC systems market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia energy efficient HVAC systems market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia energy efficient HVAC systems market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia energy efficient HVAC systems industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.