BOULDER, CO—The market for advanced controls devices for heating, ventilation, and air conditioning is expected to generate $11.7 billion in revenue by 2023, according to Navigant Research.

Heating, ventilation, and air conditioning (HVAC) in commercial buildings typically accounts for roughly 40% of total building energy consumption. While advancements have been made in the efficiency of HVAC equipment, the actual energy consumption of HVAC equipment depends largely on their operation – which can be made much more efficient and less energy-intensive through the application of advanced HVAC controls. According to a recent report from Navigant Research, worldwide revenue from advanced HVAC controls is expected to grow from $7 billion annually in 2014 to $11.7 billion in 2023.

“Although advanced controls technology for HVAC systems has been available for some time, adoption remains relatively low,” says Benjamin Freas, research analyst with Navigant Research. “The drive to reduce energy use in commercial buildings has put a spotlight on improving the efficiency of HVAC systems, and HVAC controls retrofits offer a compelling value proposition through reduced energy consumption in existing buildings.”

No standard definition of advanced HVAC controls currently exists, and the sophistication of controls varies with equipment type, application, and geography. New building certification and benchmarking regulations are driving faster retrofits of controls in existing buildings, according to the report, and changing how automation is designed into new buildings. The wider adoption of open standards for controls functions (such as BACnet), and of communications based on the Internet Protocol (IP) suite and Ethernet connectivity, is expected to help bring advanced HVAC technology to a wider market.

The report Advanced HVAC Controls, analyzes the global market for remote advanced HVAC controls, segmented by equipment type, sensors, field devices, floor-level controllers, building-level controllers, as well as building use, office, retail, education, healthcare, hotels & restaurants, institutional/assembly, warehouse, transport, in each major world region. The report provides an analysis of the market issues, including technology advances, opportunities, and barriers, associated with advanced HVAC controls. Global market forecasts for unit shipments and revenue, segmented by device type and by region, extend through 2023. An executive summary of the report is available for free download on the Navigant Research website.

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors.