International. The HVAC market has seen remarkable growth, driving an increase in mergers, acquisitions (M&A), and investments in key technologies.
The boom is due to the increasing use of liquid cooling technologies and the adoption of advanced refrigerants, which have improved energy efficiency and sustainability, especially in industrial applications and data centers.
This dynamism is part of a context in which the energy sector in the US is transformed with the incorporation of artificial intelligence (AI), which has significantly increased the energy demand of data centers. According to a report by the Department of Energy, the electricity consumption of these centers is expected to almost triple in the next three years, reaching up to 12% of the national total.
"Investment in AI and emerging technologies has grown incredibly in the U.S. over the past 15 years, putting unprecedented pressure on energy supplies. We can meet this growth with clean energy," said Jennifer M. Granholm, former U.S. Secretary of Energy.
Liquid cooling has gained prominence as a critical solution for managing heat in high-performance computing environments, such as data centers, enabling a new wave of innovation and acquisitions in the HVAC sector.
In 2024, 132 M&A transactions were registered in the HVAC sector, an increase of 31.8% compared to 2023, defying the overall market trend. In the first months of 2025, activity has stabilized with 16 operations announced or closed, a figure that is 14.3% higher than the volume recorded in the same period of 2023. Private buyers have led the market since 2021, accounting for 50% of transactions to date, by taking advantage of opportunities to invest in synergies and geographic expansion.
Among the notable moves is the purchase of Fujitsu General by Paloma Rheem Holdings for $1.8 billion, as well as the acquisition of Johnson Controls-Hitachi's global HVAC solutions division by Robert Bosch, in a transaction valued at $4.6 billion. Bosch forecasts that the global HVAC market will grow by 40% by 2030, driven by technological advancements and new regulations.
Meanwhile, public buyers have taken a more cautious stance in the face of market volatility, scaling back their M&A deals. Companies such as Carrier Global have noted in their annual reports that integrating acquisitions could create challenges, while others, such as Trane Technologies, warn of increased competition in key markets. Carrier has chosen to prioritize organic growth and increase dividends for shareholders.
As for mutual funds, they showed strength in 2024, with a year-on-year growth of 32.1%. Although the start of 2025 has been slower, a rebound is expected thanks to the platforms established the previous year. Private equity firms have focused their interest on companies with scalability potential and a presence in niche markets, particularly those related to data centers, a fast-growing segment.
This momentum is also reflected in the construction of data centers, a key indicator for the future of the HVAC sector. According to Precedence Research, the global data center construction market reached $240.7 billion in 2024 and could double by 2034. North America leads this segment with 42% of revenue. These facilities require high-efficiency cooling solutions, such as liquid cooling, which reduces energy consumption and improves operation.
In this context, Schneider Electric announced the purchase of 75% of Motivair, a company specializing in advanced liquid cooling technologies, for $1.1 billion. Data center expansion, such as megaprojects in Virginia and TikTok's commitment to invest $8.8 billion in new facilities in Thailand, reinforce the prospect of sustained growth in the HVAC sector.
For their part, private equity firms continue to consolidate their platforms. In December 2024, Vance Street Capital acquired Fumex, a manufacturer of industrial filtration systems, with a view to expanding its product portfolio and exploring new M&A opportunities. In the same month, AirX Climate Solutions, backed by Gryphon Investors, purchased Powrmatic, a manufacturer specializing in heating and cooling systems for commercial and industrial applications.
Another notable transaction was the sale of Air Innovations to Altus Capital Partners. The company, which manufactures environmental control units for critical applications, thus strengthens its position in sectors such as hospitals, semiconductors and wine storage, with high-performance customized solutions.
The crossover between regulatory pressure on sustainability and the rapid expansion of data centers is driving innovation and consolidation in the HVAC industry. Companies that develop advanced cooling technologies and meet more stringent energy efficiency standards will be the most attractive for future acquisitions and will be able to deliver strong, sustainable returns.
