# HVAC Industry

Explore how virtual twins and the **3D**EXPERIENCE® platform enable commercial HVAC manufacturers to achieve sustainable, high-performing systems at scale.

(IE) Designing and Manufacturing Smarter, More Efficient HVAC Systems

**Heating, ventilation and air conditioning (HVAC) systems** are the backbone of modern buildings, delivering comfort, clean air and safety year-round. Yet, according to the European Environment Agency, [heating and cooling account for about 50% of total final energy use](https://www.eea.europa.eu/en/analysis/publications/decarbonising-heating-and-cooling) in the EU — a cost that is no longer sustainable.

For **HVAC original equipment manufacturers (OEMs)**, this unsustainable consumption pattern has become a defining business challenge. Regulatory pressure, rising energy costs and growing demand for smarter, service-ready systems are converging to reshape the market. The mandate is clear: Design faster, comply without compromise and deliver lifecycle value that protects margins.

Today, **digital innovation** is the response that sets leaders apart. In a market racing to [decarbonize building operations](/sustainability/decarbonization/decarbonizing-industry-operations/decarbonize-building-operations-hvac-systems "Decarbonize Building Operations With an Optimized HVAC System") while achieving smart performance, **HVAC manufacturers** must embrace it — or risk being left behind by more agile competitors.

(IE) Key Challenges in the HVAC Industry

(IE) Rapid Urbanization

(IE) Rapid Urbanization

Cities are growing fast, especially in Asia and Africa. More people living in denser environments means huge demand for **HVAC systems** in residential towers, commercial complexes and data centers. Urban growth pressures manufacturers to deliver scalable, modular and space-efficient solutions.

[(IE) Rapid urbanization Highlight Banner](/media/22483)

(IE) Regulatory Demands

(IE) Efficiency and Regulatory Demands

Heat waves, colder winters and increased humidity have become the norm. Climate change is driving both the urgency for more **resilient, adaptable HVAC systems** designed for extreme temperature ranges and the tightening of rules worldwide. Manufacturers who can simulate and design for future climate scenarios will gain an edge.

From refrigerant phase-outs and stricter carbon-neutral building codes to certifications like Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM), compliance has become a moving target. Whether it’s ASHRAE 90.1 in the U.S., the Energy Performance of Buildings Directive in the EU or refrigerant restrictions under the Kigali Amendment, the rules demand **HVAC systems** that deliver measurable reductions in energy use. For manufacturers, this translates into constant redesigns, more simulation and testing, and higher upfront investment — all while customers expect faster delivery at lower costs.

[(IE) Efficiency and regulatory demands Highlight Banner](/media/22484)

(IE) Labor Shortage

(IE) Skilled Labor Shortage

The industry is facing a talent gap that affects both engineering and service. As seasoned professionals retire, fewer young engineers and **HVAC technicians** are entering the HVAC field. This **labor shortage** slows everything from new product development to field service response times, making it harder to integrate emerging technologies like **Internet of Things (IoT)**-enabled sensors, digital controls and predictive maintenance platforms. For manufacturers, it’s a scalability problem. Without digital tools to fill the gap, talent shortages risk slowing growth, delaying launches and weakening customer satisfaction.

[(IE) Skilled labor shortage Highlight Banner](/media/22485)

(IE) Supply Chain Volatility

(IE) Supply Chain Volatility

**HVAC systems** rely on two distinct but interdependent supply chains. The first is the manufacturing supply chain, where disruptions in compressors, electronic controls, refrigerants, sheet metal or semiconductors can delay production. The second — and often more critical — is the installation supply chain, which involves contractors, technicians and on-site coordination. Even when equipment is ready, project timelines can stall if skilled labor, components or logistics for installation are not aligned.

For manufacturers, success means managing both. Digital continuity provides visibility across partners and timelines, helping anticipate risks, balance resources and keep projects on track from the factory floor to final commissioning.

[(IE) Supply chain volatility Highlight Banner](/media/22486)

(IE) Shifting Expectations

(IE) Customer Expectations and Service Models

There’s a shift from selling hardware to providing “comfort as a service.” Manufacturers are increasingly expected to offer lifecycle services, warranties and subscription models. That changes not only product design but also business models and revenue streams. At the same time, customers now want HVAC to be part of a broader “smart building” ecosystem. IoT-enabled sensors, remote monitoring, predictive maintenance and digital twins are becoming standard. The trend is toward intelligent, self-optimizing systems that reduce downtime and energy costs.

[(IE) Customer expectations and service models Highlight banner](/media/22487)

(IE) HVAC Industry Statistics: Why Change Can’t Wait

Paired with the realities of a warming planet, soaring demands and stricter regulations, these challenges become powerful drivers for change across the **HVAC industry**. The following numbers speak for themselves.

(IE) 50%

of Europe’s energy consumption is for heating and cooling, most of it from buildings

(IE) 50–60%

[increase in AC sales in South Korea](https://www.reuters.com/sustainability/climate-energy/hot-south-korean-summer-drives-surge-aircon-sales-power-demand-2025-08-07/) this summer, driven by extreme heatwaves

(IE) 46°C

[peak temperatures in ](https://www.chinadaily.com.cn/a/202507/14/WS6874c4b7a31000e9a573bebc.html)[Spain ](https://www.chinadaily.com.cn/a/202507/14/WS6874c4b7a31000e9a573bebc.html)during mid-2025 heatwaves triggered unprecedented AC demand in Europe

(IE) 1,000+

[French schools were partially or fully closed](https://www.wsj.com/world/europe/europe-air-condition-heat-waves-politics-24aceab4) during the summer 2025 heatwave

(IE) 7%

[of global greenhouse gas emissions](https://www.unep.org/news-and-stories/story/air-conditioners-fuel-climate-crisis-can-nature-help) come from air conditioning, with usage expected to triple by 2050

(IE) 40–70%

[energy savings achieved](https://www.sciencedirect.com/science/article/pii/S0378778823001123) through IoT-based HVAC monitoring and real-time control

Together, these numbers tell a clear story: The climate crisis is accelerating, and **HVAC systems** must evolve just as fast. For **HVAC manufacturers**, the time to rethink design, manufacturing and service models is now.

(IE) Transforming Industrial HVAC Systems With Virtual Twins

Too often, HVAC is treated as an afterthought, leading to inefficiencies, compliance risks and costly redesigns. A more forward-looking approach is to integrate **HVAC planning** seamlessly into the entire building lifecycle. By leveraging digital technologies such as virtual twins and a unified platform like Dassault Systèmes’ **3D**EXPERIENCE platform, manufacturers and stakeholders can collaborate earlier, design smarter and ensure resilient, sustainable outcomes from the start.

(IE) Virtual twin experience

**How it works:** Replicates the entire HVAC system digitally to design, simulate and validate performance

**Impact:** Enables earlier optimization, reduces redesigns and accelerates compliance with evolving standards

(IE) The 3DEXPERIENCE platform

**How it works:** Connects design, engineering, production and after-sales in one unified digital ecosystem

**Impact:** Ensures end-to-end continuity, eliminates silos and drives efficiency across the entire product lifecycle

Virtual twins put manufacturers in control. By creating a virtual representation of **HVAC systems**, they can design, simulate and validate performance before production. Heating, cooling, air quality and energy use are optimized upfront, ensuring compliance and reducing redesign costs. For high-demand environments such as hospitals, data centers or clean rooms, virtual testing also enables rapid customization and safe modeling of emergency scenarios.

The **3D**EXPERIENCE platform delivers lifecycle continuity. It connects every stage — from product concept and engineering to manufacturing, installation and service — in one unified digital ecosystem. This gives manufacturers the ability to collaborate seamlessly, integrate IoT data for predictive maintenance and accelerate innovation. Sustainability is embedded through lifecycle assessment and traceability, helping meet net-zero regulations and strengthening competitiveness.

With digital continuity and virtual twins, **HVAC manufacturers** can transform how they design, build and support systems — operating smarter, scaling faster and delivering greater value to customers.

(IE) Key Benefits of Virtual Twins for HVAC Systems

(IE) Optimize across scales and physics

 ![](https://www.3ds.com/assets/invest/2025-10/ie-optimize-across-scales-and-physics-circle-list-128x128.webp)

(IE) Accelerate simulation at scale

 ![](https://www.3ds.com/assets/invest/2025-10/ie-accelerate-simulation-at-scale-circle-list-128x128.webp)

(IE) Reduce development costs

 ![](https://www.3ds.com/assets/invest/2025-10/ie-reduce-development-costs-circle-list-128x128.webp)

(IE) Simulate components directly in CAD

 ![](https://www.3ds.com/assets/invest/2025-10/ie-simulate-components-directly-in-cad-circle-list-128x128.webp)

(IE) Predict performance in real-world conditions

 ![](https://www.3ds.com/assets/invest/2025-10/ie-predict-performance-in-real-world-conditions-circle-list-128x128.webp)

(IE) Foster collaboration across roles

 ![](https://www.3ds.com/assets/invest/2025-10/ie-foster-collaboration-across-roles-circle-list-128x128.webp)

(IE) Bridge designers and simulation experts

 ![](https://www.3ds.com/assets/invest/2025-10/ie-bridge-designers-simulation-experts-circle-list-128x128.webp)

(IE) Engineer for quieter HVAC systems

 ![](https://www.3ds.com/assets/invest/2025-10/ie-engineer-for-quieter-hvac-systems-circle-list-128x128.webp)

(IE) Engineering Smarter HVAC Systems Through Simulation

Ready to optimize for next-generation commercial HVAC? Join our expert to explore how virtual twins are reshaping the industry — driving energy efficiency, improving indoor air quality and enabling smarter, connected systems. Discover how a unified platform approach ensures optimal performance and long-term sustainability.

[(IE) Engineering Smarter HVAC Systems Through Simulation Hero Banner](/media/22482)

[   Watch now     ](https://events.3ds.com/hvac-systems-for-building-equipment)

Webinar

(IE) Sustainability in HVAC Manufacturing

Delivering **HVAC systems** with a lower carbon footprint — and ultimately achieving net-zero **HVAC systems** — requires more than incremental improvements. It rests on a three-part foundation:

(IE) Advanced technology

Simulation, virtual twins and connected platforms transform regulations and incentives into executable engineering practices.

(IE) Regulations

Stricter building codes, HFC phase-outs and green certifications define compliance baselines and set ambitious climate targets.

(IE) Business incentives

Reduced energy costs, improved lifecycle efficiency and higher market value turn sustainability into a measurable ROI opportunity.

Net-zero HVAC cannot be achieved by regulation or good intentions alone. OEMs must adopt tools that allow them to model, predict and optimize **HVAC performance** well before systems are built or installed. This is where our virtual twin technology and the **3D**EXPERIENCE platform bridge the gap — turning sustainability from an aspiration into a repeatable, scalable execution strategy.

(IE) How Can We Reduce the Environmental Impacts of Buildings?

[   /media/22493     ](/media/22493)

 By leveraging newer technologies and adaptive building designs, recent studies estimate that cooling and heating energy consumption intensity could decrease by 23% and 75% respectively.

Charles Luzzato

SIMULIA Global Industrial Equipment Industry Process Director, Dassault Systèmes

 ![Charles Luzzato > Dassault Systèmes](https://www.3ds.com/assets/invest/2022-06/sao13-decarbonization-hvac-charles-luzzato-80x80.jpg)

(IE) High-Performance HVAC Starts With Digital Innovation

**HVAC engineering** is no longer just about regulating temperature or ensuring comfort. It has become a cornerstone of climate resilience, regulatory compliance and long-term profitability. HVAC manufacturers that **embrace digital innovation, unified digital platforms and sustainability** are positioning themselves as leaders in this transformation. By leveraging tools like simulation and virtual twin technologies, manufacturers can model performance, anticipate inefficiencies and design smarter systems before a single unit is built.

What comes next is already taking shape: Those who adopt a **platform-driven approach** will not only accelerate sustainability but also set the standard for high-performance, future-ready **HVAC systems**.

(IE) Ready to Deep Dive Further Into the Building Equipment Sector?

(IE) Elevator and escalator manufacturers

From virtual design to real-world performance, this is how top manufacturers reinvent elevators and escalators to be safer and smarter.

[(IE) Elevator and Escalator Manufacturers Highlight Banner](/media/22431)

[   Explore now     ](/industries/industrial-equipment/building-equipment/elevator-escalator)

(IE) Building equipment

Reimagining elevators, escalators and HVAC systems starts in the virtual world. Here’s how the **3D**EXPERIENCE® platform brings this vision to life.

[(IE) Building Equipment Highlight Banner](/media/22432)

[   Explore now     ](/industries/industrial-equipment/building-equipment)

(IE) Elevator maintenance and modernization

Turn maintenance into a growth engine with virtual twins that enable smarter decisions, optimized uptime, and new business models.

[(IE) Elevator Maintenance and Modernization Highlight Banner](/media/22556)

[   Explore now     ](/industries/industrial-equipment/building-equipment/elevator-maintenance-modernization)

(IE) Heating, Ventilation and Air Conditioning Systems Explained

What is virtual twin technology, and how does it benefit smart HVAC design?

Virtual twin technology creates a dynamic, data-rich replica of HVAC systems, enabling companies to simulate performance, airflow, and energy consumption before physical production. So instead of discovering flaws late in the field, manufacturers can see how airflow behaves under extreme heat, how **energy efficiency** holds up over time and how future retrofits will impact performance. For **HVAC companies**, this leads to hefty **cost savings**, easier design iterations and compliance with stringent energy standards. In other words, virtual twins move risk out of the physical world and into the digital, where problems are cheaper, faster and safer to solve.

Is the adoption of simulation technology within the HVAC industry growing?

Yes, but what’s more interesting is why. Manufacturers aren’t adopting these tools just to stay compliant; they’re realizing that without them, it’s almost impossible to manage the complexity of modern projects. When design, manufacturing and service remain fragmented, every delay compounds across the lifecycle.

**HVAC companies** that embed simulation and virtual twins into a unified platform flip that equation. Every improvement compounds instead, accelerating both innovation and profitability. This trend reflects a shift from siloed engineering tools toward end-to-end integration, positioning manufacturers to deliver smarter, more adaptive **HVAC solutions**.

What is an integrated HVAC system, and how can it transform business outcomes for manufacturers?

An integrated **HVAC system** connects every lifecycle stage from concept, simulation, manufacturing and service within one digital thread. Instead of fragmented workflows, manufacturers gain a single source of truth that links product engineering to real-world operations. This enables cross-disciplinary collaboration, faster innovation cycles and the ability to virtually validate performance across thousands of environmental scenarios before deployment. It turns HVAC from a product-driven business into a data-driven, value-creating ecosystem.

What does HVAC stand for in the era of connected engineering and digital systems?

Of course, HVAC still means **heating, ventilation and air conditioning**. But for today’s OEM leaders, it also represents a system of systems — one that brings together controls, IoT data and **lifecycle insights** into a single connected flow. What used to be seen as “equipment” is now a strategic lever: A **digitally integrated HVAC design** can directly impact building sustainability scores, service profitability and brand differentiation — not just a mechanical function.

## (IE) Explore Our Solutions for the HVAC Industry

One unique solution to engineer, produce and service fast anywhere.

 ![HVAC Industry > Dassault Systèmes®](https://www.3ds.com/assets/invest/2025-10/ie-hvac-industry-hero-banner-1920x856.webp)

[(IE) HVAC Industry Hero Banner](/media/22481)

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