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.”