The Future of HVAC: Innovations Driving Efficiency and Sustainability
Huw Dodds, Director of Sales and Service at Armstrong Fluid Technology & RMI Pressure Systems, discusses the latest HVAC trends, focusing on smart technology, energy efficiency, and sustainability in an evolving market.
From the rise of smart technologies and energy-efficient solutions to the growing demand for sustainability and improved indoor air quality, the sector is undergoing significant transformation. Industry leaders are focusing on optimising system performance, reducing energy consumption, and addressing environmental concerns. This conversation delves into how these trends are influencing HVAC design, operation, and the future of building management, highlighting the ongoing evolution of the industry in response to both technological advancements and shifting market needs.
What are the most significant trends in HVAC solutions today, and how are they reshaping the industry?
With increasing digitalisation, we’ve seen the development of online HVAC calculators for faster and more accurate results. Digitalisation, alongside growing environmental concerns, led to the innovation of more energy-efficient HVAC systems today, including geothermal heat pumps and smart thermostats.
Pumps, a critical component for efficient HVAC systems, have experienced several transformations to reduce energy consumption. Smart or innovative pump technologies have allowed remote monitoring to self-diagnose and optimise system performance. The use of sensors has also allowed for predicting potential pump failures, allowing for proactive maintenance.
How are advancements in smart technology, such as IoT and AI, influencing the design and operation of HVAC systems?
Integrating IoT with smart HVAC systems enables real-time monitoring and automation, which supports energy optimisation. It empowers building managers to better monitor and control energy use, reducing waste and operational costs. AI-driven predictive maintenance can reduce maintenance costs by detecting issues before they escalate.
For example, using sensors has enabled the prediction of potential pump failures, allowing for proactive maintenance. Smart thermostats connected to Wi-Fi allow adjustments in temperature or changes in scheduled heating through smartphones. On a commercial level, innovations like smart or innovative pump technologies allow remote monitoring to self-diagnose and optimise system performance. IoT and AI are also helping HVAC solutions to drive more sustainable operations.

Energy efficiency is becoming a priority for building managers. How is the HVAC industry responding to the growing demand for more energy-efficient systems?
Advanced heat pumps, variable-speed compressors, and high-SEER-rated units are increasingly becoming essential for HVAC systems. Zoned HVAC systems and occupancy sensors can enhance efficiency by ensuring energy is only used where needed.
At Armstrong Fluid Technology, we focus on the design, engineering, and manufacturing of intelligent fluid-flow equipment. A key enabler for our customers is our patented Design Envelope Technology. This demand-based intelligent control solution that models equipment and system behaviour to monitor system conditions and dynamically adjust equipment operation to match the system’s demand. From 2007 to January 2022, we helped global customers save 2.5 billion kWh of electricity, saving them more than $300 million.
How is the integration of HVAC systems with Building Management Systems (BMS) evolving, and what benefits are being realised from this integration?
One of the biggest benefits of integrating a BMS with a smart HVAC system is the potential to improve energy efficiency and thus, resulting in financial savings. Another important advantage is automated HVAC adjustment based on occupancy and environmental conditions. BMS can analyse energy use and alter HVAC responses based on demand, peak hours, and indoor air quality, preventing unnecessary heating or cooling. As BMS technology continues to evolve, HVAC systems are expected to become even more self-optimising.
Advances in HVAC components support increased BMS integration as well. For example, pumps, which are critical for improved HVAC efficiency, have transformed over the years. Today, the industry offers pumps with variable speeds for integrated controls with building management systems (BMS) and to adjust speeds based on the system’s needs.
Sustainability is a major focus for the industry. What are the biggest challenges in developing HVAC systems that are both sustainable and high-performing?
One of the biggest challenges in developing HVAC systems that are sustainable and high performing is that they often require high upfront investments. As such, Armstrong strives to work more closely with our supply chain to continuously improve our technologies, while reducing the cost and environmental impact of our production processes. We have pledged to ensure our buildings operate at net-zero carbon by 2030 as part of the World Green Building Council’s Net Zero Carbon Buildings Commitment.
Another challenge is that highly efficient and sustainable HVAC systems need to be able to continuously adapt to fluctuating outdoor conditions, especially for cooling systems. With this regard, HVAC system component providers need to ensure the components have variable speeds that can adjust to the demand automatically.
With the increasing focus on health and wellness, how are HVAC systems being designed to improve indoor air quality, particularly in the wake of the COVID-19 pandemic?
Advanced filtration, air purification, and ventilation technologies help improve indoor air quality. High-efficiency particulate air (HEPA) filters are widely used, while UV-C light and bipolar ionisation technologies are being integrated into HVAC systems. Smart sensors monitor CO₂ levels, humidity, and airborne particles, allowing HVAC systems to adjust airflow automatically. Building managers can utilise demand-controlled ventilation that is matched to occupancy numbers.
How is artificial intelligence being used to optimise HVAC systems for better efficiency, predictive maintenance, and energy savings?
AI-powered algorithms can analyse past power consumption and predict cooling demands. On the other hand, AI-enabled tools can provide continuous analysis of sensor data, identifying optimal operating conditions to maintain that will enable operators to increase their power usage effectiveness (PUE).
AI can support predictive maintenance by analysing system performance and detecting any early signs of failure. It can identify component or system inefficiencies and alert maintenance teams before issues escalate. This can minimise downtime, extend equipment life, and reduce repair and maintenance costs.
What are some of the most exciting new technologies emerging in the HVAC industry, and how are they expected to impact system performance and operation?
AI-driven automation, advanced heat pump systems, and energy-efficient refrigerants are among some of the most exciting developments. Modern pumps can provide highly efficient heating and cooling with a lower environmental impact. Low-global-warming-potential (GWP) refrigerants, such as R-32 and R-454B, can reduce the carbon footprint of HVAC systems while maintaining performance.
As an industry leader in the HVAC industry, Armstrong will continue to improve on the incorporation of our Design Envelope technology, whether by advancing the motors used in our solutions or expanding the industries we support. As advanced HVAC systems have become a necessity, our expertise will continue to evolve and meet increasingly demanding HVAC needs.
One of our latest innovations is the Design Envelope Heat Exchanger. This is a leading solution that integrates a Design Envelope pump with a heat exchanger, resulting in reduced carbon footprint, reduced installation costs, reduced operational costs. At the same time, the solution helps to improve flow range for pumps and offers unmatched performance visibility.
Armstrong’s pumps have also been re-invented over the years to meet the increasing HVAC needs. Currently, our sixth generation of pumps uses a technology called ‘permanent magnet motors’, which utilise magnets to maintain their properties without need for an external power, while still offering more reliable and efficient performance. The advanced electronic controls used in the solution enables a significant reduction in carbon footprint.
As more cities aim to become “smart cities,” how are HVAC systems evolving to support the interconnected, data-driven environments of these urban areas?
Smart HVAC systems can often connect with energy grids to optimise performance. These systems support demand-response programmes, reducing peak energy loads and enhancing grid stability. Additionally, HVAC systems in smart buildings leverage predictive analytics and automation to improve energy efficiency, lower carbon emissions, and enhance indoor air quality.
Specifically, HVAC pumps are no longer seen as just mechanical components. They are becoming more intelligent to be fully integrated into smart city ecosystems. In fact, the use of digital twin technology has been helpful to simulate various operating conditions including pump performance, to optimise energy efficiency before deployment. To support this shift to smart cities, Armstrong has installed smart systems in buildings globally, including solutions that cover three main areas:
- Building automation services (e.g. hot and cold water and accompanying solutions controlled by a centralised operating system)
- Data integration for optimised building operations (e.g. intelligent control systems with data integrated from suppliers, networks, and experiences)
- Building maintenance (e.g. solutions that can forecast possible problems or incidents)
What role does HVAC play in the construction of green buildings, and how are regulations like LEED or WELL influencing HVAC design and performance?
Regulations like LEED (Leadership in Energy and Environmental Design) and the WELL Building Standard set strict energy consumption, ventilation, filtration, and thermal comfort requirements. These have a considerable influence on HVAC design and performance. This means that HVAC systems must include elements such as high-efficiency heat pumps, energy recovery ventilation, smart temperature controls, and low-GWP refrigerants.
How are data analytics and real-time monitoring improving HVAC system management, and how is this trend expected to evolve in the next five years?
Data analytics and real-time monitoring can help facility managers to detect inefficiencies, predict system changes, and optimise operations. They can help reduce energy use and operational costs. We expect to see greater AI integration into systems in the next five years. This will enable HVAC systems to self-adjust with even more accuracy. Predictive maintenance is expected to become more precise. Increasing integration with smart grids and renewable energy sources is another trend we anticipate.
How are HVAC solutions being adapted to meet the specific needs of emerging markets, especially regarding affordability, energy efficiency, and climate conditions?
The focus of emerging markets is on affordability, efficiency, and climate resilience. HVAC systems must be able to withstand extreme temperatures and humidity. This means designs must incorporate corrosion-resistant materials, enhanced filtration, and modular components for easier maintenance. In emerging markets, there is an increased adoption of off-grid and hybrid HVAC systems, ensuring sustainable and accessible climate control solutions. Aside from markets, HVAC solutions also need to be adapted to meet the needs of energy-intensive industries that require smarter cooling systems for affordability, energy efficiency, and resistance against challenging climate conditions.
What are the unique challenges and opportunities faced in the Asia Pacific HVAC market compared to other global regions?
The HVAC market in APAC is expanding rapidly. According to 2025 research from Technavio, the global industrial HVAC market is predicted to grow by US$6.81 billion (S$9.187 billion) from 2025 to 2029. APAC will contribute approximately 41 percent of this international growth.
The growth can be attributed to factors such as population growth, industrial expansion, and increasing per capita income. This rapid urbanisation is causing a surge in demand for HVAC systems. As a result, countries in the region with an established HVAC industry, such as South Korea and Japan, are setting up more manufacturing facilities across Southeast Asia to cater to the accelerating demand for HVAC systems.
On the other hand, the region faces unique challenges due to its location. Traditional cooling methods like free cooling are insufficient because of the region’s tropical climate. High temperatures and humidity require more advanced cooling methods, such as liquid cooling – a common technique used to manage excessive heat in buildings such as data centres. The region is also prone to natural disasters. In 2024, the region experienced record-breaking heatwaves, with temperatures exceeding 40°C for several days, necessitating more innovative cooling systems.
According to research by Blue Weave Consulting, the Australian HVAC market is set to reach US$1.56 billion (S$2.104 billion) by 2029. However, the transition from conventional industrial practices to modern manufacturing processes has revealed that there is a lack of temperature control systems in industries, which is especially pivotal during climate fluctuations in Australia – fuelling the demand for more efficient HVAC systems.
What trends are you seeing in terms of the adoption of smart HVAC technologies in the Asia Pacific region?
In APAC, there is a growing need for more energy-efficient and sustainable cooling solutions. Governments are implementing stricter regulation, which has driven the requirement for solutions that minimise environmental impact, such as demand-based, intelligent HVAC systems. For instance, Australia’s National Construction Code (NCC) includes provisions for energy efficiency in buildings, including industrial facilities. To demonstrate our support of Australia’s National Energy Performance Strategy, we introduced our expanded range of Design Envelope Permanent Magnet (DEPM) pumps to the Australian market in 2024.
Our extended range of DEPM pumps, with motors up to 45kW, are engineered to deliver a 35-65 percent reduction in energy consumption compared to conventional integrated pumps with induction motors. This translates into 50 percent embodied carbon reduction for end users. Design Envelope pumps provide better flow measurement accuracy (+/-5 percent) than most flow meters.
How can building management companies balance the need for sustainability with the practical business requirements of maintaining tenant satisfaction and operational efficiency?
Building management companies must keep up with the latest regulations, while considering the technology deployed in their building management systems and the modern solutions that are available today. These include innovative HVAC solutions that utilise more advanced filtration and improved ventilation. They should also consider integrating their management system with eco-friendly refrigerants, and intelligent controls. These can enable real-time monitoring and increased efficiency.
How have tenant expectations regarding comfort and sustainability changed in recent years, and how are these expectations shaping the HVAC industry?
In recent years, tenant have had higher expectations to balance both building comfort and sustainability, looking for HVAC systems that offer better productivity and efficiency. One way to manage these expectations are to reduce performance drift – a common issue that causes energy waste and an increase in greenhouse gas emissions – with more transparent and actionable insights from their HVAC systems.

About Huw Dodds
Huw holds a degree in air conditioning and certificates in refrigeration and air conditioning mechanics and marine engineering. He has more than 23 years of professional experience in the air conditioning and refrigeration industry, with experience in service, installation, application engineering, and account and sales management. Some of his previous positions include sales manager and application engineer at Emerson Commercial & Residential Solutions as well as maintenance support at Hastie Refrigeration. Based in Australia, Huw is the Director for Sales and Service for Armstrong Fluid Technology and RMI Pressure Systems. He is responsible for developing and delivering a strategic growth plan for Armstrong’s branded commercial/industrial HVAC product offerings and RMI’s branded Australian business.