The main driver for the growth of the HVAC services market is from the construction businesses in major developing economies. Depending on the project, the HVAC market can be categorized into commercial, industrial, and residential. Since this industry relies extensively on labor for the operations, there is a restraint on the growth of the market because of the increased labor demand of HVAC technicians. Read more for HVAC market statistics that will affect your construction projects.
HVAC technicians are trained to install, repair, and replace all forms of HVAC systems. HVAC is short for heating, ventilation, and air conditioning. Sometimes, this trade also includes refrigeration systems, and the acronym incorporates HVAC/R. While many tend to overlook HVAC, it can be one of the largest consumers of energy in a facility. This industry is closely related to the construction industry, and the federal and state regulations drive it.
-Key Market Trends
HVAC Market Size Breakdown by Segment
HVAC Market Statistics Overview
According to Mordor Intelligence, in 2019, the HVAC Services Market was valued at 54.74 Billion USD and is predicted to reach 78.10 billion USD by 2025 with a 6.1% CAGR (compound annual growth rate) in the forecast period of 2020-2025. There is an increase in this specific trade across the world because of the rising temperature and growing disposable income.
Both the International Monetary fund and the World Bank are predicting that there will be a strong continuous economic growth. Ultimately, it positively impacts the construction sector. With the increasing sales of HVAC equipment, the HVAC services market is expected to benefit because of the new construction projects. According to Oxford Economies, it is predicted to expand by 85% (construction output).
Key Market Trends
The residential segment is predicted for significant growth. Especially in the residential sector, there is a need for new installations. The demand in developing regions is necessary for maintenance and replacement services.
In terms, geographically, Asia-Pacific is the largest segment in the HVAC market when reviewing revenue in the period of 2014- 2019. More specifically, China (CAGR 4.8%), with a market size of $ 96.4 billion. Second, is the United States (CAGR 2.7%) with a market size of $53.8 billion. The growth of the market is related to the increase of energy-efficient appliances that are currently trending. These systems consume less energy, which ultimately reduces the burning of fossil fuels. Governments in different countries are trying to implement energy-efficient systems.
Global warming has also been a factor for the increase in the adoption of the need for HVAC installations. Due to the continuous rise in the planet’s temperature from global warming, it has been a key drier in the HVAC market. The IEA, International Energy Agency has estimated in a report that the global energy demand is expected to triple by 2050. In addition, the global stock of air conditioner units in buildings would grow to 5.6 billion by the same year. This growth requires new electricity capacity in the US, Japan, and the EU.
On another note, many buildings in HVAC operations services are having troublesome areas with different temperatures and time requirements. An ongoing solution that businesses are implementing is to “zone” your structure’s individual areas by installing separate temperature and time controls. Zoned areas can provide occupants more significant control over their environments, which improves their conditions.
The manufacturing sector offers opportunities for productive players. This can lead to new production plants and the expansion of already existing ones; thus, higher HVAC system operation rates.
United States Major share in HVAC Market
With ongoing and growing government support, budget allocations and other factors contribute to the high growth in the residential construction sector. Governmental support aims to increase homeownership, increase affordable housing, and sustainable community development. Other factors that support the growth of the HVAC industry are:
According to the Residential Energy Consumption Survey (RECS) from the US Energy Information Administration (EIA), their survey collected the following:
-64% (76 million) primary occupied homes use central air-conditioning machinery
-11% (13 million) homes use heat pumps for cooling or heating
-by 2023, all US newly sold residential central air-conditioning and air-source/heat pump systems will have to meet new energy efficiency standards
Partly related to global warming, the growing use of air conditioners in homes and offices around the US will be a big contributor to the top drivers for the need off HVAC services in the region. In the US specifically, more than 90& of households have air conditioning devices or equipment. In comparison, 8% of the 2.8 billion people living in the hottest regions of the world have air conditioning equipment.
More commonly, in this innovative age, there are HVAC service technologies that strengthen their product capabilities. An example of a device that has helped the HVAC services is Amazon’s Alexa with voice commanding thermostat sensing and controlling. These HVAC market statistics can help your business gain a competitive advantage over other companies. Additionally, some services include the accessibility from your mobile device; you can change the temperature with the tap of ur phone, from anywhere with WiFi.
There are several major players in the HVAC and AC market with global, regional, and local players. The major players that hold prominent shares in the market are centering their focus on expanding their customer base across foreign countries. With heavy investments in R&D, these global plays are developing inventive and innovative products to improve their product portfolio.
In terms of competitiveness in the HVAC market, vendors compete with these factors: brand, product features, geographical location, product portfolio, power consumption, and overall production efficiency.
According to competitive HVAC market statistics, some global companies are strategizing new products, promotional activities, marketing, and investing in joining ventures and dual-brand strategies to capture the market. This strategic initiative is to increase companies’ overall profitability and market share.
Major Market Players
Recently, HVAC market players are launching new and advancing products to get ahead of their competitors. Air purifiers have risen in popularity; Blue Star, in India, launched a new room air conditioner unit combined with an air purifier. Most recently, in February 2020, Annexair introduced a new ventilation product composed of recycled plastic bottles. Annexair’s product is beneficial to reduce greenhouse gas effects up to 85%, as well as weigh 60% lighter than a steel machine.