Turn up the heat: The growing popularity of energy-efficient systems will boost industry demand

The Heating and Air-Conditioning Contractors industry is heavily influenced by activity in the construction market, with the majority of income generated from heating, ventilation and air-conditioning (HVAC) installations in new residential and nonresidential structures. Over the past five years, the rebound of the housing market, along with an increase in economic activity, caused new construction to start picking up in 2011. Nonresidential building construction activity also increased as consumer spending and corporate profit caused an expansion in the business sector...purchase to read more.

Industry Statistics & Market Size
Revenue
$87bn
Annual Growth 12-17
2.6%
Forecast Growth 17-22
Profit
Employment
474,542
Businesses
109,459
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As more homes and commercial structures are built, demand for industry contractors will rise
  • Government incentives encouraging HVAC systems upgrades boosted revenue
  • Improving demand is expected to encourage new operators to enter the industry
  • Industry Report - Industry Locations Chapter

    The geographic distribution of establishments in the Heating and Air-Conditioning Contractors industry generally corresponds with the distribution of population and economic activity, reflecting the small-scale and localized nature of most industry contractors. The distribution of heating and air conditioning servicers is also influenced by the home or building’s location. New houses built in the warmer southern states (e.g. Florida and Alabama) are more likely to be fitted with air conditioning than those built in the cooler northern states. Similarly, central heating systems are much more important in northern states or areas prone to low temperatures and harsh winters. However, unlike air conditioning, most homes have some sort of central heating system regardless of local climate...purchase to read more.

    Additional Insights for the Heating & Air-Conditioning Contractors Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heating & Air-Conditioning Contractors Industry are

  • Having a good reputation
  • Management of seasonal production
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of private nonresidential construction in the Heating & Air-Conditioning Contractors industry impact industry performance..

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    What's in this report

    What is the Heating & Air-Conditioning Contractors Industry?

    This industry comprises companies that primarily install and service heating, ventilation, air-conditioning (HVAC) and refrigeration equipment. Operators perform tasks that include new installations, additions, alterations, maintenance and repairs. Plumbing and related activities are not included in this report (IBISWorld report 23822b).

    Industry Products
  • New construction HVAC installations
  • Existing structure HVAC installations (i.e. replacements)
  • HVAC maintenance and repairs
  • Refrigeration system installations, maintenance and repairs
  • Industry Activities
  • Air conditioning system installation (except window units)
  • Air vent installation
  • Furnace conversions (i.e. from one fuel to another)
  • Refrigeration system (e.g. commercial, industrial or scientific) installation
  • Heating, ventilation and air conditioning (HVAC) contractors
  • Furnace humidifier installation
  • Natural gas fireplace installation
  • Duct work (e.g. cooling, dust collection, exhaust, heating and ventilation) installation
  • Ventilation equipment installation
  • Heating and ventilation system component (e.g. air registers, diffusers, and filters) installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of private nonresidential construction
  • Per capita disposable income
  • Private spending on home improvements

  • Current Performance
  • Strong downstream demand
  • Effective incentives
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry landscape
  • New standard practices
  • Table: Heating & Air-Conditioning Contractors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heating & Air-Conditioning Contractors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Refrigerated Storage
  • Property Management
  • Commercial Building Construction
  • Municipal Building Construction
  • Consumers

  • Key Selling Industries
  • Electricians
  • Heating & Air Conditioning Wholesaling
  • Refrigeration Equipment Wholesaling

  • Products & Services
  • New construction HVAC installations
  • HVAC maintenance and repairs
  • Existing structure HVAC installations (i.e. replacements)
  • Refrigeration system installations, maintenance and repairs
  • Chart: Heating & Air-Conditioning Contractors Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Single-family homes
  • Manufacturing and industrial buildings
  • Other
  • Office buildings
  • Retail and storage spaces
  • Healthcare and public safety buildings
  • Educational buildings
  • Apartment buildings, dormitories and barracks
  • Chart: Major Market Segmentation for the Heating & Air-Conditioning Contractors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Heating & Air-Conditioning Contractors

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating & Air-Conditioning Contractors Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Heating & Air-Conditioning Contractors Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heating & Air-Conditioning Contractors Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Green
  • A category that includes goods, services, laws, guidelines and policies that have little to no impact on the natural environment (also referred to as eco-friendly or environmentally friendly).
  • Heating, Ventilation And Air-Conditioning (Hvac)
  • A system used to control the temperature, humidity and air quality in buildings.
  • Leadership In Energy And Environmental Design (Lee
  • An environmental building certificate program that was established under the US Green Building Council and certifies buildings that meet energy-efficiency and green requirements.
  • Nonemployer
  • An establishment without payroll employees, typically a sole proprietorship or partnership.
  • Refrigeration
  • A system used to store perishable items, such as food, medicine and chemicals.
  • Seasonal Energy Efficiency Ratio (Seer)
  • Rating system that measures efficiency of HVAC systems. Calculated by dividing cooling output for a typical system by total electric energy input for a given period. Higher ratings best.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Heating & Air-Conditioning Contractors provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heating & Air-Conditioning Contractors:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heating & Air-Conditioning Contractors market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heating & Air-Conditioning Contractors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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