Picking up steam: Higher disposable income, corporate profit and industrial output have increased demand

The Steam and Air-Conditioning Supply industry, which comprises businesses that supply district energy for heating and cooling, has grown in line with recovering construction activity and renewed demand from residential and commercial customers. Higher disposable income, corporate profit and industrial output have resulted in greater demand for air conditioning and heating, particularly in urban areas; additionally, a combination of municipal, state and federal policies calling for greater energy efficiency and greenhouse gas reduction have benefited industry operators over the past five years. Industry performance will continue to depend on investment in utilities and aggregate construction levels over the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
2.2%
Forecast Growth 17-22
Profit
Employment
1,929
Businesses
107
Market Share of Companies

Industry Threats & Opportunities

  • An increasing number of operators have begun implementing CHP plants to generate steam, chilled water and electricity
  • Industry players have accelerated their use of energy-efficient technology
  • Environmental efforts will encourage greater deployment of district energy and CHP capacity
  • Industry Report - Starting a New Business Chapter

    The high capital cost involved in constructing a district energy system represents a substantial barrier to entry. High initial capital costs typically require prospective entrants to have a significant number of customers, preferably under long-term contracts, prior to undertaking construction of a new cooling or heating system. Once a system is established in a particular area, it effectively removes the opportunity for other competing systems to enter that geographic market. High initial capital costs also mean that it is much more cost effective to expand an existing system, typically by adding more pipes, up to the point where thermal losses become untenable, than to construct a new system. As a result, the industry has high barriers to entry...purchase to read more.

    Additional Insights for the Steam & Air-Conditioning Supply Industry

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

  • Having a steady supply contract
  • Access to the latest available and most efficient technology and techniques
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Value of utilities construction in the Steam & Air-Conditioning Supply industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Steam & Air-Conditioning Supply Industry?

    Operators in this industry supply district energy for heating and cooling. Typically, they generate hot and cold water or steam via closed mains systems to cool or heat commercial or residential buildings. Only companies whose primary operations involve steam and air-condition supply are included in the industry; large utility companies that provide steam and air conditioning in addition to other more extensive operations are not included in the industry.

    Industry Products
  • Steam and air-conditioning
  • Electricity
  • Water
  • Natural gas distribution to final customer
  • Industry Activities
  • Generation and distribution of steam for heating
  • Generation and distribution of chilled air or water for cooling
  • Generation and distribution of heated air or water for heating
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of private nonresidential construction
  • Value of utilities construction
  • Price of natural gas
  • Demand from boiler and heat exchanger manufacturing
  • Value of residential construction

  • Current Performance
  • Recovery in residential and commercial construction
  • Cogeneration and energy efficiency initiatives
  • Industry consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • New industry opportunities
  • Construction trends
  • Cogenerating continues
  • External competition
  • Table: Steam & Air-Conditioning Supply Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Industrial Building Construction
  • Educational Services
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Boiler & Heat Exchanger Manufacturing
  • Coal Mining
  • Metal Pipe & Tube Manufacturing
  • Natural Gas Distribution
  • Plastic Pipe & Parts Manufacturing

  • Products & Services
  • Steam and air-conditioning
  • Electricity
  • Water
  • Natural gas distribution to final customer
  • Other
  • Chart: Steam & Air-Conditioning Supply Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial sector
  • Schools, hospitals and institutions
  • Residential
  • Government
  • Other
  • Entertainment and hotels
  • Chart: Major Market Segmentation for the Steam & Air-Conditioning Supply Industry

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

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Steam & Air-Conditioning Supply Industry

  • Industry Globalization
    NRG Thermal LLC,
  • Table: NRG Thermal LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Steam & Air-Conditioning Supply 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 Steam & Air-Conditioning Supply Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of construction (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Btu
  • An abbreviation for British thermal unit, which is a measure of energy.
  • Chp
  • Combined heat and power; also called cogeneration.
  • Cogeneration
  • Capturing the waste heat created by electricity generation and using it to create more energy.
  • District Cooling
  • Water chilled in a central plant and piped into several buildings to provide cooling.
  • District Heat
  • Steam or hot water produced in a central plant and piped into several buildings to provide heating.
  • Heat Exchanger
  • Equipment that transfers heat from one source (usually a liquid or steam) to another without allowing them to mix.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Steam & Air-Conditioning Supply Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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 Steam & Air-Conditioning Supply:
    • 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 Steam & Air-Conditioning Supply 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 Steam & Air-Conditioning Supply, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear