Be cool: Improving construction markets and rising incomes will revive industry demand

The Heating and Air Conditioning Wholesaling industry grew over the five years to 2018, as a result of growth in residential and commercial construction driving demand for industry products. Over the five years to 2023, IBISWorld expects strong employment and higher disposable incomes to boost homeowners' spending ability. This will lead to increased demand for home improvements and increased housing starts, both of which entail increased spending on HVAC equipment. The enforcement of several environmental regulations will also aid industry growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$53bn
Annual Growth 13-18
2.8%
Forecast Growth 18-23
Profit
Employment
67,116
Businesses
6,971
Market Share of Companies

Industry Threats & Opportunities

  • Higher incomes and stronger demand for home improvements will aid industry revenue
  • Over the past five years, energy-efficient products have grown in popularity
  • Demand is expected to rise as consumers take on more construction projects
  • Industry Report - Industry Products Chapter

    The heating, ventilation and air-conditioning (HVAC) products sold by this industry are built to stock and rarely built to order. As a result, products are usually purchased by contractors from a wholesaler's inventory. Once purchased, air-conditioning (AC) and heating equipment contractors install the products to specification. Physical size, product features and performance differences (energy efficiencies) are the bases for product differentiation. Replacement or repaired products go through different downstream value chains and are also different in terms of customers' price sensitivities, switching costs and required delivery times.Central ACIn many respects, AC systems are like forced-air heating systems. Hea...purchase to read more.

    Additional Insights for the Heating & Air Conditioning Wholesaling Industry

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

  • Having links with suppliers
  • Having a good technical knowledge of the product
  • Provision of a related range of goods/services ("one-stop shop")
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of private nonresidential construction in the Heating & Air Conditioning Wholesaling industry impact industry performance..

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    What's in this report

    What is the Heating & Air Conditioning Wholesaling Industry?

    Wholesalers in this industry engage in buying, selling and distributing heating, ventilation and air-conditioning (HVAC) equipment. This industry excludes in-room and in-window air conditioners and hydronic equipment (see IBISWorld report 42372). Moreover, while installation is also excluded, service and repair work are part of this industry, accounting for less than 2.0% of industry revenue.

    Industry Products
  • Central air conditioners
  • Forced-air furnaces
  • Registers, grills, duct insulation and preformed ductwork
  • Condensing units for air conditioners
  • Heat pumps
  • Compressors for air conditioners
  • Air-cleaning and filtration systems
  • Industry Activities
  • central air conditioners (excluding in-room and in-window units)
  • Wholesaling forced-air furnaces
  • Wholesaling registers, grills, duct insulation and preformed ductwork
  • Wholesaling condensing units for air conditioners
  • Wholesaling compressors for air conditioners
  • Wholesaling heat pumps
  • Wholesaling air-cleaning and filtration systems
  • Wholesaling electric nonportable baseboard heaters
  • 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
  • Demand from heating and air-conditioning contractors
  • Private spending on home improvements
  • Prime rate

  • Current Performance
  • Improving markets
  • Industry incentives
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing activity
  • Rising rates
  • Environmental concerns
  • Stabilizing costs
  • Table: Heating & Air Conditioning Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Commercial Building Construction
  • Municipal Building Construction
  • Heating & Air-Conditioning Contractors
  • Plumbers

  • Key Selling Industries
  • Heating & Air Conditioning Equipment Manufacturing

  • Products & Services
  • Central air conditioners
  • Other
  • Registers, grills, duct insulation and preformed ductwork
  • Forced-air furnaces
  • Condensing units for air conditioners
  • Heat pumps
  • Compressors for air conditioners
  • Air-cleaning and filtration systems
  • Chart: Heating & Air Conditioning Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Residential demand
  • Non-residential demand
  • Replacement demand

  • Major Markets
  • Building, heavy construction and special trade contractors
  • Other wholesalers for resale
  • Retailers for resale
  • All others
  • Business users for consumption
  • Chart: Major Market Segmentation for the Heating & Air Conditioning Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Heating & Air Conditioning Wholesaling

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

  • Industry Globalization
    Watsco Inc.,
  • Table: Watsco Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heating & Air Conditioning Wholesaling 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 Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Annual Fuel-Utilization Efficiency (Afue)
  • Measure of thermal efficiency for furnaces and boilers.
  • Hydrochlorofluorocarbons (Hcfcs)
  • Compounds found in refrigerants that harm the environment by rising in the atmosphere and destroying the ozone layer.
  • Refrigerant
  • Substances used to achieve low temperatures in air conditioners and refrigeration equipment.
  • Seasonal Energy-Efficiency Ratio (Seer)
  • Used to rate the efficiency and performance of unitary air conditioners and heat pumps.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Heating & Air Conditioning Wholesaling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 Wholesaling:
    • 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 Wholesaling 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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