HVAC Services Market - Growth, Trends, and Forecast (2019 - 2024)

The HVAC Services Market is segmented by Equipment Type (Heating, Ventilation, and Cooling), Implementation Type (New Construction and Retrofit Building), Application (Residential, Commercial, and Industrial), Software and Services (Software and Services), and Region.

Market Snapshot

HVAC Services Market 1
Study Period:

2016-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

Key Players:

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Market Overview

The HVAC services market is expected to register a CAGR of over 6.1% during the forecast period 2019 - 2024. Growing construction business in major emerging economies and the growing end-user markets, like data center market, are the major factors driving the growth of the HVAC services market over the forecast period. Since the service firms rely extensively on labor for their operations, the existing demand and supply gap in the labor/HVAC technicians, clubbed with high-cost technicians, is expected to restrain the growth of the market.

  • Construction activity has a positive impact on not only the HVAC equipment market, but also on the HVAC services market. With increased construction activity in emerging economies, the investments on infrastructure are on the rise, in order to cater to the increasing standard of living. The Asia-Pacific region tops world growth, and had an expected 6.3% increase in GDP in 2018, according to the World Bank. China, in particular, shows strong development, leading the region in terms of growth, innovation, and major investments. Moreover, both the International Monetary Fund and the World Bank predict that strong economic growth will continue in the region, until at least 2020. This will positively impact the construction sector, as the region is witnessing major investments in construction projects.
  • Thus, the installation and maintenance segment of the HVAC services market, is expected to benefit, due the increasing sales of HVAC equipment, through new construction projects. With regards to constructional developments globally, according to a report by Oxford Economies, construction output is forecast to expand by 85%, to USD 15.5 trillion worldwide, in 2030, with countries, like the United States., China, and India accounting for 57% of the market growth.

Scope of the Report

The HVAC (heating, ventilation, and air conditioning) services market includes the different services provided to the end users by the OEMs and other regional players. The services primarily include installation and system integration, maintenance, and repair. The end users include building contractors and owners (non-residential), home owners, retail stores, food services companies, pharmaceutical, and healthcare companies, among others. The HVAC services market has a direct correlation with the HVAC equipment market. Any changes in the demand for the equipment will impact the services market positively, as higher demand for new equipment leads to higher installation or retrofitting services.
By Services
Maintenance and Repair
Installation
By Implementation Type
New Construction
Retrofit Buildings
By End User
Residential
Commercial
Industrial
Geography
North America
US
Canada
Europe
Germany
UK
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Mexico
Rest of Latin America
Middle East & Africa
UAE
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Key Market Trends

Residential Segment is Expected to Register a Significant Growth

The demand for HVAC services in the residential sector, is primarily from Asia-Pacific, owing to the growing population, across the region, thereby leading to new installations. The demand in developed regions, like North America and Europe, is mainly from the maintenance and replacement services.

In the wake of the global financial crisis and housing market collapse, an overhang of housing in many mature economies led to a breakdown in prices of the existing homes, and stifled new residential construction spending.

Direct real estate investment, and increasing wealth and prosperity in regions, such as Asia-Pacific, Latin America, and the Middle East, are driven by economic growth. The increasing migration to existent and newly emerging cities, in these regions, is accelerating the demand for new homes.

The robust construction of residential buildings by the private sector, coupled with the government initiatives to bridge emerging countries’ housing shortages, is also acting as a significant factor for the growth of the market. For instance, in the Philippines, the government estimated that the country’s residential sector growth could come in at an annual average of 10.3%, in real terms, from 2018-2026.

According to data from the Housing and Urban Development Coordinating Council, the country’s social housing backlog is now at 5.6 million units. There were over 30,000 residential construction permits issued by the end of the second quarter of 2017, 24% higher than in 2016. Recently, in 2018, rising rents across Toronto led to record-breaking sales for multi-residential apartment buildings. The sales reached USD 1.2 billion in the third quarter of 2018.

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The United States is Expected to Hold Major Share

Growing government support in the form of higher budget allocations, designed to increase home ownership and sustainable community development, and the increasing affordability of housing, may contribute to the ever growing residential construction sector. In 2017, the US government allocated a budget of USD 46.7 billion (an increase of 1.9% over the previous year) to support residential construction. The increasing population in the country may also contribute to the rising housing demand. The boom in the construction sector is likely to contribute to the expanding of the market for HVAC and HVAC services.

The US Department of Energy (DOE) has released new efficiency standards, for commercial HVAC units, in which carbon emissions must be reduced by up to 60 million metric ton by 2030. According to these standards, specialized units should be manufactured, should be able to provide energy-efficiency, and provide sustainable heating and cooling solutions.

Increased construction activities, rapid urbanization, infrastructural reforms, and HVAC unit replacements are some of the major factors supporting the growth of the US HVAC services market. The DOE has invested almost USD 8 million to replace old refrigerants with energy efficient alternatives, which can minimize environmental threats posed by rooftop HVAC units.

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Competitive Landscape

The HVAC services market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and profitability. The companies operating in the market are also acquiring start-ups working on HVAC services technologies to strengthen their product capabilities. In March 2018, Honeywell launched Amazon Alexa voice-ready thermostat for hotels. Honeywell’s INNCOM e7 Thermostat (e7) is the first enterprise-grade environmental control and energy management solution that incorporates Amazon Alexa voice control for an effortless guest experience, which includes room temperature, lighting, drapery, and amenities services.

Major Players

  1. Panasonic Corporation
  2. Honeywell International Inc.
  3. LG Electronics
  4. Siemens AG
  5. Electrolux AB

* Complete list of players covered available in the table of contents below

HVAC Services Market

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Growing Construction Business in Major Emerging Economies

      2. 4.3.2 Growing Data Center Market

    4. 4.4 Market Restraints

      1. 4.4.1 Labor Shortage/ High Costs of Skilled Labor

    5. 4.5 Value Chain / Supply Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Services

      1. 5.1.1 Maintenance and Repair

      2. 5.1.2 Installation

    2. 5.2 By Implementation Type

      1. 5.2.1 New Construction

      2. 5.2.2 Retrofit Buildings

    3. 5.3 By End User

      1. 5.3.1 Residential

      2. 5.3.2 Commercial

      3. 5.3.3 Industrial

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 US

        2. 5.4.1.2 Canada

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 UK

        3. 5.4.2.3 France

        4. 5.4.2.4 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Rest of Asia-Pacific

      4. 5.4.4 Latin America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Mexico

        4. 5.4.4.4 Rest of Latin America

      5. 5.4.5 Middle East & Africa

        1. 5.4.5.1 UAE

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 South Africa

        4. 5.4.5.4 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Panasonic Corporation

      2. 6.1.2 Honeywell International Inc.

      3. 6.1.3 LG Electronics

      4. 6.1.4 Siemens AG

      5. 6.1.5 Electrolux AB

      6. 6.1.6 Ingersoll-Rand PLC

      7. 6.1.7 Carrier Corporation

      8. 6.1.8 Johnson Controls Inc.

      9. 6.1.9 Daikin Industries Ltd

      10. 6.1.10 Nortek Global HVAC

      11. 6.1.11 Lennox International Inc.

      12. 6.1.12 Fuijitsu General Ltd

      13. 6.1.13 Robert Bosch GmbH

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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