|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The HVAC Services Market was valued at USD 57.8 billion in 2020 and is expected to reach USD 82.5 billion by 2026 and grow at a CAGR of 6.1% over the forecast period (2021-2026). The outbreak of Coronavirus has impacted logistics and supply chain across the globe. For the HVAC industry, the summertime attracted prominent demand for retrofitting and new installations, which is expected to be influenced severely due to the shortage of components in the time of lockdown.
- The growing construction business in major emerging economies and the growing end-user markets, such as the data center market, etc., are major factors driving the growth of the HVAC services market, over the forecast period. Some of the benefits of adopting HVAC systems include energy-efficient, improved results, and lifespan, among others. According to British Petroleum (BP) PLC, China is the largest consumer of primary energy in the world, using some 3.3 million metric tons of oil equivalent in 2018.
- The HVAC service market has a direct correlation with the HVAC equipment market. Any changes in demand for the equipment will impact the service market positively as higher demand for new equipment leads to higher installation or retrofitting services. HVAC companies offer a variety of services for both non-commercial and commercial property owners. These services not only give attention to improving the performance of the equipment but can potentially reduce energy costs as well.
- Factors such as technological innovations and climate changes have increased the adoption of HVAC equipment. Global warming that has led to changing and unpredictable weather conditions has also increased the need for air conditioning equipment. For instance, According to the Japan Refrigeration and Air Conditioning Industry Association, in 2018, the global demand for air conditioners stood at 110.97 million units. According to the report by the International Energy Agency (IEA), Global energy demand from air conditioners is anticipated to triple by 2050, requiring new electricity capacity the equivalent to the combined electricity capacity of the US, the EU and Japan today. The global stock of air conditioners in buildings would grow to 5.6 billion by 2050.
- The growth in the construction industry and the rising disposable income in developing countries, has increased the availability of HVAC equipment for a broader consumer base. For instance, According to the Bureau of Labor Statistics, the construction sector's output in the United States is expected to amount to approximately USD 1.58 trillion by 2028. HVAC services are expected to witness a significant market growth majorly due to the increased need to install and maintain the energy efficiency of the existing systems.
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 local players. The services primarily include installation and maintenance, and repair. The end-users include residential, commercial and industrial. The study characterizes the market based on the Implementation type such as New Construction and Retrofit Buildings.
|By Implementation Type|
Key Market Trends
Residential Segment is Expected to Register a Significant Growth
- The HVAC services demand in the residential sector, is primarily due to the growing population in Asia-Pacific, thereby leading to new installations. The market in developed regions, like Europe and North America, is mainly from the maintenance and replacement services.
- With the backdrop of rising global temperatures and improving living standards, market penetration for A/C systems is expected to grow substantially from current levels in developing nations. Also, amidst the global financial crisis and housing market collapse, an overhang of housing in many mature economies led to a breakdown in prices of existing homes and stifled new residential construction spending.
- Many buildings are serviced by an overall HVAC system while having problematic areas with different time and temperature requirements. A solution is to ‘zone’ your structure by installing separate time and temperature controls for individual areas - zoned areas can provide better conditions as occupants will have greater control over their respective environments. It is also an effective energy cost-saving measure as HVACs can then be turned down or off in unused or unoccupied zones.
- According to an Aeroseal report, Variable speed heat pumps can trim monthly homeowners' costs by up to 40%. Proper insulation for a building or home, on its own, can improve HVAC efficiencies by up to 30%.
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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 addition, increased construction activities, rapid urbanization, infrastructural reforms, and HVAC unit replacements, are some of the major factors supporting the growth of HVAC services market in the country.
- The HVAC Industry is moving towards smart technologies in the United States, as the region is witnessing a high level of IoT integrations. State policies and regulations also govern the demand for HVAC services in the country. For instance, according to Aeroseal, LLC, in the northern US, furnaces must have a 90% efficiency rating, but in southern states, only an 80% efficiency rating is required. This indicates that HVAC services industry tend to be fueled by local and regional regulations.
- The U.S. Energy Information Administration’s (EIA) 2015 Residential Energy Consumption Survey (RECS) estimates that 76 million primary occupied U.S. homes (64% of the total) use central air-conditioning equipment, and about 13 million homes (11%) use heat pumps for heating or cooling, and by 2023, all new residential central air-conditioning and air-source heat pump systems sold in the United States will be required to meet new energy efficiency standards, thus fueling the growth of the HVAC services.
- According to IEA, in the United States, more than 90% of households have air conditioning equipment, compared to just 8% of the 2.8 billion people living in the hottest parts of the world. The growing use of air conditioners in homes and offices around U.S. will be one of the top drivers stressing the need for the HVAC services in the region.
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The HVAC services market is highly competitive and consists of several major players. The market players 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.
- March 2020 - Gardner Denver has completed the merger with the Ingersoll Rand’s Industrial segment on February 29, 2020. The newly merged company, named Ingersoll Rand Inc. This newly merged company will have a significant dominance in the mission-critical flow control and industrial technologies market with an extended product portfolio.
- February 2020 - Johnson Controls launched the fully integrated, factory-built and installed wrap-around heat exchangers (WAHX) to its YORK Solution Indoor and Outdoor air-handling units. This newly developed product will help the company in terms of meeting a growing need for energy-efficient dehumidification methods in a compact footprint.
- February 2020 - Comfort Systems USA, Inc. has entered into a agreement to acquire the Starr Electric Company, Inc. headquartered in Greensboro, North Carolina. Starr is an important force in electrical contracting and related services across North Carolina, with deep experience in the industrial, medical and educational sectors. This will help Comfort systems to expand their footprints with the help of Starr’s expertise.
Table of Contents
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of Impact of Covid-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Construction Business in Major Emerging Economies
5.1.2 Growing Data Center Market
5.2 Market Restraints
5.2.1 Labor Shortage/High Costs of Skilled Labor
6. MARKET SEGMENTATION
6.1 By Implementation Type
6.1.1 New Construction
6.1.2 Retrofit Buildings
6.2 By End-user
6.3.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
6.3.3 Asia Pacific
220.127.116.11 Rest of Asia Pacific
6.3.4 Latin America
18.104.22.168 Rest of Latin America
6.3.5 Middle East and Africa
22.214.171.124 United Arab Emirates
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Ingersoll-Rand PLC
7.1.2 Carrier Corporation
7.1.3 Johnson Controls International PLC
7.1.4 Daikin Industries Ltd.
7.1.5 Nortek Global HVAC
7.1.6 Lennox International Inc.
7.1.7 Fujitsu General Ltd.
7.1.8 Robert Bosch GmbH
7.1.9 Electrolux AB
7.1.10 Siemens AG
7.1.11 LG Electronics Inc.
7.1.12 Honeywell International Inc.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The HVAC Services Market market is studied from 2018 - 2026.
What is the growth rate of HVAC Services Market?
The HVAC Services Market is growing at a CAGR of 6.1% over the next 5 years.
Which region has highest growth rate in HVAC Services Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in HVAC Services Market?
North America holds highest share in 2021.
Who are the key players in HVAC Services Market?
Siemens AG, Honeywell International Inc. , LG Electronics, Inc., Electrolux AB, Johnson Controls International PLC are the major companies operating in HVAC Services Market.