HVAC Services Market

HVAC Services Market Outlook (2022-2032)

The global HVAC services market stands at US$ 71.1 billion in 2022 and is anticipated to progress steadily at a CAGR of 6.2% to reach US$ 129.8 billion by 2032-end. Together, North America and East Asia account for around 60% share of the global market.

Report Attributes	Details
HVAC Services Market Size (2021A)	US$ 67 Billion
Estimated Market Value (2022E)	US$ 71.1 Billion
Forecasted Market Value (2032F)	US$ 129.8 Billion
Global Market Growth Rate (2022-2032)	~6.2% CAGR
North America Market Share (2021)	~26%
East Asia Market Growth Rate (2022-2032)	~7% CAGR
United States Market Growth Rate (2022-2032)	~5.2% CAGR
Key Companies Profiled	Carrier Daikin Industries Ltd. Dr. Energy Saver, Inc Dwyer Franchising, LLC Electrolux AB Fujitsu General Ltd. Honeywell International Inc. Johnson Controls International PLC Lennox International Inc. LG Electronics Inc. Nortek Global HVAC One Hour Heating & Air Conditioning Franchising SPE LLC Robert Bosch GmbH Siemens AG The Home Depot Watsco

Ascension of Building Construction to Elevate Need for HVAC Services

Rapid growth in construction activity worldwide coupled with increasing urbanization & infrastructure reforms is expected to drive HVAC services market growth during the forecast period (2022-2032). HVAC systems have substantial utility in providing thermal comfort and proper circulation of air inside buildings.

HVAC service providers offer consulting services regarding the installation of HVAC systems to meet energy efficiency standards. These service providers are technicians and specialists who take care of timely repair and maintenance along with the replacement of HVAC systems. With the significant rise in construction activity and the utility of HVAC systems, demand for HVAC service providers will rise in parallel over the coming years.

• Short Term (2022-2025): Surging demand for energy-efficient solutions is one of the major factors that will drive the demand for HVAC services in the short term. Replacement of older HVACs with new ones with greater energy efficiency along with timely repair & maintenance of HVAC systems is expected to stimulate the demand for HVAC services.
• Medium Term (2025-2028): Favourable government initiatives regarding the installation of high-efficiency HVAC systems and increasing building construction worldwide are set to drive significant demand for HVAC service providers.
• Long Term (2028-2032): Repair & maintenance of old HVAC systems and elevating need to refurbish & upgrade commercial buildings are projected to push the demand for HVAC service providers in the long run.

Between 2017 and 2021, the global HVAC services market registered a CAGR of 4.8%. As per the analysis by Fact.MR, a market research and competitive intelligence provider, market revenue is projected to increase at a 6.2% CAGR through 2032.

Market share analysis of HVAC services based on service and region. Under the service segment, maintenance & repair lead the market with 53% share in 2022.

Increasing Demand for Energy-efficient Solutions

Stringent government norms regarding energy conservation are expected to stimulate the demand for HVAC service providers. The United States government framed a new minimum energy efficiency standard to manufacture HVAC systems with good energy efficiency. Manufacturers of HVAC systems are required to meet the SEER2 rating, which will be effective from January 2023.

As HVAC systems are responsible for around 40% of energy consumption in a building, replacement or upgradation of traditional HVACs with new high-energy efficient HVAC systems can drive energy efficiency.

• As per the U.S. Department of Energy, the replacement of HVAC systems with higher efficiency equipment can decrease energy consumption by 50% for electric heating & cooling systems and 10% for gas furnace heating systems.

Due to this factor, demand for HVAC service providers offering timely consulting, replacement, and upgradation services of HVAC systems is projected to rise over the years ahead.

Government Incentives & Tax Credit Programs for Installing Highly-efficient HVAC Systems

The penetration rate of HVAC services is directly proportional to the sales of HVAC devices. Favourable government initiatives and tax credit programs related to the installation of high-efficient HVAC systems in various economies are driving commendable market growth.

The United States Environmental Protection Agency and Department of Energy offer rebates and special offers regarding the installation of HVAC systems with a good SEER rating. Also, enable weatherization assistance programs to assist low-income families in home energy efficiency. It includes the repair, tuning, cleaning, and replacement of heating and/or cooling systems.

Adverse Impact of HVAC Systems on Environment

HVAC systems consume a high amount of energy and contain fluorocarbons as refrigerants, which deplete the ozone layer and harmfully impact global warming. With the increasing use of HVAC systems in various developing and emerging economies, the risk of global warming and climate change is expected to rise prominently. To control global warming, governments are taking strict actions, which are expected to hamper the overall demand for HVAC systems, and, in turn, limit the demand for HVAC service providers.

• Representatives from nearly 200 nations have signed an environmental agreement (Paris Agreement) that aims to minimize the negative impacts of such refrigerants to limit the hazards of hydrofluorocarbon refrigerants.

By the end of the century, a total ban on hydrofluorocarbon refrigerants will bring global warming to 0.4 degrees Celsius. The environment protection agreement may impact overall sales of HVAC systems and is expected to challenge the growth of the HVAC service market as well.

Lack of Skilled Professionals in the Industry

Lack of skilled professionals in the HVAC service market is expected to hamper market growth. In the HVAC services industry, the requirement for skilled professionals is high. These professionals need to have specific knowledge about the installation, repair & maintenance, and replacement of HVAC systems. Also, in-depth knowledge is required to operate software related to HVAC systems.

Around 39% of technicians are employed as compared to the total required in 2020, whereas, net technician loss is expected to be 8% every year. Due to this factor, the HVAC services market is projected to see a downfall in revenue growth in the near future.

Country-wise Insights

Demand for HVAC Services High in the United States

Surging demand for energy-efficient HVAC systems in the United States is a major factor driving the demand for HVAC service providers.

• According to the Residential Energy Consumption Survey (RECS) by the U.S. Energy Information Administration (EIA), 64% of all principal inhabited residences in the country utilize central air conditioning. Additionally, heat pumps are used for cooling or heating in about 13 million houses (11%) worldwide.

As a consequence, new energy efficiency criteria for residential central air conditioning and air-source heat pump systems will become made mandatory by the government from 2023, which will spur an increase in HVAC services.

In addition, the increasing construction sector in the country is also driving the demand for HVAC services. The construction industry in the United States has grown by 1%-2% during 2020-2021. With the increase in construction activities, demand for HVAC systems and service providers is expected to rise to offer repair & maintenance, replacement, and installation services.

Factors Contributing to China’s HVAC Services Market Growth

The China HVAC services market is projected to expand at a CAGR of 8% through 2032. Increasing installation of air conditioners in the country is a leading factor driving the growth of the market.

• According to a study by the International Energy Agency, China accounts for 22% of installed cooling capacity globally with about three-fourths of the nation's households with Air conditioners. Also, it is projected to see AC ownership in the country in 85% of households by 2030.

Additionally, an increase in building construction and the presence of strict regulations regarding energy-efficient buildings are driving market growth. China's government introduced a new general code in 2022 regarding building energy efficiency and renewable energy utilization. It requires that all expanding, new, and reconstruction buildings should be designed focusing on energy conservation with the installation of energy-efficient equipment.

Category-wise Insights

Maintenance & Repair to Account for High Revenue Generation

Timely maintenance & repair of HVAC systems lead to considerably fewer breakdowns and the extension of the system’s life cycle. Efficient maintenance helps in the improvement of the system’s energy efficiency and offers improved comfort and air quality. As such, maintenance & repair services are projected to account for a leading share of 53% in the global HVAC services market.

Most end users require the routine maintenance of HVAC systems to validate the warranty. This is an essential factor driving the demand for HVAC maintenance & repair services.

Residential Application of HVAC to Be Most Prominent

With rising disposable income, growing population, and fast urbanization, HVAC services are increasingly being used in residential development projects. The construction of energy-efficient residential structures is growing as a result of the introduction of numerous strict government rules intended to reduce environmental pollution, which is predicted to boost the market during the forecast period.

Additionally, the growing adoption of the Internet of Things (IoT) in HVAC services to boost service providers' efficiency is predicted to stimulate market expansion over the coming years.

Competitive Landscape

Prominent HVAC service providers are Carrier, Daikin Industries Ltd., Dr. Energy Saver, Inc., Dwyer Franchising, LLC, Electrolux AB, Fujitsu General Ltd., Honeywell International Inc., Johnson Controls International PLC, Lennox International Inc., LG Electronics Inc., Nortek Global HVAC, One Hour Heating & Air Conditioning Franchising SPE LLC, Robert Bosch GmbH, Siemens AG, The Home Depot, and Watsco.

The global market for HVAC services is highly competitive with the presence of numerous market players. They are taking strategic initiatives such as service launches, acquisitions, and rebranding to stay competitive in the market.

For instance :

• In July 2022, M&T Air Conditioning, a service provider of HVAC in Vancouver, Canada, announced that it completed its rebranding process, which includes the creation of a new brand logo and website to support M&T's vision for business expansion.
• In May 2022, Heartland Home Services, a leader in HVAC, plumbing and electrical home services, announced the acquisition of Williams Heating and Cooling, a leading service provider of HVAC.

Fact.MR has provided detailed information about the providers of HVAC services positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of HVAC Services Industry Research

• By Type :

  • Heating
  • Ventilation
  • Cooling

• By Service :

  • Consulting
  • Installation
  • Maintenance & Repair
  • Upgrade/Replacement

• By End-use Application :

  • Residential
  • Commercial
  • Industrial

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa