5th Floor, Brigade Towers,
Financial District, Gachibowli,
Hyderabad - 500032,
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.
Fastest Growing Market:
The HVAC Services Market was valued at USD 54.74 billion in 2019 and is expected to reach USD 78.10 billion by 2025, at a CAGR of 6.1% over the forecast period 2020 - 2025. 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.
|Maintenance and Repair|
|By Implementation Type|
|By End User|
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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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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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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.
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growing Construction Business in Major Emerging Economies
4.3.2 Growing Data Center Market
4.4 Market Restraints
4.4.1 Labor Shortage/ High Costs of Skilled Labor
4.5 Value Chain / Supply Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Services
5.1.1 Maintenance and Repair
5.2 By Implementation Type
5.2.1 New Construction
5.2.2 Retrofit Buildings
5.3 By End User
5.4.1 North America
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.4.4 Latin America
126.96.36.199 Rest of Latin America
5.4.5 Middle East & Africa
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Panasonic Corporation
6.1.2 Honeywell International Inc.
6.1.3 LG Electronics
6.1.4 Siemens AG
6.1.5 Electrolux AB
6.1.6 Ingersoll-Rand PLC
6.1.7 Carrier Corporation
6.1.8 Johnson Controls Inc.
6.1.9 Daikin Industries Ltd
6.1.10 Nortek Global HVAC
6.1.11 Lennox International Inc.
6.1.12 Fuijitsu General Ltd
6.1.13 Robert Bosch GmbH
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS