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HVAC Industry Statistics

HVAC industry statisticsLike much of the economy, the HVAC industry saw some major changes in 2020, not just with the Covid-19 pandemic but also with changing technologies and consumer demands. While the HVAC industry overall saw a reduction in revenue in 2020, there are still opportunities for growth and change in 2021. These HVAC industry statistics will help you understand the market and how you can better position your business moving forward.

The Shape of the Market

According to Statista, in North America, HVAC manufacturing is a 13.8-billion-dollar industry. It is expected to grow by 5 percent every year. That is for the manufacturing of HVAC equipment, but what about the contractor’s market? This sector experiences slower growth than the manufacturing sector, according to IBIS World. The market for contractors is expected to grow at 0.5% per year into 2025. This statistic has been adjusted for the rough year in 2020, in which HVAC contractors saw an overall reduction in revenue of 12.9%. While large, this is only the expected number, as the official one has yet to be calculated.

In the HVAC industry, the biggest supplier is Ferguson Enterprises at 16.7 billion dollars,and the most used HVAC brand on new construction is Carrier. There are 111,574 HVAC contractor businesses in the United States, with no single player making up more than 5% of the market. Although, Comfort Systems YSA and Emcor Group Inc. are the largest HVAC contractors in the industry. Overall, there is room for new players to break into the market, but local conditions and competition may make that easier or harder.

COVID-19’s Impact on HVAC

As we mentioned above, research demonstrates that HVAC contractors as a whole saw a large drop in revenue in 2020. This was mostly due to the Covid-19 pandemic and government response to the pandemic. As household income levels drop, then homeowners are less likely to invest in new HVAC equipment or even do maintenance and minor repairs. Major and emergency repairs are likely to remain steady and even increase as homeowners rely on older equipment.

A similar effect can be seen in the commercial sector. As businesses and property owners also see hard times, they are less likely to invest in new equipment. As with the residential market, the commercial market will be inconsistent. Some businesses will see this as an opportunity to invest, particularly in equipment that helps mitigate germ transmission, such as air purifiers.

The construction industry also paused for much of 2020, and this has a ripple effect in the HVAC industry. There are fewer installation jobs for new equipment in new builds, but the long-term impact should be minimal as the construction industry is already ramping up again.

IBIS World suggests that this volatility will continue for five years. However, that doesn’t mean your business has to suffer. There are things you can do to position yourself to be more competitive in the field.

Not all households are equally affected by lowered income. Those who have kept their jobs and are working at home may be more interested in HVAC products to keep their home more comfortable while they work. Air purifiers may be especially in demand, both as people focus on reducing the spread of germs but also as they focus on the quality of the air, as they breathe it in for significantly more time.

As a result of the Covid-19, governments may offer homeowners and businesses incentives to install the new HVAC equipment. This is something to keep an eye on moving into 2021. Further, research from CISION also indicates that the government will continue to raise energy efficiency standards for equipment, which will continue to drive new installations and demand for more efficient equipment.HVAC industry statistics

Employment in the HVAC Industry

What if you’re looking to start a career in the HVAC industry? Then, these statistics may help you. According to the Bureau of Labor Statistics, HVAC contractors make a median pay of $48,730 per year at $23.43 per hour. In 2019 there were 376,800 jobs. Although that number has likely dropped for 2020, prospects of recovery are good. Previously, the industry was growing about as fast as the average industry at 4% per year, with an additional 15,100 jobs generated per year.

California has the most HVAC employees and therefore, the labour market is most crowded there. This may be because the demand for some HVAC appliances, such as air conditioning, is highest there.

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Customer Demands in HVAC

How is consumer demand changing in HVAC? While smart technology products like smart thermostats were growing in demand, we may see that decline. Those working from home do not see energy-saving benefits from smart thermostats, although they benefit in other ways. Changing your smart thermostat pitch and focusing on ease of use and helpful alerts may help maintain your smart technology sales.

Demand for energy-efficient solutions will continue to grow, especially among the consumers whose income has not been impacted by Covid-19. Ductless HVAC systems are a good example. Demand for them is growing, and they could reach 15% market share by 2025.Currently, heat pumps are also a strong alternative or complement to furnaces or air conditioners. About 11% of homes in the United States use them. Most are not geothermal powered, as only 1% of United States homes use geothermal.

Research from Global Market Insights also found that energy-efficient furnaces are growing in demand, despite their higher cost. Positioning yourself as connecting customers with the most energy-efficient options can also help you capture a younger, more sustainable market. Research from GlobalWebIndex indicates that more than half of Millennials will pay more for greener products, much more than Baby Boomers.

These younger customers are more demanding. They expect a more convenient level of customer service. Tailoring your customer service efforts can also help you capture more business in 2021.

If you’re looking for another way to adjust your HVAC business to be more competitive in 2021, consider a digital receptionist. They can help you capture more business and work more efficiently.


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How are other industries stacking up?

Learn more about roofing industry statistics and plumbing industry statistics.

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