U.S. HVAC Services Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

U.S. HVAC Services Market Trends & Growth Drivers

Rising Demand for Smart HVAC Systems Is Key Trend

• The rising demand for smart HVAC systems is a key trend observed in the U.S. HVAC services market. End users are increasingly adopting building energy management systems (BEMS) for their HVAC systems.
• The BEMS monitors HVAC systems in terms of efficiency and allows end users to optimize building energy consumption.
• Moreover, with the advancements in data analysis technologies, the demand for streamlining HVAC system processes to improve the efficiency of the systems is increasing year on year.
• For instance, current HVAC contractors use software and widgets to collect data for coolant monitoring in the systems, allowing them to schedule maintenance and service calls with customers before an issue occurs.

Increasing Focus on Energy Efficiency Is Key Driver

• The increasing focus on energy efficiency is a key factor driving this market. The maintenance of the HVAC system at regular intervals reduces energy consumption.
• With the increasing government focus on improving energy efficiency and reducing carbon emissions, the demand for HVAC services is increasing Y-o-Y.
• For instance, the Department of Energy (DoE) has introduced a new efficiency standard for furnaces that sets a minimum airflow efficiency for residential furnace fans.
• With this new guideline, the DoE aims to reduce carbon pollution by 34 million metric tons and encourage energy efficiency, to save the environment. The need for HVAC services, particularly maintenance and upgrade/replacement, is therefore rising across the country due to the growing emphasis on energy efficiency.

Shortage of Skilled Laborers and Their High Fees Are Challenges

• A shortage of skilled laborers is the major factor hampering the growth of the U.S. HVAC services market. The BEMS and control systems require regular maintenance by highly trained and skilled professionals who have in-depth knowledge of the operations of these systems.
• Moreover, in the U.S., high technician costs are impacting market growth. According to the U.S. Bureau of Labor Statistics, the mean hourly wage of labor with installation, maintenance, or repair occupations was USD 24.81.
• Since HVAC service companies rely extensively on labor for their operations, the shortage of skilled labor/HVAC technicians, coupled with their high cost, is restraining the growth of the market.

U.S. HVAC Services Industry Analysis

Type Insights

• The upgradation/replacement category will hold the largest share of the market, of 40%, in 2024.
• The consulting category is expected to show the highest CAGR, of 3.8%, over the forecast period. A professional HVAC expert will visually evaluate the system to find any possible problems before recommending comprehensive maintenance as part of their consulting services.

The types covered in the report include:

• Installation
• Upgradation/Replacement (Largest Category)
• Maintenance and Repair
• Consulting (Fastest-Growing Category)

Equipment Type Insights

• The cooling category will generate the highest revenue, of 45%, in 2024. It is due to the advancement in the product in this category that air conditioning has become more efficient, reliable, and cost-effective. This encourages investors to invest in cooling solutions.
• Moreover, cooling solutions are important for residential buildings as well as commercial facilities. Corporate offices need efficient cooling solutions to enhance the working efficiency of their employees. Further, an increasing number of commercial buildings is expected to boost the market.
• Moreover, the split unit category under cooling equipment will account for a significant revenue share in 2024. Split units usually come with an extensive service and maintenance guide. Although a large portion of the maintenance cost of a split unit is attributed to labor charges and the cost of filters and fan blades, which need to be replaced at regular intervals.
• Moreover, routine servicing is required to check for blockages or leakages in pipes.
• Furthermore, the ventilation category is expected to show the highest CAGR, over the forecast period. The reason for this is that yearly maintenance services are necessary for the enormous fans used in indoor stadiums, retail malls, and airports to operate correctly.
• Moreover, the market is expanding because people are becoming more conscious of the negative effects of air pollution and the benefits of green building.
• The increasing air pollution in industrial areas of the Western and Southern regions is helping drive up demand for air cleaner services in the country.
• The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) created Standard 62, a standard for ventilation systems, in 1996 and later made amendments to it. The most recent update to Standard 62.2-2016 from 2016 specifies the allowable IAQ values that must be kept in place in both residential and commercial buildings.

The following equipment types are included in the report:

• Cooling (Largest Category)
• Heating
• Ventilation (Fastest-Growing Category)

Implementation Type Insights

• The retrofit buildings category will hold the larger share, of 70%, in 2024, owing to the large installed base for HVAC systems and the high demand for maintenance and repair services in existing buildings.
• The new construction category is projected to advance at a higher CAGR, during the forecast period, due to the growing demand for consulting services for HVAC systems in new buildings.

The implementation types covered in the report are:

• New Construction (Faster-Growing Category)
• Retrofit Buildings (Larger Category)

End User Insights

• The commercial category will generate the highest revenue, in 2024.
• The country is witnessing significant growth in the construction of commercial buildings, especially in the hospitality sector. It is expected that the development of new commercial buildings will positively affect the HVAC system industry in the U.S., thereby increasing demand for installation and maintenance services.
• Additionally, the U.S. will witness strong growth during the forecast period, as the country, along with Canada and Mexico, will host the FIFA World Cup 2026.
• The residential category is projected to advance at a higher CAGR, of 3.6%, during the forecast period. It is due to the increasing residential construction and urbanization, which leads to more HVAC systems being installed in the area. The need for HVAC systems and services rises in parallel with the number of households.

The end users covered in the report are:

• Commercial (Largest Category)
• Industrial
• Residential (Fastest-Growing Category)

Regional Analysis

Southern U.S. Is Largest Region

• The Southern region will hold the largest share, of in 2024. This is primarily because the cities in the southern part have more diverse climatic conditions as compared to the cities in other regions, which positively impacts the market for HVAC systems.
• The Southern region of the U.S. is providing lucrative growth opportunities for market players due to the rapid urbanization here.
• Furthermore, the Western region of the U.S. is expected to grow at the highest CAGR, during the forecast period. This is because there are numerous residential and commercial developments underway in this area, with an emphasis on the construction of office space and green buildings.
• Moreover, the rising number of people in the region is due to increasing job opportunities and infrastructure development, which is propelling the growth of the market.

The regions analyzed in this report include:

• South (Largest Region)
• West (Fastest-Growing Region)
• Midwest
• Northeast

U.S. HVAC Services Market Share

The U.S. HVAC services market is highly fragmented, with over 100 HVAC service providers available in each state of the country. Competition in the market is based on price, response time, quality, and reputation. With the prevalence of varying climatic conditions in the country, the demand for HVAC services remains high throughout the year.

U.S. HVAC Services Market News

• In June 2023, the Daikin Sustainability & Innovation Center was established by Daikin Industries Ltd. to advance open innovation and environmental solutions.
• In June 2023, Automated Logic Contracting Services Inc. acquired Standard Plumbing Heating Controls (SPHC).
• In May 2023, Johnson Controls introduced the Johnson Controls Ducted Systems (DS) Solutions App to expand its collection of commercial and residential contractor resources.