The U.S. HVAC service market valued at $25,625.8 million in 2019, and is expected to advance with a CAGR of 3.1% during the forecast period, to reach $35,714.5 million by 2030. Rising focus on green energy and environmental sustainability is resulting in increased adoption of HVAC systems and related services. Furthermore, the market for these services in the U.S. is also being positively impacted by the growing construction activities in the country.
The outbreak of coronavirus (COVID-19) is continuing to have a significant impact around the world, fundamentally shifting the way populace carry out their daily lives. With social distancing being one of the only ways to slow the spread of the disease, many HVAC businesses are witnessing slow growth and even negative growth rate in the demand for HVAC equipment and related services.
Upgradation/Replacement Category To Hold Major Market Share
The U.S. HVAC service market, under segmentation by type, is bifurcated into upgradation/replacement, maintenance & repair, installation, and consulting, wherein the upgradation/replacement category held the largest revenue share in the U.S. HVAC service market in 2019. However, the consulting category is projected to witness the fastest growth in the market during the forecast period. Consulting services also include visual inspection, carried out by an HVAC technician, who identifies potential issues in the system before recommending its thorough maintenance.
Based on equipment type, the U.S. HVAC service market is categorized into cooling, heating, and ventilation. However, the industry is expected to register the highest CAGR in the ventilation category during the forecast period. In the latest amendment of 2016, the Standard 62.2-2016 developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), states the acceptable levels of IAQ that need to be maintained in residential and commercial buildings. Maintaining a minimum IAQ has become mandatory in the U.S., and this has resulted in surging demand for air cleaners in the country.
Based on end user, the commercial category generated the highest revenue in the U.S. HVAC service market in 2019. The country is witnessing significant growth in the construction of commercial buildings, especially in the hospitality sector. The construction of new commercial spaces is expected to have a positive impact on the industry for HVAC systems across the U.S.
During the forecast period, the southern region contributed the highest revenue to the U.S. HVAC service market in 2019. This is primarily attributed to the fact that southern cities in the country have varying climatic conditions as compared to cities in other regions. This directly impacts the market for HVAC systems, positively, thereby increasing the demand for associated services. Moreover, many areas in the southern region are offering growth opportunities to HVAC services industry players to penetrate and gain foothold, particularly on account of the growing urbanization.
Mergers & Acquisitions: Most Effective Strategic Tool Adopted by Market Players
Mergers and acquisitions is the strongest strategic measures taken by players in U.S. HVAC service market in order to gain competitive advantage.
In July 2020, Southern HVAC Corporation announced the acquisition of Precision Heating & Air Conditioning, one of Austin’s leading providers of air-conditioning repair and replacement services. Precision Heating & Air Conditioning will continue to operate under its current brand name and receive enhanced customer service, technology, training, and product supports from Southern HVAC Corporation and Fox Service Company.
The key players in the U.S. HVAC service market include One Hour Heating & Air Conditioning, Johnson Controls International plc, Daikin Industries Ltd., Lennox International Inc, CLS Facility Services, AmeriCool LLC, The BP Group, National HVAC Service, Murphy & Miller Inc, Trane Technologies plc, Carrier Global Corporation, Emerson Electric Co., True Cool Air Conditioning Service Inc., and Dave’s Cooling & Heating.