HVAC Market Research
There is a growing demand for HVAC systems, and consumers are looking for the most energy-efficient solutions.
The world is experiencing a rise in population, harsher climatic conditions, and general air pollution. These, and other factors such as a surge in construction and the desire for a comfortable lifestyle, have created an industry that is highly fragmented and competitive.
Despite the competition, there is ample room for growth.
Opportunities in the HVAC Market
At a global level, the HVAC industry is thriving in four different markets. Although there are many similarities in these, there are key factors which open up some markets more than others.
1. U.S. HVAC Market
The U.S. market is poised for growth as a result of requirements to improve Indoor Air Quality (IAQ). The ventilation fans category will see increased interest especially for maintenance services due to the need for fresh air in hotels, shopping malls and at airports.
There is also a focus on building “green” buildings, leading to a higher demand for both HVAC systems and maintenance services.
2. Europe HVAC Market
Europe’s HVAC industry is growing due to rapid urbanization, an increase in disposable income, government regulations, and increased spending in sustainable construction.
Europe stands out for its push to reduce CO2 emissions. This has led to economies like Germany and Finland to promote the use of new technologies in the construction and HVAC industries.
3. U.A.E. HVAC Market
In the U.A.E., there is a lot of construction happening in the commercial and residential sectors. While this results in the increased demand for HVAC solutions, the country’s desert climate is the biggest factor contributing to the industry’s growth.
Consumer trends such as automatic temperature regulation, monitoring of humidity levels, alerts for servicing, and system access through mobile devices, are creating more avenues for businesses to increase their revenues.
4. APAC HVAC Market
As multinationals set up in the APAC region, they’re driving up the demand for real estate space. With a construction boom in China, Japan and India, and an increase in average temperatures in the region, the demand for AC systems is set to go up.
As India boosts its manufacturing capacity, local players are ramping up production, even as the country experiences an inflow of FDI.
Challenges Facing the HVAC Industry
With all the opportunities available for HVAC businesses, some challenges could stand in the way of growth.
Business in the HVAC industry is seasonal. While summer comes with high demand for AC units, winter drives the sale of heating solutions. Providers of maintenance services experience similar fluctuations since the number of customer calls varies with seasons. This is making business growth a significant challenge, especially for the smaller players.
2. Increased Competition
The industry’s growth is attracting new players and the competition is becoming stiff. Service providers are the worst affected since most of them rely on brand loyalty for growth. Whereas some businesses are getting stuck with low prices, others are differentiating themselves by providing exceptional customer experience.
3. Talent Shortage
Baby boomers are retiring and creating job opportunities. The younger workforce is however reluctant to fill those positions, resulting to questions about the industry’s future. The talent crunch has also led to a lack of innovation in the HVAC industry, with players settling for improvements to current systems rather than disruptive solutions.
Trends in the HVAC Industry
Major challenges aside, the HVAC industry is witnessing change.
1. Mergers & Acquisitions in the HVAC Industry
Many Lower-Middle-Market (LMM) companies are struggling and more profitable ones are buying them out to expand their customer base and increase market share. Some big players are also joining forces to establish a more significant dominance in the market and to increase profitability.
2. Smart HVAC Systems
Convenience and the cost of energy are driving the uptake of smart systems. Top “smart” solutions being incorporated into HVAC systems include:
- Learning thermostats
- Voice-controlled systems
- Motion-activated ACs
- Remote temperature adjustment
- Use of sensors to monitor system performance
- Alerts for systems maintenance and automatically submitting work orders
- System access and control through mobile apps
3. Improving Indoor Air Quality Using UV Light
To solve problems with poor IAQ, manufacturers are fitting UV Germicidal light into their systems. While some HVAC manufacturers are providing this as an additional service, there are DIY solutions available from UV-C light bulb manufacturers.
4. Focus on Customer Experience
HVAC consumers now have high expectations, and these are influencing their purchase decisions. Businesses are adapting by embracing CRM systems and analytics to understand and cater to consumer needs.
Businesses are also increasingly undertaking market research to gain insight into consumer preferences and make better business decisions.
Benefits of HVAC Market Research
Conducting research into the HVAC market is an investment that can help a business to:
- Accurately estimate the size of the market available to be served
- Understand consumer pain points, preferences, and buying habits
- Mitigate investment risks
- Identify opportunities in the market
- Identify market and consumer trends
- Identify competitors’ strengths and weaknesses and develop a competitive advantage
- Forecast market growth or decline, and adapt accordingly
- Measure brand awareness and reputation
- Get consumers’ opinions about a new product or service
- Develop the right communication for current and potential customers
- Develop a data-backed market entry and marketing strategy for success
HVAC Market Research Solutions
SIS International’s research solutions for the HVAC market can include:
“Voice of the Customer” Surveys
Understand why customers choose you or your competitors
Know your competitors’ strengths/weaknesses and understand their USP
Competitor Intelligence Tracking
Track and report competitor marketing to understand their strategy
Telephone or Face to Face Interviews with Dealers
Understand the challenges your dealers face and help them sell more
Measure and track the awareness and perceptions of your brand and those of your competitors
About HVAC Market Research
At SIS, we conduct market research for clients with needs ranging from market entry to market dominance. Although our market research solutions are based on qualitative and quantitative methodologies, we have fine-tuned our processes for efficiency and accurate data collection and analysis.
Through our industry experts across the globe, we tap into our networks and maximize research tools to ensure we deliver market insights that are helpful and actionable.