The United States HVAC services market was valued at USD 11.45 billion in 2020, and it is expected to reach USD 16.56 billion by 2026, registering a CAGR of 6.4%, during the period of 2021-2026. The United States ranks high when it comes to HVAC systems. For instance, according to IEA, in the United States, more than 90% of households have air conditioning equipment, compared to just 8% of the 2.8 billion people living in the hottest parts of the world. The growing use of air conditioners in homes and offices around the U.S. will be one of the top drivers stressing the need for the HVAC services in the region.
- Further, the U.S. Energy Information Administration’s (EIA) 2015 Residential Energy Consumption Survey (RECS) estimates that 76 million primary occupied U.S. homes (64% of the total) use central air-conditioning equipment. About 13 million households (11%) use heat pumps for heating or cooling. By 2023, all new residential central air-conditioning and air-source heat pump systems sold in the United States will be required to meet new energy efficiency standards, thus fueling the growth of the HVAC services.
- The HVAC industry is moving towards smart technologies in the United States, as the region is witnessing a high level of IoT integrations. State policies and regulations also govern the demand for HVAC services in the country. For instance, according to Aeroseal, LLC, in the northern U.S., furnaces must have a 90% efficiency rating, but in southern states, only an 80% efficiency rating is required. This indicates that the HVAC services industry tends to be fueled by local and regional regulations.
- Moreover, HVAC systems are finding widespread adoption across the United States, due to the multiple advantages HVAC systems offer, most notably the power-saving techniques. Major factors driving the market include - an increase in construction expenditure across commercial and industrial sectors.
- Besides, companies in U.S. also involved in partnerships, thus evolving the need for new HVAC services requirements in the region. For instance, in Feb 2020, ACI Mechanical and HVAC Sales announced an exclusive partnership with GREE VRF and the Kinghome line of mini-split HVAC systems. The agreement covers all ACI locations in Seattle and Spokane, Washington, Portland, Oregon, and Northern Idaho.
Key Market Trends
Industrial and Commercial Segment to Grow Significantly
- Energy consumption in manufacturing facilities and commercial buildings account for nearly half of all energy consumed in the United States, costing approximately USD 200 billion per year. HVAC services are witnessing growth, owing to the increasing need to install and maintain the existing system's energy efficiency.
- Commercial HVAC units require a significant amount of space and are generally located on the rooftops of buildings, such as shopping malls, hotels, big restaurants, theaters, and commercial offices. Awareness about the impact of the indoor environment on the way people think, feel, and act has triggered the trend of building wellness, thereby impacting the growth of HVAC services in offices, hotels, and other commercial spaces.
- Additionally, the smart HVAC (heating, ventilation, and air conditioning) systems increase penetration in the United States, owing to increasing government regulation regarding energy emissions from commercial buildings across the country. For instance, the US General Services Administration installed a smart building technology in 50 of the federal government's most energy-consuming buildings.
- Services for HVAC systems installed in commercial buildings are being developed to provide full-time on-site operation staff and energy consulting services. This will reduce operational costs and improve the overall HVAC performance in buildings.
- Besides, the overall industrial energy consumption in the United States alone, stood at 13, 264 trillion Btu for seven months in 2019, requiring the country to take considerate measures to reduce the impact on the environment.
New Installations Segment is Expected to Contribute to the Growth
- In recent years, the demand for HVAC services has been on the rise, owing to the rise in construction activities in the residential, commercial, and industrial sectors. According to data from the Associated General Contractors of America, construction expenditure hit an adjusted annual rate of USD 1.329 trillion during the first eight months of 2018.
- According to the U.S. Census Bureau in April 2020, despite the COVID-19 situation, the construction spending in the region remained strong. It was estimated at an adjusted annual rate of USD 1,346.2 billion, with a 3% increase as compared to USD 1,307.1 billion in April 2019.
- Implementing HVAC during construction should comply with several regulations and standards. For instance, adhesives, sealants, mastics, primers, paints, and coatings applied within the building waterproofing envelope should comply with low-emission requirements. Further, the proper maintenance of system components keeps HVACs operating at peak efficiency - implement a maintenance program to ensure that all parts, including motors, pumps, fans, compressors, ducting, and filters, are intact and working effectively.
- New energy-efficient HVAC systems are replacing the traditional HVAC systems, which need installations. New technologies are required in the HVAC system to increase energy efficiency, reduce energy costs, and lower carbon emissions.
- According to the Construct Connect, the estimated value of new private offices and warehouses was about USD 26.4 billion and USD 24.79 billion in that year. The new construction projects across residential, industrial, and commercial industries are expected to create opportunities for the market over the forecast period.
The United States HVAC Services Market is moderately consolidated due to the presence of few vendors providing the services in the United States. The vendors in the market are viewing strategic partnerships and acquisitions as a lucrative path towards expansion, both globally and market presence. Also, the companies in the United States are taking significant steps and making significant investments to expand to various parts of the globe.
- November 2019: EMCOR Group Inc. announced that it completed the acquisition of Batchelor & Kimball Inc., a leading full-service provider of mechanical construction and maintenance services. BKI has designed, installed, constructed, and maintained the HVAC and plumbing systems in a wide variety of projects for all types of non-residential facilities, including hospitals, laboratories, data centers, schools, airports, and office buildings..
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1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 Growth in construction activity
4.3.2 Higher awareness on energy awareness systems
4.3.3 Large installed base of HVAC equipment in the country
4.4 Market Challenges
4.5 HVAC Industry in the US - Current Employment, Number of Enterprises, Major Hotpsots in the US and Consolidated Revenue (including Equipment) Analysis ?
4.6 PESTEL Analysis?
4.7 Impact of COVID-19 on the HVAC Industry ?
4.8 Current Market Landscape?
4.9 Key Base Indicator Analysis (Construction Activity in the US - Major Commercial Segments - Warehouses, Cold Storage units, etc. - Residential Construction)?
5.1.2 Industrial and Commercial
5.2 By Type
5.2.1 New Installations
6.1.1 EMCOR Services
6.1.2 Southland Industrial Energy
6.1.3 J&J Air Conditioning Services
6.1.4 United Mechanical
6.1.5 ACCO Engineered Systems
6.1.6 National HVAC Services
A selection of companies mentioned in this report includes:
- EMCOR Services
- Southland Industrial Energy
- J&J Air Conditioning Services
- United Mechanical
- ACCO Engineered Systems
- National HVAC Services