The HVAC industry in the U.S. is booming! According to research by IBISWorld, total revenues in 2019 surpassed $97 billion on the strength of more than 112,000 HVAC businesses of all sizes — from small local contractors to large multi-state enterprises, who collectively employ over 518,000 people right here in the U.S.
Between 2014 and 2019, the HVAC industry has enjoyed a 2.4% CAGR — and there is no sign of a slowdown. On the contrary, a report from Grand View Research predicts that the U.S. HVAC industry will grow at a 5.7% CAGR clip through 2025, at which time it will generate $136.5 billion in annual revenues. Says the report: “Increasing urbanization and emergence of energy efficient heating and ventilation systems is the driving force for the growth of the market.”
The good news is that more homeowners and businesses are investing or re-investing in HVAC systems, maintenance, and other related products and services. However, the bad news is that virtually all HVAC companies face fierce and relentless competition. Unlike other sectors where a small number of players command a large portion of the market, in the HVAC industry, the nation’s biggest firm accounts for only 5 percent of the industry’s overall revenue. While this is beneficial for customers since it means there are plenty of choices, it is a massive challenge for HVAC companies that struggle to ensure they stand out and apart from the crowd — while at the same time, operate in an efficient and customer-focused manner that protects margins and generates repeat business and referrals.