Heating up: Downstream construction demand and growing environmental trends will drive growth

The Heating and Air-Conditioning Contractors industry in Canada benefited from a strong expansion in construction activity experienced early on over the five years to 2017; however, following a construction activity dip in 2013, industry revenue growth slowed. Moving forward, stronger downstream demand and trends toward energy efficiency are projected contribute to industry demand growth.Industry revenue is forecast to rise at a relatively slower rate over the five years to 2022 compared with the previous five-year period...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
1.8%
Forecast Growth 17-22
Profit
Employment
54,417
Businesses
10,742
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Government energy efficiency incentives are expected to benefit HVAC contractors
  • Nonresidential construction experienced a strong boost through the Economic Action Plan
  • Growing demand for automated systems from commercial clients will be a crucial revenue driver
  • Industry Report - Industry Products Chapter

    HVAC installationsHeating, ventilation and air-conditioning (HVAC) installations are expected to account for 62.3% of industry revenue in 2017. The turbulent decline in new construction activity in 2013 led HVAC installation work to shrink as a share of revenue for that year but it has since then recovered ground. Maintenance services, which are somewhat more resistant to economic fluctuations, have remained an important share of revenue throughout this period.The majority of HVAC installations are associated with new building construction, comprising 51.7% of industry revenue in 2017. Additionally, upgrades and replacement services in existing buildings also make up this industry segment and account for 10.6% of revenue. Bus...purchase to read more.

    Additional Insights for the Heating & Air-Conditioning Contractors Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heating & Air-Conditioning Contractors Industry are

  • Having a good reputation
  • Ability to compete on tender
  • Management of seasonal production
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of nonresidential construction in the Heating & Air-Conditioning Contractors industry impact industry performance..

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    What's in this report

    What is the Heating & Air-Conditioning Contractors Industry?

    This industry installs and services heating, ventilation, air-conditioning and refrigeration equipment. The work performed includes new installations, additions, alterations, maintenance and repairs. Plumbing-related information is not covered in this report (IBISWorld report 23822bCA).

    Industry Products
  • HVAC maintenance and repairs
  • Refrigeration installation, maintenance and repairs
  • New construction HVAC installations
  • Existing structure HVAC installations
  • Industry Activities
  • Air-conditioning system installation (except window units)
  • Air vent installation
  • Furnace conversions (i.e. from one fuel to another)
  • Refrigeration system (e.g. commercial, industrial or scientific) installation
  • Heating, ventilation and air-conditioning (HVAC) contractors
  • Furnace humidifier installation
  • Natural gas fireplace installation
  • Duct work (e.g. cooling, dust collection, exhaust, heating and ventilation) installation
  • Ventilation equipment installation
  • Heating and ventilation system component (e.g. air registers, diffusers and filters) installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of nonresidential construction
  • Per capita disposable income
  • Residential renovation expenditure
  • Value of residential construction
  • Price of electric power

  • Current Performance
  • Industry rebounds
  • Industry landscape
  • Turbulent year
  • Chart: Revenue Growth

  • Industry Outlook
  • Upgrades surge
  • Effective incentives
  • Table: Heating & Air-Conditioning Contractors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heating & Air-Conditioning Contractors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Heavy Engineering Construction in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Construction & Forestry Equipment Wholesaling in Canada
  • Electricians in Canada
  • Hardware Stores in Canada
  • Plumbing, Heating & Air-Conditioning Equipment Wholesaling in Canada

  • Products & Services
  • New construction HVAC installations
  • HVAC maintenance and repairs
  • Existing structure HVAC installations
  • Refrigeration installation, maintenance and repairs
  • Chart: Heating & Air-Conditioning Contractors Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential building market
  • Manufacturing and industrial buildings
  • Other
  • Office buildings
  • Retail and storage spaces
  • Healthcare and institutional buildings
  • Educational buildings
  • Chart: Major Market Segmentation for the Heating & Air-Conditioning Contractors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Heating & Air-Conditioning Contractors

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating & Air-Conditioning Contractors Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Heating & Air-Conditioning Contractors Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heating & Air-Conditioning Contractors Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Heating, Ventilation And Air-Conditioning (Hvac)
  • A system used to control the temperature, humidity and air quality in buildings.
  • Nonemployer
  • An establishment without payroll employees, typically a sole proprietorship or partnership.
  • Refrigeration
  • A system used to store perishable items, such as food, medicine and chemicals.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Heating & Air-Conditioning Contractors market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heating & Air-Conditioning Contractors:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heating & Air-Conditioning Contractors market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heating & Air-Conditioning Contractors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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