Hot in here: Rising exports and new energy-efficient standards will benefit industry operators

The Heating and Air-Conditioning Equipment Manufacturing industry in Canada manufactures heating equipment, commercial refrigeration equipment, air conditioners, commercial and industrial fans, blowers, air purification equipment and electric and nonelectric heating and refrigeration equipment. Collectively, these goods are known as heating, ventilation, air-conditioning and refrigeration (HVACR) equipment. Over the five years to 2019, downstream growth from the Canadian residential market, rising exports and new energy-efficient standards benefited industry operators. Residential and commercial construction largely drives demand for HVACR equipment, as these units are common in new homes and commercial venues. Moving forward, industry revenue is expected to expand slowly...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
8.4%
Forecast Growth 19-24
Profit
Employment
18,428
Businesses
671
Market Share of Companies

Industry Threats & Opportunities

  • Growth in the relative value of the Canadian dollar will temper export growth compared with the current five-year period
  • The industry exhibits a high and increasing level of international trade
  • Demand for industry services will be tempered by a slowdown in trade
  • Industry Report - Industry SWOT Analysis Chapter

    IBISWorld analysis indicates that the Heating and Air-Conditioning Equipment Manufacturing industry in Canada is in the mature phase of its life cycle. Over the 10 years to 2024, industry value added (IVA), which measures an industry's contribution to the Canadian economy, is projected to increase at an annualized rate of 5.3%. In comparison, Canadian GDP is forecast to rise at an annualized rate of 1.7% during the same period. Normally, a faster IVA growth rate in comparison with GDP indicates that an industry is in a growth phase. However, several characteristics of the industry point to signs of its maturity...purchase to read more.

    Additional Insights for the Heating & Air-Conditioning Equipment Manufacturing Industry

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

  • Ability to accommodate environmental requirements
  • Control of distribution arrangements
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Value of nonresidential construction in the Heating & Air-Conditioning Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Heating & Air-Conditioning Equipment Manufacturing Industry?

    This industry manufactures heating equipment, commercial refrigeration equipment, air conditioners, commercial and industrial fans, blowers, air purification equipment and electric and nonelectric heating and refrigeration equipment. Marine and motor vehicle systems are excluded, as are industrial process furnaces and small household appliances.

    Industry Products
  • Commercial heating and furnace equipment
  • Residential heating and furnace equipment
  • Commercial air and refrigeration equipment
  • Residential air and refrigeration equipment
  • Industry Activities
  • Manufacturing air-conditioning, warm-air heating and refrigeration equipment
  • Manufacturing heating equipment, except warm-air furnaces
  • Manufacturing commercial and industrial fans and blowers
  • Manufacturing air purification equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • Value of nonresidential construction
  • Value of residential construction
  • Demand from heating and air-conditioning contractors

  • Current Performance
  • Downstream markets start strong
  • The importance of trade
  • Industry structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Strength in downstream demand
  • Trade movements
  • Energy conservation and regulations
  • Industry landscape
  • Table: Heating & Air-Conditioning Equipment Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Plumbing, Heating & Air-Conditioning Equipment Wholesaling in Canada
  • Commercial Building Construction in Canada
  • Municipal Building Construction in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Electrical Equipment Manufacturing in Canada
  • Ferrous Metal Foundry Products in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Navigational Instrument Manufacturing in Canada
  • Screw, Nut & Bolt Manufacturing in Canada
  • Valve Manufacturing in Canada

  • Products & Services
  • Residential heating and furnace equipment
  • Commercial air and refrigeration equipment
  • Residential air and refrigeration equipment
  • Other
  • Commercial heating and furnace equipment
  • Chart: Heating & Air-Conditioning Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Residential and commercial construction markets
  • Remodelling and replacement markets

  • Major Markets
  • Replacement and remodelling markets
  • Exports
  • Residential and commercial construction
  • Food service and storage
  • Chart: Major Market Segmentation for the Heating & Air-Conditioning Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    PurchasesProfitWage costsOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Heating & Air-Conditioning Equipment Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating & Air-Conditioning Equipment Manufacturing Industry

  • Industry Globalization
    Nortek Inc.,
  • Table: Nortek Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heating & Air-Conditioning Equipment Manufacturing 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 Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Canadian-dollar effective exchange rate index (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Chlorofluorocarbons
  • A common type of refrigerant used in air-conditioning systems that is being phased out because it contributes to depleting the ozone layer; usually abbreviated as CFCs.
  • Hvacr
  • An abbreviation for heating, ventilation, air-conditioning and refrigeration equipment.
  • Hydrochlorofluorocarbons
  • A type of CFC, known in the industry as HCFC-22, that is considered more environmentally friendly but is still being phased out.
  • Refrigerant
  • A chemical compound or coolant used to achieve low temperatures in air-conditioning and refrigeration equipment.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Heating & Air-Conditioning Equipment Manufacturing 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 Equipment Manufacturing:
    • 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 Equipment Manufacturing 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 Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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