Hot and cold: Mixed demand from downstream markets has constrained industry revenue growth

Operators in the Air Conditioning and Heating Services industry install, repair and maintain air conditioning, heating, ventilation and refrigeration equipment in buildings and industrial structures. Most of the industry's revenue derives from installation and maintenance work in the non-residential property market. However, the apartment construction market has represented an increasingly important source of demand. The industry's performance has been constrained over the past five years by subdued demand for installations on institutional buildings, such as schools and hospitals, along with declining demand from the infrastructure market.Industry revenue is expected to increase at an annualised 0.7% over the five years through 2018-19, to $8.3 billion...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 14-19
0.7%
Forecast Growth 19-24
Profit
Employment
16,520
Businesses
6,570
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The current slump in residential building has constrained the industry's performance
  • Many small firms have struggled to find installation work in the traditional housing market
  • Greater demand from residential building construction is projected to support industry profitability
  • Industry Report - Industry Key Buyers Chapter

    The Air Conditioning and Heating Services industry has low market share concentration. The four largest players account for less than 10% of industry revenue in 2018-19. The industry's largest players tend to service commercial and industrial markets, and therefore receive ongoing contracts for continued maintenance and servicing of air conditioning and heating equipment. Households remain a large market for the air conditioning and heating operators. However, small-scale firms focusing on localised areas tend to service this market.The fragmented structure of the industry is evident from the prevalence of small-scale businesses. The vast majority of industry enterprises employ fewer than 20 people (97.4%), including a significant share of non-employing businesses (41.0%),...purchase to read more.

    Additional Insights for the Air Conditioning and Heating Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Air Conditioning and Heating Services Industry are

  • Maintenance of excellent customer relations
  • Ability to compete on tender
  • Carrying out all necessary maintenance to keep facilities in good condition
  • IBISWorld analysts also discuss how external factors such as Demand from commercial and industrial building construction and Demand from residential building construction in the Air Conditioning and Heating Services industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Air Conditioning and Heating Services Industry?

    Industry contractors and firms specialise in installing household, industrial and commercial heating, refrigeration and air conditioning equipment. Industry operators also install air conditioning duct work.

    Industry Products
  • Air conditioning and heating system installation
  • Air conditioning and heating system maintenance and repair
  • Refrigeration system installation
  • Industrial ventilation systems installation
  • Industry Activities
  • Air conditioning duct work installation
  • Air conditioning equipment installation
  • Coolroom refrigerator installation
  • Freezer room construction
  • Heating equipment installation
  • Oil heater installation
  • Refrigeration equipment installation
  • Temperature-controlled structure installation
  • Ventilation equipment installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from commercial and industrial building construction
  • Demand from residential building construction
  • Demand from heavy and civil engineering construction
  • Demand from institutional building construction
  • Electricity service price
  • Real household discretionary income

  • Current Performance
  • Profit and competition
  • Key building trends
  • Electricity prices and temperature trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit trends
  • Construction to rebound
  • Energy-efficient products
  • Electricity service price
  • Table: Air Conditioning and Heating Services Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • House Construction
  • Heavy Industry and Other Non-Building Construction
  • Liquor Retailing
  • Commercial and Industrial Building Construction
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Electrical Services
  • Engineering Consulting
  • Household Appliance Manufacturing
  • Sheet Metal Product Manufacturing
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Air conditioning and heating system installation
  • Air conditioning and heating system maintenance and repair
  • Refrigeration system installation
  • Industrial ventilation systems installation
  • Chart: Air Conditioning and Heating Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial and industrial builders and property developers
  • Households and residential building contractors
  • Institutional building contractors and property managers
  • Infrastructure developers and mining companies
  • Chart: Major Market Segmentation for the Air Conditioning and Heating Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Subcontractor payments
  • Motor vehicle expenses
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Air Conditioning and Heating Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Air Conditioning and Heating Services 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 Air Conditioning and Heating Services 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 Air Conditioning and Heating Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hvac
  • Heating, ventilation and air conditioning.
  • Nabers
  • The National Australian Built Environment Ratings System is a performance-based environmental impact rating system for existing buildings.
  • Ventilation
  • The process of exchanging or replacing air within a building to control temperature or remove heat, smoke, odours, dust, moisture and airborne bacteria.
  • What Our Customers Say

    Why buy this report?

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

    Contact Us

    Want to speak to a representative? Call us.

    clear