Hot and cold: Divergent trends in downstream markets have constrained revenue growth

Contractors in the Air Conditioning and Heating Services industry are install, repair and maintain air conditioning, heating, ventilation and refrigeration equipment in buildings and industrial structures. Most of the industry's revenue is derived from installation and maintenance work in the non-residential property market. However, the apartment construction market has represented an increasingly important source of demand. Over the past five years, the industry's performance has been contained by subdued demand for installations on institutional buildings, such as schools and hospitals, and a sharp downward trend in demand from infrastructure construction.Industry revenue is expected to increase at a marginal annualised 0.4% over the five years through 2017-18, to reach $7.7...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
0.4%
Forecast Growth 18-23
Profit
Employment
18,150
Businesses
6,260
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Falling installation work on apartments will constrain the industry's performance
  • Many small-scale firms have struggled to find work in the single-unit housing market
  • An upswing in residential building construction is projected to support growth
  • Industry Report - Industry Products Chapter

    Industry firms install air conditioning and heating systems, and conduct ongoing maintenance of these units. Firms operating in the industry also install commercial refrigeration systems.Air conditioning and heating system installationThe industry is estimated to derive almost half its revenue from installing air conditioning and heating systems in residential and non-residential buildings, and engineering structures. Divergent trends in demand from downstream building markets has contributed to this segment remaining stable as a share of industry revenue over the past five years. In the current year, rising installation activity on large-scale commercial buildings has outweighed installation work being scaled back in the apartment and housing markets...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

    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 equipment, as well as refrigeration and air conditioning equipment. They also install air conditioning duct work.

    Industry Products
  • Air conditioning and heating system installation
  • 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 heaters installation
  • Refrigeration equipment installation
  • Temperature controlled structures 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 industry and other non-building 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
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry profit widens
  • Construction to rebound
  • Energy-efficient production
  • 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
  • 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
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total building construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hvac
  • Heating, ventilation and air conditioning.
  • Nabers
  • Stands for the National Australian Built Environment Ratings System, which 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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