Overview

Can't stand the heat: Rising import competition is reducing margins and driving industry exits

IBISWorld’s Heating, Cooling and Ventilation Equipment Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Some domestic firms have outsourced production to Asia to cut costs and improve margins
  • Demand from multi-unit apartment construction is projected to increase over the next five years
  • Demand from multi-unit apartments is projected to increase over the next five years

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    Industry Analysis & Industry Trends

    The Heating, Cooling and Ventilation Equipment Manufacturing industry has benefited from increased non-residential and multi-unit apartment and townhouse construction activity, and stronger demand for heating and cooling equipment over the past five years. Industry revenue is expected to increase at an annualised 1.1% over the five years through 2016-17, to $1.7 billion. This includes an estimated 5.4% drop in 2016-17, due to a large projected fall in current year multi-unit and townhouse construction, and weaker demand from commercial and industrial building construction over the year. In contrast, industry revenue surged by an estimated 26.7% in 2014-15, due to high demand growth from commercial building construction and supermarkets...

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    Industry Report - Starting a New Business Chapter

    Barriers to entry for new firms are high and include capital and technical requirements, market knowledge, branding, and customer relationships. Technical requirements are becoming increasingly important in the industry due to the growing focus on energy efficiency and noise pollution. Although start-up costs can be quite high, once new firms are established capital expenditure represents a moderate proportion of total costs, limiting entry barriers.

    Developing knowledge of markets and developing relationships with customers are important factors when entering the market. Current firms in the industry will already have an established market and brand power. Therefore, it can be difficult for new entrants to compete against strong existing relationships. Lar..

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    Additional Insights for the Heating, Cooling and Ventilation Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heating, Cooling and Ventilation Equipment Manufacturing Industry are

  • Economies of scope
  • Effective quality control
  • Having marketing expertise
  • IBISWorld analysts also discuss how external factors such as Demand from non-residential building construction and Demand from air conditioning and heating services in the Heating, Cooling and Ventilation Equipment Manufacturing industry impact industry performance..

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    Industry Products

    What is the Heating, Cooling and Ventilation Equipment Manufacturing Industry?

    Companies in the industry manufacture commercial or industrial HVAC (heating, ventilation and air conditioning) equipment, including installed space heaters and refrigeration products. Air conditioning systems manufactured in the industry are of commercial strength and range from eight kilowatts to over 5,000 kilowatts. These exclude motor vehicle air conditioners. Firms that manufacture household and automotive air conditioning and heating units are not included in the industry.

    Industry Products
    Commercial air conditioning units
    Commercial refrigeration equipment
    Commercial heating equipment
    Commercial ventilation systems
    Commercial reverse-cycle air conditioners
    Other commercial HVAC equipment
    Industry Activities
    Air conditioning equipment
    Air conditioning compressors and parts (excluding motor vehicles)
    Beverage cooling and dispensing equipment
    Coolroom refrigeration plant
    Refrigeration equipment
    Solar water heating system
    Space heating systems
    Refrigerated vending machine
    Water cooler
    Water heater

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from non-residential building construction
  • Demand from air conditioning and heating services
  • Domestic price of iron and steel
  • Trade-weighted index
  • Demand from multi-unit apartment and townhouse construction

  • Current Performance
  • Revenue and markets
  • Maintenance and climate change
  • International trade
  • Profit and establishments
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream construction activity
  • Energy efficiency
  • International trade
  • Profit and consolidation
  • Table: Heating, Cooling and Ventilation Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heating, Cooling and Ventilation Equipment Manufacturing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Multi-Unit Apartment and Townhouse Construction
  • Air Conditioning and Heating Services
  • Commercial and Industrial Building Construction
  • Institutional Building Construction

  • Key Selling Industries
  • Iron and Steel Casting and Forging
  • Iron Smelting and Steel Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Commercial air conditioning units
  • Commercial refrigeration equipment
  • Commercial heating equipment
  • Commercial ventilation systems
  • Commercial reverse-cycle air conditioners
  • Other commercial HVAC equipment
  • Chart: Heating, Cooling and Ventilation Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other non-residential buildings
  • Multi-apartment buildings
  • Office buildings
  • Retail and wholesale buildings
  • Hospitals and other medical centres
  • Educational buildings
  • Warehouses and factories
  • Other industrial buildings
  • Chart: Major Market Segmentation for the Heating, Cooling and Ventilation Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Heating, Cooling and Ventilation Equipment Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating, Cooling and Ventilation Equipment Manufacturing Industry

  • Industry Globalization
    Major Companies
    Daikin Australia Pty LtdRheem Australia Pty Limited
  • Table: Daikin Australia Pty Ltd - financial performance
  • Table: Rheem Australia Pty Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Heating, Cooling and Ventilation 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
    Key Statistics
    Table: Industry Data for the Heating, Cooling and Ventilation Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Compressor
  • A part of an air conditioner that circulates refrigerant through the unit.
  • Condenser
  • A part of an air conditioner that expels heat from the unit.
  • Eer
  • Stands for energy efficiency ratio, which measures the level of output (in British thermal units per hour) to the level of input (watts).
  • Evaporator
  • A part of an air conditioner that extracts heat from the air.
  • Hcfc
  • Stands for hydrochlorofluorocarbons, which is a common type of refrigerant used in air conditioning systems and is commonly known as HCFC-22.
  • Hvac
  • Heating, ventilation and air conditioning, which refers to the systems and technology for developing indoor environmental comfort through temperature and humidity control.
  • Meps
  • Minimum Energy Performance Standards, as defined by the energy efficiency ratio.
  • Why buy this report?

    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, Cooling and Ventilation 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, Cooling and Ventilation 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, Cooling and Ventilation 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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