After a brief downturn surrounding the pandemic, the HVAC world is poised to bounce back better than ever.
There are a number of key trends that are fueling growth in the industry, with energy-efficiency demands and increased new building construction at the forefront. Now more than ever, it’s important for HVAC professionals to look toward the future in the soon-to-be $83B industry.
Precision Converting is a trusted 3M partner with nearly 35 years of experience in the HVAC industry. Read on to learn about the current state of the industry, common problems and solutions we come across on a daily basis, and the Precision Converting difference.
HVAC Trends and Projections
While the HVAC industry didn’t come to a complete halt in 2020, the COVID pandemic proved to be a challenging time. A worldwide supply chain crisis limited access to vital parts and components, leaving customers upset, and companies scrambling to meet demand.
As we approach 2023, the industry has steadily rebounded on the back of a nearly recovered supply chain and the elimination of social distancing mandates. According to industry information from ACCA and Mordor Intelligence, industry revenue is predicted to hit nearly $83 billion by 2026 — compared to just $58 billion in 2020 — with a compound annual growth rate (CAGR) of 6.1%. Moving forward, there are a number of trends fueling growth and innovation in the HVAC industry for years to come:
Energy Efficiency Demands: Sweeping governmental regulations across the country are calling for more energy-efficient consumer appliances and equipment. Heating and cooling account for roughly 50% of an average household’s electricity usage, and companies in the HVAC industry will need to prioritize energy-saving innovation in their new product offerings and replacement equipment.
Decarbonization: From appliances to airlines, the world’s top companies and governments are pushing for a decarbonization effort that will shape all industries, HVAC included. Going hand in hand with energy efficiency, the pressure will be on HVAC manufacturers to reduce the carbon footprint of their products.
Growing Construction: Data published by the U.S. Census Bureau and the Bureau of Labor Statistics found that yearly construction spending rose by roughly $500B from 2010 to 2018, and is expected to reach $1.58 trillion by 2028. Homes and apartments need HVAC systems, and the massive increase in new construction spells nothing but good things for the industry.
Supply Chain Rebound: In the short term, the worldwide supply chain is still recovering from COVID-caused disruptions. At the moment, general logistics is still a work in process while crucial HVAC components such as electrical chips continue to be in short supply. However, the future looks bright for a rebounding global supply chain, and in the next few years, it is expected to be back better than ever with improved systems and processes that will no doubt fuel HVAC industry growth.
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