INDUSTRY REPORT
1 . Seasonality . Business in the HVAC industry is seasonal . While summer comes with high demand for AC units , winter drives the sale of heating solutions . Providers of maintenance services experience similar fluctuations since the number of customer calls varies with seasons . This is making business growth a significant challenge , especially for smaller players .
2 . Increased competition . The industry ’ s growth is attracting new players and the competition is becoming stiff . Service providers are the worst affected since most of them rely on brand loyalty for growth . Whereas some businesses are getting stuck with low prices , others are differentiating themselves by providing exceptional customer experience .
3 . Skills shortage . Baby boomers are retiring and creating job opportunities . The younger workforce is , however , reluctant to fill those positions resulting in questions about the industry ’ s future . The talent crunch , said Mordor Intelligence , has also led to some players settling for improvements to current systems rather than disruptive solutions .
However , the HVAC industry is also witnessing change . The market has seen increasing levels of mergers and acquisitions .
“ Lower-Middle-Market ( LMM ) companies are struggling and more profitable ones are buying them out to expand their customer base and increase market share . Some big players are also joining forces to establish more significant dominance in the market and to increase profitability ,” explained Mordor Intelligence .
“ Smart HVAC systems are also coming to the fore as convenience and the cost of energy drive the uptake of smart systems . The top smart solutions being incorporated into HVAC systems include learning thermostats ; voice-controlled systems ; motion-activated ACs ; remote temperature adjustment ; sensors to monitor system performance ; alerts for systems maintenance ; system access / control through mobile apps and automatic submission of work orders ,” it continued .
To solve problems with poor IAQ , manufacturers are also fitting UV Germicidal light into their systems . While some HVAC manufacturers are providing this as an additional service , there are also DIY solutions available from UV-C light bulb manufacturers .
The industry is also using customer experience as a key differentiator
The industry is also using customer experience as a key differentiator . HVAC consumers now have high expectations , and these influence their purchase decisions . Businesses are adapting by embracing CRM systems and analytics to understand and cater to consumer needs . Businesses are also increasingly undertaking market research to gain insight into consumer preferences and make better business decisions .
In conclusion
“ Innovation is the key factor behind booming growth in the HVAC market research industry . Smart thermostats , energy-efficient heating and cooling systems , and air purifiers are revolutionising this sector with their cost savings , efficiency gains and upgraded comfort levels . To meet customer demand for eco-friendly alternatives to traditional products , companies are funnelling immense investments into R & D for advanced HVAC components that make a difference ,” summarised Mordor Intelligence .
“ HVAC market research is rapidly advancing with the widespread adoption of digital technologies such as cloud computing and Big Data analytics . By leveraging these tools , businesses can collect and analyse extensive amounts of data which enables them to maximize efficiency while reducing energy costs . Additionally , combining HVAC systems with IoT-enabled smart home devices will provide an improved user experience that is both intuitive and seamless ,” it concluded . n
30 | ismr . net | ISMR November 2023