As a magazine focused on industry leaders and HVACR management, we continuously tackle change, trends, and product popularity. However, the latest trends, while not all new, are being hailed as significant because of the explosive growth projected in the HVACR industry. What was once considered fads or more niche, based on region or affluence – are now becoming mainstream customer demands. And according to all projected forecasting, there is no expected slowdown in growth into 2030.
HVACR Global Market Growth Sees $367 Bill. by 2030
According to statistics cited by MediaBoom and originally published by Statista, the HVACR industry will continue to experience a boom over the next 10 years with no expected slowdown. In fact, according to an article titled, Trends in the HVAC Industry – Prediction Data Driven in June, Statista, projected growth in the HVACR global market could reach $367.5 billion by 2030. Given this rapid growth, let’s explore what you can expect as small business owners in terms of trends and projections, into 2030.
As You Change, Communicate the Changes
As HVACR owners, it is expected that you stay one step ahead of the latest products. You probably already work with the most innovative vendors and distributors to get the best and newest to your customers. However, it’s important to know what the typical HVACR customer is now trending toward and also, not take for granted that your customers are already in step or that they know what you now offer. Think as your customer might and then communicate any improvements or upgrades in products or technology to them. Remind them that your company is always one step ahead.
Make sure that your technicians educate and communicate regularly, especially to your long-term customers. As the industry grows, be transparent with your loyalists so they know of changing popularity, increased demand, and most importantly, your reasons for changing products or prices, especially when it comes to a move toward energy efficiency or the implementation of IoT.
Following are some of the top industry predictions about how HVACR business owners can take advantage of the projected industry expansion and product demand expected to continue into 2030.
1. Smart Homes are Smart Businesses
According to the SBE and as reported as of June 2023 Smart HVAC Homes are the number one trend. Smart home systems are the first words on homeowners’ lips these days. As the standout want, smart “everything” is the one trend that isn’t expected to slow down. As smart gets smarter and IoT works in tandem with smart home systems, smaller businesses are struggling to stay ahead of this trend. Homeowners now demand security systems, HVAC, and HVAC monitoring all in one centrally controlled app. That leads to the next very popular trend.
2. Internet of Things (IoT) – Making Smart Homes, Smarter
It’s no surprise that with 33M homes using smart thermostats in the U.S. that the trend is growing with 20% of spending increasing on climate control and hasn’t slowed down since 2016.
IoT- enabled HVAC units and remote access allow homeowners and residential managers to operate connected systems through Wi-Fi and mobile applications. But specifically, for the HVACR business, IoT allows real-time information about the condition of the systems, alerting techs and customers of potential issues and reducing long-term costs. If you are an HVACR owner, you can utilize this added benefit if you have the technology by upselling any smart thermostat option. Again, it may require an investment upfront (both for you and the client) but it will add savings over the long term for the homeowner and profit for business.
3. Geothermal HVAC Systems - Commercial Popularity Exploding
Geothermal HVAC is another system that requires a little finessing to convince the dyed-in-the-wool type of customer. There is a significant upfront cost to install Geothermal HVAC, but that is why your intention should always include educating as well as sales. Customers, especially for commercial heating and air, are increasingly discovering and demanding geothermal for its energy efficiency and significant long-term savings. According to The Hill, and author Charles Copeland, president and CEO of New York City-based Goldman Copeland Consulting Engineers:
Heat waves are more common, longer lasting, and more extreme. That puts added pressure on the electricity grid in America and requires us to think about underutilized sources of renewable energy.
4. DeVAP HVAC – Don’t Assume Customers Know
DeVAP HVAC is the slow-burn trend. As a business owner, you will be well aware of DeVap systems. It’s not new, but don’t make the mistake of assuming customers know. While DeVap has exploded in popularity in the last ten years, it is in the last two years that it is being billed as the Future of Air Conditioning because of the pressing customer and regulatory demand for environmentally safe systems. Still, some customers are just now leaning in.
Take the chance to educate and upsell if you know a trend like this is heating up. Mention it within the context of the new zeitgeist, i.e., energy efficiency, environmentally safe products, etc. Let customers know that DeVap uses no environmentally harmful fluids, only water, and concentrated salt water, and then remind them of the added benefit of cost savings.
We know that regionally, the South and California are the biggest markets for HVACR because of the climate. But recent heat waves everywhere are requiring more attention to energy efficiency. Stay ahead of the growth and be more competitive by educating your customers on the options, given that this trend is projected to grow in popularity.
5. Construction Growth Forcing HVACR VR Training & Innovative Recruiting
Speaking of getting ahead, the industry is facing an even more critical labor shortage in the future with construction growth purported to boom in the next ten years. Smart business owners will recognize the opportunity in this crisis.
According to the report titled, HVAC System Market Size [2023-2030] worth USD 228.74 Billion | Fortune Business Insights, the global HVAC system market size is projected to reach USD 228.74 billion by 2030 from its value of 157.71 billion in 2023, at CAGR of 5.5% during the forecast period. But also, according to the report…
Growing construction activities that include the construction of theme parks, sports, hotels, government, and private offices… renovation of buildings and the low availability of skilled labor may restrain the HVAC system market growth.
At HVACR Business, we have talked a lot about training and specifically Virtual Reality training. And apparently, we should keep talking about it because according to experts, more and more owners are being forced to take note.
The industry must adapt and start to recruit and train differently if we are to keep up with the demand. While VR training isn’t new, a lot of HVACR companies are legacy companies and still functioning on pen and paper. While the industry is slow to change, this is an opportunity for newer companies, or legacy heirs who are rebranding, to jump in the gap and make a difference.
In 2022, House Call Pro, said, “New technology, such as artificial intelligence and virtual reality, is changing the heating and air conditioning industry in every way. To keep up, HVAC professionals need to understand how customers are using this new technology.” And we also wrote about the need for the industry to come up with new ways of training in an article by Dan Clapper, Effective Innovative Training to Combat the Labor Shortage, where he talked about VR and emphasized, “Not only is this kind of flexible, customized online training the most efficient way to match educational material with the range of experience and learning styles, but it is also a critical tool for connecting with young talent.”
For any information in this article or more on any past HVACR Business articles, you can find it all in our digital archives. And be sure to subscribe now to get all this and more and to gain exclusive access to more industry news and product information in our monthly newsletters.
Heather Langone is the Managing Editor of HVACR Magazine. For comments and feedback, email firstname.lastname@example.org.
1 MediaBoom, Trends in the HVAC Industry – Predictions Data Driven in June
2 Statista, Projected market size for heating, ventilation, and air conditioning (HVAC) worldwide from 2019 to 2030
3 SBE, HVAC Industry Trends You Need To Know in 2023, (June 2023)
4 IPropertyManagement, Home Improvement Industry Statistics (May 2023)
5 The Hill, Charles Copland, (Sept. 2022)
6 Fortune Business Insights | HVAC System Market Size [2023-2030] worth USD 228.74 Billion | Fortune Business Insights, (June 2023)