HVACR Equipment Manufacturers


Buy Now For $400
View Sample Report Pricing Options

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,400 HVAC and refrigeration (HVACR) equipment manufacturers in the US produce and sell heating, ventilation and air conditioning systems for residential and nonresidential buildings, as well as commercial and industrial refrigeration and freezer equipment. Firms may also sell commercial and industrial fans and blowers and air purification equipment.

Dependence on Construction Activity

Demand for HVAC and refrigeration equipment is driven by new residential and commercial construction activity.

Energy Efficiency Regulations

HVACR equipment manufacturers are forced to keep up with evolving regulations to promote energy efficiency.

Industry size & Structure

The average HVAC and refrigeration equipment manufacturer operates a single plant, has 105 employees, and generates about $35 million in annual revenue.

    • The HVAC and refrigeration equipment manufacturing industry consists of about 1,400 companies, employs 148,000 workers and generates $49 billion annually.
    • The industry is somewhat concentrated, as the 20 largest companies represent 53% of industry revenue.
    • Large companies include Carrier Corporation, Goodman (part of Daikin Group of Japan), Trane (part of Ingersoll-Rand), Johnson Controls, Lennox International, and Rheem.
                                Industry Forecast
                                HVACR Equipment Manufacturers Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Jan 17, 2025 - Nonresidential Building Construction Planning Improves
                                • The Dodge Momentum Index (DMI) increased 10.2% in December 2024 to 212 (2000=100), up from the revised November reading of 192.3. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component improved by 14.2%, and the institutional portion increased by 2.5%. Dodge’s associate director of forecasting, Sarah Martin, said, “Commercial activity rebounded strongly in December, thanks to a re-acceleration in data center and warehouse planning activity. Overall, the strong performance of the Momentum Index this past year is expected to support nonresidential construction spending throughout 2025.”
                                • In the third quarter of 2024, the volume of outstanding residential acquisition, development, and construction (AD&C) loans made by FDIC-insured institutions declined for the third quarter in a row, according to the National Association of Home Builders (NAHB). The value of residential AD&C loans in Q3 2024 was $490.7 billion compared to $495.8 billion in Q2 2024. The volume of residential AD&C loans is expected to rise in 2025 as the Federal Reserve continues its monetary easing policies, but potential headwinds include the federal deficit and economic uncertainty.
                                • According to some industry insiders’ estimates, the 2024 housing market may have been the slowest in nearly 30 years as high mortgage rates and home prices combined with extremely low housing inventories have kept homeowners locked in place and would-be homebuyers priced out of the market, according to The New York Times. The National Association of Realtors estimates that four million homes were sold in 2024, marking the second straight year of historically weak activity, and the slowest home sales since 1995. Market observers note that the housing crisis is a product of weak supply. Builders have struggled amid lingering pandemic-era problems, including high borrowing, labor, and materials costs. Freddie Mac estimates the housing shortage equals about 3.7 million homes. The outlook for 2025 remains uncertain as home prices and mortgage rates are expected to remain stubbornly high.
                                • Multifamily developers’ confidence was mixed in the third quarter of 2024, according to the National Association of Home Builders (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose two points in Q3 2024 to 40 compared to the third quarter of 2023. The Multifamily Occupancy Index decreased by seven points to 75 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, regulations, and land availability. The NAHB forecasts that multifamily construction activity will remain weak for about another year amid a significant volume of projects under construction. Multifamily construction is expected to return to more robust growth near the end of 2025.
                                Get A Demo

                                Vertical IQ’s Industry Intelligence Platform

                                See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                Build valuable, lasting relationships by having smarter conversations -
                                check out Vertical IQ today.

                                Request A Demo