Market Overview
HVAC Services
- The U.S. HVAC services market is projected to generate $19.8 billion in revenue in 2024, growing at a CAGR of 6.6% and expected to reach $27.2 billion by 2029. The sector’s growth is driven by ongoing demand for HVAC repair and maintenance services, as well as the installation of new systems. This growth aligns with the forecasted increase in new construction in the U.S., which is supported by recent rate cuts that are lowering borrowing costs and encouraging investment in residential and commercial construction.
- In 2024, the HVAC services sector has seen significant consolidation, with Florida and Texas leading the way, followed closely by the broader Southeast. As consolidation continues, there will be fewer privately held companies available for acquisition. Consequently, service providers in states with lower consolidation will increasingly attract interest from larger providers in neighboring states seeking to expand their footprint.
Industry Snapshot (Labor-Focused)
Aging workforce + skilled labor shortage fueling demand for consolidation
Employee retention a top concern post-sale, but PE deals often boost pay & benefits
Equity rollovers allow sellers to capture “two bites of the apple”
