HVAC Services
Market Overview
- The U.S. HVAC services market is expected to generate $19.8 billion of revenue in 2024, growing at a CAGR of 6.6% and reaching $27.2 billion by 2029.
- Buyers continue to demonstrate a strong affinity for facility services companies, with HVAC services yielding significant attention. The overarching thesis for these investments can be characterized by several attractive features including:
- The customary element of recurring maintenance services
- Highly fragmented nature among service providers
- Enablement to cross-sell additional service offerings, most often plumbing and electrical for HVAC service providers
- Additionally, the sector is experiencing significant growth driven by increased construction spending, a rising demand for energy-efficient HVAC solutions, and other favorable market dynamics.
- Although significant consolidation has taken place over the last several years, primarily from financial sponsor roll-up strategies, fragmentation in the HVAC services market remains extremely high, with the top four players in the industry representing only 7.6% of total market share.
Industry Snapshot
$19.8B → $27.2B
U.S. HVAC services market projected to grow at a 6.6% CAGR from 2024 to 2029
64%
HVAC services performed on existing buildings, including repair, maintenance, and replacement
31.4%
Revenue share from existing residential properties in 2023
7.6%
Market share held by the top four players, underscoring high fragmentation
