HVAC Industry Trends You Should Watch Out for in 2023
2022 is almost over. As a business owner, you might want to look back and scrutinize your strengths and weaknesses if you want to start 2023 with new vigor. However, it is normal to get complacent. Especially as an HVAC contractor, you can easily get caught up in the notion that you know your business because that’s how we’ve always done it. But this is where the slippery slope begins. Change is a good thing, as well as inevitable. And the HVAC industry is not beyond its scope.
In the last few decades, new, cutting-edge technologies have changed the way businesses work. People are now able to do things that were only possible in sci-fi movies a couple of years ago. For example, have you ever thought about doing inspection and maintenance work while someone on the other side of the globe gives you hands-on instructions? Or guiding a customer through a video conference to check their appliances? Or even using a robotic arm to assist you instead of an apprentice in the field?
As bizarre as they may sound, they are all very likely scenarios in the HVAC industry in today’s time. So, if you want to keep up with the lightning-fast pace that the industry is shifting at, you must be aware of what has changed in the past years. But more importantly, you must be alert to what to expect next.
To help you in your journey ahead, we have curated a list of significant trends in the industry—changes that will shape the future of the heating, ventilation, and air conditioning industry.
So buckle up, put your reading glasses on, and get ready to take on tomorrow.
Before we go any deeper, we will begin by discussing some of the current HVAC industry trends. This would help you understand the current scenario in the industry and in which direction it might go in the coming days.
To begin with, let us begin by putting out the expert forecast that the global market for HVAC is presumably going to hit record highs by 2030.
Statista projected in 2019 that the global market would reach $367.5 billion by 2030. The compound annual growth rate (CAGR) of the industry between 2020 and 2030 is supposed to be 3.9%. But that’s far from the only growth occurring in the HVAC industry.
HVAC units are more eco-friendly than ever, and whether it’s a heater or an air conditioner, the average person wants to reduce their energy costs. For that reason, it’s not all that surprising that market experts reported that by 2024, the number of total HVAC units sold will exceed 151 million.
Clearly, HVAC is already big business, and it appears that nothing about that will change in the decade to come. The industry is only going to become more profitable. So, if you are in HVAC, growth is a very likely possibility for you as well. However, you need to be well-prepared for leveraging the scope. And that is why learning about future trends is as important as anything else for you.
So, what are the things you should be aware of?
Here are the HVAC Industry trends you should focus on:
Table of Contents
1. Going Paperless
The most visible change sweeping industries, including HVAC, is the shift toward a completely paperless environment.
For decades now, paperwork has been a vital part of the service industry. From receiving a work order to processing it—technicians filling out reports on the field, managers generating bills and invoices after the job—everything was done on paper to organize a database. However, it was cumbersome. Paper processes take up a lot of time as well as physical space. This became a major issue, especially during the pandemic when businesses had to operate with physical movement restrictions. Besides, paper-based data management always leaves plenty of room for errors, inaccuracies, and mismanagement.
It is, therefore, no surprise that companies are leaning towards a paperless business process, leveraging automation for an efficient business operation. With the introduction of emerging technology, this has become a rather easy solution.
For HVAC companies, in particular, HVAC business software has been the biggest driver of change in this regard. This is essentially a field service management software system designed for HVAC businesses that helps automate, standardize, and streamline business processes. It is powered by cutting-edge digital tools such as cloud storage, automatic scheduling and dispatching, accounting, invoicing, GPS tracking, reporting and analysis, monitoring, and so on.
The outcome is fascinating. With this software, you can now digitally carry out all your backend tasks on a single platform, using your computer or smartphone. The advantage is not the complete elimination of a paper trail, but this smart piece of technology also adds more efficiency, scalability, and transparency to your business processes. No wonder companies everywhere are switching to this as fast as they could.
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2. Innovative Technology and Home Automation
Emerging technology is not only transforming HVAC business processes, but it is also changing user behavior and leading towards significant HVAC growth.
With the integration of smartphones and tablets, wireless devices will continue to grow in HVAC usage. Furthermore, new sensors and controllers will enable more security measures while adding convenience to HVAC systems. In addition, a growing trend towards making as-needed heating and cooling is expected as people can create more precise heating and cooling schedules using HVAC systems that can track indoor temperature and humidity.
With the rise of smart technology, consumers will turn to centralized control systems with integrated display screens. These systems will alert users about issues or predict energy usage. They will also have web-based control and online service monitoring. This growth in centralized control systems will improve efficiency, reduce costs, and make it easier for HVAC professionals to sell their services.
Therefore, if you want to capture the expanding market, make sure your technicians are trained and well-equipped to fulfill the changing needs of the customers.
3. Environment and Sustainability Concerns
More AC usage worldwide has led to high energy consumption and increased carbon emissions. To counter this, the use of energy-efficient systems is expected to rise. As a result, energy efficiency will be at the forefront of the next HVAC innovation.
With global warming disrupting the climate, more and more homeowners are concerned about their energy usage and express concerns about their carbon footprint. This increased sense of social responsibility is at the forefront of a shift towards efficient HVAC units and smart thermostats to reduce electricity consumption.
To continue the use of air conditioning without driving up the electricity demand, improvement in the efficiency of AC units is the main solution.
The HVAC market is poised for continued growth and innovation in the years to come to cater to the increasing demand. It will remain a fast-growing one, as it is expected that the world’s population will increase by 35% in the next 30 years and by 50% in another 30 years, so there will be more people needing heating and cooling systems. In addition, ageing HVAC systems will need to be upgraded.
Therefore, the demand for HVAC engineers will remain constant or increase as the HVAC industry trends grows. In addition, there is a high demand for thermal engineering graduates in Europe and North America because these professionals are in high demand due to their expertise in super insulation, glazing technologies, and solar power cooling installations.
To sum up, it is expected to see HVAC industry trends focusing on energy efficiency, digital transformation, and sustainability in the coming years. HVAC manufacturers are now developing products that use cutting-edge technology to reduce energy consumption. With the continued improvement in air conditioning efficiency, they will use less electricity which can help to lower overall demand.
Smart HVAC technology is anticipated to become even more popular among homeowners to lower energy usage and reduce carbon footprint. So, if you want to stay ahead in the race, make sure you are using the right tools and choosing the right technologies for your business, for this is going to be the key competitive advantage going into 2023.