5 HVAC Industry Trends For 2025

As an HVAC company, you provide a highly valuable service. Whether installing and managing an air conditioner to make the summer bearable or a heating system to get customers through the winter, you make houses comfortable homes. However, that doesn’t guarantee that customers will choose you for their HVAC needs. To forge a competitive advantage and secure a solid customer base, it’s important to keep up with trends in the HVAC industry.

The Importance of Knowing about Industry Trends

When you know your industry, you can own your industry. The competitive landscape is changing faster than ever. If you don’t stay up to date, you’re at risk of being left behind due to a delayed response to changing customer demands or a new technology that impacts the HVAC service you provide. By keeping your finger on the pulse of market trends you can make informed business decisions and effectively communicate your value, winning more jobs whether you are a solo HVAC technician or a growing HVAC company.

Top 5 HVAC Industry Trends for 2024

So how can you stay ahead of the curve and on-trend to turn an impressive profit this year? Here are some market trends to consider implementing in your HVAC company.

Smart Control

Today’s consumers are looking for more than an air conditioning unit. They are looking for HVAC equipment that integrates with their smart home. The convenience of being able to control the temperature of their home and monitor their energy consumption from their phone is highly desirable.

Focusing on smart technology within the HVAC industry such as smart thermostats and smart air conditioning units is a very profitable area due to consumer demand for cutting-edge technology and energy efficiency. Giving customers the power to heat up their homes on their way back from work or to switch off their AC unit on the go is a great selling point.

Eco-Friendly HVAC Units

The green market will drive HVAC sales as consumers become increasingly concerned about the cost of energy consumption to the planet and their bank accounts. Beyond the intricate control and monitoring of HVAC systems possible with smart technology, customers will also consider the source of the energy fueling their heating and cooling systems.

Considering residential HVAC jobs, there is a demand for solar-powered HVAC systems to offset the financial and environmental cost of indoor climate control. With companies looking to offset their environmental impact as well, commercial builds with hybrid energy sources are growing. While few are ready to fully rely on solar or wind power for large-scale HVAC systems, geothermal HVAC systems are emerging as a reliable renewable energy source.

Automated Customer Service

Whether installing a new HVAC system or fixing a problem in an existing unit, it’s vital that HVAC contractors are efficient in their work. It increases your capacity and is an essential element of 5 star customer experience.

There is software available to help you keep on top of the variety of customer queries, tasks and transactions involved in running an HVAC business. By automating and streamlining your workflows, you can get on with what you need to do and do it well.

HVAC Network

With more and more HVAC units being connected to WiFi in order to be controllable by portable devices, there is an opportunity for another type of connection. Sensors can be placed on HVAC equipment so the whole HVAC system can communicate and respond to data.

Instead of users having to adjust their AC, the HVAC network can do this autonomously. HVAC systems can be set up to detect occupants and outdoor conditions, automating the heating and cooling system depending on whether a room is occupied or in direct sunlight. By responding to real-time conditions, customers enjoy maximum comfort and energy savings without having to lift a finger.

Ductless HVAC Systems

The process behind HVAC systems is changing as well. Instead of having to rely on installing and maintaining ducts in order to heat and cool rooms, ductless units are becoming more popular. The cost and inconvenience of ducts are apparent in new and old buildings. With ductless units being just as efficient in air conditioning rooms, it’s an obvious choice for many HVAC jobs.

HVAC Industry Analytics & Future Market Outlook

The HVAC industry is very healthy. The global HVAC market size stands at $168.65 billion and the US market stands at $19.75 billion. With a CAGR of 6.6%, it’s showing no signs of slowing down. HVAC has proven to be an industry that is able to keep pace with new customer demands such as the desire for a smart home connected by the Internet of Things and energy efficiency to ease cost and environmental concerns. There is a demand for HVAC technicians to update old systems with eco-friendly smart technology and to install the latest HVAC systems in new builds in residential and commercial spaces.

How Consumer Behavior is expected to shift in the HVAC Industry in 2024

The most important trends to keep up with are trends in consumer behavior. Maintaining and growing profits relies on your ability to meet consumer demands and exceed customer expectations. Currently, there is a significant shift in consumer behavior making a big impact on the HVAC industry.

Shifts in purchasing habits and priorities

The most crucial part of understanding consumer behavior is understanding their why. What is motivating them to engage with your business? Then you can adapt your business operations, marketing efforts and customer communication to align with their behavior, habits and priorities, positioning your HVAC services as an easy yes. The main shift in habits and priorities is saving energy to save money and save the planet. Customers are looking for more than price cuts or special features when making their buying decisions.

Influence of “green” trends

Consumers are well aware of the importance of energy efficiency due to the financial and environmental costs. The trend of eco-friendly HVAC systems is here to stay. Beyond customer concern is a governmental incentive. The US government has introduced tax credit schemes to reward people moving to energy-efficient HVAC systems. This creates a triad of motivators for consumers to invest in green HVAC: reduce their environmental impact, save money on energy bills and save money through energy rebates.

Importance of brand reputation and trust

While the behavior of prioritizing energy efficiency is relatively new, what hasn’t changed is how consumers gravitate towards brands with a good reputation that they feel they can trust. Customers need to be convinced that you can do the job and get them the outcome they are after to go ahead with the sales. Cultivating a belief in your technical ability and customer experience continues to be profitable.

What is the Future of the HVAC Industry?

The future of the HVAC industry is bright. Having an HVAC system installed in residential and commercial buildings is standard in the US meaning that over 3 million heating and air conditioner systems are replaced every year, totaling an annual spend of $14 billion on HVAC services. Consumers have even more options for their HVAC systems due to the rollout of smart units and energy-saving measures. With a CAGR of 6.1%, there is no time like the present to grow your HVAC business.

Is the HVAC market growing?

Definitely, the CAGR of 6.1% reflects the strong pace of growth for the HVAC industry in the US. By keeping an eye on market trends and adapting to consumer behavior, you can ride the wave of growth in your HVAC business.

Use these industry insights to convert more leads and book more jobs with the Podium platform, your answer to HVAC business growth. Start by using AI to automate customer communication or requesting online reviews to build your reputation.