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          1. HVAC Equipment Manufacturing Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 7/27/2020
            SIC Codes: 3433, 3564, 3585
            NAICS Codes: 33341
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from HVAC Equipment Manufacturing Industry Profile

            Companies in this industry manufacture residential and commercial heating, ventilation, air-conditioning (HVAC), and air-purification equipment, as well as commercial refrigeration equipment. Major US-based companies include Lennox, Nortek, Trane, and the climate control divisions of Johnson Controls and Raytheon Technologies; other leading companies include Bosch Thermotechnik (Germany), Daikin Industries and Yazaki (both of Japan), Danfoss (Denmark), and Gree (China).

            Global demand for HVAC equipment is forecast to increase by about 4% per year, reaching a value of $122 billion by 2020, according to Freedonia. Leading countries for HVAC equipment manufacture include China, Germany, Japan, and the US. Global growth is expected to be driven by construction activity in emerging markets, primarily in the Asia/Pacific region.

            The US HVAC equipment manufacturing industry includes about 1,500 companies with combined annual revenue of about $43 billion.

            COMPETITIVE LANDSCAPE

            The ability to develop smart building applications that tie HVAC equipment with other building systems to increase energy efficiency will be a leading competitive differentiator. Companies must also focus on implementing a global strategy as HVAC demand growth shifts from established markets to emerging ones.

            Demand for HVAC equipment depends on replacement rates of existing equipment, residential and commercial real estate construction, and home sales, all of which can be cyclical. The profitability of individual companies depends on efficient operations and effective marketing. The US industry is concentrated: the top 50 companies account for about 65% of revenue.

            Competitive Advantages:

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