Heating, Cooling and Ventilation Equipment Manufacturing in Australia - Industry Research Report

Climate control: Growing demand for HVAC equipment is cooling off revenue

The Heating, Cooling and Ventilation Equipment Manufacturing industry has faced a difficult period, both shaky downstream demand and rising competition from imports have constrained performance. The industry was especially adversely affected by reduced demand from non-residential building construction industries since 2019-20, as well as lower demand from multi-unit apartment and townhouse construction. A growing proportion of Australian businesses are choosing to source purchase imported commercial HVAC equipment, and this trend is increasingly diverting demand from the industry. Overall, industry revenue is expected to decrease at an annualised 1.8% over the five years through 2022-23, to an estimated $2.2 billion. This includes an estimated 6.2% decline in 2022-23, because of a slowdown in construction caused by rising inflation and interest rates.

Companies in the industry manufacture commercial or industrial HVAC (heating, ventilation and air conditioning) equipment, including installed space heaters and refrigeration products. The industry manufactures commercial-strength air conditioning systems that range from 8 kilowatts to over 5,000 kilowatts. These exclude motor vehicle air conditioners. Firms that manufacture household and automotive air conditioning and heating units are not included in the industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.