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HVAC Industry Trends You Need to Know

October 18, 2023 | Read: 7 minutes

The HVAC (Heating, Ventilation, and Air Conditioning) industry is continually evolving to meet the demands of our technology-driven world.

To stay competitive and provide the best service to your customers, staying updated on the latest HVAC industry trends is crucial. 


In this article, we will dive into the current state of the HVAC industry and six key trends you need to know to keep your HVAC business thriving.


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What’s the current state of the HVAC Industry?

The HVAC industry has been on a steady growth trajectory, with increasing demand for both residential and commercial HVAC services. 

Here’s a snapshot of the current state of the industry:

  • Market Growth: The global HVAC market is predicted to reach a value of $367.5 billion by 2027, with a compound annual growth rate of around 5% from 2020 to 2027.
  • Energy Efficiency: There’s a growing emphasis on energy-efficient HVAC systems due to environmental concerns and rising energy costs. This trend is driven by regulations and consumer preferences.
  • Smart Technology: Smart HVAC systems are becoming mainstream, allowing for remote monitoring, automation, and energy savings.
  • Indoor Air Quality (IAQ): The importance of IAQ has been underscored by the COVID-19 pandemic, leading to increased demand for advanced filtration and purification solutions.
  • Digitalization: The industry is embracing digital tools for service management, customer engagement, and automation.
  • Customer Experience: At a minimum, consumers expect real-time updates, online booking, and a seamless post-service experience.

Now, let’s dive deeper into each of these trends… 

1. Energy Efficiency and Sustainability

As environmental concerns grow, energy efficiency and sustainability are at the forefront of HVAC industry trends.

Eco-Friendly Refrigerants and Efficiency

We’ve all seen the HVAC industry evolve alongside technology to keep up with government regulations, customer demands, and to minimize environmental impact. 

According to an article by Total Home Supply, “one of those major changes is the R410-a phase-out and the adoption of new refrigerant standards” 

Changes are constantly being made to increase the standard and quality of products. Staying on top of this trend can present an opportunity to inform clients and increase revenue through upselling. 

Green Building Standards and Certifications

More buildings are striving for green certifications like LEED (Leadership in Energy and Environmental Design), promoting sustainable HVAC solutions for reduced environmental impact. Getting involved and being able to guide clients through some of the processes can become a new revenue stream for your business. 

2. Smart HVAC Systems

More recently, the integration of smart technology has been transforming the way homes work and people live, and HVAC systems advanced right alongside them. 

IoT Integration and Predictive Maintenance

Smart HVAC systems leverage IoT technology to optimize heating and cooling while reducing energy waste. Predictive algorithms help prevent breakdowns before they happen and reduce downtime and repair costs while helping you stay compliant with any service level agreements (SLAs).

Mobile App Control and Remote Monitoring

Homeowners and facility managers now have the ability to control HVAC systems remotely via mobile apps, improving comfort and energy management. Additionally, they can quickly get notified on any device when a system breaks down or an emergency request is made. 

Smart Thermostats and Zoning Solutions

Smart thermostats and zoning solutions are gaining popularity. Smart thermostats offer precise control over indoor temperatures and can learn user preferences for automated adjustments. Zoning systems allow different areas of a building to have independent temperature control, optimizing comfort and energy use.

The adoption of smart HVAC systems represents a significant step towards a more connected and environment-first future, where HVAC systems seamlessly adapt to user needs while minimizing energy consumption.

3. Focus on Indoor Air Quality (IAQ)

The significance of indoor air quality (IAQ) has been magnified in recent years, particularly due to COVID-19. Building occupants are increasingly concerned about the air they breathe, leading to a surge in demand for advanced IAQ solutions.

Advanced Air Filtration and Purification

Advanced air filtration and purification technologies are now standard components of modern HVAC systems. HEPA (High-Efficiency Particulate Air) filters capture microscopic particles like allergens and pollutants, ensuring cleaner and healthier indoor air.

UV-C Germicidal Lights for Clean Air

UV-C germicidal lights have gained prominence for their ability to sterilize the air by neutralizing pathogens, including viruses and bacteria. These lights are being integrated into HVAC systems to reduce the risk of airborne transmission of illnesses. 

Balanced Ventilation and Improved IAQ

Balanced ventilation strategies are being employed to enhance IAQ. These systems ensure a constant flow of fresh outdoor air while expelling stale indoor air, promoting better air circulation and quality. 

Given the heightened awareness of IAQ, HVAC businesses must be prepared to offer and install these advanced solutions to meet customer demands and provide safer indoor environments.

4. Digitalization and Automation

The HVAC industry is experiencing a digital transformation that helps streamline operations and provide above-and-beyond customer experiences through digitalization and automated self-service portals

Field Service Management and Automation

Intelligent scheduling software simplifies appointment booking, reducing the chances of scheduling conflicts and ensuring timely service. Embracing these digital tools can significantly boost an HVAC business’s efficiency and competitiveness in the market.

Mobile Technician Apps and Paperless Workflow

Mobile technician apps have eliminated the need for tedious paperwork by allowing technicians to access work orders, record service details, and communicate with customers when they’re in the field.

Seamless Invoicing and Payments

Sending out invoices and collecting payments is another area of HVAC that is benefiting from automation. Automated invoicing software reduces administrative tasks and accelerates the payment process, providing customers with a hassle-free experience. 

5. Customer Expectations and Experience

Regardless of industry, customer expectations have never been higher and you never want to be on the wrong side of a customer review. Meeting these expectations is the bare minimum for maintaining customer loyalty and securing new business. 

Real-time Updates and Transparent Communication

Real-time updates and transparent communication have become the norm. Customers expect to receive notifications about technician arrival times and service progress. This real-time communication instills confidence in customers and helps them plan their day around working with your HVAC business. 

Online Booking and Appointment Tracking

Customers prefer the convenience of booking services online, and having access to appointment tracking allows them to monitor the status of their service requests. This not only enhances convenience but also improves customer satisfaction.

Post-service Surveys and Feedback Loop

Post-service surveys and feedback loops are valuable tools for HVAC businesses. Collecting feedback through surveys helps identify areas for improvement and gives you an opportunity to quickly address customers’ concerns.

6. Predictive Maintenance

With the right tools, HVAC businesses can put processes into place that allow them to proactively manage equipment health and respond to any issues. 

IoT Sensors for Equipment Health

IoT sensors play a pivotal role by continuously monitoring the performance of HVAC systems. These sensors collect data on variables such as temperature, pressure, and system vibrations. Machine learning algorithms analyze this data to predict when equipment maintenance or repairs are necessary, often before a breakdown occurs.

Early Malfunction Detection

Early malfunction detection is another critical component of predictive maintenance. By analyzing automated data, HVAC systems can identify subtle changes in performance that can indicate when it might break down. Technicians can then be dispatched to address these issues before they escalate and become a costly SLA breach


Is your HVAC business evolving with the times?

The longer you wait to evolve your HVAC business, the faster you’ll fall behind the competition. Embracing trends in energy efficiency, smart technology, indoor air quality, digitalization, customer experience, and predictive maintenance will position your HVAC business for success in a competitive market. 

By aligning your business with these key trends, you’ll find ways to exceed customer expectations and secure a bright and profitable future for your HVAC company. Stay vigilant, innovate, and provide top-tier service to lead an HVAC business that will flourish with each new trend. 

Click the banner to get ahead of industry trends by using HVAC software!

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Thanks for checking out the Commusoft blog - I’ve been helping business owners improve their strategies for a few years now, so I hope you were able to take something away from the content I’ve written. Feel free to continue exploring the blog - or reach out to us with any questions!

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