HVAC and M&A

The HVAC industry is considered to be very stable at this moment in time. Many experts believe the outlook for both buying and selling parties will remain positive. As public interest and government regulations continue to push for energy-efficient designs and products, deployment of more advanced cost-effective HVAC systems has increased. This is expected to drive consolidation of HVAC organisations as they look to increase their ability to scale and grow in both commercial and residential markets. Despite uncertainty surrounding a possible recession, there has been no signs of slowing in the M&A industry amongst HVAC businesses.

The global HVAC market is projected to grow at a compound annual growth rate of 5.7%, to reach a value of $183bn by 2025. The growing commercial sector and rapid urbanisation worldwide are driving the demand for HVAC services and equipment. Furthermore, even manual industries such as HVAC must change with the times, and as a result they are being integrated with next-generation technologies such as IoT sensors, remote control systems and hybrid HVAC united, as a way to further reduce energy consumption - this is another factor which is anticipated to contribute to the global market expansion.

Key Industry Trends

•        Smart HVAC: The growth of IoT has allowed us to control, monitor and interact with a range of systems and appliances like never before; HVAC systems are beginning to incorporate this technology. These advanced HVAC systems will include the likes of repair notifications that let you know when repairs or maintenance is needed, remote access that have remote capabilities, and self-regulation which feature new sensors which help the system regulate itself and determine when and where in the building it is most needed.
•        Sustainable Building Design: Sustainability is a primary consideration when designing new buildings, often referred to as green buildings design. HVAC is a key component in green buildings design as it is one of the primary energy consumers. The increased focus on sustainability has led to several advancements in the industry, such as ventilation systems using more use of natural airflow to lower the energy consumption of the facility. HVAC systems using alternative power sources and using new building materials that help to maintain a more constant temperature in the buildings where a powerful HVAC system isn’t necessary.
•        DeVAP HVAC: DeVAP (Desiccant Enhanced Evaporative) is changing HVAC as we know it. These systems provide cooling by using an evaporating cooling system which turns water into evaporation and causes the surrounding air to cool down. DeVAP systems also remove humidity from the surrounding air. They provide the same dry, cool air offered by traditional air conditioners. However, DeVAP systems consume considerably less energy and contain no harmful refrigerants.
•        Geothermal HVAC: These take advantage of consistent temperatures underground to cool and heat buildings. Using water running through underground tubes, these tubes are either heated or cooled by the temperature of the ground. This water then travels to an indoor unit, where a fan, pump, and compressor are used to deliver cool or hot air to other parts of the building.

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