Why HVAC, Landscaping And Other Residential And Commercial Service Businesses Are In Demand By Business Buyers

The industry's stability and its players have made it a safe investment and a source of growth in business sales. 

The outbreak of Coronavirus heavily impacted the global supply chain and logistics. Due to lockdown, many people spent their time at home. And as a result, people started to invest more in remodeling, plumbing, HAVC, and Landscaping. According to experts, this trend is expected to grow even as people return to their offices and reach a “new normal”. 

Let's explore the global markets of many residential and commercial services, which are rising exponentially, 

• The global Heating, Ventilation, and Air Conditioning (HVAC) service market is projected to reach USD 367.5 billion valuations by the year 2030 from USD 57.8 billion in 2020. This estimation is based on a compound annual growth rate (CAGR) of 3.9 percent of the forecast period (2020-2030). According to a more recent forecast, it is estimated that the global HVAC market volume will reach 151.1 million units by the year 2024.
• The landscaping industry is estimated to grow 2.1% from 2025 from 2020. This brings the landscape industry revenues to USD 84.9 billion. According to other statistics, the American landscaping market will grow at a compound annual growth rate (CAGR) of no less than 4.5 percent from 2020 through 2025.
• The global flooring market is projected to grow at a compound annual growth rate (CAGR) of nearly 6.2 percent from 2021 to 2028. The flooring market value was forecast to reach USD 434.2 billion in 2021 and is estimated to reach over 620 billion in 2028. 

The attractiveness of Residential and Commercial Service businesses

With restrictions easing and workers beginning to return to their workplace, an increase in demand for commercial services is being seen. The main drivers which have led to this increase in demand are the attractive features of residential and commercial service businesses, which include,

• The spread of the market 
• The businesses' stable revenues and small size 
• The companies' services are essential
• And the revenues are recurring and predictable 

Another major factor for the surge in business interest and investment in commercial service is the fractured nature of the market. Around 94 percent of companies across the U.S and Canada are small-to-midsize businesses with 50 or fewer employees.

Eyeing this opportunity, businesses and investments firms are injecting capital into residential and commercial service companies. Due to the large and fragmented market, the investment will receive higher returns and enjoy a steady upward progression. 

There are numerous other reasons, too, as to why the demand by businesses for commercial services has increased. Let's take a deeper look at the HVAC and landscape market for reasons of increased demand. 

• The Heating, Ventilation, and Air Conditioning (HVAC) service market 

The increasing end-user markets, such as the data center market and developing construction businesses in emerging countries, are some major factors driving the growth of The Heating, Ventilation, and Air Conditioning (HVAC) service market over the estimated period.

There are many benefits a consumer gets from HVAC systems which include,

• Energy-efficient 
• Improved temperature variability
• Filtered Air
• And improved lifespan

The HVAC service market and HVAC equipment market directly correlate with each other. Increase in demand for HVAC equipment will have a positive impact on the HVAC service market. The reason being, increased demand for new equipment leads to more installation services. Factors which have led to a rise in demand for HVAC equipment are:

• Climate changes and unpredictable weather conditions exhibited by the recent heat wave in the Pacific Northwest 
• Technological developments and innovations
• The growth in the construction industry 

The increasing disposable income in developing countries has also surged the demand for HVAC equipment. 

Other reasons as to why there's a high demand by businesses for The Heating, Ventilation, and Air Conditioning (HVAC) service market are,

• Increase in demand in the residential sector due to the growing population in Asia-Pacific 
• Increase in demand for maintenance and replacement services in Europe and North America
• Increase use of air conditioners in offices and homes around the U.S. 

The improving living standards and rising global temperatures create a substantial market for A/C systems, which is projected to grow in developing nations.

• Landscape

The increase in younger households, who favor gardening and lawn care activities, has led to increased demand for landscape services.

Other major factors include:

• Increase in outdoor living trend – due to the pandemic, outdoor living was adopted by many homeowners. Consumers are purchasing and fixing various landscaping products, including open-air kitchens, decorative features, living spaces, and lighting elements to spotlight the natural beauty of outdoor living spaces.

• Environmental concerns – consumers demand landscape products that use

o   Solar power

o   Conserve water

o   And reduce energy consumption levels

Many businesses use recycled content to develop new landscape products as recycling plays a major role in Landscaping. 

Owning or investing in a landscaping business has many other benefits, including,

• Opportunity for seasonal revenue
• The demand is increasing steadily over the years
• The landscape business model is straightforward and simple 
• Landscape business is easy to start. Only some quality equipment labor costs, and transportation are required. 
• There are opportunities for expansion, such as:

o   Expanding the service area

o   Hosting landscaping seminars

o   And providing off-season services like snow plowing, pest control, and others

Conclusion

As the coronavirus pandemic further recedes, future growth is expected in the residential and commercial service industry. HVAC, Landscaping, plumbing and other commercial service businesses are a great investment opportunity.

Now is a great time for businesses to invest in these booming industries.