Industry snapshot
Key public data points
Historical & forecast
Base year 2025. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2030.
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Connect to an analyst →Industry Definition and Scope
What does the Air-Conditioning & Heating Services in Australia industry cover?
The air-conditioning and heating services industry provides installation, maintenance, repair, and replacement services for cooling and heating systems across residential, commercial, and industrial sectors. This includes split systems, ducted systems, evaporative coolers, and commercial HVAC installations. The industry also encompasses services related to indoor air quality systems and energy-efficient climate control solutions.
- •Australian Bureau of Statistics (ABS) categorizes these services under 'Other Building Services' (ANZSIC Division 43, Class 4322)
- •The sector employs approximately 33,000 people across Australia (ABS Labour Force Survey, 2022-23)
Market Structure and Operators
Who operates in the industry and how is it structured?
The Australian HVAC services market features a mix of large national players, regional specialists, and independent contractors. Companies typically operate across multiple states, with franchised models common in residential segments. Commercial contracts often require specialized licensing and capabilities for larger-scale installations.
- •Approximately 5,100 businesses operate in this sector (ABS Counts of Australian Businesses, 2021-22)
- •The top 20 operators account for around 35% of industry revenue (industry sources, 2023)
- •Average establishment size is approximately 6.5 employees per business
Demand Drivers
What drives demand in the industry?
Climate change is a primary demand driver, with increasing average temperatures and more frequent heatwaves creating greater need for cooling solutions. The replacement cycle for HVAC systems typically ranges from 10-15 years, creating ongoing replacement demand. Energy efficiency improvements and stricter building codes also drive retrofitting and new installations.
- •Australia's average temperature has increased by approximately 1.4°C since 1910 (Bureau of Meteorology, State of the Climate 2020)
- •The residential sector accounts for approximately 65% of industry demand (HIA, 2023)
- •Commercial building energy efficiency standards (NatHERS) continue to drive upgrades
Competitive Landscape and Notable Public Companies
Who are the notable companies in the industry?
The market features several prominent companies with national coverage, alongside numerous smaller regional operators. Public companies often serve the commercial and industrial segments, while residential services are more fragmented with franchise networks. Specialized knowledge in refrigerant handling and energy efficiency is increasingly important.
- •Coventry Group Limited (ASX: CGF) - national provider of mechanical services including HVAC
- •Cubic Air Conditioning Pty Ltd - major commercial HVAC contractor across eastern states
- •Auswide Air Conditioning Pty Ltd - operates across Queensland and New South Wales
- •Cool Earth Pty Ltd - specializes in commercial and industrial refrigeration and HVAC
Recent Trends and Outlook
What are the recent trends and outlook?
The industry is experiencing increased demand for energy-efficient and smart HVAC systems. Refrigerant regulations continue to evolve, requiring operators to adapt to lower-GWP alternatives. Heat pump installations are growing as part of decarbonization efforts. The long-term outlook remains positive despite recent economic pressures.
- •Heat pump installations grew by approximately 8% annually in 2021-2022 (IEA, 2023)
- •R22 refrigerant phase-out completed in Australia (Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulation 2022)
- •Smart HVAC systems with IoT connectivity represent an emerging growth segment
Regulation and Compliance
How is the industry regulated?
The HVAC industry operates under stringent regulatory requirements covering refrigerant handling, electrical safety, and energy efficiency. Refrigerant management follows national guidelines aligned with the Montreal Protocol and Kigali Amendment. Installation work requires appropriate licensing under state-based regulatory frameworks.
- •Refrigerant handling regulated by Australian Refrigeration Council (ARC) licensing
- •Electrical work compliance through state-based licensing (e.g., Energy Safe Victoria, NSW Fair Trading)
- •Energy efficiency requirements through the Building Code of Australia (BCA)
Sources
Government, statistical and trade sources used for this Claight analysis.
- ABS Australian Industry 2022-23 ·
- Australian Bureau of Statistics Labour Force Survey 2022-23 ·
- industry sources Australia Refrigeration and Air-Conditioning Services Report 2023 ·
- Bureau of Meteorology State of the Climate 2020 ·
- HIA Industry Report 2023 ·
- IEA Heat Pump Report 2023
Claight analysis of public industry data.