Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 3.6 % over the past five years, to reach an estimated $7.6bn in 2025.
Trends and Insights
The industry is estimated to have maintained growth despite recent obstacles
- Since mid-2024, multiple policy rate cuts have lowered financing costs and supported steady replacement cycles for furnaces, heat pumps and refrigeration. New construction remained softer but stabilized into late 2025 as the Bank of Canada reduced the policy rate to 2.5% in September. Occupancy and service needs continued to drive retrofit activity across residential and light commercial segments.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Long-term growth is expected for the industry
- The HVACR equipment manufacturing industry is experiencing growth driven by the rising demand in the residential construction market. As more new homes are built, there's an increasing need for heating, ventilation, air-conditioning and refrigeration equipment. This trend is a positive force for the industry, as these systems are essential components of modern residential infrastructure.
Biggest companies in the Heating & Air-Conditioning Equipment Manufacturing in Canada
| Company | Market Share (%)
2025 | Revenue
2025 | Profit
2025 | Profit Margin (%)
2025 |
|---|
There are no companies that hold a market share exceeding 5% in the Heating & Air-Conditioning Equipment Manufacturing in Canada industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Air-conditioning, warm air heating and refrigeration equipment, Unitary air conditioners and Heating equipment. Air-conditioning, warm air heating and refrigeration equipment is the largest segment of the Heating & Air-Conditioning Equipment Manufacturing in Canada.
Trends and Insights
Air-conditioning, warm air heating and refrigeration equipment drive secure revenue
- This segment covers residential and commercial air conditioners, heat pumps and warm air furnaces, plus commercial and industrial refrigeration systems serving homes, offices, retail, healthcare, foodservice and cold chain logistics across Canada. Demand is tied to new construction, retrofits and replacements in both private and public sectors.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The Heating and Air-Conditioning Equipment Manufacturing industry in Canada manufactures heating equipment, commercial refrigeration equipment, air conditioners, commercial and industrial fans, blowers, air purification equipment and electric and nonelectric heating and refrigeration equipment. Marine and motor vehicle systems are excluded, as are industrial process furnaces and small household appliances.
What's included in this industry?
Products and services covered in the Heating & Air-Conditioning Equipment Manufacturing industry in Canada include Manufacturing air-conditioning, warm-air heating and refrigeration equipment, Manufacturing heating equipment, except warm-air furnaces, Manufacturing commercial and industrial fans and blowers and Manufacturing air purification equipment.Companies
Companies covered in the Heating & Air-Conditioning Equipment Manufacturing industry in Canada include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Heating & Air-Conditioning Equipment Manufacturing industry in Canada include chlorofluorocarbons, hydrochlorofluorocarbons, refrigerant and hvacr.Industry Code
NAICS 33341 - Heating & Air-Conditioning Equipment Manufacturing in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Despite some recent roadblocks, Canada’s HVACR manufacturers have seen steady growth as lower policy rates fuel demand for replacements and service packages. Customers are pr...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Air-conditioning and refrigeration gear bring in the lion’s share of revenue for Canadian HVACR makers. Essential cooling and cold storage needs keep orders flowing from home...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2025
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario and Quebec are the undisputed heavyweights in Canadian HVAC manufacturing, thanks to their skilled workers and vast supplier networks. Easy access to big city markets...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each province in 2025
- Number and share of revenue each province accounts for in 2025
- Number and share of wages each province accounts for in 2025
- Number and share of employees in each province in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
It’s tough for new players to break into Canada’s HVAC manufacturing scene due to strict regulations, high start-up costs and the need for specialized skills. Established bra...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
There are no companies that hold a market share exceeding 5% in the Heating & Air-Conditioning Equipment Manufacturing in Canada industry.
Analyst insights
Nortek is the largest player in the industry despite Canadian operations constituting less than 3% of the market share. Madison Industries acquired Nortek in June 2021, marki...
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Stricter energy efficiency rules and refrigerant regulations are shaking up Canada’s HVAC industry, forcing manufacturers to adapt fast. Companies that invest in low-GWP tech...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Raw material costs are rising and putting pressure on HVAC manufacturers, especially with metals like steel and aluminum spiking in price. Companies have to walk a fine line,...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Assets (2018-2023)
- Liabilities (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Heating & Air-Conditioning Equipment Manufacturing industry in Canada in 2025?
The market size of the Heating & Air-Conditioning Equipment Manufacturing industry in Canada is $7.6bn in 2025.
How many businesses are there in the Heating & Air-Conditioning Equipment Manufacturing industry in Canada in 2025?
There are 748 businesses in the Heating & Air-Conditioning Equipment Manufacturing industry in Canada, which has grown at a CAGR of 1.3 % between 2020 and 2025.
How may import tariffs affect the Heating & Air-Conditioning Equipment Manufacturing industry in Canada?
The Heating & Air-Conditioning Equipment Manufacturing industry in Canada is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.
How may export tariffs affect the Heating & Air-Conditioning Equipment Manufacturing industry in Canada?
The Heating & Air-Conditioning Equipment Manufacturing industry in Canada is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
Has the Heating & Air-Conditioning Equipment Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Heating & Air-Conditioning Equipment Manufacturing industry in Canada has been growing at a CAGR of 3.6 % between 2020 and 2025.
What is the forecast growth of the Heating & Air-Conditioning Equipment Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Heating & Air-Conditioning Equipment Manufacturing industry in Canada is expected to grow.
What does the Heating & Air-Conditioning Equipment Manufacturing industry in Canada include?
Manufacturing air-conditioning, warm-air heating and refrigeration equipment and Manufacturing heating equipment, except warm-air furnaces are part of the Heating & Air-Conditioning Equipment Manufacturing industry in Canada.
How competitive is the Heating & Air-Conditioning Equipment Manufacturing industry in Canada?
The level of competition is moderate and increasing in the Heating & Air-Conditioning Equipment Manufacturing industry in Canada.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
