HVAC Industry Insights: Marketing Trends
As we move into 2025, the HVAC (Heating, Ventilation, and Air Conditioning) industry in Ontario, Canada, continues to evolve due to a combination of technological advancements, regulatory changes, and consumer preferences. In this blog, HomeRank Ads will share are some key insights and marketing trends that businesses in the HVAC industry should keep in mind for the coming year:
1) Increased Demand for Energy Efficiency and Sustainability
2) Smart HVAC Technology and IoT Integration
3) Labor Shortage and Workforce Challenges
4) Rising Operating Costs and Material Shortages
5) Digital Marketing Trends for the HVAC Industry
6) Regulatory Changes and Industry Standards
7) Customer Experience and Transparency
8) Marketing Strategies for HVAC Businesses
Whether you are an experienced HVAC company or not, you can always develop your knowledge and stay on track with changes and advancements in your industry. Continue reading or click on the links above to learn more about HVAC industry insights or contact us about specific digital marketing strategies you can use to enhance your leads and online presence.
Along with our HVAC industry insights, listen to what others are saying about adapting to market trends.
A Guide to HVAC Industry Insights
1) Increased Demand for Energy Efficiency and Sustainability
It seems like everyone is “going green” these days. Governments and consumers are looking for resources that are environmentally-sustainable. Let’s look at some of the trends we see as it relates to our consumption of energy and the HVAC industry.
Consumer Focus on Green Solutions
With growing concerns about climate change, there’s a rising demand for energy-efficient HVAC systems that reduce environmental impact. Consumers are more conscious about the energy consumption of their systems and are increasingly opting for eco-friendly options like high-efficiency furnaces, heat pumps, and smart thermostats.
Government Incentives
The Canadian government has introduced various programs to encourage the adoption of energy-efficient products, such as rebates for installing eco-friendly HVAC systems. These incentives are expected to continue to drive demand for green solutions. In fact, the Ontario government recently announced the new Home Renovation Savings Program.
Carbon Reduction
In an attempt to reduce carbon emissions, Canada has created the 2030 Emissions Reduction Plan which aims to meet net-zero emissions by 2050. This will likely lead to stricter regulations around the energy efficiency of HVAC systems, pushing businesses to innovate and meet higher standards.
As an HVAC expert, it is important that you are aware of what consumers are looking for so you can offer products that meet new standards of energy efficiency and sustainability.
Watch this Nest vs Ecobee video to see what people are saying about 2 of the most popular Smart Thermostats.
2) Smart HVAC Technology and IoT Integration
With the implementation of new standards and the development of technology, HVAC businesses can offer items like Smart Thermostats or HVAC systems with built-in automated notifications that alert them to required maintenance. Let’s look at this in more detail.
Smart Thermostats and Automation
With the rise of the Internet of Things (IoT), consumers are adopting smart HVAC systems that offer remote control and automation. Products like Nest, Ecobee, and Honeywell smart thermostats are becoming increasingly popular, allowing customers to manage temperature, humidity, and system performance via mobile apps.
Predictive Maintenance
IoT technology is also paving the way for predictive maintenance, where HVAC systems can monitor their own performance and alert homeowners about potential issues before they become costly repairs. This can increase customer satisfaction and loyalty, while also providing HVAC businesses with more opportunities for maintenance contracts.
AI and Machine Learning
HVAC systems that use AI and machine learning to optimize energy use are also becoming a growing trend, allowing systems to learn users' behaviours and adjust accordingly to maximize comfort and efficiency.
Watch the video to learn what barriers job-seekers face so you can better respond and attract staff and deal with shortages.
3) Labor Shortage and Workforce Challenges
While not something pleasant to share, it is important nonetheless to mention that one trend we are seeing across the industry is a labour shortage.
Skilled Trades Shortage
The HVAC industry continues to face challenges in finding and retaining skilled workers. As the baby boomer generation retires, many trades are experiencing a workforce gap, particularly in technical and installation roles. That can be a challenge for businesses but an opportunity for job-seekers.
In fact, 46,100 people were employed in the HVAC industry in Canada in 2023 and the US Bureau of Labor Statistics projects an average of 42,500 jobs a year for HVAC mechanics and installers. With a strong demand projected in the next decade, HVAC businesses can look for ways to attract young talent.
Training and Certification
HVAC companies need to focus on training programs to attract the next generation of technicians. Skilled Trades Ontario and other organizations offer apprenticeship programs, but businesses may need to invest in recruiting and offering competitive wages to retain top talent.
Inventory management tools like Service Titan help you meet customer demands while avoiding excess stock or delays.
4) Rising Operating Costs and Material Shortages
Along with a workforce gap in the HVAC industry is the issue of inflation and disruptions in our traditional supply chains. Businesses will have to be prepared for the following challenges.
Inflation and Supply Chain Issues
Like many industries, HVAC companies in Ontario have been dealing with the impact of inflation and supply chain disruptions, leading to rising costs for materials and equipment. The demand for HVAC systems, especially energy-efficient models, has put additional pressure on the supply chain, with delays in product availability.
Cost Management Strategies
To manage these challenges, businesses will need to focus on strategic partnerships with suppliers and possibly explore alternatives to traditional materials. Inventory management tools will become crucial to ensure that companies can meet customer demand while avoiding excess stock or delays. According to a report by Global Information Inc., HVAC Service Management Software Market anticipates a compound annual growth rate (CAGR) of 6.68%. Definitely a trend worth looking into as these tools advance and develop.
Embrace social media as a means to showcase your work!
5) Digital Marketing Trends for the HVAC Industry
While we are experienced working within the HVAC industry, our true expertise is in digital marketing. HomeRank Ads can help your business adapt the following digital marketing strategies to grow your business:
Local SEO and Google Business Profile Optimization
As consumers increasingly search online for HVAC services, local SEO will continue to be a critical strategy. Ensure that your Google Business Profile is fully optimized, with up-to-date information like business hours, service areas, photos, and reviews.
Content Marketing and Education
Consumers are becoming more knowledgeable about HVAC systems, and content marketing can be a powerful tool to educate them. Offering blog posts, video tutorials, FAQs, and DIY maintenance tips on your website can help establish your business as an industry leader. Additionally, email marketing campaigns that offer energy-saving tips, promotions, and seasonal checklists are effective ways to stay connected with customers.
Pay-Per-Click (PPC) and Paid Search Ads
PPC campaigns on platforms like Google Ads are increasingly important, particularly for local HVAC businesses. Focusing on geo-targeted ads can help drive business from nearby customers actively searching for HVAC services.
Social Media and Customer Engagement
Social media platforms like Facebook and Instagram remain important for showcasing successful projects (People love seeing before and after photos!), sharing customer testimonials, and running targeted advertising. Video content, like time-lapse installations or behind-the-scenes clips of your team at work, can drive engagement and build trust.
Reviews and Reputation Management
Online reviews on platforms like Google, Yelp, and HomeStars are more influential than ever. Having a strong reputation and proactively asking satisfied customers to leave reviews can boost credibility and attract new business.
6) Regulatory Changes and Industry Standards
While we know that HVAC companies are the first to know about regulatory changes and industry standards, it doesn’t hurt to remind you to stay afloat with the latest news.
Energy Efficiency Regulations
Ontario businesses must comply with increasingly stringent energy efficiency regulations. Provincial and federal policies related to carbon reduction could drive changes in the types of HVAC equipment allowed or recommended for installation. Here are some things to keep in mind:
Central Air Conditioners: Air conditioners must meet a minimum Seasonal Energy Efficiency Ratio (SEER) of 13 for residential units. This standard ensures that units are energy-efficient throughout the cooling season.
Heat Pumps: Heat pumps typically need to meet Heating Seasonal Performance Factor (HSPF) standards of 7.7 or higher for heating efficiency.
Residential Gas Furnaces: New furnaces must have a minimum Annual Fuel Utilization Efficiency (AFUE) of 90% to ensure efficient fuel use and reduced energy consumption.
Storage Water Heaters: Minimum energy factor (EF) for electric water heaters must be at least 0.9, and for gas water heaters, the EF must meet 0.62.
Tankless Water Heaters: These may also have specific standards based on type and capacity, often with a higher EF compared to traditional units.
Refrigerants and Environmental Impact
There is growing pressure to phase out HFC refrigerants (hydrofluorocarbons) due to their negative environmental impact. In line with international climate agreements, the HVAC industry will see a push toward refrigerants with lower global warming potential (GWP), such as HFOs and CO2-based systems.
As of January 1, 2025, Canada has implemented new regulations restricting the use of high Global Warming Potential (GWP) refrigerants in certain HVAC equipment. Specifically, the manufacture or import of chillers using refrigerants with a GWP exceeding 750 is now prohibited. Additionally, stand-alone residential systems, such as refrigerators and freezers, are now limited to refrigerants with a GWP of 150 or less. These measures align with Canada's commitments under the Kigali Amendment to the Montreal Protocol, aiming to phase out hydrofluorocarbons (HFCs) and reduce greenhouse gas emissions.
Your number one priority will always be the customer - so be transparent and think long-term.
(Image Source: BRUNO CERVERA)
7) Customer Experience and Transparency
The customer always comes first, right? Well, we’ve noticed an increase in customer expectations. As technology, environmental concerns, and customer access to information continue to evolve, so too do their expectations for HVAC services. Today’s customers are:
More informed
Demand higher levels of service
Are more focused on sustainability, comfort, and convenience
To meet these growing expectations, HVAC companies must offer cutting-edge solutions, superior customer service, and be proactive in providing value. This means staying updated on new technologies, offering eco-friendly options, and delivering a seamless and personalized customer experience.
Curious as to why there is an increase in customer expectations? The increase in customer expectations for HVAC services can be attributed to several key factors, driven by both technological advances and broader societal shifts. Here's a sample of why customers are demanding more from HVAC companies today:
Advancements in Technology
As energy costs rise and environmental concerns increase, customers expect HVAC systems to be more energy-efficient. They’re looking for products and solutions that not only reduce energy consumption but also help lower their utility bills. Also, new technologies such as variable-speed compressors, ductless mini-split systems, and advanced filtration systems are in demand, and customers are seeking quieter, more efficient, and high-performance HVAC solutions.
Heightened Environmental Awareness
As we touched on earlier, there’s a growing emphasis on environmental responsibility. Customers now prefer eco-friendly solutions, such as energy-efficient HVAC systems, the use of low-GWP refrigerants, and systems that reduce carbon footprints.
Greater Knowledge and Access to Information
Customers today are more informed, thanks to easy access to online resources, reviews, and detailed product comparisons. They’re not just relying on HVAC companies for information—they’re doing their own research, which leads to higher expectations for quality and transparency. There is also the influence of social media. Positive reviews and word-of-mouth drive expectations for high-quality service, and negative experiences are widely shared. This creates an environment where companies must consistently meet or exceed customer expectations.
Keep in mind that, as customers shop around online, you’ll want to offer transparent pricing, estimates, and maintenance packages. This can build trust with customers, especially as they compare your business to your competitors.
Increased Focus on Comfort and Health
After the COVID-19 pandemic, there’s been a surge in awareness about indoor air quality. Customers expect HVAC systems to provide better filtration, humidity control, and air purification to improve health and comfort. Customers also expect HVAC systems to provide consistent, reliable, and customized comfort. They want precise temperature control and even airflow, leading to increased demand for higher-end, more tailored systems.
Personalized Service
With access to more advanced systems, customers are expecting HVAC companies to offer personalized recommendations that fit their specific needs—whether it's an energy-efficient system, smart home compatibility, or a system that works best for the size and layout of their home. Customers also now expect flexible service plans that can be tailored to their specific needs, like maintenance contracts, priority service, or ongoing technical support.
Tailoring your marketing efforts to meet specific customer needs (such as offering customized heating and cooling solutions based on their home or business type) can set you apart. Offering attractive warranty options and service contracts can increase customer loyalty. Many consumers are now more willing to invest in long-term relationships with companies that provide maintenance and support after installation.
One of the most effective marketing strategies is to showcase your reviews like Ideal Heating & Air Conditioning!
8) Marketing Strategies for HVAC Businesses
With all these insights, we don’t want to end this blog without some tips. Here is some advice based on all the HVAC industry insights we’ve shared.
Leverage Local SEO: Optimize your Google Business Profile, build local citations, and create geo-targeted content to ensure you show up in local searches.
Use Video Marketing: Create videos that show off your work, customer testimonials, or explain HVAC concepts in easy-to-understand terms.
Embrace Social Proof: Collect reviews and testimonials, and highlight positive feedback from satisfied customers on your website and social media.
Highlight Energy Efficiency: Emphasize eco-friendly and energy-efficient HVAC products in your marketing, and educate consumers on the long-term savings associated with these solutions.
Provide Educational Content: Educate customers about their HVAC systems, how to maintain them, and energy-saving tips through blogs, email newsletters, or social media posts.
By focusing on these trends and adopting effective marketing strategies, HVAC businesses in Ontario can stay ahead of the competition and cater to the evolving needs of consumers in today’s market.
Stay on top of trends and adopt effective marketing strategies with the help of HomeRank Ads. With over 15 years of marketing experience assisting local HVAC companies with their digital marketing, HomeRank Ads is here to help you improve your site so you can get more leads while focusing on serving clients.
Contact us today to find out about our services and competitive pricing!
