Going with the flow: Housebuilding activity keeps the industry in good condition

Operators in the Plumbing, Heating and Air Conditioning Installation industry install, repair and maintain boiler, central heating, air conditioning and drainage systems. The residential and commercial markets are key for the industry, making its performance dependent on downstream construction cycles. Over the past five years, economic recovery, reinvigorated confidence and policy support allowed for a revitalisation in downstream markets, benefiting demand for industry services. However, post-financial crisis volatility in the construction sector, competitive pricing pressures and disintermediation have consistently weighed on industry growth. Over the five years through 2018-19, revenue is forecast to grow at a compound annual rate of 4.3%...read more.

Industry Statistics & Market Size
Revenue
£17.2bn
Annual Growth 14-19
4.3%
Forecast Growth 19-24
Profit
Employment
133,337
Businesses
34,981
Market Share of Companies

Industry Threats & Opportunities

  • Government initiatives to stimulate the housing market supported revenue growth
  • Demand for renewable energy systems has surged as the UK’s sustainability drive gained momentum
  • Demand for energy-efficient system installations is expected to increase over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Plumbing, Heating and Air Conditioning Installation industry has a low level of market share concentration, given the highly fragmented nature of the industry and the preponderance of small-scale independent contractors. Three of the largest industry contractors – Centrica, HomeServe Membership and T Brown Group – are estimated to account for a combined market share of just 14.8% in 2018-19: Centrica alone is estimated to account for 12.5% of industry revenue.The majority of contractors in the industry are small-scale, low-income operators that only serve a limited geographical area. Industry services are somewhat homogeneous, depending on specialisation, meaning that it can be difficult for contractors to differentiate themselves. How...purchase to read more.

    Additional Insights for the Plumbing, Heating & Air Conditioning Installation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plumbing, Heating & Air Conditioning Installation Industry are

  • Qualified work force
  • Provision of superior after sales service
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Demand from commercial building construction in the Plumbing, Heating & Air Conditioning Installation industry impact industry performance..

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    What's in this report

    What is the Plumbing, Heating & Air Conditioning Installation Industry?

    Operators in this industry install plumbing, central heating and air conditioning for households and businesses. The industry includes additions, alterations, maintenance and repair, but does not include the installation of electric baseboard heating.

    Industry Products
  • Central heating services
  • General plumbing
  • Industrial plumbing
  • Renewable energy services
  • Specialist conditioning services
  • Other services
  • Industry Activities
  • Installing plumbing systems and sanitary equipment
  • Installing electric, gas and oil heating systems
  • Installing ventilation and air-conditioning equipment and ducts
  • Installing gas fittings, steam piping, fire sprinklers and lawn sprinklers
  • Altering, maintaining and repairing plumbing, heating and air-conditioning systems
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from residential building construction
  • Demand from commercial building construction
  • Business profit
  • Household expenditure on maintenance and repair
  • Industrial production index

  • Current Performance
  • Competitive conditions
  • Policy support
  • Renewable energy
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing market
  • Sustainability drive
  • Industry scope
  • Table: Plumbing, Heating & Air Conditioning Installation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plumbing, Heating & Air Conditioning Installation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Building Construction
  • Residential Building Construction
  • Estate Agents
  • Consumers

  • Key Selling Industries
  • Hardware, Plumbing & Heating Equipment Wholesaling
  • Plumbing, Heating & Air Conditioning Installation

  • Products & Services
  • Central heating services
  • General plumbing
  • Industrial plumbing
  • Renewable energy services
  • Specialist conditioning services
  • Other services
  • Chart: Plumbing, Heating & Air Conditioning Installation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Commercial
  • Public non-residential
  • Industrial
  • Chart: Major Market Segmentation for the Plumbing, Heating & Air Conditioning Installation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesSubcontractor paymentsOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Plumbing, Heating & Air Conditioning Installation

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plumbing, Heating & Air Conditioning Installation Industry

  • Industry Globalization
    Centrica plc,
  • Table: Centrica plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Plumbing, Heating & Air Conditioning Installation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plumbing, Heating & Air Conditioning Installation Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Duct
  • A pipe system used in heating, ventilation and air conditioning to deliver and remove air.
  • Gas Fitting
  • The pipe, valve or meter that conveys gas from the gas main to the relevant fixtures in a building.
  • Hydronic Heating
  • A form of central heating where water is heated in a boiler and then pumped to radiators in each room.
  • What Our Customers Say

    Why buy this report?

    The Plumbing, Heating & Air Conditioning Installation market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Plumbing, Heating & Air Conditioning Installation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plumbing, Heating & Air Conditioning Installation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plumbing, Heating & Air Conditioning Installation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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