Grow your business with ductless HVAC industry trends
With the ductless HVAC market expanding at twice the rate of traditional unitary, contractors have a significant opportunity to diversify their revenue streams, expand service applications, and capture growing market demand. Hear how three contractors are driving sales by embracing the technology.
Capturing revenue opportunities with ductless HVAC
Mike Young, a contractor based in North Carolina, said that his company has installed hundreds of mini-split systems in the past several years.
“Ductless HVAC makes up about 30-35% of our business, and we anticipate that number climbing to somewhere in the 40-50% range over the next several years,” he said.
This strategic shift proved to be a boon for Young’s business, and the broader industry focus on ductless technology provides contractors with repeatable installation opportunities and opens the door for long-term service and maintenance agreements.
The growing role of ductless in modern HVAC
Since they were introduced to the U.S. market 30+ years ago, ductless solutions have evolved from niche products used specifically for spot comfort to one of the most sought-after and fastest-growing comfort technologies available.
Markets and Markets reports that the global ductless HVAC market is valued at approximately $145 billion, with an estimated compound annual growth rate (CAGR) of more than 8%.
Floyd Nealey, a North Carolina HVAC contractor, credits brand awareness and the government’s endorsement as the greatest driver of his ductless sales. He said he started selling ductless equipment 15 years ago.
“I’ve gotten rid of every fossil fuel you can possibly heat with, including natural gas, propane, steam, oil, etc., and replaced them with Mitsubishi mini-split units,” he said.
While cost was an initial consideration for Nealey’s business, it’s not a primary concern anymore. Nealey said about 40% of his calls come from customers who are interested in replacing their traditional HVAC systems with mini-split systems.
He added that if comfort isn’t the main appeal, customers are drawn to the equipment’s exceptional warranties and efficiency levels, which serve as a key customer confidence driver.
“We offer 12-year parts and 5-year labor warranties,” Nealey said. “These things can reach SEER levels of 30-plus and are built rock solid.”
Ductless HVAC versatility and customization
Ductless sales at HVAC contractor Dave Molina’s business in Newbury Park, California, have increased 30% over the past three years.
“Just a year ago, we were installing one or two ductless systems a week, and today we’re installing one to two systems a day,” Molina said. “We’re now selling nearly $4 million annually in ductless HVAC solutions.”
Molina said mini-split equipment is a perfect solution for California’s antiquated building stock and rising temperatures, which are key market drivers for ductless adoption. Many common retrofit scenarios involve older homes that lack the infrastructure for central air.
“How do you retrofit a traditional three-piece HVAC system into a home that was built 100 years ago that lacks an attic, crawlspace or ductwork? You can’t. Ductless HVAC is the best solution.”
Molina also noted that ductless units are now available in numerous configurations, shapes and colors, which helps alleviate customers’ aesthetic challenges.
“A few years ago, there were very limited options as far as what you could do indoors, and the most common objection has always been, ‘I don’t want to see that on my wall,’” Molina continued. “Today, we essentially have solutions for every application. We can offer wall mounts, floor mounts, hidden cassettes that can sit inside a ceiling, and more.”
Ductless ensures customer comfort and satisfaction
Ultimately, providing zoned comfort is a primary driver of customer satisfaction. Ductless systems function as effective zoning alternatives with significant energy efficiency implications.
“Customers simply want to be able to enjoy different temperatures in different rooms,” Young said. “A mother may want it a little warmer in her room, while her son and daughter both want different temperatures in their rooms. With ductless HVAC, everyone gets to control their own environment.”
Nealey has experienced the same demand to replace central AC with ductless in his business.
“They were tired of hot and cold spots, and we identified a mini-split system as the solution to their problems,” he said of a recent customer.
Molina said his phones are ringing off the hook.
“People are recognizing the opportunities ductless offers and they’re willing to pay the price for individualized comfort,” he said. “Homeowners no longer have to heat their entire 3,000-square-foot homes to warm up one room. They can simply flip a switch and condition the room they’re occupying.”
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