Summary of Research Findings

A corporate questionnaire was carried out to 84 domestic major companies that undertake installation works of HVAC and plumbing/sanitary systems between August and October 2022. This press release announces the total sales of HVAC and plumbing/sanitary system installations from FY2017 to FY2021 at 73 companies that responded to the questionnaire with analytical findings.

The sales of HVAC and plumbing/sanitary installation works for FY2021 (as a total of sales at 73 major contractors) attained 1,238,800 million yen, 101.4% of the size of that in the previous fiscal year. As COVID restrictions on economic activity are eased, the demand for redevelopment projects and building renewals, mainly in urban areas, showed recovery. Along with the gradual recovery in demand for accommodations by foreign tourists visiting Japan (although it is still far from the pre-pandemic level) demand for refurbishment/renewal of accommodation facilities is also on the rise.

In response to this market environment, it is speculated that the major HVAC and plumbing/sanitary works contractors saw an increase in the number of projects (purchase orders) in FY2021. Nonetheless, since sales of these orders will be mostly recorded in FY2022, if not later, the market size for FY2021 is assumed to remain at the same level as in the previous fiscal year.

Noteworthy Topics

Digital Transformation (DX) at Building Construction Worksites

Construction industry has been promoting digital transformation (DX) to improve on-site productivity that deteriorated due to labor shortage. Internet environment have been deployed to connect information systems, so that head office can take charge of administrative tasks that occurred onsite, while workers concentrate on their tasks. Optimization for operating interlinked systems is also in progress.

Research Outline