World HVAC Equipment Market to Gain 4.1% CAGR Until 2020
The Freedonia Group, a Cleveland-based industry research firm released the results of their new study that shows the expected increase in the demand for HVAC equipment market worldwide. Based on the study, the demand for HVAC equipment is seen to grow at a 4.1 percent annual rate until 2020 to $122 billion.
TheNews reported that the study showed the growth slowed down from 2010 to 2015 mainly because of the moderation in building construction in China, which is considered as the world’s largest HVAC equipment market. China has also been one of the fastest growing markets in the last decade that can be seen in the consistent increases in building construction activity and related demand for HVAC equipment. China is expected to maintain the largest gains of any nation in terms of value, having 31 percent of the overall increase in HVAC equipment sales between 2015 and 2020 worldwide.
Furthermore, the report stated that the fastest increases in HVAC equipment demand will be from India, Saudi Arabia, and Indonesia. Analyst Kyle Peters said, “Investment in HVAC installations will continue to be strong in these countries as they seek to expand their base of HVAC equipment, and there will be ample new sales opportunities in both new building construction and in retrofit applications.”
Some countries in the Western Europe region are anticipated to boost their countries’ HVAC equipment demand, recovering from almost a decade-long drop. This is due to the emerging construction activities in the next few years, particularly because many building owners are set to replace their HVAC equipment now that the economy is recovering.
In terms of sales in both unit and value, heat pumps will have the fastest increase among all HVAC systems until 2020 because this equipment is being used globally in order to provide more efficient cooling as compared to conventional room air conditioners. Another reason for the future boost in heat pumps’ sales is their ability to provide additional heating, an advantage that would limit the need for additional types of equipment for heating. Currently, the largest market gains in terms of both unit and value are the room air conditioners.
Freedonia’s World HVAC Equipment analyzes the HVAC equipment market globally and focuses on historical data from 2005 to 2015 plus forecasts for 2020 and 2025 that are related to supply and demand by type and by market for six regions and 19 major countries in the world. The report also takes note of the main market environment factors, studies company market share, and reviews 31 global industry competitors.