World HVAC equipment demand to reach $122 Billion
May 27, 2016 | By Rehana Begg
Global demand for HVAC equipment is forecast to increase at a 4.1 percent yearly rate through 2020 to $122 billion, according to trends presented in World HVAC Equipment, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Growth will slow from the 2010-2015 pace, due largely to an anticipated moderation in building construction spending in China, the world’s largest market for HVAC equipment. The country has also been one of the fastest growing markets over the last decade, reflecting robust increases in building construction activity and associated HVAC equipment demand. Even though the pace of growth will slow, China will still post the largest gains of any nation in value terms, accounting for 31 percent of the total increase in world HVAC equipment sales between 2015 and 2020.
The fastest increases in HVAC equipment demand will be registered in Saudi Arabia, India, and Indonesia. According to analyst Kyle Peters, “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.”
Demand for HVAC equipment in Western Europe will recover from a decade-long drop. A number of countries in the region have experienced prolonged economic weakness that has dampened both building construction spending and HVAC equipment demand. However, construction activity in Western Europe is projected to rebound, which will provide a significant boost to HVAC equipment demand, especially as many building owners postponed replacing HVAC equipment until economic conditions improved.
Heat pumps will record the fastest increase in sales in both unit and value terms through 2020. Heat pumps are utilized throughout the world to provide more efficient cooling compared to traditional room air conditioners. They can also provide supplemental heating and/or hot water, a feature that will boost sales, as this limits the need for additional types of equipment. Demand for heat pumps will continue to be supported by increasing acceptance among consumers, as well as by a variety of government financial incentives. The largest market gains in both unit and value terms through 2020 will be posted by room air conditioners, which account for the largest share of global HVAC equipment sales of any product.
For more information, visit www.freedoniagroup.com.