Global HVAC market to hit US88bn in 2014

Global demand for HVAC equipment is projected to rise over 6% a year through 2014 to more than US$88 billion, according to the latest ‘World HVAC Equipment’ report from Bharat Book Bureau.

Demand will benefit from recovery in the key US market, which will rebound from dismal levels in 2009. Demand in the Asia/Pacific region will also outpace the global average, increasing 6.6% a year through 2014.

China will be the fastest-growing national market, and comprise the largest share of global demand growth through 2014. Above-average growth will also occur in India due to solid gains in the number of households and rising per capita incomes.

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Despite a modest outlook in the shorter term, US demand for HVAC equipment is expected to rise over 7% a year through 2014. Gains will result from recovery in residential building construction expenditures, which plummeted in 2009 due to the economic recession.

Advances in other developed areas, such as Canada and Japan, will be more modest, reflecting high penetration rates and modest construction gains. Low ownership rates in Western Europe (relative to other industrialised nations) will present opportunities.

Cooling equipment growth will continue to outpace heating equipment gains through 2014, reflecting the lower penetration rates of air-conditioning equipment. Among products, room air-conditioners will post the strongest gains worldwide.

Rising income levels in Asia, especially China, will bolster demand for window-type air conditioners. In Western Europe, mini-split room air-conditioners will post solid gains due to the lack of ductwork in most European homes. Gains for other cooling equipment such as chillers will post solid gains due to rising non-residential construction expenditures.

In terms of the global chiller market, the Building Services Research and Information Association (BSRIA) of the UK recorded in its latest research a decline of 14% in value and 13% by volume in 2009. All segments experienced contraction over the last year. The biggest market, the total Asia Pacific region, declined from US$2.8billion to US$2.5 billion.

BSRIA stated there was a 11% decline in the Middle East region in particular. Iran and Saudi were the only growth areas in the region, as the recession made its impact felt, but at a less significant scale, outside Dubai. Due to the nature of construction and the use of district cooling in many parts of the region, there is a strong emphasis on larger-capacity chillers above 500 kW.

In 2010, the global market is expected to remain flat at best, with a 1% decrease in value terms. The Middle East Region is forecasted to show a speedier recovery, with around 3% growth rate in value terms compared to 2009. Reciprocating compressors continue to disappear from the majority of markets, with the trend moving towards scroll and screw compressors.

The latest industry study from Bharat Book Bureau presents historical demand data (1999, 2004, 2009) plus forecasts for 2014 and 2019 by product (for example, room air-conditioners, unitary air-conditioners, warm air furnaces, boilers), world regional markets and major national markets. The study also details market environment factors, assesses industry composition, evaluates company market share data and profiles HVAC equipment producers worldwide, including Carrier, Daikin, Haier, Lennox and LG Electronics.