The market for HVAC equipment globally is forecast to reach $155.1 billion by 2022, according to a new report published by Transparency Market Research. The demand for all types of HVAC equipment is expected to increase through 2022; however, sales of heat pumps and room air conditioners are expected to dominate the market through the forecast period.
Demand for unitary air conditioners is also expected to exhibit above average gains globally.
The global HVAC equipment market was valued at $91.3 billion in 2013 and is forecast to grow at a compound annual growth rate (CAGR) of 6.2 percent from 2014 to 2022. The HVAC equipment market is driven by factors such as increasing population, rise in new home sales, increasing construction expenditures, and growing industrialization, among others.
The HVAC industry is aiming to provide cost-effective equipment to meet the energy efficiency needs of customers and also meet green technology requirements. HVAC players are introducing eco-friendly equipment and phasing out chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs).
By geographic region, HVAC equipment is seeing a sharp rise in demand across the North American region, followed closely by Asia Pacific.
Asia Pacific alone accounted for more than 50 percent of the global HVAC market, and is forecast to retain its leading position. This leading position is due to robust economic development in China, India, and other countries.
China is also the largest production base for HVAC systems and a key supplier to the European market. Growth in these regions is driven by local demand as well as demand from lucrative export markets such as Africa and Latin America, which are looking for low-priced solutions.
Looking at global growth trends, industry players throughout the globe are adopting different strategies so as to ensure higher market shares. Market development and diversification are the strategies widely adopted across the Asia Pacific region, whereas North America and Europe are seeing product development and market penetration as key strategies adopted by industry players.
Mergers and acquisitions have become common strategies to minimize the competition and bolster a company’s market dominance. A significant share of the global HVAC equipment market is held by small and regional players, thus leaving enough room for industry players to compete and gain a strong foothold.