HVAC Equipment Market Forecast to Reach $108.93 Billion by 2020
Demand for energy-efficient systems produces gains
MOUNTAIN VIEW, Calif. — Analysis from Frost & Sullivan finds that the global HVAC equipment market earned revenues of $80.67 billion in 2014 and estimates this to reach $108.93 billion in 2020, despite the market’s maturity. The study covers unitary equipment, applied equipment, chillers, heat pumps, and ductless systems. While unitary equipment dominates the market, it is expected to lose share to ductless systems in the forecast period.
The demand for energy-efficient systems and rise in consumer confidence has increased the uptake of HVAC equipment, says Frost & Sullivan. For HVAC equipment manufacturers, keeping pace with market trends such as the adoption of smart technologies is key to capturing market share. Expanding sales channels through partnerships and acquisitions will also bode well for industry players.
“HVAC equipment manufacturers are resorting to consolidation to establish a stronger market presence,” said Aanchal Singh, Frost & Sullivan Energy & Environment research analyst. “Mirroring the increased integration of equipment and technology, vendors are expected to consolidate with smaller technology firms to build a stronger HVAC business unit offering turnkey solutions.”
In addition to market consolidation, the major vendors will have to contend with budget-constrained commercial and institutional consumers that tend to favor products with low initial costs over those with low lifecycle costs and the ability to yield long-term savings.
“Closing the gap in consumer knowledge on the changing complexities of HVAC systems and its long-term benefits will be necessary,” said Singh. “Maintaining long-standing contractor relationships, impeccable delivery time, and robust support services will be an essential component of vendors’ business success.”
More information on the report, Analysis of the Global HVAC Equipment Market, is available here.
Publication date: 1/11/2016