Newsline

Equipment Demand To Reach $110 Billion

CLEVELAND, OH — According to a study by the Freedonia Group Inc., world demand for HVAC equipment is projected to increase by close to 5% per year (including price increases) through 2006, reaching an estimated $110 billion. The study says that some favorable prospects can be found in the Asia/Pacific region. Suppliers will benefit from this region because of its ongoing industrialization and rising personal incomes.

The Asia/Pacific region is also expected to benefit from above average capital investment growth and healthy gains in the number of households. Latin America, Africa, and the Mideast are also being touted as favorable opportunities for HVAC suppliers.

The Freedonia study also says that heat transfer equipment will remain the largest equipment segment, bringing in approximately $20.2 billion in the year 2006. There will also be a demand for liquid chillers in both air conditioning and refrigeration applications due to an acceleration in capital investments creating a rise in construction expenditures. The study also suggests that products such as packaged terminal air conditioners will have future gains due to the rising level of construction projects in the hotel industry.

Finally, the study says that regulatory concerns will continue to play a significant role in the industry. The ongoing phaseout of CFCs and HCFCs will lead manufacturers to seek new refrigerants, and the new government efficiency standards will drive manufacturers to develop new air conditioners and heat pumps.

For more information on this study, visit www.freedoniagroup.com (website).

Publication date: 07/01/2002

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by James Siegel

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2015 AHR Expo

Photos from the 2015 AHR Expo at McCormick Place in Chicago.

Posted: February 19, 2015

Podcasts

NEWSMakers: Andy Patron
Andy Patron, partner with FMI Corp., discusses the impact a national labor shortage may have on the mechanical contracting industry. Posted on March 27.
More Podcasts

ACHRNEWS

NEWS 03-23-15 cover

2015 March 23

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

HVAC Trends

The NEWS regularly reports on HVAC industry trends in our weekly issues. What trends do you see?
View Results Poll Archive

HVACR INDUSTRY STORE

2015.jpg
2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con