Industry revenue for the global HVAC industry is forecast to reach an estimated $95 billion in 2018, according to “Global HVAC Equipment Industry 2013-2018: Trend, Profit, and Forecast Analysis,” a market research report released by Lucintel. The study revealed that Asia Pacific is dominating demand and commercial HVAC equipment is a major segment of the industry, accounting for more than 50 percent of the market share.

Report Findings

The report cites increasing construction activities as the main industry growth driver. Global sales of homes and new buildings have increased, favoring the industry as sales of HVAC equipment is highly correlated to the construction of new homes and buildings. Availability of easy financing also supports the growth of HVAC equipment sales.

The residential HVAC sector is currently recognized as the industry’s fastest growing area, driven by increasing residential construction and product penetration.

Other topics examined include industry size estimates in terms of value per region and segment; a global HVAC equipment industry analysis (2007-2012) and forecast (2013-2018); new product launch, merger, and acquisition activity in the global HVAC equipment industry; quarterly demand trends (first quarter 2011-fourth quarter 2012); a global forecast analysis (first quarter 2013 - fourth quarter 2014); gross and net profit trends; and cost structure trends in the global and regional HVAC equipment markets.

Despite the promising signs, the report recognized that a slow-recovering economy continues to hinder the industry. Although the middle-class population is projecting healthy growth across the world, economic conditions are preventing many of them from buying domestic HVAC equipment such as air conditioners.

“The global HVAC industry is capital intensive, and with the economy experiencing downturn globally, it is a challenge for many HVAC equipment manufacturers to invest heavily in the industry,” the report states.

Increasingly warmer global temperatures are among other various issues affecting the industry. The study also states that the competitive landscape of the industry has remained primarily unchanged over the last five years, with the entry of one new player in the top 10 list, United Technologies Corp.

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Publication date: 5/13/2013 

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