Oct. 21, 2013: Global HVAC Equipment Market to Reach $139 Billion by 2018
Energy Regulations, Technological Developments to Meet Energy Efficiency Requirements Are Key Growth Drivers
Factors such as changes in energy regulations, technological developments by manufacturers to meet these energy efficiency requirements, and growing demand across the commercial sector, especially in the Asia Pacific region, are some of the key growth drivers. However, the magnitude of the impact of these factors on the market varies on a regional basis.
Asia Pacific in particular is experiencing high growth due to robust economic activities, resulting in increased urbanization and a rise in consumer spending. In addition, growth across North America is showing signs of recovery, particularly in the residential sector. Growth in the nonresidential sector, particularly the industrial segment, is slow due to dormancy in industrial activities. The commercial segment for HVAC equipment, however, is growing at a healthy rate. The commercial segment alone accounted for approximately 40 percent of market share in 2012.
Manufacturers seeing market saturation and lower profit margins in the developed markets of North America and Europe are increasing their focus on the emerging economies of Asia Pacific and Latin America. Environmental regulations are pushing the need to develop efficient, environmentally friendly equipment, which requires heavy investment in research and development activities.
In order to meet changing consumer needs, manufacturers are developing smart solutions which are incorporated in new equipment, so as to make them more efficient and responsive to consumer requirements. This has the dual impact of not only generating demand for new equipment but also replacement demand when obsolete, inefficient equipment reaches the end of its lifecycle.
Publication date: 10/21/2013