March 30, 2015: US Demand for HVAC Equipment to Reach $20.4 Billion by 2019
Advances Will Be the Result of Robust Gains in Building Construction Spending
CLEVELAND — Demand for HVAC equipment in the United States is forecast to increase 6.8 percent annually through 2019 to $20.4 billion, recording gains over twice the rate of the 2009-2014 period, according to a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm.
In large part, advances will be the result of robust gains in building construction spending, especially growth in improvement and repair expenditures as replacement demand contributes approximately three-quarters of total sales in a given year, noted The Freedonia Group. Advances will also be propelled by rising demand for increasingly efficient HVAC systems and other products that have greater technological sophistication, as these are typically higher value systems. However, analyst Kyle Peters pointed out, “Federal tax incentives, which were targeted at high-efficiency systems installed in the residential market, expired at the end of 2014. A number of homeowners took advantage of those incentives and replaced their HVAC systems ahead of schedule, so the pool of units needing to be replaced will be smaller, reducing sales in the short term.”