LONDON — The global HVAC rental equipment market is predicted to reach $4.63 billion by 2020, growing at a compound annual growth rate (CAGR) of about 8 percent, according to the latest market study released by Technavio.
The report categorizes the market into three major end-user segments: industrial, commercial, and residential.
Technavio expects the industrial sector to grow from $1.62 billion in 2015 to $2.44 billion in 2020. The nuclear power industry requires HVAC for maintaining ambient conditions within acceptable limits; protecting nuclear power plants against risks from inside the buildings, such as oxygen deprivation, explosion, and fire; monitoring the release of air from the controlled areas in normal operations; and containing radioactivity released during design-basis or design extension conditions.
According to Anju Ajaykumar, a lead analyst at Technavio, “Nuclear power plants mainly use HVAC rental equipment services during planned repairs and maintenance activities and power outages. During plant outages, the temperature on the refueling floor can increase, making working conditions uncomfortable, and sometimes even can impact performance and safety of personnel. HVAC rentals can help in such situations. The growth in the sector in countries such as China and India will prove to be resourceful for the market.”
HVAC rental equipment is widely used in the telecommunication sector and data centers where there is a constant need for air conditioners and coolers, especially in server rooms. The equipment is also needed to maintain a proper environment inside these facilities. These sectors mostly resort to rental services for the following reasons:
• Need for maintenance, renovation, or replacement of old equipment that calls for substitute equipment to ensure normal operations without a break; this can adequately be met by HVAC rental equipment service providers.
• Cost-effective option for companies as it reduces the total cost of ownership when considering installation of new equipment.
“It is essential to maintain a highly reliable cooling management strategy to meet the growing demand for data centers. The server density in new and existing data centers is increasing almost every day due to rising demand for reliable storage, management, and dissemination of data and information,” said Ajaykumar.
The residential sector accounts for a very negligible portion of the total HVAC rental equipment market. The residential sector does not resort to HVAC rental services to the same extent as the industrial and commercial sectors. However, some companies recently have started to cater to this segment.
Consumers Comfort, a company based in Vaughan, Ontario, Canada, started a new rental and finance program for residential HVAC equipment in January 2016. This program involves no down payment, among other benefits. According to the company, HVAC rental equipment will help homeowners significantly, especially if they cannot afford to completely replace their existing HVAC system, as it involves high cost.
More information is available here.
Publication date: 4/25/2016