ACHR NEWS: What about Viessmann Climate Solutions made it an attractive company for Carrier to acquire?

As we look to the future, we envision Carrier as a digitally enabled, scalable, end-to-end sustainable climate and energy solutions provider that addresses all heating, cooling, renewables, storage, and energy management needs for the home. Viessmann Climate Solutions will play a big part in the strategy.

ACHR NEWS: How long was this process?

Pandya: Carrier announced the intent to acquire Viessmann Climate Solutions April 2023, with the closing of the acquisition taking place January 2, 2024.

ACHR NEWS: What can Viessmann bring to Carrier, and conversely what can Carrier bring to Viessmann?

Pandya: Carrier intends to grow Viessmann’s iconic brand, solutions, and market reach, including its direct-to-installer sales model, which complements Carrier’s multi-brand, multi-channel, multi-segment strategy.

ACHR NEWS: What is the plan to merge the two companies?

Pandya: We will draw upon the very best of both companies to create an industry-leading organization with top talent, respected brand names, the best market access across continents and world-class manufacturing and technology capabilities.

Integration activities have been ongoing and will continue throughout 2024. Carrier welcomed 12,000 highly talented Viessmann Climate Solutions colleagues with invaluable skills and experience on January. We look forward to fully integrating the businesses over the coming months to establish Carrier as a simpler, focused global leader in intelligent climate and energy solutions.

ACHR NEWS: What made Viessman a good fit?

Pandya: With 70% of its business consisting of heat pumps and related accessories, solar PV, batteries, and services, Viessmann Climate Solutions is a critical leader in Europe’s energy transition.

The European heat pump installed base is expected to increase four times by 2030 as policymakers rely on the technology as an important tool to address the rapidly growing demand for sustainable building solutions, implementing regulations and incentive programs to drive heat pump growth across the region.

Carrier’s HVAC segment now has a strong and focused global residential and light commercial as well as commercial HVAC footprint.

ACHR NEWS: Obviously Carrier believes renewable energy is a trend in HVAC. Please talk a little bit about that. Where do you see the renewable market in one year, five years, 10 years?

Pandya: The industry continues to evolve toward heat pumps. In the near/medium term, growth will be driven by incentives such as the Inflation Reduction Act, state programs, and utility rebate programs. Improved heat pump technologies that facilitate stronger heating performance at very low temperatures will also be a driving factor.

Longer-term, we expect to see the trends toward electrification continue organically as heat pump technology continues to improve for all climates, and as homes become more integrated with the overall energy/grid ecosystem. By electrifying, homeowners are able to take advantage of intelligent solutions such as home energy management, which allow their home to dynamically interact with the grid and strategically control the largest load in their home, the HVAC system, without sacrificing comfort.