CLEVELAND, OH — According to a study by the Freedonia Group Inc., world demand for HVAC equipment is projected to increase by close to 5% per year (including price increases) through 2006, reaching an estimated $110 billion. The study says that some favorable prospects can be found in the Asia/Pacific region. Suppliers will benefit from this region because of its ongoing industrialization and rising personal incomes.

The Asia/Pacific region is also expected to benefit from above average capital investment growth and healthy gains in the number of households. Latin America, Africa, and the Mideast are also being touted as favorable opportunities for HVAC suppliers.

The Freedonia study also says that heat transfer equipment will remain the largest equipment segment, bringing in approximately $20.2 billion in the year 2006. There will also be a demand for liquid chillers in both air conditioning and refrigeration applications due to an acceleration in capital investments creating a rise in construction expenditures. The study also suggests that products such as packaged terminal air conditioners will have future gains due to the rising level of construction projects in the hotel industry.

Finally, the study says that regulatory concerns will continue to play a significant role in the industry. The ongoing phaseout of CFCs and HCFCs will lead manufacturers to seek new refrigerants, and the new government efficiency standards will drive manufacturers to develop new air conditioners and heat pumps.

For more information on this study, visit (website).

Publication date: 07/01/2002