The global HVAC equipment market is expected to exceed $139 billion by 2018. This is according to a report released recently by Transparency Market Research. The report investigates the demand for different HVAC equipment and the impact of changing regional needs that are driving demand. Apart from this, the report digs deep into the analysis of the global HVAC equipment market, looks into the top HVAC companies and analyses their market share as well as revenues.
Some of the key drivers of the demand for HVAC equipment include demand in the Asia Pacific region, improved manufacturing technology, and improved efficiency in energy regulations. However, the impact that the various factors have vary across different regions.
Asia Pacific has been cited as one of the regions driving the demand of HVAC equipment up. As urbanization in the area increases and economies grow, more consumers are able to afford luxury goods and services. On the same note, North America is also expected to contribute to the growth after the slow economy of the last decade. While demand for the equipment in the non-residential is slow, demand in the commercial segment is healthy. In 2012, 40% of the market share of HVAC equipment was attributed to the commercial segment.
Industry challenges affected how industry players implemented their growth strategies in 2012. In the stressed market with low profit margins, industry players in Europe and North America have now begun focusing to emerging economies in Latin America and Asia Pacific. Moreover, environmental concerns are making players focus on developing environmental friendly equipment. This means heavy capital investment in research and developmental activities, something that has made it difficult for new players to enter the market.
The report identified cooling units as a dominant segment of market. Demand for control systems is predicted to grow between 2012-2018. To meet the changing consumer needs and preferences, manufacturers are developing smart devices and incorporating them into the equipment to improve their performance and efficiency. The result is increased demand for new equipment and also replacement for inefficient and obsolete equipment. Consumers are therefore guaranteed better equipment but at premium prices, which helps to improve the manufactures’ profit margins.
The reports identified Carrier as the leading player in terms of revenues. Another observation from the report is that a significant share of the market is held by small regional players. The small players accounted for over 33 percent of the market in 2012.