ISMR November 2021 - Page 24

INDUSTRY REPORT

The Asia Pacific region has been the largest consumer and accounted for over 45 % of global revenue share in 2020
revenue share in 2020 due to the factors such as rapid urbanisation , rising population and increasing disposable income levels . China , in particular , dominates global air conditioning systems demand and accounted for the highest unit sales in 2020 . The presence of companies offering low-cost equipment in China and neighbouring countries is another factor contributing to regional market growth .
“ North America accounted for the secondhighest revenue share in 2020 and is expected to grow steadily over the forecast period . The market in Europe is also expected to record healthy growth , driven by the flourishing tourism sector and real estate industry in the region . Governments of both regions are promoting the use of energy-efficient systems by providing subsidies and tax benefits . As a result , in addition to new constructions , existing customers are also upgrading to new energy-efficient systems ,” added the analyst .
Companies engage in inorganic growth strategies ( such as mergers & acquisitions , partnerships and geographical expansion ) to sustain market competition . For instance , in April 2020 , Johnson Controls International plc opened a new HVAC rooftop centre of excellence in Oklahoma , USA . The facility serves as a location for the research , manufacturing and testing of HVAC rooftop units .
“ Market players also focus on R & D to develop technologically advanced and differentiated products that comply with regional regulation norms to gain a competitive edge . For instance , in December 2019 , Lennox International , Inc . expanded its ultra-low emission gas furnace line by introducing four furnaces . The new products were developed to comply with the new California South Coast Air Quality Management District ’ s Rule 1111 and San Joaquin Valley Air Pollution Control District Ultra-Low NOx Rule 4905 , which are focused on the reduction of nitrogen oxide emission ,” concluded the analyst . n
24 | sheetmetalplus . com | ISMR November 2021