INDUSTRY REPORT
Rising energy costs have also spurred demand for more energyefficient HVAC systems . The real-estate market and regulatory environment are evolving , with sustainability making a considerable impact on the value , operating costs and marketability of properties . Governments worldwide have implemented stringent regulations and standards to encourage the installation of energy-efficient systems , as well as for reducing greenhouse gas emissions . Companies must therefore develop products that meet these guidelines to remain compliant . Buildings that are environmentally friendly and meet requirements for health , safety and comfort are becoming increasingly popular .
“ Heating , ventilating and air-conditioning in a commercial building usually consume more energy than any other activity in the building . According to the U . S . Department of Energy ' s studies of commercial buildings , HVAC equipment usually accounts for over 40 % of a building ' s energy usage . Owing to the huge amount of energy used by HVAC systems , improvements in equipment efficiency translate to significant reductions in building operating costs ,” explained Mordor Intelligence .
The rapid rise in industrialisation and urbanisation worldwide is one of the primary factors driving the market ’ s growth
Regional market growth
Mordor Intelligence predicts that the Asia-Pacific HVAC systems market will rise steadily due to commercial and residential construction activity in India and China as well as rising consumer expenditure on luxury products . Low ownership rates and increased disposable income in Asia are likely to boost the market ’ s growth .
“ Due to rising demand from India and China , the residential sector accounted for a significant portion of the Asia-Pacific air conditioning systems ’ market . Increased competition from Chinese producers offering products at lower prices than globally recognized names is projected to sustain sales growth . A large installed base in established regions , such as Western Europe and the United States , is expected to create development prospects in the comparatively untapped Asia- Pacific market ,” outlined the analyst .
“ In the Asia-Pacific market , the energy and power sectors will be essential end users of heating equipment . Rising power plant capacity will be a primary driver of market expansion . According to the International Energy Agency ' s Global Energy Investment
Forecast , between 2014 and 2035 , over US $ 9.5 trillion will be spent on constructing new power plants and rehabilitating existing ones worldwide . Over one-third of this will probably be used for fossilfuel-based thermal power plants . Increasing generation capacity is planned to be achieved primarily through fossil-fuelled thermal power plants , which are the primary source of electricity generation in these countries ,” it continued .
Supportive government incentives in some countries present consumers with a compelling opportunity to replace any ageing , lowerefficiency HVAC systems with advanced , high-efficiency technology at a fraction of the cost .
“ At a global level , the HVAC industry is thriving in four different markets ; the U . S .; Europe ; UAE and APAC ,” confirmed Mordor Intelligence .
The U . S . market is poised for growth , it believes , as a result of requirements to improve Indoor Air Quality ( IAQ ). The ventilation fans category , it added , will see increased interest especially for maintenance services due to the need for fresh air in hotels , shopping malls and airports . There is also a focus on building ‘ green ’ buildings , leading to higher demand for both HVAC systems and maintenance services .
“ Europe ’ s HVAC industry is growing due to rapid urbanisation ; an increase in disposable income ; government regulations and increased spending in sustainable construction . Europe stands out for its push to reduce CO₂ emissions . This has led economies like Germany and Finland to promote the use of new technologies in the construction and HVAC industries ,” explained the analyst .
Increased construction in commercial and residential sectors in the UAE market , as well as the region ’ s desert climate , has led to increased demand for HVAC solutions . Consumer trends such as automatic temperature regulation ; monitoring of humidity levels ; alerts for servicing and system access through mobile devices are creating more avenues for businesses to increase their revenues .
“ As multinationals set up in the APAC region , they ’ re driving up the demand for real estate space . With a construction boom in China , Japan and India , and an increase in average temperatures in the region , the demand for AC systems is set to go up . As India boosts its manufacturing capacity , local players are ramping up production even as the country experiences an inflow of FDI ,” added the analyst .
Trends and challenges
With all the opportunities available for HVAC businesses , some challenges could stand in the way of growth . Mordor Intelligence lists several key challenges overleaf .
ISMR November 2023 | ismr . net | 29