The global HVAC equipment market has been growing amidst a scenario of intense competition amongst market players. The competition in the market has reached unprecedented levels so much so that each market player is on its toes to invent better business strategies. Mergers and acquisitions are expected to become the watchword for large market players who want to eliminate small players. When Daikin acquired Goodman, it was evident that the former would now be able to exert more influence in the North American market. The market players are also focused towards staying abreast of the latest developments in the heating, ventilation, and air conditioning (HVAC) industry. The expansion of the product portfolio is also projected to play to the advantage of the market entities. The contemporary market players are LG Corporation, Lennox International Inc., Carrier Corporation, Samsung Electronics., Haier Ltd., AB Electrolux, Panasonic Corporation, and Daikin Industries Ltd. These market players are expected to come up with key business strategies, cost-cutting hacks, and other vital steps to reap profits from the market.
Transparency Market Research (TMR) projects the growth graph of the market over the period from 2014 to 2022. It is anticipated that the market would grow at a CAGR of 6.20% over the forecast, which is a sturdy figure. The market value is projected to reach US$155.1 bn by 2022 from a value of US$91.3 bn in 2013. Based on application, the commercial sector has outdone the industrial and residential sectors. In terms of regional progress, the market in Asia Pacific held over 50% of the total market share, and is expected to keep reigning over other regional markets. This supremacy of the region is attributable to the economic growth of India and China.
Utility Across Industrial, Commercial, and Residential Sectors Upticks Demand
Technological developments have trickled down to the HVAC industry where market players are in a position to offer better products and services. This propels demand within the market because the promise of more comfort is appealing to the end-user. Furthermore, government regulations to equip industrial, commercial, and residential sectors with better HVAC systems has also popularized the HVAC technology. The consumers have been witnessing the betterment of technologies for the past decade, which has led them to demand advanced products.
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This drives the demand for HVAC equipment across the globe. Climatic changes have been a disrupting the flow of a number of industrial and commercial units; these units are particular about the installation of HVAC systems as a part of their infrastructure. HVAC equipment uses several control systems with advanced features, which has also been a prudent driver for market growth. Although the industrial and commercial sectors have been the leading segments, the residential sector is also catching up on demand. Hence, a brook of opportunities from all the streams is expected enhance the prospects of market growth.
Need for Energy Conservation Could Hamper Market Growth
The environmental concerns that have surfaced due to the usage of the HVAC systems pose a threat to the market. Energy efficiency has become to cynosure of global initiatives that is expected to bring HVAC equipment under the radar of criticism. Nevertheless, the quest to attain infrastructural prominence and add comfort to the lifestyles of people is projected to keep bolstering demand. Smart homes are now preferred by a large chunk of the financially stable population. Moreover, energy efficient HVAC equipment is also expected to create commendable opportunities within the market.