United States. The demand for air conditioning equipment in the North American nation is expected to increase by 6.8% annually until 2019 to US $ 20.4 billion, registering profits of more than twice the rate of the period 2009-2014.
In large part, the advances will be the result of solid gains in building construction expenses, especially growth in upgrade and repair expenses as replacement demand contributes approximately three-quarters of total sales in a given year. The advances will also be driven by the growing demand for increasingly efficient air conditioning systems and other products that have greater technological sophistication, as these are typically the most valuable systems.
However, analyst Kyle Peters notes that "federal tax incentives that were directed to high-efficiency systems installed in the residential market expired at the end of 2014. A number of homeowners took advantage of those incentives and replaced their HVAC systems ahead of schedule, so the pool of units that need to be replaced will be smaller, reducing sales in the short term." These and other trends are presented in a new study on HVAC Equipment from The Freedonia Group Inc., a Cleveland-based research firm.
Unit air conditioning systems will continue to comprise the largest proportion of total demand for HVAC equipment, accounting for 44% of sales in 2019. The gains will benefit from the expected rebound in non-residential construction spending and continued improvement in residential construction activity.
Finally, the non-residential market records the largest proportion of the demand for HVAC equipment in terms of value, due to the larger size of the air conditioning systems used in these buildings and their higher cost accordingly.
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