International. According to a new study by The Freedonia Group, global demand for HVAC equipment is estimated to increase by 5.7% annually to reach $120 billion in 2018.
Growth will be driven by an expansion of reliable energy sources; increases in income levels in China, India and other developing countries; and the manufacture of air conditioning equipment more accessible to more consumers.
In Central and South America, the sale of equipment has gone from generating US$3,205 million to US$5,780 million in 2013 in 2008, increasing on an annual average of 6.9% and forecasting 5.3% between 2013 and 2018.
The Asia/Pacific region was the largest market for HVAC equipment in 2013, accounting for 54% of the global total. Growth will be driven in large part by China, which will account for a third of global sales in 2018.
India and Indonesia, however, will record the fastest growth worldwide. Rapid economic growth, the expansion of electrification and the increased availability of products have stimulated demand for goods, such as air conditioners in these and other developing Asian countries, and will continue to do so through the forecast period.
Regionally, North America is projected to achieve the fastest earnings through 2018, with sales forecasting to increase 6.8% per year from a low level in 2013.
The United States, which accounts for most of the demand in North America, was hit in recent years by the 2007-2009 recession and the subsequent slow recovery. This caused consumers to postpone purchases – either to replace an existing version or to add new equipment – and repair second-hand equipment when possible.
The growth in sales will come mainly from the release of this pent-up demand. The rebound in real estate activity will also contribute to earnings, as HVAC equipment is normally installed when a new home is built or a home has been sold.
