International. Global demand for HVAC equipment is forecast to increase 6.1% a year through 2016 to $107 billion, according to The Freedonia Group report. The economic recovery and the corresponding improvement in construction activity in several key markets, in particular the large U.S. market, will help earnings through 2016.
North America is expected to achieve the fastest average annual gains through 2016, driven primarily by the U.S. recovery. Earnings in Canada will be slower, already reflecting high penetration rates and construction markets that were less affected by the global recession.
Ownership rates of air conditioning systems in Western Europe (relative to other industrialized countries) will present opportunities, although gains will be limited by the region's slow growth in building construction through 2016. However, regulations on energy efficiency and the use of greener refrigerants will boost sales of HVAC equipment in Western Europe and other developed markets.
HVAC demand growth in the Asia/Pacific region will exceed the global average, increasing by 6.4% year-on-year through 2016.
Heat pumps will continue to bring the fastest growth, reflecting the lowest penetration rate in many markets, in addition to the ability of these systems to provide heating and cooling capabilities, and offer greater energy efficiency than most cooling systems.
