International.
The global HVAC market is projected to achieve a compound annual growth rate (CAGR) of about 7% in 2020. The research study covers the current scenario and growth prospects of the HVAC market from 2016 to 2020.
Technavio analysts highlight the following four factors contributing to the growth of the market:
• Increased construction activities.
The report notes that the development of the construction industry plays an important role in driving the global HVAC market. New construction in the residential, commercial, and industrial sectors has increased the demand for air conditioning systems, generating high revenue for the market. Innovations in design and increased focus on the energy efficiency of buildings have created an opportunity for HVAC manufacturers to increase their market foothold.
• The growing demand for substitution in developed countries.
Growing awareness of reducing operating costs, increasing energy efficiency, and taking advantage of favorable government incentives has driven demand for replacement of existing HVAC equipment in the US, UK, Germany and Japan. Technavio believes that the 50% growth in the HVAC market in these countries stems from the demand for substitution.
• The need for energy-efficient air conditioning systems.
The report further notes that the need for energy savings is a driving force for the HVAC market as it increases the deployment of energy-efficient HVAC systems. Many end users prefer to use energy-efficient HVAC equipment to reduce their operating expenses. This is positively influencing the demand for these systems among residential and commercial users.
• Infrastructure development in emerging countries.
Increasing urbanization and economic growth have led to the increased construction of shopping malls, hospitals, commercial buildings, hotels, and manufacturing facilities. The expansion of commercial spaces, new office surfaces, corporate centers and special economic zones (SEZs), and organized points of sale is driving the demand for air conditioning facilities in all countries.
