Freedonia Market Research Analyzes Global HVAC Industry

World demand for HVAC equipment is projected to rise 5.8 percent per year through 2012, reaching $83.7 billion. Demand in the Asia/Pacific region will outpace the global average, rising 6.9 percent annually through 2012.  China will be the fastest growing national market, comprising 40 percent of global demand growth through 2012.  Above-average growth will also occur in India due to solid gains in the number of households and rising per capita incomes. These and other trends, including market share and company profiles, are presented in World HVAC Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Opportunities will also exist in developed regions. Demand in the US, for example, will exhibit recovery by 2012 after a period of sluggishness resulting from the housing crisis. Gains will also exist in Western Europe, as air conditioning becomes more common in residential buildings. As in the US, many of these citizens have grown accustomed to having air conditioning in their cars and places of business and have decided to install it at home as well.  The global economy is forcing more and more Europeans to work summers instead of slowing down or going on vacation, as was traditional.  However, in some areas there is a cultural bias against air conditioning for manufacturers to contend with. 

Among product types, cooling equipment will continue to outpace heating equipment gains through 2012.  This is due to the lower penetration rates of air conditioning equipment in Western Europe. Room air conditioners will post the strongest gains worldwide because of their low cost and ease of installation.  Rising income levels in Asia, especially China, will bolster demand for room air conditioners.

China has grown into the largest supplier of HVAC equipment, due to its inexpensive labor pool, which has made the pricing of Chinese goods especially competitive.  China has become a leading producer in the room air conditioner segment, exporting products to the US, Western Europe and throughout Asia. In addition, the US and Japan are also major producers, each with 2007 shipments of over $5.5 billion.  Other important world class sources of supply (with 2007 shipments of more than $2 billion) include Germany and Italy. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.