Energy Efficient HVAC Revenue to Hit $33 Billion by 2020

hvac

Annual revenue generated by the global sale of energy efficient HVAC systems is expected to surpass $33 billion by the end of the decade according to the latest study from Navigant Research.

Figures from Navigant’s new report, entitled Energy Efficient HVAC Systems, indicate that annual revenue from energy efficient heating, ventilation and air conditioning (HVAC) systems is set to nearly double from $17.2 billion in 2013 to $33.2 billion by 2020.

Navigant senior research director Bob Gohn says that despite a tepid market for efficient HVAC in past the several years following the Global Financial Crisis, recovery in developed economies is now well within sight.

“In the wake of the global recession of 2009, developed markets for efficient HVAC – especially in North America and Europe – remain sluggish,” he says.

“However, the North American market will revive during 2013 and begin to experience more substantial growth during 2014. Europe will follow a similar trend, but recovery will likely not occur until mid to late 2014.”

Gohn also points out, however, that Asia-Pacific economies will take the lead in the energy efficient HVAC market by the end of the decade, with the region expected to comprise 55 per cent of the global market by 2020.

Energy efficient HVAC systems harbour immense promise as a means of boosting the sustainability credentials of buildings and reducing carbon emissions. HVAC systems alone account for approximately 40 per cent of total building energy consumption, and buildings in turn comprise between 35 to 40 per cent of global energy consumption.

The introduction of efficiency measures in this key area of energy consumption could have highly positive ramifications for efforts to reduce greenhouse gas emissions and soften the impact of global climate change.

The report also notes that the international HVAC market is currently dominated by major corporations such as UTC (Carrier), Hitachi, Ingersoll-Rand (Trane), Daikin and LG Electronics, who do not focus exclusively on the manufacture of HVAC systems. Exclusive HVAC manufacturers are currently limited to smaller players such as Lennox and Uponor.

By Marc Howe
Image Source: IGS
© 2012 DesignBuild Source. All rights Reserved. Reproduction without explicit permission is prohibited.