International. Frost & Sullivan Analysis estimates that the global HVAC equipment market earned revenues of $80.67 billion in 2014 and is estimated to reach $108.93 billion in 2020, despite the maturity of the market.
The study covers unitary equipment, applied equipment, chillers, heat pumps and mini-split systems. While unitary equipment dominates the market, it is expected to lose a share with mini-splits in the forecast period.
Demand for energy-efficient systems and increased consumer confidence has increased the uptake of HVAC equipment, says Frost & Sullivan. For HVAC equipment manufacturers, adapting to market trends such as the adoption of smart technologies is key to gaining market share. Expanding sales channels through alliances and acquisitions also bodes well for agents in the sector.
"HVAC manufacturers are turning to consolidation to establish a stronger market presence," said Aanchal Singh, Energy and Environment Analyst at Frost & Sullivan. "Reflecting the increasing integration of equipment and technology, suppliers are expected to consolidate with smaller technology companies to build a stronger HVAC business unit, offering turnkey solutions."
In addition to market consolidation, major suppliers will have to contend with limited-budget commercial and institutional consumers who tend to favor products with low upfront costs over those that have low lifecycle costs and the ability to produce long-term savings.
