The heating, ventilation, and air conditioning (HVAC) equipment and systems are the facilities or the systems that are installed in both residential and commercial buildings to provide environmental comfort to people inside that space by changing temperature and quality of air. Rapid urbanization coupled with the growing infrastructure spending in various parts of the world is expected to drive the growth of the market during the forecast period. However, concerns about the adverse impact on the environment in the form of greenhouse gas emissions are expected to restrain the growth of the market in the coming years.
Construction spending in the united states, in usd million
Source: United States Census Bureau
Rapid urbanization coupled with increasing disposable income in developing countries is leading to the growth of residential and commercial infrastructure which is expected to drive the growth of the market during the forecast period. In addition, growing demand for consumer and industrial goods is also boosting the growth of industries, commercial offices, and government units which are now installing new air conditioning facilities. According to the World Bank data, the Urban population as a percent of the total population in India has increased from 30.93% in 2010 to 34.47% in 2019. Similarly, in China, it has increased from 49.2% to 60.30% in 2019. The rapid improvement in the disposable income in various parts of the world caused by falling the unemployment rate and simultaneous improvement in the job quality are driving the housing of residential purposes market globally. Besides, governments in developing countries are boosting construction activities by investments and favorable policies. In fact, the government of Mexico recently announced its plan to build more than 7,000 new social housing units in Mexico City. Further, the government is also focusing on reducing the housing deficit in the country. Similarly, the trend is being witnessed in India where the recent reduction in the borrowing cost on housing loans is expected to push the construction of new housing units which will boost the growth of the market. In fact, in 2015, the government of India launched the Housing for All by 2022 scheme which aims to provide the housing units to all the urban poor, and thus, is expected to push the residential construction spending. Also, HVAC equipment are considered as the key component in the changing energy and power industry.
Also, the government of India is now focusing on the implementation of smart cities aiming to improve the quality of life in urban areas due to tow which many people are migrating from rural to urban areas which are further expected to augment the HVAC equipment market trend over the forecast period. Similarly, the favorable trend of migration in major countries of Europe is putting pressure on housing prices as the gap between the demand and supply is rising. Moreover, disposable income has increased at a much faster pace than the housing construction, and thus, is fuelling housing prices. Therefore, a significant number of such efforts are being made to reduce the demand-supply mismatch in recent years, which is driving the residential construction spending. The residential construction as a percentage of GDP has steadily increased in the region in the last couple of years.
Moreover, there is a growing trend of shifting manufacturing facilities from the developed region to the Asia Pacific, more specifically, in countries like India, China, Vietnam, and the Philippines among others on account of the ability to offer skilled and relatively inexpensive labor and cheap electricity, thus, attracting, significant investment in the construction of manufacturing plants. In fact, the construction of the building started in the manufacturing industry of Japan has increased from 6,826 thousand square meters in 2010 to 11,147 thousand square meters in 2018 (source: Statistics of Japan). Simultaneously, the government of the United States is focusing on aiding domestic manufacturers and thus, is expected to increase the construction activity within the manufacturing sector during the course of the forecast period. All such favorable government initiative is anticipated to drive the growth of the HVAC equipment application in the industrial sector.
Geographically, Asia-Pacific Region is expected to witness significant CAGR in the HVAC equipment market due to rapid urbanization and increasing construction activities taking place in the countries like India and China along with increasing disposable income and living standards of the people. Growing awareness among consumers in the region, for purchasing energy-efficient HVAC equipment and systems, which leaves lesser carbon footprints is driving the technological innovations and sales of advanced HVAC systems. The European region is a stable and mature economy and is estimated to hold a major share in the HVAC equipment market. The factor driving the growth in the region is the seasonal and climatic variations in the last few years. Furthermore, another major factor contributing to the high demand for HVAC equipment in various parts of the world is climate change. Since due to rising temperatures and unpredictable climatic conditions HVAC equipment is considered a beneficial investment and is also becoming a population around the globe. And, growing consumer inclination toward comfort has further increased the demand for HVAC systems in the coming years.
Major players in the underfloor heating market have been covered extensively along with their respective competitive position and strategies. The report also mentions an analysis of recent deals and investments of different market players in the last few years. The company profiles section in the report details the business overview, financial performance for the past couple of years (for public companies), key products and services being offered along with the recent deals and developments of these important players in the HVAC equipment market.
ABOUT THE AUTHOR:
Rajat Sudan is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from healthcare to semiconductor, with a special knack for ICT. With the addition of his formal education in Economics, Commerce, and Finance, he is able to provide more light on the macro aspects of the story. To read more articles by him, and for more information regarding multiple global markets,visit www.knowledge-sourcing.com.