U.S. demand for HVAC equipment to reach $20.4 billion in 2019

According to a recent report, demand for HVAC equipment is forecast to increase 6.8% annually through 2019.

03/31/2015


Figure 1: Unitary air conditioners will continue to comprise the largest share of total HVAC equipment demand, accounting for 44% of sales in 2019. Courtesy: The Freedonia Group Inc.Demand for HVAC equipment in the United States is forecast to increase 6.8% annually through 2019 to$20.4 billion, recording gains over twice the rate of the 2009-2014 period. In large part, advances will bethe result of robust gains in building construction spending, especially growth in improvement and repair expenditures as replacement demand contributes approximately three-quarters of total sales in a given year. Advances will also be propelled by rising demand for increasingly efficient HVAC systems and other products that have greater technological sophistication, as these are typically higher value systems.

However, analyst Kyle Peters points out that "Federal tax incentives which were targeted at high-efficiency systems installed in the residential market expired at the end of 2014. A number of homeowners took advantage of those incentives and replaced their HVAC systems ahead of schedule, so the pool of units needing to be replaced will be smaller, reducing sales in the short term." These and other trends are presented in HVAC Equipment, a new study from The Freedonia Group Inc., a Cleveland-based research firm.

Unitary air conditioners will continue to comprise the largest share of total HVAC equipment demand,accounting for 44% of sales in 2019. Advances will benefit from the projected rebound in nonresidential construction spending and the continued improvement in residential construction activity. In addition, the improved economic environment will enable some homeowners to install central air conditioning systems.However, heat pumps and warm air furnaces will both post faster gains. Demand for heat pumps, which have both heating and cooling capabilities, will be supported by rising sales in markets where efficiency gains are of primary importance, particularly as more high-value geothermal types are installed.

The nonresidential market accounts for the larger share of HVAC equipment demand in value terms, due to the larger size of HVAC systems used in these buildings and their consequently higher cost. However,growth in the residential market will significantly outpace that in the nonresidential market. The number of new housing units will increase substantially, providing ample opportunities for new residential HVAC equipment installations. However, in both residential and nonresidential markets, replacement purchases will continue to account for the bulk of sales.



Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
How to use IPD; 2017 Commissioning Giants; CFDs and harmonic mitigation; Eight steps to determine plumbing system requirements
2017 MEP Giants; Mergers and acquisitions report; ASHRAE 62.1; LEED v4 updates and tips; Understanding overcurrent protection
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
Power system design for high-performance buildings; mitigating arc flash hazards
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me