The global heating, ventilation and air-conditioning (HVAC) market is expected to grow to $108.93 billion in 2020 from revenues of $80.67 billion in 2014, a report said.

The demand for energy-efficient systems and rise in consumer confidence has increased the uptake of HVAC equipment, explained the report entitled “Analysis of the Global HVAC Equipment Market” from Frost & Sullivan, a growth partnership company.

Homeowners and end-users from the construction and commercial verticals are increasingly seeking out technologically innovative solutions as replacement products. Consequently, HVAC equipment suppliers are diversifying their portfolios with respect to system design and technology.

The study covers unitary equipment, applied equipment, chiller equipment, heat pumps and ductless systems. While unitary equipment dominates the market, it will lose share to ductless systems in the forecast period.

For HVAC equipment manufacturers, keeping pace with market trends such as the adoption of smart technologies is key to capturing market share. Expanding sales channels through partnerships and acquisitions will also bode well for industry players.

“HVAC equipment manufacturers are resorting to consolidation to establish a stronger market presence,” said Frost & Sullivan Energy & Environment Research analyst Aanchal Singh.

“Mirroring the increased integration of equipment and technology, vendors are expected to consolidate with smaller technology firms to build a stronger HVAC business unit offering turnkey solutions.”

In addition to market consolidation, the major vendors will have to contend with budget-constrained commercial and institutional consumers that tend to favour products with low initial costs over those with low lifecycle costs and the ability to yield long-term savings, the report said.

“Closing the gap in consumer knowledge on the changing complexities of HVAC systems and its long-term benefits will be necessary. Maintaining long-standing contractor relationships, impeccable delivery time and robust support services will be an essential component of vendors’ business success” concluded Singh. – TradeArabia News Service