WORLD – Transparency Market Research (TMR) have published a new market report entitled HVAC Equipment Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2022, which forecasts that the market for HVAC equipment globally will reach £100 billion by 2022. The report states that the demand for all types of HVAC equipment is expected to continue to increase every year up to 2022 but that the sales of heat pumps in the heating segment and room air conditioners in the cooling segment will be the dominant factors in the the market during the forecasted period. The report further states that the demand for unitary air conditioners is also expected to exhibit strong growth, globally.

The global HVAC equipment market was estimated to be worth £58.5 billion in 2013 and the report forecasts that it will have a 6.2% compound annual growth rate (CAGR) from 2014 to 2022. The TMR report states that the HVAC equipment market is driven by factors such as increasing population, a rise in new home sales, increasing construction expenditure, and growing industrialization etc.

For the purposes of the report, the HVAC equipment market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The trends from the report show that the demand for HVAC equipment is highest in the North American region, closely followed by Asia Pacific. The Asia Pacific region accounts for more than 50% of the global HVAC market by itself and the report predicts that it will retain its leading position in 2022. The principal reason for the leading position of the Asia Pacific HVAC equipment market is the robust economic development in China, India and other countries. Another key reason is that China is also the largest production base for HVAC systems and a key supplier to the European market, while growth in the region is driven not only by local demand but also by demand from lucrative export markets such as Africa and Latin America, which are looking for low priced HVAC solutions.

According to the global growth trends identified in the report, industry players throughout the world are adopting different strategies in their attempts to secure higher market shares. Market development and diversification are the most commonly adopted strategies across the Asia Pacific region, while North American and European industry players have identified product development and market penetration as their key strategies.

Another popular strategy amongst the industry’s big hitters has been the rise of mergers and acquisitions so as to minimize the competition and bolster the leading companies’ market dominance. At this moment in time, Daikin Industries Ltd. and Carrier Corporation are leaders in the global HVAC equipment market, with Daikin occupying the leading position in the market after its acquisition of the North American giant Goodman. Despite this strategy of mergers and acquisitions, a significant share in the global HVAC equipment market is still held by small and regional players, which ensures that there is enough room for industry players to compete and gain a strong foothold.