The HVAC Industry has expanded in growth tremendously over the past year, and is expected to see even more growth in the future!
Exponential growth is expected for the HVAC industry in the current fiscal year, driven by both residential and non-residential segments. Growth to continue till 2019, with unitary air conditioners accounting for 44% of sales.
The global HVAC Industry growth is poised for more than an average, in 2015. The major takeaway of this year would be the US market, positioned for another year of above-average growth.
The drivers for HVAC Industry are both the residential properties and the non-residential properties. While the residential market would see the addition of employment in the industry, lower gas prices, higher consumer confidence, better price mix and lower raw materials costs would render a recovery in the commercial markets and non-residential sectors.
The underlying trends, so far in the business have been firmly above the EE/MI sector average and are expected to be sustainable. From a macro perspective, the currency related competitive risks do not virtually apply to the HVAC market. The industry expects the 14 SEER to be positive with less risk around share shift and a positive benefit to margins and sales from mix up on a similarly priced cost base. The pre-buy impact from 13 SEER should reduce reported AHRI volume numbers by 8% in 2015.
With a non-residential construction recovery growing at 6%-7%, the US Commercial HVAC market is expected to clock a growth of about 5% in 2015/16. The HVAC industry trends so far, in the current fiscal year have shown ductless to be the talk of the industry with a share of 15% of the industry and is doing well in both residential and commercial segments. The demand for the HVAC equipment market is expected to rise at 6.8% CAGR in the US to reach $20.4 billion by 2019. These rates of gain are twice that of the recorded gains by the industry between 2009 and 2014.
The article originally posted on Digitaljournal.com.
