Most industry leaders are keenly aware that the value of the heating and air conditioning market is on the rise. However, a recent report has highlighted the fact that this very same sector should enjoy an even more profitable future. According to an analysis performed by Transparent Market Research, the global value of this industry was $91.3 million dollars in 2013. This is set to dramatically increase over the next four years. Why is this the case and what can those who are working within the commercial supply sector expect to witness?
A Growing Demand
Although there is no doubt that western economies rely upon modern industrial HVAC equipment, one of the driving forces behind such growth is a rising demand within the Asia-Pacific marketplace. To put this in perspective, it is estimated that the combined annual growth rate (CAGR) of the industry is set to rise to an impressive 6.2 per cent each year. This should equate to a total value of $155.1 billion dollars by the year 2022. What is driving this positive growth and perhaps more importantly, how can businesses leverage such momentum to their advantage?
The Need for Energy Efficiency
It is interesting to note here that there are two primary forced behind this situation and each of these is somewhat related to the other:
- Older systems must now be replaced with newer and more efficient models.
- Extreme climatic fluctuations should help to drive this demand.
In regards to the first point, many older industrial and office air conditioning systems are no longer able to comply with modern regulations. Harmful substances such as volatile organic compounds (VOCs) need to be eliminated in order to adopt a “greener” approach. Not only will this require regular air conditioning maintenance, but it is likely that many systems will need to be scrapped altogether in favour of modern alternatives.
Secondly, regions such as Asia and the South Pacific are likely to see more extreme temperature variations in the coming years. These predictions are already causing companies to think ahead as opposed to waiting until the changes have already taken place.
Will the Commercial Air Conditioning Sector Face Any Challenges?
Of course, it is also important to look at any potential drawbacks associated with this growth. Providers need to be cognisant of any future challenges. It can be argued that the most critical is the ability to provide cost-effective solutions associated with a lower carbon footprint that are still able to offer the end user an appreciable ROI. Energy consumption must be lowered while not impacting the effects of the HVAC units themselves. It is likely that new approaches to air con design and maintenance will therefore be required. Finally, western manufacturers will need to keep pace with rising producers such as India and China in particular.
An Unprecedented Opportunity
Regardless of the hurdles that may need to be overcome, it is an undeniable fact that the demand for industrial air conditioning, heating and ventilation is on the rise. Companies that are able to capitalise upon such forward momentum are likely to perform well in the coming years. Please check back at our AirCentric news page for even more updates and insight.