Demand for HVAC equipment in commercial buildings is projected to advance 3.3% per year through 2021 to $12.3 billion with 58% of all HVAC equipment sales. Although larger than the residential market, commercial demand gains will increase at a slower rate due to an expected slowdown in commercial construction activity. Competition from used equipment will also restrain sales growth in this market. Still, opportunities for equipment sales will continue to be supported by the need to replace aging equipment. These and other trends are presented in US HVAC Market Forecasts, a new study from The Freedonia Group, a Cleveland-based industry research firm.
The commercial market will remain the larger market for HVAC equipment due to two factors:
- Commercial buildings often require the use of more than one HVAC unit to effectively cool the entire building, boosting the total number of units installed and creating a large potential replacement market.
- Commercial HVAC equipment is generally more expensive than equipment used in the residential market, bolstering overall dollar sales.
US demand for HVAC equipment in all markets is forecast to increase 3.9% per year through 2021 to $21.2 billion. The majority of expected demand increases will come from ongoing replacement of existing equipment that has reached the end of its operational lifespan with better performing, and typically higher value, equipment. Shifts in the product mix toward more expensive HVAC equipment -- such as away from room air conditioners to unitary air conditioners and from noncondensing cast iron boilers to condensing steel boilers -- will provide further impetus to dollar gains.
More information about the study is available at https://www.freedoniagroup.com/industry-study/us-hvac-market-forecasts-by-product-energy-source-market-and-region-3536.htm
Related studies include:
- #3524 Air Conditioning Equipment Market in the US (May 2017)
- #3521 Heating Equipment Market in the US (April 2017)
About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Industrial Components studies can be purchased at www.freedoniagroup.com, www.marketresearch.com and www.profound.com.
