US HVAC equipment demand will rise 4.5 percent annually through 2013, driven by a recovery in residential construction and incentives to buy more energy-efficient systems. Heat pumps will be the fastest growing type of heating equipment. Unitary air conditioners account for the largest share of the cooling equipment segment.

This study analyzes the $13.7 billion US HVAC equipment industry. It presents historical demand data (1998, 2003, 2008) and forecasts for 2013 and 2018 by fuel type (e.g., electric, natural gas, heating oil, geothermal), equipment type (e.g., heat pump, warm air furnace, boiler, humidifier, air conditioner, chiller, dehumidifier) and market (residential, nonresidential, new building, improvement and repair).

The study also considers market environment factors, details industry structure, evaluates company market share and profiles 36 industry players, including United Technologies, Ingersoll-Rand and Lennox International.

TABLE OF CONTENTS


SECTION                                                                      PAGE

               INTRODUCTION                                                     x
          
          I.   EXECUTIVE SUMMARY                                                1
          
         II.   MARKET ENVIRONMENT                                               4
               General                                                          4
               Macroeconomic Environment                                        4
               Demographic Trends                                               9
                   Population                                                  10
                   Households                                                  12
               Consumer Trends                                                 13
                   Personal Income & Expenditures                              13
                   Consumer Financing                                          15
               Building Construction                                           19
                   Residential                                                 22
                     New Housing                                               25
                     Housing Stock                                             30
                     Improvements & Repairs                                    34
                   Nonresidential                                              35
                     Office & Commercial Construction                          38
                     Institutional Construction                                39
                     Industrial Construction                                   40
                     Transportation & Other Building Construction              40
                     Improvements & Repairs                                    41
               Regulations & Standards                                         42
                   Refrigerants                                                43
                   Efficiency                                                  46
               Pricing Trends                                                  49
               World Market                                                    52
               Foreign Trade                                                   55
                   Exports                                                     57
                   Imports                                                     61
          
        III.   HEATING & COOLING FUEL TYPES                                    64
               General                                                         64
               Electricity                                                     66
               Natural Gas                                                     70
               Heating Oil                                                     73
               Geothermal Energy                                               77
               Others                                                          80
          
         IV.   HEATING EQUIPMENT                                               83
               General                                                         83
               Supply & Demand                                                 84
               Shipments by Type                                               87
               Heat Pumps                                                      91
                   Supply & Demand                                             91
                   Types                                                       95
                     Air Source                                                96
                     Geothermal                                               102
               Warm Air Furnaces                                              106
                   Supply & Demand                                            107
                   Types                                                      110
                     Natural Gas                                              111
                     Electric                                                 115
                     Heating Oil                                              118
               Boilers                                                        122
                   Supply & Demand                                            122
                   Types                                                      125
                     Cast Iron Boilers                                        126
                     Steel Boilers                                            130
               Humidifiers                                                    133
                   Supply & Demand                                            134
                   Characteristics                                            136
                   Manufacturers                                              138
               Room & Zone Heating Equipment                                  138
                   Supply & Demand                                            139
                   Types                                                      141
                   Manufacturers                                              142
          
          V.   COOLING EQUIPMENT                                              143
               General                                                        143
               Supply & Demand                                                144
               Shipments by Type                                              146
               Unitary Air Conditioners                                       151
                   Supply & Demand                                            151
                   Characteristics                                            153
                   Types                                                      156
                   Manufacturers                                              157
               Room Air Conditioners                                          158
                   Supply & Demand                                            159
                   Characteristics                                            161
                   Types                                                      163
                   Manufacturers                                              164
               Chillers                                                       165
                   Supply & Demand                                            165
                   Characteristics                                            167
               Absorption Liquid Chilling Systems                             168
                   Supply & Demand                                            169
                   Characteristics                                            171
               Dehumidifiers                                                  171
                   Supply & Demand                                            172
                   Characteristics                                            174
                   Manufacturers                                              176
               Packaged Terminal Air Conditioners                             176
          
         VI.   MARKETS                                                        179
               General                                                        179
               Residential                                                    182
                   New Building                                               186
                     Heating Equipment                                        190
                     Cooling Equipment                                        192
                   Improvement & Replacement                                  194
                     Heating Equipment                                        198
                     Cooling Equipment                                        200
               Nonresidential                                                 201
                   New Building                                               205
                   Improvement & Replacement                                  207

         VII.  INDUSTRY STRUCTURE                                             212
               General                                                        212
               Industry Composition                                           212
               Market Share                                                   216
                   United Technologies                                        218
                   Ingersoll-Rand                                             219
                   Lennox International                                       219
                   Goodman Global Holdings                                    220
                   Other Leaders                                              220
               Competitive Strategies                                         222
               Research & Development                                         224
               Distribution                                                   227
               Marketing                                                      229
               Mergers & Acquisitions                                         232
               Cooperative Agreements                                         234
               Company Profiles                                               237
                   AAON Incorporated                                          238
                   Adams Manufacturing Company                                240
                   Airwell-Fedders North America Incorporated, see Elco 
                        Holdings Limited                                         
                   Allied Air Enterprises Incorporated, see Lennox 
                     International Incorporated                                  
                   Berjaya Corporation Berhad                                 241
                   Bradford White Corporation                                 242
                   Broan-NuTone LLC, see Nortek Incorporated                     
                   Bryan Steam LLC, see Burnham Holdings Incorporated            
                   Burnham Holdings Incorporated                              243
                   Carrier Corporation, see United Technologies Corporation
                   Climate Energy LLC, see ECR International Incorporated        
                   Control Techniques, see Emerson Electric Company              
                   Crown Boiler Company, see Burnham Holdings Incorporated
                   Daikin Industries Limited                                  247
                   Danfoss A/S                                                250
                   Dectron Internationale Incorporated                        252
                   Dunham-Bush Holding Berhad                                 254
                   Dunkirk, see ECR International Incorporated                   
                   ECR International Incorporated                             255
                   Elco Holdings Limited                                      259
                   Electrolux AB                                              260
                   Emerson Electric Company                                   261
                   Enviromaster International LLC, see ECR International Incorporated
                   Fedders North America Incorporated, see Elco Holdings 
                     Limited                                                     
                   Friedrich Air Conditioning Company                         264
                   Fusite, see Emerson Electric Company                          
                   Goodman Global Holdings LP                                 266
                   Governale Company Incorporated, see Burnham Holdings Incorporated
                   Haier Group Company                                        268
                   Hallowell International LLC                                269
                   Hartford Compressors Incorporated, see Dunham-Bush 
                     Holding Berhad                                              
                   Heat Controller Incorporated                               270
                   Ingersoll-Rand Company Limited                             271
                   Johnson Controls Incorporated                              274
                   Lennox International Incorporated                          277
                   LG Electronics Incorporated                                280
                   Mammoth-Webco Incorporated, see Nortek Incorporated           
                   McQuay International Incorporated, see Daikin Industries Limited
                   Mestek Incorporated                                        281
                   Modine Manufacturing Company                               284
                   New Yorker Boiler Company Incorporated, see Burnham Holdings Incorporated
                   Nordyne Incorporated, see Nortek Incorporated                 
                   Nortek Incorporated                                        286
                   Olsen/Airco Heating & Cooling Products, see ECR 
                     International Incorporated                                  
                   Oneida Royal, see ECR International Incorporated              
                   Paloma Industries Limited                                  289
                   Panasonic Corporation                                      291
                   PB Heat LLC                                                292
                   Raypak Incorporated, see Paloma Industries Limited            
                   Research Products Corporation                              293
                   Rheem Manufacturing Company, see Paloma Industries
                     Limited                                                     
                   Ruud Air Conditioning, see Paloma Industries Limited          
                   Samsung Electronics Company Limited                        295
                   SANYO Electric Company Limited                             296
                   Sharp Corporation                                          297
                   Tecumseh Products Company                                  299
                   Therm-O-Disc Incorporated, see Emerson Electric Company
                   Thermal Solutions Products LLC, see Burnham Holdings Incorporated
                   Thermo Products LLC, see Burnham Holdings Incorporated
                   Thomas & Betts Corporation                                 300
                   Trane Incorporated, see Ingersoll-Rand Company Limited        
                   United Technologies Corporation                            301
                   Whirlpool Corporation                                      305
                   White-Rodgers, see Emerson Electric Company                   
                   York International Corporation, see Johnson Controls Incorporated
               Other Companies Mentioned in the Study                         307

                                  LIST OF TABLES
                                        
TABLE NUMBER                                                                 PAGE

               SECTION I -- EXECUTIVE SUMMARY
               Summary Table                                                    3

               SECTION II -- MARKET ENVIRONMENT
           1   Macroeconomic Indicators                                         9
           2   Population & Households                                         10
           3   Personal Consumption Expenditures                               15
           4   Consumer Financing Environment, 1998-2008                       19
           5   Building Construction Expenditures                              22
           6   Residential Building Construction Expenditures                  25
           7   New Housing Indicators                                          30
           8   Housing Stock by Type                                           33
           9   Residential Improvement & Repair Expenditures                   35
          10   Nonresidential Building Construction Expenditures               38
          11   Nonresidential Building Improvement & Repair Expenditures       42
          12   HVAC Equipment Prices                                           51
          13   US Foreign Trade in HVAC Equipment                              57
            
               SECTION III -- HEATING & COOLING FUEL TYPES
           1   HVAC Equipment Demand by Fuel Type                              65
           2   Electric HVAC Equipment Demand                                  70
           3   Natural Gas-Burning HVAC Equipment Demand                       73
           4   Heating Oil-Burning HVAC Equipment Demand                       77
           5   Geothermal Energy HVAC Equipment Demand                         80
           6   Other-Energy Powered HVAC Equipment Demand                      82

               SECTION IV -- HEATING EQUIPMENT
           1   Heating Equipment Supply & Demand                               87
           2   Heating Equipment Shipments by Type                             89
           3   Heat Pump Supply & Demand                                       94
           4   Heat Pump Shipments by Type                                     96
           5   Air Source Heat Pump Shipments                                  98
           6   Geothermal Heat Pump Shipments                                 104
           7   Warm Air Furnace Supply & Demand                               109
           8   Warm Air Furnace Shipments by Type                             111
           9   Natural Gas-Burning Warm Air Furnace Shipments                 115
          10   Electric-Powered Warm Air Furnace Shipments                    118
          11   Heating Oil-Burning Warm Air Furnace Shipments                 121
          12   Boiler Supply & Demand                                         125


          13   Boiler Shipments by Type                                       126
          14   Cast Iron Boiler Shipments by Fuel Type                        128
          15   Steel Boiler Shipments by Fuel Type                            133
          16   Humidifier Supply & Demand                                     136
          17   Room & Zone Heating Equipment Supply & Demand                  141

               SECTION V -- COOLING EQUIPMENT
           1   Cooling Equipment Supply & Demand                              146
           2   Cooling Equipment Shipments by Type                            149
           3   Unitary Air Conditioner Supply & Demand                        153
           4   Room Air Conditioner Supply & Demand                           161
           5   Chiller Supply & Demand                                        167
           6   Absorption Liquid Chilling System Supply & Demand              170
           7   Dehumidifier Supply & Demand                                   174
           8   Packaged Terminal Air Conditioner Supply & Demand              178

               SECTION VI -- MARKETS
           1   HVAC Equipment Demand by Segment & Market                      181
           2   Residential HVAC Equipment Demand by Market & Type             185
           3   New Residential HVAC Equipment Demand by Type & 
                   Building                                                   189
           4   Improvement & Replacement Residential HVAC Equipment
                   Demand by Type                                             198
           5   Nonresidential HVAC Equipment Demand by Market & Type          204
           6   New Building Nonresidential HVAC Equipment Demand 
                   by Type                                           	      207
           7   Improvement & Replacement Nonresidential HVAC Equipment
                   Demand by Type                                             211

               SECTION VII -- INDUSTRY STRUCTURE
           1   HVAC Equipment Sales by Company, 2008                          215
           2   Selected Acquisitions & Divestitures                           233
           3   Selected Cooperative Agreements                                236

                                  LIST OF CHARTS
                                        
CHART NUMBER                                                                 PAGE

               SECTION II -- MARKET ENVIRONMENT
           1   Year of Construction of Housing Stock, 2008                     34
           2   US-Exported HVAC Equipment by Destination, 2008                 60
           3   US HVAC Equipment Exports by Destination, 1998-2008             60
           4   US-Imported HVAC Equipment by Source, 2008                      62
           5   US HVAC Equipment Imports by Source, 1998-2008                  63

               SECTION III -- HEATING & COOLING FUEL TYPES
           1   HVAC Equipment Demand by Fuel Type, 2008                        66

               SECTION IV -- HEATING EQUIPMENT
           1   Heating Equipment Shipments by Type in Value & Unit
                   Terms, 2008                                                 90

               SECTION V -- COOLING EQUIPMENT
           1   Cooling Equipment Shipments by Type in Value & Unit
                   Terms, 2008                                                150

               SECTION VI -- MARKETS
           1   HVAC Equipment Demand by Market, 1998-2018                     182
           2   Residential HVAC Equipment Demand by Market, 1998-2018         186
           3   New Residential HVAC Equipment Demand by Building 
                   Type, 2008                                                 190
           4   Heating Equipment Installed in New Single Unit Housing by 
                   Type, 2008                                                 192
           5   Share of New Housing Units with a Central Cooling 
                   System, 1998-2008                                          194
           6   Nonresidential HVAC Equipment Demand by 
                   Market, 1998-2018                                          205
            
               SECTION VII -- INDUSTRY STRUCTURE
           1   US HVAC Equipment Market Share, 2008                           218