Global HVAC Equipment

Key Findings in the Global HVAC Equipment Study:

Factors driving HVAC equipment sales include:

• ongoing industrialization and rising income levels in developing nations
• the large installed base of HVAC equipment in developed nations, which generates steady replacement demand
• increasingly stringent regulations, such as the recent Kigali Agreement, that will promote the use of alternative, more expensive AC refrigerants

China to Post Largest and Fastest HVAC Equipment Gains

China will register the largest and fastest demand gains, accounting for 45% of new HVAC equipment sales through 2022. A combination of lower-value room air conditioning products and higher-value heat pumps will dominate the domestic market, with sales of the former boosted by rising per capita incomes and increasing consumer demand for comfort cooling, and sales of the latter boosted by government incentives promoting energy-efficient HVAC products as part of a national commitment to reduce greenhouse gas emissions.

Mature HVAC markets such as Japan, the US, and many West European nations, in contrast, are forecast to see some of the slowest sales growth through 2022. These areas have large installed bases of HVAC equipment that generate periodic replacement demand.

Heat Pumps to See Best Dollar Growth; Room Air Conditioners, Greatest Unit Gains

Through 2022, heat pumps are forecast to account for the largest share of global new demand gains in value terms at 36%, and will continue to outperform all other product types, with sales buoyed by:

• ongoing trends toward energy-efficient HVAC equipment as part of efforts to reduce GHG emissions
• diverse incentives and subsidies promoting the installation of heat pumps
• cost-competitiveness of air source types with unitary air conditioners

Room air conditioners, in turn, will represent the largest share of new demand gains in unit terms, with sales benefiting from:

• low per-unit price of these products, making them a low-cost introduction to air conditioning
• increasing consumer demand for comfort cooling, including in residential applications
• rising per-capita income levels and construction expenditures in many regions, which contribute to improved standards of living

Study Coverage

This industry study presents historical demand data (2007, 2012, and 2017) and forecasts for 2022 by product type (room air conditioners, heat pumps, unitary air conditioners, boilers, warm air furnaces, other HVAC equipment), country, and market segment (residential and commercial). The study also evaluates company market share and provides an analysis of key players that include Daikin, GD Midea, Gree Electric Appliance, Haier Group (Qingdao Haier), Ingersoll-Rand, LG Electronics, Panasonic, and United Technologies.