World HVAC Demand to Exceed U.S. $65 Billion in 2010
May 30, 2006
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World demand for HVAC equipment is projected to rise more than 5 percent per year through 2010, exceeding U.S. $65 billion, according to market research firm The Freedonia Group, Inc.
Demand in the Asia/Pacific region will outpace the global average, rising nearly 7 percent annually through 2010. China will be the fastest growing national market, benefiting from above-average urban population growth and healthy gains in the number of households. Above-average growth will also occur in India due to solid gains in the number of households and rising per capita incomes.
Although lagging the global average, advances in the developed regions will be fueled by generally favorable economic conditions and higher income levels. As consumers in Western Europe become accustomed to the benefits of air-conditioning in automobiles, they will increasingly expect it in their homes, resulting in a 3.6-percent demand increase. The U.S. HVAC equipment market will also lag global gains, due to the relatively high rate of penetration for air-conditioners, but demand in the North American region will increase 3.4 percent.
Cooling equipment growth will continue to outpace heating equipment gains through 2010, reflecting the lower penetration rates of air-conditioning equipment. Low ownership rates in Western Europe (relative to other industrialized nations such as the U.S. and Japan) will present opportunities.
Among products, room air-conditioners will post the strongest gains worldwide. Rising income levels in Asia, especially China, will bolster demand for window-type air-conditioners. In Western Europe, mini-split room air-conditioners will post solid gains due to the lack of ductwork in most European homes.
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