According to a study by The Freedonia Group, Inc., demand for heating, ventilation, and air-conditioning (HVAC) equipment in the U.S. is expected to increase 2.4 percent in the next 3 years to reach $12 billion by 2007. Cooling and heating equipment account for $7 and $5 billion respectively.
According to the report, advances will be driven by an increase in nonresidential construction in addition to continuing strength in residential remodeling when older HVAC systems are replaced with more efficient systems. Further gains will be restrained by projected declines in the number of new single unit housing completions between 2002 and 2007 in addition to competition from imported equipment and maturing markets for several types of HVAC equipment.
In the report, warm-air furnace shipments represent half of all heating equipment standards, while electric-powered versions are projected to post the strongest average annual growth. Heat pumps accounted for the second largest share of shipments.
Shipments for unitary air-conditioners represent estimated three-quarters of all cooling equipment shipments. Packaged terminal air-conditioners and chillers are projected to post above average annual gains, benefiting from their use in industrial and commercial markets, two areas that are expected to rebound over the forecast period.
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