The need for Heating, Ventilation, Air Conditioning and Refrigeration (HVACR) systems surfaced when ‘Industrial Revolution’ began changing the impact of industries across the globe. During the transition from orthodox industrial practices to new manufacturing processes, it was realized that industries lacked the innovation to control temperatures during the extreme climate change.
Read Report Overview: Heating Ventilation and Air Conditioning Market
The global HVAC market is expected to grow at a decent rate during the forecast period. This is due to rapid growth in the construction sector. The VRF technology is expected to grow at the highest rate of 9.0% CAGR in terms of volume during the forecast period. The growth of VRF technology is majorly driven by the increased demand from the commercial and industrial sectors as VRF is more energy efficient. The global HVAC market is estimated to witness growth at a CAGR of 4.5% and 2.6% over the period 2018-2024 in terms of volume and value, respectively. The rising temperature due to global warming have led to an increased demand for HVAC products and its market is expected to grow at a decent rate in the coming years. Furthermore, the boom in the construction sector in regions such as the Middle East and Americas are driving the growth for this market. Also, the presence of industry leaders such as Carrier Corporation, Johnson Controls, and Daikin Industries, among others, has significantly contributed to the growth of the HVAC market.
The demand of regulating temperature expanded from industries to large commercial buildings and household applications. HVACR systems are gradually becoming more of a necessity rather than mere luxury products in countries across the Americas region. Countries such as the U.S. and Canada accounts for the major share of HVACR market in the North America region. Argentina and Brazil account for the majority market share in South America primarily due to hot climate, growing urban population, infrastructural developments and increased construction activities among others.
With rise in major residential, commercial, industrial and institutional developments in the region, number of jobs have increased in labor market leading to increase in disposable income of people.
Americas market has witnessed a stable growth over the past few years and will continue to have the same trend over the next five years. The market has been studied considering various aspects and trends that drive or shape the industries’ progress. These trends are categorized as drivers, challenges and opportunities of the market.
The demand for HVACR equipment in this region is witnessing a steady growth overall. This high growth rate can be attributed to countries such as Brazil, Argentina and Mexico that have shown a huge increase in the demand.
North America has had a very steady growth with the U.S. and Canada as the major market share holders. On the other hand, South America had a huge increase in demand which can be attributed to the construction activities, infrastructural developments and economic growth in developing countries such as Brazil and Argentina. Also the entry of Chinese and Japanese OEM’s in the market further affected the market favorably.
Role of Government and Regulatory Bodies
The governments, regulatory bodies and associations have been active in Americas region for implementing and devising various regulations for this industry. From Regulations for energy ratings of the products to the refrigerants used in the equipment, everything has a proper standard.
Governments are more focused on the concept of sustainable growth and the regulations in Americas are an example of the same. Following are some of the major regulations and standards in this region:
- Montreal Protocol
- Kyoto Protocol
- Seasonal Energy Efficiency Rating (SEER)
- Green Building Regulations and Specifications
- Leadership in Energy and Environmental Design (LEED)
- Brazil’s National Energy Efficiency Law
- Argentina’s Resolution 1640/2012
- Canada’s Ozone Depleting substances regulations, among others
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Competitive Landscape
Americas HVACR market has well established players in the market such as Carrier, Daikin, Trane and Johnson Controls among others. Rigorous competition exists among these players in this region which has led to intense price wars. Brand value is one of the major reasons for the unit sales in this region apart from customer loyalty.
Major growth strategy used by the companies in Americas include business expansion and launch of new products that are more energy efficient. Upgrades in the products pertaining to the technology used is a common trend that enables these companies maintain their position and reputation in the market. Carrier continues to hold the majority share of about XX% in this region. Daikin being the next in the list with an approximate share of about XX%. The region also has a major presence of Chinese and Japanese players who are penetrating the South American market with the recovery of the economies after the economic recession. Furthermore, the shipments from China to this region has increased over the past few years.