- 11 December 2007 -

US HVAC demand to reach US$16.8 billion

Demand in the US for heating, ventilation and air conditioning (HVAC) equipment will increase 3.2% per year to $16.8 billion in 2011, says HVAC Equipment, a new study from The Freedonia Group Inc.

According to the report, advances will be primarily driven by strong gains in new nonresidential construction, along with ongoing growth in the residential replacement market. Growth in the replacement sector will benefit from interest in more energy efficient building systems driven by rising energy prices, while rebates and tax incentives will also encourage owners to replace older, less efficient units.

In 2006, heat pumps surpassed warm air furnaces to account for the largest share of heating equipment demand and will account for 47% in 2011. Heat pumps are expected to post the strongest gains through 2011. On the other hand, while warm air furnaces will continue to account for the second largest share of heating equipment sales through 2011, this segment is expected to lose market share over the period. Unitary air conditioners will remain the largest segment in the cooling equipment industry, accounting for more than 70% of total demand in 2011.

www.freedoniagroup.com

This update is brought to you by Filtration Industry Analyst, the business information newsletter. To receive a sample copy of Filtration Industry Analyst, click here.