LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global HVAC chillers market to grow at a CAGR of close to 3% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global HVAC chillers market for 2017-2021. The report also lists screw chillers, scroll chillers, and centrifugal chillers as the three major product segments, of which the screw chillers segment accounted for more than 35% of the market share in 2016.
According to Anju Ajaykumar, a lead analyst at Technavio for unit operations research, “The growing construction industry and an increase in income levels in China, India, Saudi Arabia, and other developing countries have resulted in increased accessibility to HVAC among the larger consumer base. Also, rebounding consumer confidence as well as the recovery of the housing market in the US and Western Europe will also support market growth.”
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Technavio heavy industry analysts highlight the following three market drivers that are contributing to the growth of the global HVAC chillers market:
- Growing district cooling demand
- Growing demand for replacements in developed countries
- Developing infrastructure in emerging countries
Growing district cooling demand
Emerging countries in MEA and Asia are experiencing increased demand for district cooling. District cooling is replacing the traditional air cooling methods because of increased advantages such as energy-saving, low environmental damage, and reduced maintenance needs. It uses 40%-50% less energy as compared to traditional cooling methods, which can save more than 70% of the electricity cost.
The increasing tourism market in the nations of MEA and Asia has enhanced the construction of hotels and public infrastructure, which creates extensive use of district cooling. HVAC chillers are one of the major facilities of district cooling. An increase in the district cooling market will fuel the HVAC chillers market.
Growing demand for replacements in developed countries
The need to reduce operating costs, increase energy efficiency, and to take advantage of favorable government incentives has spurred the need for replacing existing HVAC equipment in the US, the UK, Germany, and Japan.
“In the US, steady economic development and advances in technology influence the replacement demand for HVAC, which is expected to contribute to 50% of the HVAC chillers market in the US,” says Anju.
Technavio expects regulations pertaining to the use of refrigerants and energy efficiency to increase investments in the replacement of old HVAC chillers. For instance, the phase-out of R-22 units will be completed by 2020, encouraging HVAC system owners to replace their existing units before the phase-out.
Developing infrastructure in emerging countries
Growing urbanization and economic growth have led to the incremental construction of malls, hospitals, commercial buildings, hotels, and manufacturing facilities. The expansion of commercial spaces, new office floor space, corporate hubs and special economic zones (SEZs), is driving the demand for HVAC chiller across countries.
Mass rapid transit systems such as metro rail networks are being initiated in Indian cities such as Lucknow, Jaipur, Bangalore, and Hyderabad. Such projects create additional commercial scope and demand for HVAC chillers. The development of SEZs is also creating demand for HVAC chillers. The hospitality sector is a major end-user of HVAC chillers in India and contributes consistent demand for these systems.
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