LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global heating, ventilation, and air conditioning (HVAC) refrigerant market to grow at a CAGR of over 6% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global HVAC refrigerant market for 2016-2020. To determine the market size, the report considered the demand for refrigerants from various end-user segments in the global HVAC refrigerant market.
Technavio heavy industry analysts highlight the following four factors that are contributing to the growth of the global HVAC refrigerant market:
- Energy-efficient systems and construction sector driving demand for HVAC equipment
- Rise in demand from replacement and retrofitting activities
- Steady growth in automotive sector
- Surge in demand from data centers
Energy-efficient systems and construction sector driving demand for HVAC equipment
The growth in the construction industry has fueled the demand for HVAC equipment, which has resulted in the projected growth rate of close to 7% for the HVAC equipment market during the period 2016-2020. The global construction industry is expected to record 85% growth in volume to reach USD 15.5 trillion by 2030. The construction industry, which currently accounts for 13% of the global GDP, will increase account for 15% of global GDP by 2020.
According to Anju Ajaykumar, a lead analyst at Technavio for unit operations research, “The rise in global construction output will be driven by increasing construction activities in emerging economies like India and Indonesia. China witnessed the first-ever decline in housing output in 2015. But its transition to a consumer-oriented and service-driven economy provides immense potential for the growth of construction in healthcare, education, and social infrastructure as well as other consumer-end markets.”
Rise in demand for HVAC equipment from replacement and retrofitting activities
Increased emphasis on global warming and climate change has resulted in the implementation of stringent regulations for cleaner, safer, and more energy-efficient households and workplaces worldwide. This has led building owners to renovate old buildings, including replacing and/or retrofitting existing HVAC equipment, making buildings more energy-efficient. HVAC is the single-largest energy consumer in buildings, accounting for nearly 60% of the total energy cost. An efficient HVAC system can reduce power consumption by 35%-40%. Retrofitting, which includes replacement or addition of new components to the existing systems, also results in significant reduction in energy consumption.
In China, the current five-year plan has pledged to retrofit four million square meters of non-residential buildings in 10 major cities like Shanghai, Beijing, and Guangzhou.
Steady growth in automotive sector
In 2015, the global automotive market showed promising results, except for a few countries that witnessed a decline in car sales. The mature car markets in Thailand, Japan, and Singapore registered high sales. In 2016, the global automotive market is expected to have increased gains, owing to the growing market in the US, India, and countries in Europe.
China, Japan, the US, South Korea, and Thailand present some of the biggest automotive markets in the world. In 2015, these five countries produced a total of 52,353,036 vehicles, including light commercial vehicles, heavy trucks, and passenger cars.
Surge in demand for HVAC equipment from data centers
The development of advanced technologies such as cloud-based services and big data analytics has fueled the demand for data centers. Although, developed countries are the largest markets for data center operations currently, the number of data centers in developing countries has increased considerably, driving the demand for data center cooling systems. Data center operators will likely buy reliable and efficient HVAC systems that aid the facility to reap energy savings.
“The demand for data centers among large enterprises, CSPs, government agencies, and telecommunications organizations has also seen a marked increase. The growing demand for colocation facilities among SMEs has driven demand for data centers. Many global enterprises require data centers to deal with the exponential growth in business data. The rising demand for data centers, especially in developing countries, should boost overall market growth during the forecast period,” says Anju.
Browse Related Reports:
- Global Industrial Heating, Ventilation, and Air Conditioning Market 2016-2020
- Global Advanced HVAC Controls Market 2016-2020
- Global HVAC Market 2016-2020
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