Provided by BIS Research
The demand for regulation of temperature has increased drastically over the last decade, moving from industries to large commercial buildings and household application. The ever rising environmental temperature has made the Heating, Ventilation Air-conditioning and Refrigeration (HVACR) systems a necessity rather than a luxury across major countries in the Americas and the Middle East and Africa (MEA) region.
In North America, Canada and the U.S. account for the major share of the HVACR market, whereas, it is led by Argentina and Brazil in the South American region. The growing urban population in Argentina and Brazil has pushed the rate of construction further in these countries, and their hot climate has helped in the growth of this emerging market. Another region with a perennial hot climate is the MEA region, which has seen a growth in the demand of HVACR systems due to the growing population, infrastructure, and urban development. Countries such as Saudi Arabia and the United Arab Emirates (U.A.E.) account for the major share of HVACR market in the MEA region.
The residential HVACR market in the Americas has seen a significant growth in recent years in the form of increased number of unit replacements. This rise in the market is attributed to the increasing per capita income in the Americas. 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.
Similarly, in the Middle East region, there is a gradual development in the residential markets, along with growing commercial and industrial units, which are driving the HVACR market in this region. The Middle East HVACR product market is witnessing a gradual emergence of new cost-effective and energy efficient technologies that meet the required standards and regulations, as well as attempts to fulfil growing customer demands. Furthermore, in the African region, the market is driven by increasing consumer demands for low-cost, energy efficient products as well as rise in residential, commercial and industrial developments in the region.
The Americas has witnessed a steady growth in the HVACR market in the last few years and is expected to perpetuate this trend in the coming five years. The chief drivers of the market are increased construction activities which has boosted the unit sales for HVACR equipment, rapid urbanization and infrastructural reforms with expanding commercial and industrial sector, and increased number of HVAC unit replacements with the introduction of new energy efficient models and new technologies such as the inverter technology in the HVACR market.
According to the latest market report by BIS Research, titled ‘America's Heating, Ventilation, Air-Conditioning, and Refrigeration (HVACR) Market - Analysis and Forecast: 2017-2023’, the Americas HVACR market volume is estimated to grow at a CAGR of 5.65% during the forecast period, 2017-2023.
The overall growth rate can be attributed to countries like Brazil, Argentina and Mexico which have shown comparatively high growth in demand for HVAC equipment. Although, North America has had a steady growth with the U.S. and Canada holding major share of the market, it is South America which is showing a huge increase in demand owing to heavy construction activities in Brazil and Argentina. Along with this, the market is being further propelled by the entrance of Chinese and Japanese OEMs in the market.
According to another market intelligence report, titled ‘Middle East and Africa (MEA) Heating, Ventilation, Air-Conditioning, and Refrigeration (HVACR) Market-Analysis and Forecast: 2016-2022’, the Middle East HAVCR market is expected to reach a volume of 6,490.83 thousand units by 2022, whereas, the Africa HVACR market is estimated to register lesser growth in terms of volume, since it is expected to reach a volume of 3,595.48 thousand units by 2022.
The aforementioned market research reports include an overview and analysis of the Americas and Middle-East & Africa Heating, Ventilation Air-conditioning and Refrigeration (HVACR) markets, by type of products and components across various countries. These reports provide an extensive insight into various forms of developments, trends, and key participants.
According to the market analysis of the Americas, in South America, Brazil accounted for the major share of the total volume of HVACR products in 2016, followed by Argentina. The present large demand for HVAC products makes South America a promising market for HVACR. The market is expected to grow at an adequate pace in the coming years, with mini splits and window/portable continuing to contribute to the majority of share by volume.
Some of the key players analyzed in the reports are:
- L.G. Corporation
- Midea Group
- United Technologies Corporation (Carrier)
- Johnson Controls
- Ingersoll Rand
- Mitsubishi Electric
- Lennox International Inc.
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 to maintain their position and reputation in the market.
Stay up-to-date with the latest trending news stories and industry advances with the Research and Markets blog. Don’t forget to connect with us on LinkedIn and Twitter for the latest blog plus information about new products.
(Image Credit - ehpn.de)