The value chain in the air conditioning equipment market is a complex and ever-evolving system. Lucintel has identified the main players, the size of the opportunities and the profitability. Heat pumps are a cost-effective solution for homes and government institutions, such as schools, universities and offices; instead of using traditional methods of generating heat, like an oven or electric boiler, heat pumps transfer heat between outside and inside. The system does not require any fossil fuel to burn and can provide heating or cooling using only electricity.
Heat pumps can also work in reverse to extract heat from inside a building and transfer it to the outside, providing cooling during the warmer months. This is a more energy efficient cooling method compared to traditional air conditioning systems. General managers and engineers create a value chain by consistently using the best subcontractors for HVAC services. The market for HVAC systems (heating, ventilation and air conditioning) is dominated by established manufacturers with extensive financial experience in the sector.
The population growth in developing countries will further increase the demand for air conditioning systems in the residential segment. The bottom-up approach was used to calculate the total size of the air conditioning system market based on the revenues of the major players and their shares in the Market. Low knowledge of the cumulative benefits due to the installation of air conditioning systems in emerging economies can be a major challenge for the global expansion of the air conditioning system industry. China, India and Japan are among the main contributors to the market for HVAC (heating, ventilation and air conditioning) systems in the Asia-Pacific region.
Changes in weather conditions and the need to maintain environmental environments in several buildings will drive global market demand for air conditioning systems. In addition to this, an increase in construction activities in both industrial and residential sectors will boost the growth of the global market for air conditioning systems in coming years. When looking for a new HVAC system, especially as part of a major construction project, it can be difficult to know BEFORE you buy if you'll get the best HVAC service you want and need. The increase in construction activities, population growth, per capita income, growing need for energy efficient devices and government incentives for energy efficiency are key factors driving growth of the market for air conditioning systems in this region.
In addition, Japan's government provides subsidies of up to 35% of the cost of installing energy efficient HVAC equipment in commercial buildings. Since people spend most of their time indoors, it has become essential to maintain indoor air quality, which can be achieved by installing air conditioning systems. The demand for air conditioning systems has been increasing in both residential and industrial sectors, mainly driven by an increase in construction activities. This is due to inefficient investment by governments and private organizations in HVAC infrastructure and training programs.
In terms of product, the global market for air conditioning systems is divided into heating, ventilation and cooling segments. This will hinder adoption of HVAC system devices used in industrial and residential environments.
