HVAC Centrifugal Compressors Market Size

HVAC Centrifugal Compressors Market Size

Global HVAC Centrifugal Compressors Market size was worth over USD 900 million in 2016 and will surpass 670 thousand units by 2024.

Rising energy security concerns along with improved refrigeration and air conditioning demand is driving HVAC centrifugal compressors market growth. Factors such as shifting consumer preferences for energy-efficient solutions with superior efficiency, service affordability and minimum running costs are expected to influence product demand. Increasing necessity for heating and cooling devices with low carbon emissions will further propel the HVAC centrifugal compressors market size.

Government support to reduce energy waste, create customer savings, and promote the clean energy economy will trigger replacement demand. For instance, the European Union aims to reduce its greenhouse gas productions by at least 20%, thus achieving the energy savings of 20% or more by 2020. Financial support through subsidies on the purchase of heat pumps to encourage the use of renewable energy for cooling and heating applications will propel industry growth.

Increasing commercialization of healthcare, education, airports, and retail facilities will further support the product demand. As per analysis, the global infrastructure investment is projected to surpass 90 trillion by 2040 and Asia Pacific is projected to dominate the overall market.  Increasing air conditioning demand in emerging countries including Brazil, China, India, and the Middle Eastern nations owing to large-scale infrastructure development and consumer base will provide lucrative business opportunities for industry expansion.

Prevailing low fares are anticipated to flourish the global tourism & hospitality sector. The global hotel construction industry witnessed a robust growth in the recent years and the market stands at 12,190 projects in 2017. Key players in the global hotel construction pipeline are Marriott International with 2,239 projects, Hilton with 1,996 projects, InterContinental Hotels Group with 1,347, and Choice Hotels with 536 projects, providing a strong business outlook for HVAC centrifugal compressors market.

On-going technological developments will positively influence overall industry trend. Replacement market is expected to be a key driver as the old unit undergoes retrofits, part replacements, overhaul, or complete substitution with enhanced technology. Increasing energy-efficiency requirements have resulted in improved R&D for the product development. In 2016, International Energy Agency (IEA) projected that energy consumption will increase at a faster rate for OECD countries owing to increasing infrastructural development.

Patent accumulation and high commissioning cost may pose challenges for new entrants. Fluctuation in raw material prices such as aluminium, steel & titanium owing to fluctuating supply and demand may increase the overall production cost of HVAC centrifugal systems, thus influencing the manufacturer’s earnings and cash flow.