HVAC, 2nd Edition — Green and Global

SBI
January 1, 2010
345 Pages - SKU: SB2511497
Countries covered: United States

The U.S. HVAC market grew 41% in heating systems and 45% in air conditioners from 1997 through 2006. This period of growth hit a wall, however, with the housing and credit market collapse of 2007 and the historic rise in unemployment. From 2006 to 2007 heating system installations dropped 24% and air conditioners saw a similar decline of 23%. As the housing market starts to pick up again, the credit crisis subsides and unemployment figures begin to drop, economic conditions will once again lead to increased growth in the industry. The green HVAC market should benefit in particular from federal and state support of more energy efficient homes and buildings.

According to the U.S. Department of Energy, “the average home spends about $1,900 annually on energy bills. Heating and cooling accounts for as much as half of a home’s energy use.” The DOE estimates that home owners can reduce their energy bills by up to 20% merely by replacing furnaces, boilers, central air conditioners and heat pumps with more efficient models. Electric Air-Source Heat Pumps (ASHPs) and Geothermal Heat Pumps (GHPs) offer some of the most efficient heating and cooling methods available today.

The American Recovery and Reinvestment Act of 2009 offers tax credits that home-owners can take advantage of when purchasing new, more energy efficient, higher-SEER HVAC equipment. “Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010.” Consumers can also receive a 30% tax credit for geothermal heat pumps placed in service before December 31, 2016.

Another development that will have an impact on the growth of the HVAC industry is the phasing out of ozone-depleting used as refrigerants in older air conditioners. Having already phased out the use of chlorofluorocarbons (CFCs) like R-11 and R-12 by 1995, the United States will now begin phasing out the use of the R-22 hydrochlorofluorocarbon (HCFC) refrigerant as of January 1, 2010. According to the EPA, "chemical manufacturers may still produce R-22 to service existing equipment, but not for use in new equipment.” In other words, while the existing stores of R-22 refrigerant can be used for existing equipment, new equipment will be required to use the alternative R-410A refrigerant instead. That will mean new business for installers and HVAC equipment manufacturers.

Further support for more efficient HVAC equipment comes from the DOE’s Builder Challenge, which supports the construction of cost-effective, net-zero homes throughout the United States. The Building Technology Program’s Builder’s Challenge was developed by the Department of Energy with the goal of offering “affordable net-zero energy homes by 2020 and net-zero energy commercial buildings by 2025.” The Department of Energy claims that homes that have already been built with the BTP’s Building America best practices “can use 40 percent less energy than comparable new homes.” The ultimate goal of the program is to offer homebuyers the choice of buying a “cost-neutral, net-zero energy home (NZEH) anywhere in the United States” by 2030.

Report Methodology

The information in HVAC in the U.S., 2nd Edition — Green and Global is based on data from the U.S. Department of Commerce, the Department of Energy, the U.S. International Trade Commission and the Census Bureau, along with information from trade associations such as the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Inc. (ASHRAE), business journals, company literature and websites, and research services such as Simmons Market Research Bureau.

What You’ll Get in This Report

HVAC in the U.S., 2nd Edition — Green and Global, makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that HVAC in the U.S., 2nd Edition — Green and Global offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You’ll Benefit from This Report

If your company is already doing business in the HVAC market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for manufactured housing, as well as projected markets and trends through 2014.

This report will help:

  • Marketing managers identify market opportunities and develop targeted promotion plans for new, more efficient residential and commercial HVAC equipment.
  • Research and development professionals stay on top of competitor initiatives and explore demand for high efficiency HVAC equipment.
  • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to buy HVAC systems.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


Additional Information

Market Insights: A Selection From The Report


Green Technology Driving the HVAC Market

According to the U.S. Department of Energy, “the average home spends about $1,900 annually on energy bills. Heating and cooling accounts for as much as half of a home’s energy use.”   Home owners can reduce their energy bills by up to 20% merely by replacing furnaces, boilers, central air conditioners and heat pumps with more efficient models.  Electric Air-Source Heat Pumps (ASHPs) and Geothermal Heat Pumps (GHPs) offer some of the most efficient heating and cooling methods available today.  While the upfront costs for these types of systems can be higher than conventional heating and cooling equipment, heat pumps can have higher Heating and Season Performance Factor (HSPF) ratings than conventional systems and use less energy to heat and cool a home.  “ASHPs, often used in moderate climates, use the difference between outdoor and indoor air temperatures to cool and heat your home,” while GHPs cool and heat a home by “by using stable temperature conditions in the ground.”  GHPs can also be used for energy-efficient water heating.

Recent developments in HVAC technology are offering plausible solutions for energy and environment conservation. These technological innovations not only help to reduce operating costs, but increase productivity and provide state-of-the-art comfort while being both user-and eco-friendly. Some of these novel technologies include: geo-thermal pumps, under floor air distribution systems, building-integrated photovoltaic systems, and ductless air conditioners.

Not only is the market driven by product innovation, but technological innovation is also appearing in product components such as compressors, inverters, heat sinks, and refrigerants. Double scroll compressors that provide greater efficiency, versatile inverter technologies that work for high and low-supply voltages, smart computer-controlled cooling fans, and refrigerants such as R410a with low ozone depletion potential are just some of the technological innovations that manufacturers are incorporating into their products.

In the News


Green HVAC Gains in Energy-Efficient Geothermal Installations

New York, January 21, 2010 - Following a decade of historic double-digit growth, the heating, ventilating, and air conditioning (HVAC) market in the United States began a descent in 2007 parallel to housing, credit, and employment collapses. 

However, the industry is expected to see growth again as tax credits from the American Recovery and Reinvestment Act (ARRA) help more consumers buy new and existing homes and update existing systems, according to HVAC, 2nd Edition — Green and Global, the latest report from leading energy market research firm SBI Energy.  The green HVAC market should benefit in particular from federal and state support of more energy efficient homes and buildings.

International manufacturers of HVAC devices seek to capitalize on the impending uptick in the market by designing high-efficiency equipment for sale in the U.S. that exceed the 13 SEER (Seasonal Energy Efficiency Ratio) minimum standard that was established by the Department of Energy (DOE) in January 2006.  Such equipment would qualify for the higher standards required to receive the tax credits available through the ARRA.

“We project that the market supply of U.S. HVAC shipments should grow at a CAGR (compound annual growth rate) of 4% to reach $14 billion by 2014,” says Shelley Carr, publisher of SBI Energy. “Growth will be driven primarily by the residential and non-residential construction markets. In addition, tax credits, new HVAC innovations, global expansion, and renewed investment in the replacement sector will revitalize the market.”

Recent developments in HVAC technologies have been primarily driven by plausible solutions to a global energy shortage and an impending sense of environmental emergency.  Focus has also been on reducing operation costs, as well as increasing productivity and state-of-the-art comfort, leading to expedient and cutting-edge technology. New technologies, such as geothermal heat pumps, under-floor air distribution, and building integrated photovoltaic systems hold the key to future HVAC product developments.

Thanks to the ARRA, homeowners can receive tax credits of up to 30% of the total cost of the installation of a geothermal HVAC system for geothermal heat pumps placed in service before December 31, 2016.  The DOE estimates that around 35,000 geothermal/ground-source heat pumps were installed in 2007, despite relatively high initial costs compared to standard heat pumps.  By 2009, the number of geothermal/ground-source heat pump installations had reached an average of 90,264 per year. 

According to the DOE, the average home spends about $1,900 annually on energy bills. Heating and cooling accounts for as much as half of a home’s energy use. The DOE estimates that homeowners can reduce their energy bills by up to 20% merely by replacing furnaces, boilers, central air conditioners and heat pumps with more efficient models.

HVAC, 2nd Edition — Green and Global examines the effects of the global recession on investment in commercial and residential HVAC installations.  It features imports and exports of HVAC equipment from 2004-2009 and forecasts 2010-2014 as well as industry trends and opportunities and the incentives being offered for more efficient commercial and non-commercial (residential) buildings throughout the United States.

About SBI Energy
SBI Energy (Specialists in Business Information), a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets.  SBI Energy also offers a full range of custom research services. 

 


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