The market supply for HVAC equipment in the U.S. saw double digit growth in 2005, climbing to $13.3 billion, as it capitalized on energy efficiency upgrades required by the U.S. Department of Energy's SEER standard 13 requirements for residential air conditioners and heat pumps, according to a new report released Wednesday from SBI, a market research firm. SBI projects the market supply to be over $18 billion by 2010.
Unitary air conditioners and ground source heat pumps were the growth leaders in domestic shipment values, with unitary air conditioners – accounting for a 68 percent share of total market shipment values – increasing 16 percent in 2005 to reach $8.5 billion.
Declines were seen in both volume and value for room air conditioners and dehumidifiers, with volume declining 11 percent in 2005, the report shows.
The HVAC market will continue to experience annual increases in value due mostly to continued growth in the residential and non-residential construction markets, SBI forecasts.
For 2006, new construction, reconstruction and remodeling were the major influences on growth in HVAC system retrofits and upgrades.
While household purchases of HVAC systems went from 6.1 percent in 2004 to 5.5 percent in 2006, purchasing rates jumped to 14 percent among those who acquired a home in the previous year and 13 percent among those undertaking major home improvements, the report notes.
"Increased energy efficiency in new units and retrofits along with increased interest in newer conditioning modalities such as whole-house ventilation systems, geothermal HVAC systems and underfloor air distribution systems (UFADs) are helping to stimulate interest in the market," notes Tatjana Meerman, Managing Editor of SBI. "At the same time, the SEER 13 standard and newer technologies are making for superior products, which are winning favor with both consumers and contractors."