I was at a recent conference where we broke into groups to discuss how technology was disrupting our industries, or was likely to do so in the future. There were six people in my group, all from different industries — health care, logistics, education, real estate, web design and manufacturing. It was fascinating to hear real life stories of the way technology has seeped into everything we do. But it’s even more riveting to hear the stories of boundless potential waiting just around the corner.
Photo by Aleksandar Pasaric/pexels.com
That experience prompted me to wonder about other industries. I thought, “What’s ahead in the HVAC industry?” Curiosity is part of my nature and, thankfully, part of my work. I did a little digging and found a report by Technavio. The report states that “advanced monitoring systems and intelligent technologies” topped the list of the three trends driving the global HVAC services market. In other words, how the Internet of Things (IoT) is intersecting with HVAC services.
Technavio’s research broke it down even further in its report entitled Global HVAC Control Systems Market 2017-2021. In the report, analysts predict that the market for HVAC controls systems will grow steadily (9 percent CAGR) by 2021, owing to the adoption rate of the technology in developing economies worldwide. Optimizing energy consumption through HVAC control systems is a simple solution, netting positive results in the short and long term for public and private entities looking to minimize operational costs.
According to the report:
“In terms of geography, the Americas accounted for the maximum market share during 2016 and will continue to dominate the market for the next few years. HVAC control systems market in the Americas is driven by developed economies like the US and Canada, which generate substantial demand for energy-efficient HVAC systems. Moreover, growth in the construction industry is expected to further increase the demand for HVAC systems during the forecast period.
…Analysts have estimated the commercial buildings segment to dominate the HVAC control systems market during the forecast period. The increase in the adoption of chillers, boilers, air furnaces, and air conditioned systems has compelled commercial property owners to install commercial HVAC control systems for better operations and cost savings.”
The report said that sensors, which serve as the communication point between the HVAC system and the user, accounted for a substantial portion of the overall market share. It’s likely the boom in global commercial real estate development and the uptick in residential building would account for much of those numbers. The success of products like Nest prove that consumers are becoming much more accepting of so-called Smart technology and have come to expect their controller to adjust on voice, touch or app command.
In addition to increased construction, volitilty in global weather conditions has shifted attention on the need for HVAC companies to provide intelligent, intuitive heating and cooling solutions.
So, what does this mean for your business?
Anju Ajaykumar, a lead analyst from Technavio, specializing in research on the engineering tools sector said, “The HVAC services segment will see significant market growth due to the increased need to install and maintain the energy efficiency of the existing systems. In addition, with technological innovations, the replacement market will grow and create the need for services.”
The forecast for the global HVAC services market (of which control systems are a part) is projected to reach $60.85 billion in the next four years. There are things we can control and things we cannot. Try as we might, we can't control the weather. One thing you can control, however, is analysing the data to determine how much of that $60 billion market share your HVAC company intends to go after in the next four years.