LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global heating, ventilation, and air conditioning (HVAC) insulation market to grow at a CAGR of over 7% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global HVAC insulation market for 2016-2020. The report lists foamed plastics, wool, and others as the three main segments based on type of material. The foamed plastics segment accounted for over 52% of the market in 2015 followed by wool with over 38% and others with over 9% of the market share.
According to Anju Ajaykumar, a lead analyst at Technavio for engineering tools research, “Increased construction activities in APAC region and the growing need for HVAC insulation replacements in developed countries such as the US and the UK are the key driving forces of the market.”
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Technavio heavy industry analysts highlight the following three factors that are contributing to the growth of the global HVAC insulation market:
- Increased construction activities
- Accelerating demand for HVAC equipment
- Changing requirements for certification
Increased construction activities
The growth of the construction industry plays a significant role in boosting the global HVAC insulation market. New constructions in the residential, commercial, and industrial sectors have increased demand for HVAC systems, cumulating into demand for HVAC insulation to improve building efficiency. Innovations in building design and increased focus on energy efficiency for buildings have created an opportunity for HVAC insulation manufacturers to expand their foothold in the market.
Government regulations introduced by various countries worldwide compel HVAC insulation vendors to comply with industry standards. For instance, the Commercial Building Disclosure outlined by the Australian government requires building owners selling or leasing office space larger than 2,000 square meters to comply with energy efficiency standards. This, in turn, encourages the installation of efficient HVAC insulation.
Accelerating demand for HVAC equipment
The global demand for HVAC equipment is forecast to increase by 6.6% annually and reach USD 129 billion by 2020. In the US and Europe, growing concerns about energy consumption and carbon emissions will drive the need for HVAC insulation. In developing countries, such as China, the growing need for air quality monitoring systems is likely to boost the HVAC market growth, mainly to prevent the increase in respiratory diseases due to the rampant pollution.
“The rise in the deployment of HVAC equipment in commercial, domestic, and industrial buildings will create more demand for efficient and effective insulation systems. HVAC accounts for nearly 40% of the electricity used in commercial buildings, therefore, improved insulation will significantly reduce energy consumption, increase ROI, and reduce energy costs,” says Anju.
Changing requirements for certification
The need to reduce energy consumption has led to governmental intervention in the form of initiatives like Energy Star labels that introduce energy certification for various products to aid in reducing power consumption. Energy Star is a voluntary public-private partnership program that was established in 1992 by the US Environment Protection Agency (EPA). The program helps businesses and other organizations to monitor, estimate, and reduce energy consumption as well as to evaluate the financial implications of the improvements in energy performance. An Energy Star product is about 30% more efficient than a non-labeled product, thus saving on energy consumption.
Apart from the Energy Star program, LEED (Leadership in Energy and Environmental Design) is another such program that is recognized in 150 countries worldwide. LEED-certified buildings use less amount of water and energy with low levels of GHG emissions and save energy costs. The adherence to these energy ratings will mandate investments in the HVAC insulation, which augurs well for the growth of the market.
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