HVAC Equipment to 2015 (Heating, Ventilation & Air Conditioning)

Report Summary

US demand to rise 5.4% annually through 2015 Demand in the US for heating, ventilation and air conditioning (HVAC) equipment is projected to rise 5.4 percent annually to $17.2 billion in 2015, spurred by a projected recovery in construction from a low 2010 base. Demand will also benefit from interest in more energy efficient HVAC systems driven by volatile energy prices. Public and private rebates, credits and other incentives will encourage owners to upgrade to models with efficiency ratings that are at or above ENERGY STAR levels. Ongoing changes in federal regulations regarding minimum efficiency requirements for many of these systems and the phase-out of ozonedepleting refrigerants with chlorine will also favorably affect sales of HVAC
equipment.

Although HVAC shipments are forecast to advance somewhat faster than demand at 5.7 percent per year to $15.8 billion in 2015, imports will account for two-thirds of demand as producers outsource manufacturing to lower cost facilities, mainly in China and Mexico. In addition, rising competition from producers based in low cost countries and the recovery in the US
HVAC market will both lead to growing imports.

Natural gas, geothermal
systems to grow at above average annual rates The choice among various fuels used in HVAC systems is largely influenced by the convenience, environmental friendliness, availability and price of the fuels, as well as the initial costs, operational costs and efficiency of the systems that use the fuels. In 2010, electric-powered HVAC systems accounted for 77 percent of US sales value and natural gas-burning systems accounted for another 16 percent. Through 2015, systems operating on natural gas and geothermal energy will post above average gains.

Furnaces to be fastest
growing heating equipment In 2010, heat pumps accounted for the largest share of heating equipment value demand. However, because of the rebound in residential construction and
their low initial cost, furnaces are expected to post the strongest gains through 2015, rising seven percent annually. Furnaces will also benefit from their amenability to installation with
other central home comfort systems.

Unitary air conditioners
to post solid gains Unitary air conditioners are by far the most widely used product in the cooling equipment market, accounting for over 70 percent of total value demand in 2010 and will remain the leading type for the foreseeable future. Through 2015, these cooling systems will also post above average gains, supported by the rebound in new building construction and by the rising share of residences with central air conditioning. The cooling equipment industry is affected by a variety of regulations, including those involving ozone-depleting hydrochlorofluorocarbon refrigerants.

New building markets to
post above average gains Both the residential and nonresidential markets for HVAC equipment are expected to recover from weak 2010 levels. In both markets, the new building segment is expected to post above average gains as building construction activity rebounds. However, the larger improvement and replacement segment will also provide solid growth opportunities through 2015.

Study coverage
This new Freedonia industry study, HVAC Equipment, is priced at $5100. It presents historic US demand data (2000, 2005, 2010) plus forecasts for 2015 and 2020 by fuel type, equipment type and market. The study also considers market environment factors, evaluates company market share and profiles 34 US industry competitors.

Table Of Contents

INTRODUCTION

I.EXECUTIVE SUMMARY 1

II.MARKET ENVIRONMENT 4

General 4
Macroeconomic Environment 4
Demographic Trends 8
Population 9
Households12
Consumer Trends13
Personal Income & Expenditures13
Consumer Financing16
Building Construction19
Residential22
New Housing25
Housing Stock30
Improvements & Repairs34
Nonresidential35
New35
Improvements & Repairs38
Regulations & Standards39
Refrigerants40
Efficiency44
Pricing Trends46
World Market49
Foreign Trade53
Exports54
Imports57

III.HEATING & COOLING FUEL TYPES60

General60
Electricity62
Natural Gas66

Geothermal Energy69
Heating Oil72
Others75

IV.HEATING EQUIPMENT78

General78
Supply & Demand79
Shipments by Type82
Heat Pumps86
Supply & Demand86
Types90
Air Source92
Geothermal97
Warm Air Furnaces  102
Supply & Demand  102
Types  105
Natural Gas  107
Electric  111
Heating Oil  114
Boilers  117
Supply & Demand  118
Types  120
Cast Iron Boilers  121
Steel Boilers  125
Room & Zone Heating Equipment  128
Supply & Demand  129
Types  131
Manufacturers  132
Humidifiers  133
Supply & Demand  133
Characteristics  135
Manufacturers  137

V.COOLING EQUIPMENT  138

General  138
Supply & Demand  139
Shipments by Type  142
Unitary Air Conditioners  146
Supply & Demand  146
Characteristics  148
Types  151
Manufacturers  152
Room Air Conditioners  153
Supply & Demand  153
Characteristics  156
Types  159
Manufacturers  159
Chillers  160
Supply & Demand  160
Characteristics  163
Absorption Liquid Chilling Systems  164
Supply & Demand  165
Characteristics  167
Dehumidifiers  167
Supply & Demand  168
Characteristics  170
Manufacturers  172
Packaged Terminal Air Conditioners  172

VI.MARKETS  175

General  175
Residential  178
New Building  182
Heating Equipment  186
Cooling Equipment  188
Replacement  190
Heating Equipment  194
Cooling Equipment196
 Nonresidential  197
New Building  201
Replacement  203

VII.INDUSTRY STRUCTURE  207

General  207
Industry Composition  207
Market Share  211
Competitive Strategies  217
Research & Development  219
Distribution  221
Marketing  224
Mergers & Acquisitions  226
Cooperative Agreements  227
Company Profiles  232
AAON Incorporated  233
Airedale International Air Conditioning, see Modine Manufacturing
Airwell-Fedders North America, see Elco Holdings
Allied Air Enterprises, see Lennox International
American Standard Heating and Air Conditioning, see
Ingersoll-Rand
Bradford White Corporation  236
Bryan Steam, see Burnham Holdings
Burnham Holdings Incorporated  238
Carrier, see United Technologies
Circul-Aire, see Dectron Internationale
ClimaCool, see LSB Industries
Climate Energy, see ECR International
ClimateCraft, see LSB Industries
ClimateMaster, see LSB Industries
Crown Boiler, see Burnham Holdings
Daikin Industries Limited  243
Danfoss A/S  247
Dectron Internationale Incorporated  249
Dunham-Bush Holding Berhad  252
Dunkirk, see ECR International
Ecosaire, see Dectron Internationale
ECR International Incorporated  254
Elco Holdings Limited  257
Electrolux AB  259
Emerson Electric Company  260
Enviromaster International, see ECR International
Friedrich Air Conditioning Company  262
Fusite, see Emerson Electric
GD Midea Holding Company Limited  265
GeoSystems, see Research Products
Goodman Global Holdings LP  267
Governale, see Burnham Holdings
Haier Group Company  269
Hartford Compressors, see Dunham-Bush Holding Berhad
Heat Controller Incorporated  271
Ingersoll-Rand plc  273
International Environmental, see LSB Industries
Johnson Controls Incorporated  277
LAARS Heating Systems, see Bradford White
Lennox International Incorporated  281
LG Electronics Incorporated  285
LSB Industries Incorporated  286
McQuay International, see Daikin Industries
Mestek Incorporated  289
Modine Manufacturing Company  294
New Yorker Boiler, see Burnham Holdings
Nordyne, see Nortek
Nortek Incorporated  297
Olsen/Airco Heating & Cooling Products, see ECR International
Paloma Company Limited  301
Panasonic Corporation  304
PB Heat LLC  306
Raypak, see Paloma Industries
RefPlus, see Dectron Internationale
Research Products Corporation  308
Rheem Manufacturing, see Paloma Industries
SANYO Electric, see Panasonic
Sharp Corporation  310
Tecumseh Products Company  311
Thermal Solutions Products, see Burnham Holdings
Thermo Products, see Burnham Holdings
Therm-O-Disc, see Emerson Electric
Thermoplus Air, see Dectron Internationale
Thomas & Betts Corporation  313
Trane, see Ingersoll-Rand
United Technologies Corporation  316
US Boiler, see Burnham Holdings
Vilter Manufacturing, see Emerson Electric
Whirlpool Corporation  323
White-Rodgers, see Emerson Electric
York International, see Johnson Controls
Additional Companies in HVAC Equipment  325

LIST OF TABLES

TABLE NUMBER PAGE

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population & Households 9
3 Personal Consumption Expenditures15
4 Consumer Financing Environment, 2000-201019
5 Building Construction Expenditures22
6 Residential Building Construction Expenditures25
7 New Housing Indicators30
8 Housing Stock by Type33
9 Residential Improvement & Repair Expenditures35
10 Nonresidential Building Construction Expenditures38
11 Nonresidential Building Improvement & Repair Expenditures39
12 HVAC Equipment Prices49
13 US Foreign Trade in HVAC Equipment54

SECTION III -- HEATING & COOLING FUEL TYPES

1 HVAC Equipment Demand by Fuel Type61
2 Electric HVAC Equipment Demand65
3 Natural Gas-Burning HVAC Equipment Demand68
4 Geothermal Energy HVAC Equipment Demand71
5 Heating Oil-Burning HVAC Equipment Demand74
6 Other Energy-Powered HVAC Equipment Demand77

SECTION IV -- HEATING EQUIPMENT

1 Heating Equipment Supply & Demand82
2 Heating Equipment Shipments by Type84
3 Heat Pump Supply & Demand90
4 Heat Pump Shipments by Type92
5 Air Source Heat Pump Shipments94
6 Geothermal Heat Pump Shipments99
7 Warm Air Furnace Supply & Demand  105
8 Warm Air Furnace Shipments by Type  107
9 Natural Gas-Burning Warm Air Furnace Shipments by Type  111
10 Electric-Powered Warm Air Furnace Shipments by Type  114
11 Heating Oil-Burning Warm Air Furnace Shipments  117
12 Boiler Supply & Demand  120
13 Boiler Shipments by Type  121
14 Cast Iron Boiler Shipments by Fuel Type  123
15 Steel Boiler ShipmentS by Fuel Type  128
16 Room & Zone Heating Equipment Supply & Demand  131
17 Humidifier Supply & Demand  135

SECTION V -- COOLING EQUIPMENT

1 Cooling Equipment Supply & Demand  141
2 Cooling Equipment Shipments by Type  144
3 Unitary Air Conditioner Supply & Demand  148
4 Room Air Conditioner Supply & Demand  156
5 Chiller Supply & Demand  163
6 Absorption Liquid Chiller Supply & Demand  166
7 Dehumidifier Supply & Demand  170
8 Packaged Terminal Air Conditioner Supply & Demand  174

SECTION VI -- MARKETS

1  HVAC Equipment Demand by Segment & Market  177
2  Residential HVAC Equipment Demand by Market & Type  181
3  New Residential HVAC Equipment by Type & Building  185
4  Replacement Residential HVAC Equipment Demand
by Type  194
5  Nonresidential HVAC Equipment by Market & Type  200
6  New Building Nonresidential HVAC Equipment Demand
by Type  203
7  Replacement Nonresidential HVAC Equipment Demand
by Type  206

SECTION VII -- INDUSTRY STRUCTURE

1 US HVAC Equipment Sales by Company, 2010  210
2 Selected Cooperative Agreements  230

LIST OF CHARTS

 CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT

1 Year of Construction of Housing Stock, 201033
2 US HVAC Equipment Exports by Destination, 2000-201057
3 US HVAC Equipment Imports by Source, 2000-201059

SECTION III -- HEATING & COOLING FUEL TYPES

1HVAC Equipment Demand by Fuel Type, 201062

SECTION IV -- HEATING EQUIPMENT

1Heating Equipment Shipments by Type, 201085

SECTION V -- COOLING EQUIPMENT

1 Cooling Equipment Shipments by Type, 2010  145

SECTION VI -- MARKETS

1 HVAC Equipment Demand by Market, 2000-2020  178
2 Residential HVAC Equipment Demand by Market,
2000-2020  182
3 New Residential HVAC Equipment Demand by Building
Type, 2010  186
4 Heating Equipment Installed in New Single Unit Housing
by Type, 2010  188
5 Share of New Housing Units with a Central Air Conditioning System, 2000-2010  190
6 Nonresidential HVAC Equipment Demand by Market,
2000-2020  201

SECTION VII -- INDUSTRY STRUCTURE

1 US HVAC Equipment Market Share, 2010  213