Climate Change Drives Increased Demand for HVAC, Energy
The Freedonia Group, Inc., a marketing research firm based out of Cleveland, Ohio, is reporting that worldwide demand and sales of HVAC equipment is set to explode, reaching record levels by the end of 2018. Over the next four years, demand for HVAC will grow the industry by 5.7%, setting revenues on-course to eclipse $120 billion. Most of the demand is coming from developing nations, such as China, India, and Indonesia. The Asia-Pacific region, including China, Vietnam, and others, will make up the largest portion of demand. The area already accounts for 54% of the world’s HVAC customers.
Climate Change Driving Demand for HVAC, Increased Energy Consumption
While the increase in demand for HVAC systems is undoubtedly greatest in the world’s developing countries, the fact is that climate change is driving an increase in demand for air conditioning across the world. As statistics from the U.S. Environmental Protection Agency (EPA) show, as the world grows warmer, so, too, does the need for cooling increase. A median temperature increase of 1.8-degrees Fahrenheit, seemingly negligible to the layman, will increase American need for air conditioning by five to 20%. By 2050, demand for HVAC is expected to have increased by as much as 20% in the warmest parts of the country. On a global scale, the estimated shift towards more air conditioning is even more staggering. In China, demand is set to jump an astonishing 140% by 2040.
Of course, this isn’t just an increase in demand for air conditioning systems and the energy that drives them. The issue will also become a financial one. As more air conditioning is used, energy demands will cause an increase in prices. Increased wear and tear will force more regular maintenance in order to save money and avoid expensive repairs. No matter how you look at it, the increased demand for HVAC systems is, indeed, a very good thing for the air conditioning industry, but it’s a dark portent for the rest of the world.