Consumers' demand to go green, along with higher energy efficiency, compels manufacturers to increase R&D spending for North American heating and air conditioning equipment. Not only will this help withstand competition for this market, it will also withstand volatile fuel prices that play a part in the demand for energy-efficient systems.
New analysis from Frost & Sullivan, U.S. Residential Heating and Air Conditioning Equipment Market, finds the market earned revenues of $12.83 billion in 2009 from the sales of 17.8 million units and estimates this to reach $13.48 billion in 2015 from the sales of 21.5 million units.
Companies design equipment to ensure maximum convertibility of fuel into energy to address the issue of residue deposits after burning fuel. Their efforts to integrate renewable energy technologies into solar heating equipment will make them environmentally friendly through the reduction of greenhouse gases.
Federal incentives and tax rebates for energy-efficient equipment have also greatly helped improve replacement sales, which account for the major share of market revenues.
"Between 2006 and 2007, the Energy Policy Act of 2005 made available tax credits for energy-efficient equipment such as water heaters, furnaces, boilers, heat pumps, air conditioners, building insulation, roofing, and circulating fans in the residential segment," says Frost & Sullivan Research Associate Soundarya.G. "The 2009 U.S. stimulus package further expands the tax credit, fueling sales of HVAC equipment."
The 2010 regulation for refrigerant change expects to shift the air conditioning market R-22 to the ozone-friendly R410A refrigerants, reducing the footprint of HVAC equipment. This may affect equipment prices for the next couple of years.
While customers evaluate systems based on longevity, product quality, and price points, participants can offer value-added services through service contracts, extended guarantee, warranty, and security agreements to differentiate themselves.
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