According to the report, “Global Construction 2030”, the world construction market will resume its momentum to continuously grow bigger, predicting that the global construction industry will grow by 85% to 15.3 trillion by 2030. China, USA, and India – the top three leading countries – are contributing about 57% of the overall growth.
Interestingly, “China’s share of the world construction market will increase only marginally as growth slows in the world’s largest construction market to 2030. In comparison, U.S. construction will grow faster than China over the next 15 years — growing by an average of 5 percent per annum. Meanwhile, we’re due to see a surge in construction rates in India as it overtakes Japan to become world’s third largest construction market by 2021,” said Graham Robinson, executive director, Global Construction Perspectives. With this growth rate, the associated building HVAC industry in North America will surely experience rapid growth as well.
However, there is no need to wait that far to expect a considerable growth in the HVAC industry. Data indicates that total sales by HVAC manufacturers in the U.S. in 2014 reached nearly US$45 billion, and according to CMD's estimate, Canada also reached CAN$3 billion. Therefore, the combined HVAC industry for both U.S. and Canada has reached nearly $50 billion in the last year. Regarding growth rate, Canada’s HVAC industry grew by 5.4% in 2014, while USA’s only grew by 1.7%.
As USA’s economy is performing at its best level among other developed countries worldwide, this also comes with a stronger U.S. dollar. As a result, offshore competitors seeking customers in the U.S. are benefitting from a currency-induced reduction in import prices. It is expected to witness growth in the HVAC industry in the USA.
However, Canada took a huge hit due to the exchange rate, and as a result, the mainly import-dependent HVAC market in Canada has been hurt greatly. This was quite obvious when the total sales volume growth dropped from 12.3% to 10.4% between October and November, 2014. Meanwhile, our neighbours had a 30.7% growth rate in October itself, and its remarkable growth was really self-explanatory because of its stronger dollars and economy recently.
On the other hand, in Canada, Ontario was the biggest province for HVAC equipment trade, especially for the year 2014, where there was a growth, there was an 18.3% growth from 2013. The future of HVAC in Ontario is considered to be very bright, steadily growing gradually over the coming years.
We can be optimistic that during the 2012-2017 period, North American HVAC industry growth will be driven by improvement in the residential and non-residential new construction markets, as well as retrofit work and renovation. These include dehumidification optimization, incorporating dehumidifiers in air conditioners, removing moisture retention on coils, boosting latent heat recovery, and eliminating air leakage. However, Belnor Engineering is the professional leader in these fields, so give us a call or send us an email anytime to consult your own cases.
Overall, the Canadian HVAC market has maintained its stability and is experiencing steady growth. The demands for HVAC products are exploding as energy-conscious customers are recognizing the need to reduce energy consumption. Therefore, gradual growth will been seen in the next several years in Canada, and around the world.