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Singapore, Singapore, 2011/01/18 - The residential heating, ventilation, and cooling (HVAC) equipments market in Hong Kong was not affected by the economic turmoil of 2008-2009 and was considered a stable market as it continued its growth during this period.
Increasingly warm weather due to the impact of global warming has triggered demand for HVAC equipment, particularly air conditioners.
Hong Kong's high population density and pollution levels have risen and it is expected that residents are investing in ventilating equipment to ensure better air quality within their premises. The wide availability of HVAC equipment at retail outlets is another factor driving market momentum.
New analysis from Frost & Sullivan (buildingtechnologies.frost.com), Residential HVAC Equipment Market in Hong Kong, finds that the market earned revenues of over USD 181.8 million in 2009 and estimates this to reach USD 274.7 million by 2016.
"With growing awareness on sustainability among residential building owners and occupants, it is expected that the green HVAC equipment market will gain steady traction in the near future," says Frost & Sullivan's Associate, Janice Wung. "Apart from this, prolific construction activity in the residential building sector will inevitably translate into demand for HVAC equipment."
Although the prospects for the market look bright, there are some challenges restraining its progress. HVAC equipment demand is cyclical in nature and the weather plays an important role in sales fluctuation. The total HVAC residential market is mature and the equipment is fairly standard and has almost become a commodity item. The market does not allow much room for innovation and companies are likely to develop products with similar technologies.
The technologies used by large participants have been easily imitated by small companies. Large participants must intensify R&D activities to distinguish themselves. The market is likely to remain in its mature state until significant innovation leads to product differentiation. The growing penetration of small Chinese residential HVAC companies is another concern for local participants.
"The expanding base of participants and intensifying price competition have contributed to shrinking profit margins," says Wung. "To ensure business progression and to meet consumer demand, participants in this space must develop products that balance both high efficiency and cost effectiveness."
As consciousness of energy efficiency increases among end users in Hong Kong, the demand for HVAC products is bound to escalate.
If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.
Residential HVAC Equipment Market in Hong Kong is part of the Building Management Technologies Growth Partnership Service program, which also includes research in the following markets: North American HVAC Air Filters Market, U.S. Residential Heating and Air conditioning Equipment Market, and Strategic Analysis of Green HVAC Industry in North America. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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