Market Trends of Europe HVAC Field Device Industry
Residential Sector to have the Major Market Share
- Residential HVAC systems have become a necessity with extreme weather changes globally. Residential HVAC units are pieces of equipment that are installed in homes to maintain an indoor temperature.
- Residential HVAC systems consist of two separate units, including the indoor evaporator and the outer compressor. The three main functions of a residential HVAC system are ventilation, heating, and air conditioning. The ventilation functions can either be natural or forced; the heating component is carried out via a boiler or furnace; and the air conditioning function works to cool or maintain a lower room temperature by removing existing heat from the inside of the home.
- Various types of residential heating and cooling products include furnaces, air conditioners, heat pumps, air handlers, ductless systems, and thermostats, among others.
- Europe's summer heat waves are pushing demand for air conditioners in the region. Heatwaves are common in the European region, with summer temperatures reaching up to 45 Celsius, and demand for residential air conditioners has increased in the region.
- Further, urbanization, new building construction, and an increase in disposable income are the other key factors contributing to the rapid growth of the HVAC market in the European region.
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United Kingdom is Expected to Hold the Major Market Share
- The increase in replacing existing equipment with better-performing ones and supportive government regulations, including incentives for saving energy through tax credit programs, are driving the United Kingdom HVAC market over the forecast period. For instance, the government of the UK has already set a target of installing 600,000 heat pumps per year by 2028 to reduce the UK's reliance on fossil fuels and help fight global warming. Such trends are expected to create demand for HVAC field devices over the forecast period.
- The government of the United Kingdom recently announced plans to stop installing home heating that uses fossil fuels by 2035. The government hosted a meeting to attract billions of dollars in foreign investment for green projects in the country. The Prime Minister of the country told the Global Investment Summit that private-sector investment and consumer pressure were vital to slashing carbon emissions and controlling climate change.
- The UK Government is presently offering contributions to the initial capital outlay on heat pumps, with GBP 5,000 (USD 6311.62) of the cost and installation of an air-source heat pump and GBP 6,000 (USD 7573.95) for ground-source heat pumps. However, the initial installation costs of an electric heat pump are still an off-putting hurdle for many potential users in the country.
- Nonetheless, ahead of the boiler upgrade scheme that took place on April 1, 2022, new polling for the Energy & Climate Intelligence Unit (ECIU) found that a third (33%) of British say they would be more likely to get an electric heat pump to help insulate themselves from Russia interfering in the gas market.
- Vendors need to comply with various regulations set by the government regarding environmental protection, as the coolants and other substances used in HVAC equipment contribute to global emissions. R-32 was chosen for its lower environmental impact, high energy efficiency, wide availability, and ease of use.
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