Question

What are the main business environment factors in HVAC - variable frequency drives market in US.

1. Political/Legislative factors

2. Distribution factors - from EU to US

3. Technological factors - difference between US and EU

Answer 1

Heating Ventilation Air Conditioning (HVAC) system units increased to 14 million in 2018 in US. This leads increasing demand for energy efficient systems and rising focus of consumers towards health and comfort level. Factors such as rising demand for new houses, increasing expenditure on construction activities and growth of disposable income boost the increasing number of production units in US economy. If we are focusing on the environmental impact of HVAC, gases emitted from this create imbalances in the atmosphere. The acidic gases create several respiratory issues and other damages to the internal organs. Beside this, US economy’s development criteria are not focusing these health problems. There is high cost associated with maintaining and installing HVAC shows a fundamental challenge to this market.
The technological factors of US HVAC system include inverter and non-inverter technologies. Heat pump integrated with inverter technology uses right amount of energy to achieve excellent confront ad optimum operational efficiency with low level of noise. Automatic temperature can control the damages caused by voltage fluctuations and also reduce overall maintenance and service cost. In EU there is technological innovations which follow in field of smart grids, phase change materials, ventilation and air quality and using of interface etcetera. There is innovation of energy neutral building with high level of comfort, safety and health.
Comparing US and EU legislations the acceptance of this system is different. In US economy, the government will fund more for this kind of technical innovations. It will change the market structure and the total production functions of the whole economy. On the other hand EU will try to manipulate the new technological inventions through their well developed research and development department. Air conditioning in US compared to EU is different because of the dissimilar climate and exclusive applications of commercial buildings, hospitals and industrial plants.
In case of US, the heating equipment is expected to register the highest CAGR during the forecast period. In Europe the HVAC system is similar to German standard; where 4 different controlled thermodynamics air treatment functions. The accepted air velocities are much higher in the US than they are in EU.