Ductless Cooling Systems Will Account for Nearly 30 Percent of Global Energy Efficient HVAC Systems Revenue by 2020

September 19, 2013

The development of new technologies for efficient heating, ventilation, and air conditioning (HVAC) systems is progressing due to increases in regulated energy efficiency standards and demand for higher-efficiency products.  Yet, the technological progress is incremental because it proceeds via stepwise increases in efficiency, rather than major leaps or disruptive technologies.  According to a recent report from Navigant Research, annual revenue from ductless cooling systems will grow from $3.9 billion in 2013 to more than $9 billion by 2020, representing nearly 30 percent of total energy efficient HVAC systems revenue in that year.

Overall, annual revenue from energy efficient HVAC systems will grow from $17.2 billion in 2013 to $33.2 billion by 2020, the study concludes.

“Ductless systems have several advantages over ducted systems,” says Bob Gohn, senior research director with Navigant Research.  “They are more efficient, avoiding duct-related losses that in some cases can account for up to a 30 percent loss in system efficiency.  Ductless systems may also be easier to install into older buildings, especially where sufficient space for the installation of ductwork may not be available without significant modifications to the building.”

Ductless cooling systems have historically been utilized most widely in Europe and Asia Pacific, where they are typically the preferred cooling systems for most commercial applications.  In the North American market, ducted unitary systems are far more prevalent, and ductless cooling systems were nearly nonexistent in the market until the early 2000s, according to the report.  They have been gaining in market share in North America since that time, and are projected to grow at a compound annual growth rate of more than 14 percent between 2013 and 2020.

The report, “Energy Efficient HVAC Systems”, analyzes the global market opportunity for energy efficient commercial HVAC systems, including unitary systems, heat pumps, furnaces and boilers, ductless cooling, engineered cooling systems, radiant heating and cooling, and ventilation systems.  The report provides a comprehensive assessment of the demand drivers, business models, policy and regulatory factors, and technology issues associated with the global market for these systems.  Key industry players are profiled in depth, and worldwide revenue forecasts, segmented by application, region, and key major countries, extend through 2020.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin



* The information contained in this press release concerning the report, “Energy Efficient HVAC Systems,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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