[Market Report] Going Green Makes Cents…and DollarsBilly Pell
Is the green market boom for real or simply hype? Ask that question to a group of HVAC professionals and you’ll get as many answers as there are people in the room. So while some residential HVAC companies have found that selling energy-saving products and services have been a real boost to business, others find that, for their customers, the green message simply falls flat. Rather it’s a promise of increased comfort or improved indoor air quality that closes the deal. According to a number of new reports, that’s about to change. Thanks to a variety of mitigating reasons – from increased public education to government incentive programs – there is a growing demand for green products and services that will only be getting stronger in the years ahead. A new market report published by Lucintel estimates that the US HVAC products market will grow at a compounded annual growth rate of 3.4% over the next five years – spurred primarily by green thinking. First, there’s an explosion in building renovation projects sparked by increased commercial and homeowner demand for energy efficiency. Then there are local tax credits being offered in many states aimed at controlling greenhouse gas emissions. According to the report, emerging trends having a direct impact on healthy growth within the HVAC equipment industry include the increased use of green HVAC technology, increased use of IAQ technology and increased use of remote thermostats and other smart HVAC products. In another report, industry analysts predict that the global market for green building products will more than double over the next five years. The Green Building Materials Market Report, published by Allied Market Research (AMR), estimates that sales of green HVAC equipment will reach $377,029 million by 2022, representing a CAGR of 11.9 percent through 2022. According to the report, growing public awareness of green materials, the increased sales value of green buildings and growing market demand are driving this healthy growth. The AMR report also highlights the role that improved indoor air quality (and the promise it offers regarding increased productivity and reduced operating costs) is having on the demand for green buildings. “Homeowners are often surprised to learn that the air inside their home is typically much worse than what they breath outdoors,” said Brendan Reid, Senior Success Coach at Comfort Institute, a nationwide organization dedicated to training HVAC and performance contractors towards a whole-system approach to building performance. “Once they understand that 50% of all illnesses are caused by poor indoor air quality, they’re much more likely to seal their ductwork, regulate the humidity inside their home or take other steps needed to protect the health of their family.” The results of a recent survey for the National Association of Home Builders, mirrors these findings. According to the survey, single-family builders, on average, use approximately ten different green products or practices when building a new home. Topping that list was energy-efficient windows (commonly used by 95 percent of builders) followed by high-efficiency HVAC systems (used by 92%). 22 percent of responding home builders indicated that they always or almost always have their homes certified to a green standard. “The facts are clear,” said Reid. “Green building is more than a fad – it’s the future of the building industry and the future for any contractor hoping for growing success in the years ahead. The good news is that it’s a great time to beef up your skills and knowledge of green building practices and prepare to ride that wave of success.” The exclusive, third-party industry report information in this post was compiled by Brad Brenner at Brenner Associates.