The HVAC industry worldwide is going to grow by a hundred billion dollars. Hey guys! One thing we've been doing on this channel recently is kind of keeping our eye on things that are happening in other markets things that are happening in other countries because sometimes what's happening, there is a little bit of a snapshot of what we're going to be up against in the future. North America has always been a little slower than other countries to get with it if you will. as far as changes in the industry, and because of that, we've been watching other countries like in Europe who seems to always be a little ahead of us on significant changes such as refrigerants coming out and things like that. But I Thought this was an interesting article that I came across because I do think that as we're watching things in other countries and watching the industry itself a lot of times, it does affect us. Here, it affects homeowners directly when they are making a decision in buying their next heating and air system. And the reason I think that this number is important is they're saying and over the next decade. P and S Intelligence, which is a company that provides market research and consulting services to a vast array of Industries across the world, they are predicting that the industry is going to grow by 100 billion dollars. Well, the industry itself. Currently in the year 2021, this past year was only at 206 billion and so they're predicting that it's going to grow by more than half this next decade. which is pretty crazy and so I thought I would go through this. They have a number of reasons why they think that is, but the other thing that we're going to point out is some of the interest: I Think it's interesting where they're pointing out some of the changes or as far as the shift in products that are being sold and bought in general. But the main reason they are saying that they think that the industry itself is going to grow is because of global warming. I Don't necessarily think that's the main reason it's easy to say. Well, if the world is a degree warmer this decade than it was last decade, well then more people are going to have a demand for having air conditioning in their home because it's a one degree difference. Overall, that may be true, but I Don't think that's the main reason and we're going to go through this article and why I Think the main reason the industry is going to explode worldwide in just a moment. So a few important findings in this report is: over the next few years, the sales of Vrf systems are expected to increase at a Cagr, which stands for compound annual growth rate of over 10 percent due to the increasing need for Energy Efficiency Temperature control Solutions So there's one thing to me that's a big change where if we were to go back a decade or two, Vrf systems were kind of, uh, either new or just simply didn't exist yet. But now we're starting to see these more efficient inverter Vrf type systems become a bigger part of the market. Commercial sector is predicted to have the largest revenue share in 2030 of over 40 percent due to the growing Construction in this sector. for example, Hotel transaction volume and Europe has already reached more than 6.8 billion in the first half of 2022.. the need for heating equipment has increased significantly owing to the cold weather in most of Europe, particularly in Eastern Europe where the average winter time temperature ranges between negative six and three degrees Celsius I Don't know why that would be a reason they would point to as far as this growth goes, especially if they're saying well, it's getting warmer if climate change is affecting the industry I Don't know why this would be something they would point to I Think that a decade or two ago, this would probably be something that would still affect the industry if that makes sense, but they're throwing that in there. The German government is actively encouraging the adoption of effective heating and cooling systems powered by Green energy sources. This has created a significant shift in the customer perception which is driving the country's Heating and Cooling business. Moreover, Germany is one of Europe's biggest investors in hotels with around 730 million dollars in transaction value and H1 2022. Moreover, the top five Hospitality hubs which are Spain the UK, France, Italy and Germany together accounted for nearly 81 percent of the transacted value up 68 percent in H1 2021. And it talks about a couple other things with that. but I don't think any of that's really important. Aipac has the highest sales of HVAC and I think this is the one thing that I think we should highlight here and I'll tell you why in just a second. but it says by 2030 APAC sales revenue is expected to hit 170 billion dollars. This is due to the rising average temperature, particularly in China India South Korea Japan and Indonesia Compared to North America Europe APAC is a hotter climate. Thus, there is a higher requirement for Air Conditioning equipment now I Don't know who wrote this I don't know who now necessarily as saying that. but that is not why in my opinion, this is my opinion. I'm not an economist I'm realistic. So they're saying that the reason that the sales in these countries, especially in China and India are jumping through the roof is because it's hotter there. it's hotter there than it is say here in the U.S That is not why their sales are jumping through the roof. The reason why I mean let's be honest, is if we were to go back half a century both of those big countries, both of them are the two largest most populated countries in the world. And they were hot then too. But the big thing is half a century ago is they were both impoverished. Both of their governments were keeping the citizens down and such like that. But since then, both countries have exploded economy-wise they have more buying power. They have citizens that are buying things that they've never bought before. I Think heating and air is part of that. To say that the reason that they're gonna jump dramatic medically in sales is because it's hot there is kind of ridiculous in my opinion. Let's be honest, the real reason is because people living in China three generations ago were poor, and now they're not. further. China had 1.45 billion people as of October 2022, followed by India which had 1.38 billion people. The need for appliances is thus being driven by the increase in the population apart from the rise in the average temperature. So again, whoever wrote this, they're off. The Mark with that. I Mean if that's really what they think, the reason is is, is there a need for more appliances because there's a higher population? Well, yes, I mean that's obvious. but to say it's because of a higher temperature, just because the world's whatever. I'm not saying it's not warmer now than it was half a century ago. That's not the point. The point is, people, even if it was hot then couldn't buy products that can. Now that's the real reason. But anyway, we'll get off all that. This article continues to go through some other things that highlighted world worldwide: But Ultimately, here's what I think and the reason I Did a video on this: I Have predicted in other videos that during the making of this video that there are brands or products that we currently just simply don't know there's gonna be a brand a decade from now. It's not a huge prediction, right? There's going to be brands that come out sort of like when I was a kid we didn't know what the Internet was and now it's what our whole life revolves around. You're watching this on the Internet I Think that a decade from now, you're going to see Brands and products that we currently don't know. they're not household names now, but they will be then. And because of that, because of this explosion and growth worldwide of companies, you're gonna see more of that. You're going to see more of this market share being taken in this exploding industry and companies jumping into that. If you are a homeowner over the next decade that is buying a heating and air system, you're gonna have more options. Probably you're going to have more options brand wise, but you're probably going to have even more options. Product wise, you're going to have people that are in small towns that maybe you have only had three to five options brand wise and now you're gonna have ten over the next decade. So I think that's why this is important I Just think it's silly when I read stuff. This is not being political or anything like that. I Don't understand why there has to be two sides to everything anyway, but some things sure, but everything has to have two sides. It just seems odd to me. Just be honest. don't say that the reason that all this is happening is because of climate change or whatever. I'm not saying it doesn't affect it a little bit, but the real reason is when you take the two most populous countries in the world and have their citizens make a livable wage for a change, they're no longer living in modern day slavery where they're working for pennies and they can actually buy things. and they have a free market. Now they're going to be buying things like heating and air equipment. I Mean it's just the way it is. So anyway, let me know your thought. I Don't know if this is going to affect anything during the making of this video necessarily as far as a decision being made, but as far as the future holds, I Think that this is all important stuff. If you've got an industry that's going to explode like this, you're going to see changes to that industry as well. Just go from 200 to 300 billion is quite a jump. So anyway, thanks for watching. Hit that subscribe button. We'll see you next time.