Positive 5 year outlook for the UK ventilation and air conditioning market

The UK ventilation and air conditioning market is significant and was estimated to be worth £1.17 billion in 2016. Growth has been steady since 2013, with the recovery in the UK economy stimulating construction activity, as well as consumer and business confidence levels. Although the market situation in early 2017 is more subdued, the current market forecast for remains moderately positive, with growth of around 3% per year from 2019 onwards.

The UK ventilation and air conditioning market exhibits the characteristics of an increasingly mature market. Positive influences on the ventilation and air conditioning market include increasing health, safety and energy efficiency legislation, revised Building Regulations and environmental legislation, and the generally increasing awareness about the importance of indoor air quality and energy use. 

Considerable replacement and refurbishment opportunities are present in existing buildings; there are still a large number of buildings with inadequate or inefficient VAC systems. In addition, Government initiatives are also motivating the VAC market. For example, the Enhanced Capital Allowance Scheme which offers up to 100% first year tax relief on a number of energy saving plant and machinery, including VAC equipment.

Keith Taylor, Director of AMA Research, commented: “Following the UK Brexit vote in mid-2016, the outlook for this market, like many others will depend on the path taken to exit the EU and the type of trade and legislative deals formulated. By 2021 it is estimated that the UK ventilation and air conditioning market will have increased by 10 - 11% when compared to the estimated market size in 2017.”

The future performance of the UK ventilation and air conditioning market is likely to be influenced by overall trends in housebuilding and non-domestic construction, RMI activity, fuel prices, energy efficiency legislation, renewable technologies, levels of personal disposable income, plus climatic factors and air temperatures. 

Enhanced levels of market penetration are also likely to arise from product innovation and technological developments, for example variable speed drives, multiple scroll compressors, EC motors, filter sensors and heat recovery systems. In recent years, there has been good growth in VRF or VRV air conditioning systems, reflecting the fact that they offer more efficient operation and can therefore save operational costs.

There is also increasing demand for intelligent ‘smart’ controls that can remotely manage ventilation and air conditioning systems, as well as a greater emphasis on the integration of VAC controls into the building management systems of commercial buildings. 

The ‘Ventilation and Air Conditioning Market Report – UK 2017-2021 Analysis’report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.