Every minute of every day someone on this planet is looking to purchase an air conditioner.
This purchasing rate is set to skyrocket especially in regions like Asia with fast growing economies and rising middle class populations.
According to the International Energy Agency (IEA) demand for cooling will triple by 2050. It is hard to think of an industry with better prospects.
No wonder Tesla is eyeing the industry with interest. Tesla founder Elon Musk told investors in September that he has air conditioning in his sights.
"That's a pet project that I'd love to get going on to start working on that next year," Musk told Tesla investors.
"You could really make a way better home HVAC [heating, ventilation and air conditioning] system that's really quiet and superefficient.”
According to an article in Nikkei Asia, Musk’s comments have air conditioning executives nervous. Tesla’s latest electric vehicle range features a heat pump for temperature control.
So how bullish is the outlook for air conditioning or is it all just a bit of bull?
The global pandemic has certainly impacted revenue growth with IBISWorld forecasting modest revenue growth (on average one per cent through to 2025).
Many of the industry’s biggest names suffered huge revenue declines in 2020 and while demand is high it is an incredibly competitive market.
It will take time to recover from such a tough and unforgiving year. The fallout from the pandemic is likely to continue in 2021 so let us pray we can keep the bears at bay.
On a more positive note, CCN has profiled our HVACR Leadership Award winners in the latest digital edition online now.
The coverage begins with a roundup of all the action from CCN Live on page 13.
Enjoy our annual Hot Products feature and Happy Holidays!