Portable Temperature Control Market

Part
01
of two
Part
01

Portable Temperature Control - Market Size

The market size of the temperature control units market in the US is valued at $29.4 billion. Further details about the research are given below:

Market Size

  • The current estimated market size of the B2B temperature control units market in the US is valued at $29.4 billion in 2019.

Defining the Market

  • A temperature control unit (TCU), aka temperature controller, is a system that is used to increase or decrease the temperature of a given process. TCUs are used for both heating and cooling purposes.
  • The term 'portable' seems to be used for compact units that can be transported easily. However, the industry doesn't seem to differentiate portable TCUs because they are not made to stand out and are considered interchangeable with other types of TCUs. This is evident from the fact that even though portability is a special feature, such units are not portrayed as special and are generically called TCUs.
  • Owing to this nature of the industry, portable temperature control units can be considered part of the overall temperature control units market. Furthermore, industry reports, e.g. this report, also do not segregate portable units from those that are not and consider them part of the same industry. Hence, the term 'Portable TCUs' can be used simply as TCUs.
  • HVAC (Heating, Ventilation, and Air-Conditioning) "systems are, effectively, everything from your air conditioner at home to the large systems used in industrial complexes and apartment blocks." Hence, it can be said that these systems also qualify as TCUs and are part of that market and define that market.
  • HVAC systems are also used in industrial applications such as computing and enterprise data centers.
  • The overall HVAC market is segmented into residential, commercial, and industrial applications. Commercial applications include offices and buildings, supermarkets/hypermarkets, government, healthcare, hospitality, and transportation; whereas industrial applications include oil and gas, food and beverage, automotive, and energy and utilities.

Research Strategy

We started our research in order to determine the current market size of the B2B segment of the US temperature control units market through renowned industry publications, however, no publications provided that information directly. We think that this is because these reports are paywalled and they only provided limited amounts of information as a preview and the rest of the information can be seen when the reports are purchased. We used available information to triangulate an estimate of the market as an alternative. The details of the triangulation can be found below.

Calculations

  • The HVAC market in the United States will is valued at $49 billion in 2019.
  • The market has grown at a CAGR of 1.3% during 2014-2019.
  • Since, the HVAC market is the same as the temperature control units market, the current size of the TCU market in the US is also $49 billion.
  • This market size includes residential, commercial, and industrial applications. Now, the size of the B2B segment of this market can be calculated as follows:
Share of the residential segment of HVAC market = 40%
Share of the rest of the market = 100 - 40 = 60%
  • If the residential segment's share is subtracted from the overall market, the remaining share represents commercial and industrial segments, which can be considered as B2B segments. Hence, the estimated share of the B2B segment is 60%.
  • Please note that we have used the global market share of the residential segment for 2017 because of the unavailability of the current US-specific share of the residential segment. We assumed that the share represents all geographies and has stayed the same since then.
  • Using this share, the current market size of the HVAC market in the US can be calculated as follows:
Current HVAC market size in the US = $49 billion
B2B segment share = 60%
Current HVAC market size in the B2B segment in the US = 49 * 0.6 = $29.4 billion.
  • Since the HVAC market is the same as the temperature control units market, the current size of the B2B TCU market in the US is also $29.4 billion.
Part
02
of two
Part
02

Portable Temperature Control - Trends

Some trends that are driving the temperature control units market include rising construction activity, a decreasing TWI (trade-weighted index), smart homes and offices, popularity of water-type TCUs (temperature control units), and investment in new technology. Details on each of these trends are given below.

1- Rising Construction Activity

  • During the last 5 years (2014-2019), construction activity has soared in the US due to several supporting factors.
  • These factors include "rising per capita disposable income and relatively low interest rates."
  • This increase in construction activity has supported the temperature control units market in the US as these units are used in new buildings and structures.
  • Arabian Air-Conditioning Company, which is the exclusive distributor of Carrier in Saudi Arabia, aims at leveraging the boom in the construction sector to drive sales.

2- A Decreasing TWI

  • TWI stands for the trade-weighted index, which "represents the strength of the US dollar relative to the currencies of its major trading partners."
  • The TWI is expected to decrease this year which can be a potential opportunity for industry players.
  • Since this is a potential opportunity, there are no examples of companies that are currently leveraging this trend.

3- Smart Homes and Offices

  • With the advent of new technologies such as smart homes, HVAC has also developed to become technologically smart and these systems can be integrated with smart technologies, e.g. connected home devices with wireless technology.
  • This growth in technology has been a leading factor in the growth of the HVAC sector and companies in this sector have also leveraged this technology to drive sales.
  • Alea Air introduced a new intelligent vent system, which uses smart thermostats and predictive analytics to adjust according to temperature preferences set by the user.

4- Popularity of Water-type TCUs

  • Water-type TCUs are "gaining widespread acceptance" owing to their favorable pricing and adaptability.
  • This is expected to have a positive impact on the overall TCU market.
  • Wittmann Battenfeld, a German company that also operates in the US, and Conair Group, which also has operations in the US, increased production of water-type TCUs.

5- Investing in New Technology

  • HVAC solutions providers are investing in developing new technology and innovative products to serve the commercial sector better.
  • This technology has enhanced the efficiency of HVAC systems.
  • "Carrier and Toshiba entered into a partnership and launched energy efficient air conditioning solution ‘Hi-wall’ air conditioner."
  • Research Strategy

    We have outlined some trends in the B2B segment of the temperature control units market in the US. All of the trends have been identified by renowned market research firms, which are well-versed with the current happenings in the market and outline trends within the industry.
    We have used some elements in these trends that are not from the US or not relating to the B2B segment of the market, however, the trends themselves represent the B2B segment of the temperature control units market in the US.
    We have compiled information from various research reports. These reports name the market differently, so we have explained how all these reports refer to the relevant market, i.e. temperature controls market.

Defining the Market

  • A temperature control unit (TCU), aka temperature controller, is a system that is used to increase or decrease the temperature of a given process. TCUs are used for both heating and cooling purposes.
  • The term 'portable' seems to be used for compact units that can be transported easily. However, the industry doesn't seem to differentiate portable TCUs because they are not made to stand out and are considered interchangeable with other types of TCUs. This is evident from the fact that even though portability is a special feature, such units are not portrayed as special and are generically called TCUs.
  • Owing to this nature of the industry, portable temperature control units can be considered part of the overall temperature control units market. Furthermore, industry reports, e.g. this report, also do not segregate portable units from those that are not and consider them part of the same industry. Hence, the term 'Portable TCUs' can be used simply as TCUs.
  • HVAC (Heating, Ventilation, and Air-Conditioning) "systems are, effectively, everything from your air conditioner at home to the large systems used in industrial complexes and apartment blocks." Hence, it can be said that these systems also qualify as TCUs and are part of that market and define that market.
  • HVAC systems are also used in industrial applications such as computing and enterprise data centers.
  • The overall HVAC market is segmented into residential, commercial, and industrial applications. Commercial applications include offices and buildings, supermarkets/hypermarkets, government, healthcare, hospitality, and transportation; whereas industrial applications include oil and gas, food and beverage, automotive, and energy and utilities.
Sources
Sources