With temperatures rising throughout the United States, the demand for cooling will rise as well. Climate Central predicts household cooling demand will rise 71% by the year 2050. Yahoo Finance's Jared Blikre breaks down how this will impact the air conditioning market.
Video Transcript
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- Dangerous heat levels are growing in the United States, setting record highs. The southern part of the United States is expected to be engulfed this week with temperatures that blaze past 130 degrees Fahrenheit.
As the planet warms and heat stays high, more consistent cooling is needed in homes, schools, offices, and hospitals. That's according to Climate Central, a nonprofit that researches and reports on climate change since 1970. Since 1970, 99%-- yes, 97% of locations in the United States have seen a rise in cooling degree days, and this is a metric used to show how much cooling is needed to maintain a comfortable indoor temperature.
The Southwest, South, and Southeast regions of the United States, they have seen the largest increases, and Climate Central is projecting cooling degree days will drive a 71% increase in household cooling demand by 2050.
Data from HVAC Insider-- love that name there-- is suggesting that shipments for central air conditioners and air source heat pumps is down 70.2% this year, year over year. And while shipments for air conditioners dropped 14.9% year over year, there are several key players in the market, AB Electrolux, Blue Star, and Daikin Industries to name a few.
But the air conditioning market is expected to grow by $19.6 billion-- or $19.6 billion by 2027 according to the latest research report from Technavio. 44% of the growth will come from the Asia-Pacific countries, and the compound annual growth rate is set to rise 2.87%
