UK HVAC industry can expect 4% growth during next three years according to a report by AMA Research.
Its 'Ventilation, Air Conditioning and Non-Domestic Heating Market - UK 2007-2010' report says the industry will benefit from continued growth of around 3-4% to 2010.

According to the report the July 1 smoking ban in public places is set to have an immediate impact on the market because the improvement in air quality may adversely impact on fan size and the level of demand in overall terms'.

The overall non-domestic heating, air conditioning and ventilation (HVAC) market is estimated to be worth some £1.35 billion in 2006.

Ventilation accounted for 15% of the HVAC market in 2006. Ventilation and non-domestic heating accessories account for 27% of the market. During 2006, the value of the overall ventilation market grew by 2%, (this includes two core product types axial and centrifugal fans).

The report states the growth of ventilation systems will impact on ventilation fans in general, particularly where they can be designed in or incorporated into new buildings. Value and volume growth of the UK ventilation market is likely to continue to be constrained by competitve imports from Europe and the Far East.

The non-domestic heating market accounted for 15% of the total value of the HVAC market in 2006 and consists of radiators, commercial boilers, heat emitters and direct heating appliances.

It states growth in the market has been impacted by a reducing heat input because of higher levels of insulation and heat generated in offices by computers.

Heat recovery ventilation, in addition to positive input ventilation and destratification fans will tend to erode the non-domestic heating sector in the future.

While the trend to condensing boilers may result in value added growth, the market will also be influenced by the growth of heating boiler hire for emergency and long-term rental solutions.

The UK economic climate was uncertain early this year, the report concludes this is the result of a combination of substantial public sector investment, balanced by a moderation in consumer confidence.

In the commercial construction sector, output continues to grow, while in the public sector substantial health and education capital investment programmes are in progress, although in the industrial construction sector, levels are relatively static.

Further influences that have an impact on the market include the application of heat-pump based heating and cooling solutions, heat recovery and energy efficiency. In addition, continuing growth of mobile temporary or long-term boiler and chiller hire represents a trend, which is likely to have an impact on the manufacturers' market in the long term.

The level of demand for HVAC products varies regionally throughout the UK, reflecting the various levels of construction activity, EU investment strategies, local industry specialisation and house building programmes, also geographical, seasonal and climatic features. In particular the advent of the Olympics will further bias the construction investment to the South East.

Lengthy planning and contract approval processes was also highlighted as a cause of considerable delays in the scheduling of projects, which impact adversely on turnover figures and cash flow projections.