(I) Industry Overview

The global HVAC market has growth potential. In 2018, the global household air conditioning penetration rate was 45.6%. Economically developed regions, such as North America, East Asia, some countries in the Middle East, and Australia, have even higher penetration rates. North America has had a market position that cannot be ignored in the past few years. With the recovery of the US real estate market, people’s demand for housing has also increased. Various information channels reflect the huge demand for HVAC, sanitary ware and building materials products, which is proven by the popularity of the exhibition at the 2019 American Building Materials and Construction Exhibition. It is expected to maintain stable development in the future, and the changing market in the United States will have an important impact on the development of the global HVAC market.

North America is dominated by central air conditioning, while other regions are dominated by household air conditioning. The temperature in Western Europe is rising year by year, but the installation of air conditioning in existing houses is subject to high labor costs and strict property management restrictions, and the air conditioning penetration rate is not high. In addition, the Asia-Pacific market is increasingly driving the development of the global market, especially benefiting from the rapid growth of China, India and Southeast Asian countries. Due to the rapid economic development, large population and hot climate in Southeast Asia, the air conditioning market is entering a growth period. The Belt and Road Initiative has also boosted the demand for this industry in countries along the route. For example, Poland has been committed to infrastructure construction and housing renovation plans. Green, environmental protection and energy saving are the themes of the industry’s future development.

(II) Key Exhibitions

1. American Building Materials and Construction Show (IBS)

Location: Las Vegas International Exhibition Center, USA Organizer: National Association of Home Builders

Exhibition Overview: In 2019, the 75th exhibition had more than 100,000 visitors, more than 2,000 exhibitors, and a net exhibition area of 100,000 square meters. It is the largest exhibition in the residential construction industry in North America. There are 350 Chinese exhibitors with an exhibition area of about 4,500 square meters.

2. Russian International Heating, Ventilation, Air Conditioning and Environmental Protection Exhibition (AQUA-THERM)

Location: Crocus Exhibition Center, Moscow, Russia Organizer: Reed Exhibitions Russia

Overview of the exhibition: In 2019, the 23rd exhibition attracted about 30,000 visitors, more than 800 exhibitors from 38 countries, and an exhibition area of 40,000 square meters. More than 150 Chinese companies participated in the exhibition, with an exhibition area of nearly 2,000 square meters. The exhibition is the largest and most professional heating, ventilation and refrigeration industry event in the entire Central and Eastern Europe.