HVAC and Commercial Refrigeration Indices

HVAC and Commercial Refrigeration Regional Indices Overview

Get the latest insights on price movement and trend analysis of HVAC and Commercial Refrigeration in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

 

HVAC and Commercial Refrigeration Price Trend for the Year 2024

In 2024, HVAC and commercial refrigeration prices saw significant fluctuations driven by regulatory changes and environmental concerns. The industry experienced price increases as manufacturers prepared for the EPA's new refrigerant regulations set to take effect in January 2025. These regulations aimed to phase out high global warming potential refrigerants in favour of more environmentally friendly alternatives.
 

HVAC and Commercial Refrigeration Indices Chart

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The transition to newer refrigerants required manufacturers to redesign their product lines, leading to higher production costs that were passed on to consumers. Equipment using the newer refrigerants typically commanded premium prices, with many businesses and homeowners rushing to purchase existing inventory of traditional systems before the regulatory deadline.

Supply chain issues that plagued the industry in previous years showed improvement, but ongoing labor shortages for installation and maintenance continued to impact overall costs. The Inflation Reduction Act tax incentives helped offset some price increases for energy-efficient systems, particularly heat pumps, which saw growing demand as dual-purpose heating and cooling solutions.

Cold thermal energy storage systems gained traction in commercial refrigeration, especially for supermarkets and food service businesses looking to reduce peak power demand and lower operational costs. While these systems required higher initial investment, their ability to shift energy consumption to off-peak hours made them increasingly attractive.

Analyst Insight

According to Procurement Resource, as the industry transitions to new refrigerant standards in 2025, consumers can expect substantial price increases for air conditioning units, creating a challenging market where efficiency improvements must justify higher equipment costs amid growing cooling demands due to climate change.
 

HVAC and Commercial Refrigeration Price Trend for the Second Half of 2023

In the second half of 2023, HVAC and commercial refrigeration prices continued their upward trajectory, driven primarily by increasing cooling demand across the U.S. and globally. As climate data showed, cooling degree days increased in most analysed U.S. locations since 1970, with the highest increases in the Southwest, South, and Southeast regions. This sustained demand put pressure on manufacturers and suppliers, resulting in price increases for standard equipment.

CO2-based refrigeration systems gained popularity as businesses sought more sustainable alternatives. Transcritical CO2 booster systems, especially when combined with cold thermal energy storage, became more attractive despite their higher initial costs. Energy efficiency became a major selling point, with companies willing to pay premium prices for systems that reduced peak power usage.

Supply chain constraints from earlier in the year gradually eased, but labor shortages for installation and maintenance kept overall costs elevated. The Inflation Reduction Act tax incentives for heat pumps partially offset price increases for energy-efficient systems, providing some relief for businesses upgrading their cooling infrastructure.

Analyst Insight

According to Procurement Resource, the integration of renewable energy with cooling systems, particularly in regions with high solar and wind capacity, is expected to change the cost structure of HVAC systems while creating new opportunities for businesses to reduce operational expenses despite initial investment costs.
 

HVAC and Commercial Refrigeration Indices for the First Half of 2023

In the US markets, the price trend of HVAC and commercial refrigeration struggled to maintain its market momentum in the first two quarters of 2023. The US economy faced the consequences of its transition phase as it slowed down after dipping to alarming levels in the COVID era. The government had to adopt several strict monetary policies and had to raise its fed fund rates in order to keep the market conditions afloat.

Rapidly rising loan rates have slowed consumer demand, which was depicted in the decline in new home development, which negatively affected new business construction. In contrast, activity related to servicing, maintaining, and remodeling the established base of homes or businesses has remained strong and has expanded in the first and second quarters since the demand for HVAC and commercial refrigeration from this sector was less susceptible to the weak economic performance and manufacturing sector demand shocks than the new construction activities.

Analyst Insight

According to Procurement Resource, the price of HVAC and Commercial Refrigeration are expected to imitate the trend followed by the market dynamics of the construction sector.

Procurement Resource provides latest prices of HVAC and Commercial Refrigeration. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.