HVAC

3 Big Alternatives for HVAC Entrepreneurs Within the Booming Inexperienced Financial system

With the introduction of more climate protection regulations, ClimateTech companies can more easily get the green light for their innovative products and solutions. We are entering an era of complete modernization of HVAC systems (heating, ventilation and air conditioning).

The North American market for HVAC systems was valued at nearly $44 billion in 2022, and it is projected Grow to over $62 billion by 2029 at a compound annual growth rate of 5.2%. Demand will remain strong due to climate change with its extreme temperatures, the growing real estate market and companies’ efforts to reduce costs through energy-efficient appliances. If you are building an HVAC business, now is the time. Here are just a few market niches that you may be able to fill.

Refrigerants need to be replaced

The refrigerants currently used are harmful to the environment. Hydrofluorocarbons (HFCs) are potent greenhouse gases used in refrigeration and air conditioning that are thousands of times more harmful than carbon dioxide. The good news for the HVAC industry is that a global agreement dictates that all refrigerants with GWP – the global warming potential – must be replaced by 2030, a very ambitious target.

HFCs are detrimental to the ozone layer and are considered the main contributors to global warming. And they are used by every air conditioner manufacturer. In the future, companies will have to adapt to new requirements.

In October 2022, President Joe Biden signed an international agreement committing the US and more than 130 nations to reduce the production and use of HFCs by 85% over the next 14 years. According to scientists, the measure will help at least partially mitigate the upcoming increase in global temperatures.

It’s time to save energy and costs

Existing HVAC systems consume too much energy and, what is worse, they work non-stop. I’m a big advocate of cost efficiency and the right insulation process could help many companies and manufacturing facilities. I recently visited a factory that was using an HVAC system that I helped develop. But they had a cavity in the wall through which air could easily flow, so they lost a lot of energy. Basically, the cooling process never stopped.

You cannot save energy by leaving the air conditioner on all day. HVAC systems are not designed to work 24/7 – they should not run more than 8 hours a day. The same goes for our homes and office buildings, as well as the data centers of big tech companies like Google and Apple.

In New York, most greenhouse gas emissions come from city buildings, as many of them are old. In Arizona and Texas, where temperatures reach over 100°F, the need for energy savings is enormous. It opens up a window of opportunity for new business areas, for example for insulating materials.

According to the current status reportsThe demand for energy efficient solutions in buildings will fuel the growth of the insulation market, which is expected to reach US$42.5 billion in 2029.

Alternative energy HVAC solutions

The resources of our planet are not unlimited. According to some estimates, we will run out of fossil fuels this century. Electricity prices will also rise due to the increasing load on the electricity grid. The development of entirely new alternative energy based HVAC systems is critical for both business and the planet.

We also need to lower the cost of food production: most agribusinesses use technology that leaves a large carbon footprint. New HVAC systems could use solar power, ice-powered air conditioners, geothermal heat pumps, and possibly technologies we haven’t developed yet. This is all a great opportunity for entrepreneurs looking for their “next big thing” and a market with potential for exponential growth.

Latiful Kabir is an advanced manufacturing engineer and HVAC (heating, ventilation and air conditioning) expert based in Clarksville, Tennessee.

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