HVAC Systems Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of the global HVAC system, the scale of the project, type of business, price, geographical location, and time requirement play a crucial role. In our study, we have analyzed the pricing of heating systems in different countries. In the US, the price of heating systems ranges from USD 8,000 to USD 34,000. In Japan, it ranges from ¥ 10,000 to ¥ 20,000. In China, it ranges from 3,000 to 5,000 yuan. Further, the selection of an HVAC system depends on various factors such as climate and environmental impact, size, functionality, architectural design, building age, occupant density, project budget (initial cost, operating expenses, maintenance cost, life-cycle cost), performance parameters (such as heating and cooling capacity, humidity, efficiency, sustainability, ventilation, etc.), and consumption of energy.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the HVAC Technician at Carrier Global Corporation and Daikin Industries, Ltd. receives a 30% - 40% higher base salary compared to the salary received by the HVAC Technicians working at Lennox International, Inc. and LG Electronics. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the global HVAC system category over the last two years:

In August 2023, Kelvion Holding GmbH, a Germany-based company launched an online tool named K°oolville that enables users to select the appropriate heat exchanger for incorporation in HVAC and refrigeration. Implementing the right heat exchanger will help plant operators work efficiently and minimize CO2 emissions. 

In July 2023, Daikin Comfort Technologies North America, Inc. announced their acquisition of two companies in the Seattle metro region i.e., Integrated Systems and Controls, LLC (Integrated) and InControl. This collaboration enhances Daikin’s commercial market, VRV (variable refrigerant volume), and commercial light business offering which consists of remote monitoring and predictive maintenance programs.

In April 2023, Sweden-based Kanthal AB and the US-based Rath Group have teamed up to develop environmentally friendly industrial heating technologies. By combining the quality insulation and refractory goods capabilities of Rath with Kanthal's expertise in heating components and systems will enhance the industrial heating technologies of both businesses and support industries like petrochemicals and steel.