R22 replacement and domestic heating renewables are set to provide the greatest growth opportunities for the HVAC industry in 2014, says Peter Verkempynck, managing director of Daikin UK.

The outlook for 2014 is conservative, with only 2 to 3% growth anticipated in the AC market this year. Competition is expected to be fierce, with continued pressure on margins for all participants.

However, demand for R22 replacement could buck the trend and drive a new impetus in the market later in the year, ahead of January 2015’s ban on all R22 systems.

With a large number of R22 systems still operational throughout the UK, the distress purchase of R22 upgrades and replacement solutions could flood the market, reversing the previous sluggish conditions and signalling a major opportunity to boost order books. For AC contractors, the key to meeting this surge in demand will be having equipment readily available and enough skilled installation capacity to service this requirement.

As a wholly owned affiliate of Daikin Europe N.V., Daikin UK has fast access to manufacturing output just over the channel, giving security of supply and rapid response times on equipment orders for our customers.

Domestic renewables is another key area of growth, with the Renewable Heat Incentive (RHI) due to launch in spring. Assuming the RHI launches as planned, it is expected to provide a serious boost for market conditions, delivering double-digit market growth by stimulating demand from homeowners and social housing providers.

For installers who have invested in the skills and MCS accreditation to fulfil domestic heating projects, the renewables market provides a major opportunity to increase turnover. But this opportunity will come with much greater and substantially different expectations for after-servicing, for which installers should be fully prepared.

To take advantage of the major market opportunities for 2014, contractors and installers should study in detail the government legislation on carbon reduction and energy efficiency in buildings, and consider how intelligent HVAC solutions can satisfy customers’ need to reduce energy consumption and carbon emissions.

Low capital expenditure is no longer the best solution. Customers will benefit from investing in a better system, because they will enjoy improved cash flow by making substantial savings on their energy bills – and satisfied customers are more likely to be retained, thus generating better margins for the industry.

Daikin UK will be launching two major new solutions for both the commercial climate control and domestic markets to be announced later in 2014. In the meantime, Daikin UK aims to support its trade customers at every stage by delivering expert specification support, a skilled technical helpdesk and rapid response times to orders, so that installers and contractors can capitalise on all market opportunities throughout 2014.