GREAT CHALLENGES PRESENT GREAT OPPORTUNiTiES AHEAD

Featuring a total of 1,779 exhibitors, the recently concluded (February 6-8) 2023 AHR Expo (International Air-Conditioning, Heating, Refrigerating Exposition) in Atlanta has once again reiterated that the current focus of the HVAC-R industry is and supposed to be on building decarbonisation strategies.

Simultaneously continued the ASHRAE 2023 Winter Conference that started on February 4.  The five-day seminar at the Georgia World Congress Center featured more than 100 technical sessions. It has been found that the top three attended sessions were:

• The Evolution of Thermal Energy Storage for Cooling Applications: The Past, Current and Future
• Optimizing Thermal Energy Storage Integrated with HVAC
• Decarbonizing Campuses Utilizing Heat Pumps and Thermal Energy Storage

Addressing the gathering, based on ASHRAE’s current theme, ‘Securing Our Future’ ASHRAE President Farooq Mehboob, said, “The challenge doesn’t stop here. As an industry, we must remain focused and maintain our position of leadership and preparedness. Our success continues to be based on problem solving, creativity, innovation, flexibility and a willingness to adapt. Our success stems from seeing an opportunity for improvement based on new knowledge and technology.”

Pointing to the current exhibition, Show Manager Mark Stevens, said, “This year’s show is one for the books. We heard it in every corner of the industry – HVAC-R is gearing up for an exciting path forward. As a collective force, we are focused on change and growth inside our industry, as well as anchoring our combined efforts on serious developments to set the course for the future of HVAC. It’s hard to miss the excitement.”

Current challenges or opportunities in disguise

ASHRAE’s latest trend report states, “As the HVACR industry became emergent leader in addressing the spread of airborne diseases during the pandemic, we have an even greater role to play in addressing global climate change and its impact on the built environment. We have an opportunity to continue our engagement and education among the public, policymakers, media, and building owners and operators about the urgency of building decarbonisation.”

The worldwide building sector accounts for about 40% of energy-related carbon emissions. According to ASHRAE, today the challenge lies in the success of our mission to mitigate the negative carbon impact of buildings on the environment.

Although ASHRAE’s flagship Energy Conservation Standard 90.1 is the benchmark for commercial building energy codes in the United States – and has been a key basis for codes and standards around the world for more than 45 years, reducing energy consumption by 50%, yet only 38 countries have specifically named building standards and codes in their Nationally Determined Contributions (NDCs). So, still there is a big gap, and that presents a bouquet
of opportunities.

The Air Conditioning, Heating, and Refrigeration Institute (AHRI), formed in 2008 by a merger of the Air-Conditioning and Refrigeration Institute and the Gas Appliance Manufacturers Association, is a North American trade association of manufacturers of air conditioning, heating, and commercial refrigeration equipment.

Commenting on the current state of HVACR, Stephen Yurek, President & CEO, AHRI, said, “Our industry has proved strong and resilient through the long pandemic. Not only was it finally recognized for its essential role in our society, but the industry actually grew since 2020 because our customers realized its vital role in so many aspects of their lives.”

As per AHRI’s observation, as energy prices continue to rise, consumers are more aware than ever of the importance of energy efficient equipment, and the industry is well prepared to fill that need. In addition, the industry’s expertise in indoor air quality has taken centre stage as schools, commercial buildings, and even consumer residences are being retrofitted with the latest innovative IAQ equipment.

AHRI also holds that certainly the most pressing issues facing the manufacturing side are continued supply chain issues – and also ensuring that next-generation refrigerants will be able to be used in residential applications across all states by mid-decade. Considerable progress has been made on the latter; the former thus far has defied a solution. Thus, clearly the supply chain needs to be made more robust.

The AHRI Board of Directors just last year (2022) approved a decarbonisation statement reiterating the association’s position in support of efforts that reduce carbon emissions while ensuring continued affordable consumer access to HVAC and water heating products and equipment that meets their needs.

Since their founding in 1888, the American Boiler Manufacturers Association (ABMA) has advocated for the safe production and operation of boilers, facilitated advances in energy efficiency, and provided solutions for their member companies.

Commenting on the current status quo of the HVAC-R industry, Scott Lynch, President & CEO, ABMA, said, “We see a mix of challenges and opportunities – business is out there and while supply chain issues have improved, they are not back to normal.”

According to ABMA’s observation, many companies have diversified their product lines to expand opportunities and it is expected that the inventory levels to increase and companies leaving behind some just-in-time processes.

They hold that decarbonisation is not only a buzz word in the sector but also a shift – and their members need to pay attention. They have focused a number of sessions at their recent events on this topic to obtain insights from all parts of the supply chain.

BACnet (Building Automation and Control Network) is the global data communications standard for building automation and control networks. It provides a vendor-independent networking solution to enable interoperability among equipment and control devices for a wide range of building automation applications.

Commenting on the current state of HVACR, Andy McMillan, President and Managing Director, BACnet International, said, “Rapid change in the energy landscape, the global economy and public health awareness has created a very dynamic environment for the HVACR industry. Organizations that welcome change and embrace flexibility can take advantage of that dynamism to position themselves as the industry leaders of the future.”

According to BACnet, the external forces acting on the industry have increased in magnitude and volatility over the past few years. Things are not going to settle down anytime soon. If anything, the rate of change and the impact of those external forces on the industry will increase. This creates great challenges and equally great opportunities. The importance of moving quickly and collectively as an industry is becoming increasingly important. Associations and other organizations that facilitate collective industry education and action are uniquely positioned to provide critical industry support and leadership in these times of rapid change.

BACnet has been working for joining IT (Information Technology) and OT (Operational Technology). In building controls there is increasing recognition that all parts of the building infrastructure are related and need to be managed collectively. The digital and management chasms that frequently separate IT and OT are being discussed – and in many areas work is underway to address the issues.

Conclusion

Opinions, work-trends and actions described in the preceding section definitely indicate that there is a common thread of targets among the leading associations or entities that work to promote and eliminate the hindrances towards the growth of the HVACR industry.

As the recent survey by Research and Markets indicates, the global HVAC market size is expected to grow at a CAGR of 5.43% from 2022-2028. The global market is undergoing tremendous modifications due to the increasing integration of the Internet of Things (IoT) technology with HVAC products, making them innovative and accessible. The emphasis on connecting several sensors within building ecosystems, including HVAC, has grown for achieving energy efficiency.

Why do we need energy efficiency? Because, ultimately we want to accelerate our decarbonisation journey. Even today many people think that use of renewable energy does not increase CO₂ footprint, unfortunately that is not correct. Depending on the type of renewable energy generation, CO₂ emission varies between 11 and 740 g per kWh on a life-cycle basis.

Therefore, as far as the HVACR industry is concerned, the trend of reduction of power consumption and development of refrigerants with low GWP and ODP will continue in the coming days – and that will create endless opportunities.

By P.K. Chatterjee (PK)