Smart evolution – the road to new business for HVACR manufacturers
Blue Star Europe B.V explains how HVACR manufacturers can embrace the opportunities of an evolving market while reducing the risks associated with innovation.
The HVAC market is in an unprecedented era of change. The introduction of new low-GWP refrigerants, energy-efficient heat pump technology, and advanced control capabilities are creating new possibilities in the design of HVAC products and systems.
And while technology is advancing, end-user requirements are also changing. In many regions, legislation is focused on replacing fossil-fuel heating systems with low-carbon alternatives such as heat pumps. Regulations on building design and operation are also expanding the market for sustainable, low-energy, and low-carbon heating, cooling and hot water solutions.
It’s a world of opportunity for innovative HVAC manufacturers, but leaping into new markets has its risks. Designing and delivering state-of-the-art products means finding the engineering expertise to develop the right solutions along with the production facilities to manufacture them. All this is in addition to upskilling team members while driving marketing and sales.
This level of investment can create a frustrating hurdle for manufacturers – the opportunity is there to see, but building a bridge to it takes time and money.
Blue Star understands this challenge, and we have developed our unique approach, Custom Design and Manufacturing (CDM), to help manufacturers break into growth markets with reduced risk and faster delivery.
We aim to fill the gaps in our partners’ in-house capabilities. For example, Blue Star has invested in its R&D facilities with a team of over 130 expert personnel, so we can provide technical input to address a technology or product gap. Our modern manufacturing sites can also get your new product delivery underway quickly – with a timeline of 15 to 18 months from contract signing to delivery.
The CDM solution is fast, flexible, and scalable. Multiple factory facilities allow Blue Star to manufacture products that traditional OEMs cannot produce to meet volume or market potential. For example, a product requirement may be highly regional, so our production volumes are based on 10k to 100k annually, meeting a need greater than a ‘niche’.
A critical point to note is that Blue Star CDM is not about a ‘rebadging’ kit. We work to create products with unique features that allow our partners to achieve differential advantage. The market for HVAC may be global, but there are hundreds of regional differences to consider when getting new products to market.
That’s why, unlike traditional OEMs, Blue Star’s CDM eliminates the need for one-size-fits-all catalogues. We prioritise bespoke solutions that align with the local market and end-user requirements.
Because Blue Star specialises in the HVACR sector, we are always ahead of the latest developments in the field. We leverage this knowledge to help our partners swiftly adopt technologies such as inverter-driven heat pumps and low-GWP refrigerants, creating market-ready and differentiated products. CDM ensures manufacturers create products with exclusive features, offering a distinct advantage. For example, customised control systems designed to optimise performance are becoming key differentiators in HVACR systems. Blue Star has the skills in both software and hardware to elevate the performance and functionality of new products.
The European heat pump sector is a good example of a market showing significant opportunities accompanied by fluctuations and risk. The EU’s transition from fossil fuel heating systems to low-carbon, energy-efficient heat pumps is creating an enormous potential for HVAC manufacturers.
However, macroeconomic and political factors, such as the higher price of electricity compared with gas and sales taxes on heat pumps, create uncertainty. There is no doubt that demand for heat pumps is rising, but manufacturers face a difficult business decision if they are not already in the market.
Another instance of market potential is in low-GWP refrigerants. Across the world, a growing body of legislation requires HVACR systems to switch away from refrigerants with high global warming potential. Developing products with low-GWP solutions is, therefore, a huge potential market for manufacturers, but again, there are risks ahead.
Blue Star's engineers have years of experience and have conducted extensive research into using low-GWP refrigerants in HVAC applications. Working with Blue Star can help to de-risk and accelerate the process of product development, making us the perfect partner to travel with you in the changing HVAC landscape.
Blue Star CDM can help manufacturer partners to be ready to step into these massive potential growth areas with differentiated heat pumps and low-GWP products and ramp up production to meet demand as it rises.
It’s a lower-risk approach to designing innovative, energy-efficient systems tailored to market demands, ensuring long-term success despite economic uncertainties.
The CDM process is a game-changer for manufacturers seeking innovative, cost-effective, and scalable solutions. By leveraging a collaborative approach with Blue Star, manufacturers can address market gaps, enhance product differentiation, and reduce risks, ensuring a sustainable and profitable future.
To learn more about how CDM can transform your manufacturing capabilities, Write us to info@globalbluestar.com
