The BSRIA report showed that the global market declined by 5% in volume in 2015, after a 7% growth in 2014. Sales in 2014 were boosted by the market in the Asia Pacific region. The decline in 2015 was due to a decline in the same region.
Asia Pacific accounts for 61% of the global packaged air conditioning (PAC) market. which dropped by 5% by volume. The markets in China, Japan, Indonesia and Korea, the four biggest markets, all declined.
China has had challenging year with its economy growing at a slowest rate for 25 years. This had a knock-on effect across the globe impacting stock markets which all declined as a result of the tightening economy in China. The decline impacted the PAC market which dropped to 49.3 million units, a 7% drop on 2014. The market for mini-VRF (20kW) systems grew because of growing demand for residential systems.
Saziye Dickson, Senior Market Research Consultant, WMI, said:
“The bit of good news from the region came from Vietnam, Australia and Philippines. The growing GDP and attractive economic characteristics mean the Vietnamese market has good potential for Foreign Direct Investments. However, the growth in the splits market was mostly down to hot weather during the peak season and after-season. In Australia, demand has grown in 2015 as a result of a strong residential market in both the apartment and housing sectors.
In the Philippines the solid growth of packaged products market is attributable to the flourishing new private construction especially the high rise condominium, commercial offices, shopping malls and other applications.”
European Air Conditioning Market
Demand for air conditioning grew in Spain, France, Italy, Turkey, Greece, Sweden and Germany. Russia, the biggest PAC market, dropped by 18% in 2015. The country faced a tough economy with a 50% currency devaluation and low oil prices, on which it heavily relies.
The Market in the Middle East, India and Africa (MEIA)
But, the air conditioning markets in the UAE, Kuwait and Qatar were flat, which was the result of low oil prices too.
Moveable Air Conditioning Markets
“The hot summer in Europe caused portables market to raise significantly; Italy, Spain and France all grew by 89 per cent, 49 per cent and 38 per cent respectively by volume.
The world’s other significant markets – Brazil and China – also managed to grow however it was at more modest levels, three per cent and one per cent in volume terms.
Although this market is difficult to forecast due to seasonal sales, BSRIA expects this market to grow at around three per cent CAGR between the period of 2014-2020 in volume terms.”
Window and Through-Wall Air Conditioning Market
The USA had warm, late summer which pushed sales up, coupled with lower pricing on window air conditioning units compared to splits in Saudi Arabia.
BSRIA does not expect this market to grow in 2016.
Indoor Packaged Air Conditioning
The global market was around 100,000 units in 2015, up from 96,000 units in 2014, or US$426 million in value. Japan is the biggest market (25%). Spain , China and the USA are the next largest markets.
BSRIA expects a small decline in the market in 2016 (0.4%)