Global air conditioning market growth driven by India and China

A few figures from the JARN.

The air conditioner (AC) market in China represents about 40% of the world market. According to JARN, in the first half of 2017, the sales volume of ACs reached 28.1 million units, growing 14.7% year on year. The number of ACs in cities is more than 100 units per 100 households, while in rural areas, penetration is only about 20 units per 100 households, which shows a huge growth potential. The inverter ratio in the Chinese AC market is now approaching 70%. Some manufacturers have marketed new AC models using R32 refrigerant. On the other hand, ACs operating on R290 have not yet appeared on the market. The Chinese government has included HFO refrigerants as recommended substitutes for HCFCs and HFO1366mzz and HFO1233zd are recommended in the draft version.

India air conditioner (AC) market recorded the highest growth rate in Asia in the first half of 2017 with over 25% year-on-year for the period March-May 2017. Although India’s market is still only on-tenth of the Chinese AC market, India has a big market potential with an AC penetration rate of just about 5%. Preparing for the regulation adopting the Indian Seasonal Energy Efficiency Ratio (ISEER) that will be enforced from January 2018, AC companies are developing energy-saving products, especially inverter ACs, which rate in Indian split type AC market is only about 10%. Voltas, Daikin, LG and Samsung are leading the Indian AC market. Imports of ACs using HCFCs have been banned since July 1, 2015 and local production will be banned from January 1, 2025. So, window-type ACs, which are mainly produced by local manufacturers still mostly use R22; however, most split-type ACs have already shifted to R410A and R32.

In Europe, the overall AC sales are expected to be the same than last year. Europe has a big market potential with a still low penetration rate of less than 20%. Sales of room ACs with R32 began expanding last year and are expected to approach the 0.5 million-unit level in 2017, which is still less than 10% of total room ACs. Italy accounts for the most sales of R32 ACs due in part to the absence of a R32 regulation governing residential applications, unlike other countries.

Source : JARN, July 25 and August 25, 2017.