BSRIA has just published its 6-monthly update on market trends for key AC countries across the world.
In the last 18 months, the air conditioning market is operating under challenging market conditions – both directly and indirectly linked to the pandemic. Extreme weather events, partial and full lockdowns in different parts of the world from shortages and increased prices of raw materials and delay in shipments, just to name a few.
However, 2021 has to date been a year of recovery and growth as businesses and individuals have started adapting to the constantly changing circumstances. The high wall splits market benefitted from high temperatures in some regions and from investment in residential homes, as people continue to work fully or partly from home when they can. Data centers applications are also going strong, benefitting from online shopping and construction activities, tourism and public investments are slowly recovering
In Australia, the high wall market recorded a double-digit increase in the first half of the year. In China, many dealers stocked up before raising prices, but on the other hand, the government’s restrictive measures against Covid-19 have restricted commercial activities. In the first half of 2021, the market performance of light commercial air conditioning such as ducted, cassette and high-power capacity floor standing units remained sluggish. In India, although sales in Q1 2021 were promising, the second wave of the pandemic came at the worst possible time for the splits market (mid-April) and lasted long enough to hit sales during the peak sales cycle. Energy efficiency upgrades are scheduled for January 2022, but it is still not certain whether they will be postponed enabling some more time for the local producers to adjust. There are some delays on many ongoing projects which kept the chiller market partially subdue.
Saudi Arabia has implemented the most stringent energy-saving standards in the Middle East. It is expected that the energy efficiency upgrades will continue to combat the very fast-growing electricity demand. In the UAE, the cost of raw materials, custom tax and freight costs have increased significantly, which resulted in a price hike of around 5-10% for all AC products.
In Europe, employees continued to work from home in the first half of the year and hi-wall single splits in the residential side recorded positive sales. Germany and France have recorded double-digit growth in the split market. In Italy, the chiller market is showing a strong indication of recovery. However, in Turkey, the dramatic drop in the new construction industry had an impact on the Central plant market.
In the USA, the unexpected surge in demand of splits was met by a swindling supply. A global shortage in chips and semiconductors and a general lengthening of lead time for most components have created bottlenecks in the supply chain. In Mexico, with most large projects suspended or delayed, most of the chillers market growth was in medium sizes and in the air-cooled market. In Brazil, despite the economic and pandemic related crisis, ventilation and AC managed to keep afloat. Mini VRF is currently preferred in a modular form, while sustainable and profitable sales growth is expected by all chiller manufacturers.