According to BSRIA’s recently published market intelligence study on the global air conditioning market, global growth “disappointed again” in 2015, across all product ranges, and is expected to recover at a slower pace than previously projected.

In value terms, the global market contracted by five per cent in 2015, while the market had shown a growth of seven per cent in 2014. The previous year’s main drivers in the increase in the Asian Pacific region were also key in the decline of the total world market in 2015.

The biggest PAC (packaged air conditioning) market is Asia Pacific, accounting for 61% of the world market by volume, and declined by five per cent. The top four biggest markets, China, Japan, Indonesia and South Korea all contracted and contributed to the downward trend.

Senior market research consultant, WMI, Saziye Dickson (pictured right), 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.” 

The Americas region also mirrored the trend and contracted by two per cent in volume terms at 27.4 million units in 2015. The previous year’s biggest contributor Brazil contracted by 18 per cent after 28 per cent growth in 2014. The PAC market grew by four per cent and has reached 16.1 million units.

The European PAC market grew by two per cent in 2015 compared to the previous year’s drop of 16 per cent in volume terms. Most economies in the region started to show small economic recovery with the impact felt across air conditioning industries. In addition to that hot summer and energy efficiency were the main factors in many countries. The new F Gas regulation, which has been updated from 2006 version, came in place from 1 January 2015 putting a lot more pressure in the industry.

Growth in Spain, France, Italy, Turkey, Greece, Sweden and Germany has contributed to the growth in the region, in order of importance. However, the biggest PAC market, Russia, saw a massive drop of 18 per cent by volume.

The MEIA region managed to show another year of growth in 2015 increasing from 11.6 million to 12.5 million units. India, the biggest AC market in the region, continued to be the major contributor to this growth.

The biggest four major markets all recorded growth in 2015: India, Saudi Arabia, Nigeria and Egypt. Iran, Bangladesh and South Africa were all among growing markets in the region. Countries that failed to grow were UAE, Kuwait and Qatar.

For more detailed information on this and other BSRIA reports contact Steve Turner steve.turner@bsria.co.uk or call 01344 465 610 or 07725 278 640
or visit www.bsria.co.uk/wmi