Slow growth in UK AC equipment market

The UK air-conditioning equipment market will rise by 1% only in 2007, taking the market value to £688.6m, according to a report by Market and Business Development.
This period of slower growth, follows a stronger spurt of 3%-5% growth in the previous three years, according to the report.

A spokesman for MBD said 'The more moderate increase expected for the current year is partial reflection of the relatively cold summer and more uncertain economic conditions'. Demand generated from new commercial construction is buoyant, the report says, and is unaffected by these two factors.

In 2012, real term growth of 3% is expected to take this market's value to £769.7m.

UK production of commercial air-conditioning equipment will fall by 7% in real terms between 2007 and 2012, taking the value of production to £285.8m.
MBD believes UK output growth will be hit by the growing impact of imports within the UK ac industry. The value of ac equipment imports is estimated to be £656.3m in 2012. Imports are expected to rise at a stronger rate than the UK market, reflecting the rising import penetration achieved by manufacturers in low cost countries.

The report also says sales of packaged air-conditioning equipment is projected to rise by as much as 4% annually. Packaged air-conditioning is expected to continue to dominate the ac equipment market representing 54%. Central plant ac equipment is predicted to rise to a peak of £252.2m in 2012.

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