Although buffeted by a prolonged period of uncertainty over the global economic and financial crisis, changing demand patterns due to erratic weather conditions, and rising production costs, which caused misery for air conditioner manufacturers and suppliers during 2008 and 2009, said GIA, the global air conditioning systems market bounced back in 2010. The market recovery was primarily led by resurgence in growth fundamentals such as improvement in consumer disposable incomes, greater spending power, and increased construction activity.
Growth in the global air conditioning systems market over the next few years is expected to be led by energy efficient models such as inverter-based air conditioning systems and solar powered air conditioners, stated GIA. Inverter based air conditioning systems, which are capable of offering considerable reductions in power consumption, by adjusting compressors’ running speed and controlling voltage and current frequency, have been gaining in popularity. While almost all of the air conditioning systems currently produced in Japan are inverter-based models, adoption of these products in other regional markets, although currently minimal, have been gradually increasing, thereby adding volume to the market. Increasing efforts to improve consumer awareness about energy conservation and environmental well-being, and emerging energy efficiency standards, are expected to increase adoption.
Another major factor, which is expected to steer the market in the next few years, is the rapidly growing replacement market, particularly in the United States and Europe. Given the growing focus on energy conservation, the demand for replacing old air conditioning systems with new energy efficient models is expected to rise, thereby adding to market gains. Replacement demand is also generated by consumers’ desire to replace their existing air conditioning systems with quieter and more feature rich air conditioner models, said GIA.
Publication date: 09/05/2011