BERKSHIRE, U.K. — BSRIA recently published its market intelligence study on the global air conditioning market, which showed global growth “disappointed again” across all product ranges in 2015 and is expected to recover at a slower pace than previously projected.

The global market contracted by 5 percent in value terms in 2015 whereas the market had shown a growth of 7 percent in 2014. The previous year’s main drivers in the increase in the Asian Pacific region were also key in the drop of the total world market in 2015.

The biggest packaged air conditioning (PAC) market is Asia Pacific, accounting for 61 percent of the world market by volume; it declined by 5 percent. The four largest markets — China, Japan, Indonesia, and South Korea — all contracted and contributed to the downward trend.

The PAC market has reached 49.3 million units, down by 7 percent compared to 2014. The mini-VRF (20 kW) was the only market that has managed to grow amongst PAC products due to the growing demand from residential applications.

“The bit of good news from the region came from Vietnam, Australia, and the Philippines,” said Saziye Dickson, senior market research consultant, WMI. “The growing gross domestic product (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 due 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. In the Philippines, the solid growth of packaged products market is attributable to the flourish in new private construction, especially the high-rise condominium, commercial offices, shopping malls, and other applications.”

The Americas region also mirrored the trend and contracted by 2 percent in volume terms at 27.4 million units in 2015. Brazil, the previous year’s biggest contributor, contracted by 18 percent after 28 percent growth in 2014. The political instability and economic downturn were the main reasons behind this drop. The growth in the U.S. market, which is the biggest market in the region, minimized the negative impact in the continent. The PAC market grew by 4 percent and has reached 16.1 million units. The main reasons for growth were improved macroeconomic indicators, such as low unemployment, growth in GDP, and increases in construction output.

For more information, or to view the full report, visit http://bit.ly/1Y6rx1f.

Publication date: 6/13/2016 

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!