Increasing Disposable Incomes Driving Air Conditioner (AC) Demand in APAC Market

Nov 08, 2019

India and China are the dominating regions in the Asia-Pacific AC market

Arizton’s recent market research report on Air Conditioner Market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The industry analysis report includes insights on segmentation by types (RAC (single split, window, and multi-split ACs) and CAC (PAC and VRF)), application (residential sector and commercial sector (office space, airports and public utilities, hospitality, hospitals and industrial and others)), and geography (Europe, APAC, North America, Latin America, and MEA).

The global air conditioner (AC) market is expected to grow at a CAGR of over 5% during the period 2018−2024.

Request for your free sample now!

 The global AC market is rapidly growing. The acquisition cost of AC units is declining due to increased R&D in design and manufacturing, which has also increased efficiency. The industry transition to new low-GWP refrigerants, lower-GWP HFCs, HFOs, and non-fluorinated solutions such as hydrocarbons is expected to boost the efficiency. The cost associated with refrigerant changes is expected to be offset by new manufacturing techniques and efficiency improvements in the AC units.

The leading drivers and trends propelling the growth of the global AC market are discussed below:

Increase in Affordability

The rise in residential and commercial construction has increased the demand for air conditioners in several areas. The rise in disposable incomes has increased the purchasing power of middle-class consumers, especially in APAC as the air conditioner demand is witnessing a rapid increase in the region. India and China are leading the growth trend. The economic growth of China, India, and Southeast Asia expanded by more than 6% in 2017. ASEAN countries are exhibiting higher growth opportunities. Indonesia, the Philippines, Malaysia, Vietnam, and Thailand are expected to add more than 50 million new consumers to the category of middle-class by 2020, thereby adding over $350 billion disposable income. Although the AC market in India took a hit on account of demonetization and sales tax reforms, the soaring temperatures in summers and increased affordability have helped the industry to retain its share.

Rise in Energy-efficiency Concept

About 70% of the electricity consumption in the residential space is on account of using air conditioners. More than 40 countries have affected standards and labeling policies for air conditioners. Regulatory compliances are driving the on-going improvements in air conditioner technology. Hydrofluorocarbons (HFC) have been replaced by Hydrochlorofluorocarbon (HCFCs) in developed and developing countries. Moreover, to reduce HFC emissions, the Kigali Amendment has come into effect in January 2019 to phase down HFCs. This agreement encompasses HFC phase-down schedules for country groups, different baselines, and freeze dates. However, the lack of policy-related measures and hands-on knowledge among local air conditioner manufacturers is expected to hamper the implementation of the amendment. 

Increasing Popularity of Split ACs

The popularity of window AC has declined as they occupy a part of the window, restricting the natural flow of air and light, with high levels of vibration and noise as the compressor is close to the living area. Window air conditioners are less efficient and, the scope of improving the efficiency is low on account of the size and structure of the equipment. Currently, the market of window ACs is high in the Middle East as the installation is significant in the residential sector, however, this likely to change as split ACs are increasing in popularity.

Snippets

  • The AC market is becoming highly competitive as APAC countries are witnessing an increase in their disposable incomes. 
  • The sale of VRFs is growing in commercial categories in APAC. China is the major country, that manufactures multi-split ACs.
  • The increasing focus on low GWP refrigerants is phasing out of HFC refrigerants. 

 

Request for your free sample now!

Daikin, Voltas, Bluestar, LG, and Samsung are identified as prominent vendors in the global AC market industry.

The complete overview of the latest market research report on Air Conditioner Market by Arizton is now available.

The report offers a detailed study of major trends, drivers, challenges and provides market sizing and forecast for major geographical regions and key countries.

About Arizton

Arizton – Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.

Mail: enquiry@arizton.com

Call:  +1-312-235-2040

          +1 302 469 0707

Oct 16, 2020

MI Procedures are Steering Atherectomy Devices Market Growth

The global atherectomy devices market is witnessing a new phase of technological advancements with t...

Oct 16, 2020

Is infectious disease diagnostics market a major segments in the global in-vitro diagnostics market?

The global infectious disease diagnostics market is one of the major segments in the global in-vitro...

Oct 15, 2020

Is the Outbreak of COVID-19 Increasing Traction for UV Germicidal Lamps?

The residential sector is witnessing increasing traction for UV germicidal lamps. ...

LATEST POSTS
OTHER CATEGORIES