Global Air Conditioning Market 2017-2021
About Air Conditioning
Air conditioning systems are deployed in buildings for the efficient management of humidity and temperature. The technology in these air conditioning systems has been transforming and witnessing innovations in fields like compressor technology, coolers, filters, and drying agents. These technological advancements are aimed at enhancing performance and reducing energy costs. Air conditioning systems are approaching the standard equipment status in developing economies.
Technavio’s analysts forecast the global air conditioning market to grow at a CAGR of 8.61% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global air conditioning market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of various types of air conditioning systems.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Air Conditioning Market 2017-2021
Technavio recognizes the following companies as the key players in the global air conditioning market: Daikin, GREE Electric Appliances, Midea, Mitsubishi Electric, Panasonic, and Toshiba Carrier.
Other Prominent Vendors in the market are: Blue Star, Electrolux, Haier, Hitachi, Ingersoll Rand, Johnson Controls, LG, and Samsung.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is growing demand for integrated systems. HVAC controls and building systems are witnessing more integration, driving demand among end-users who seek the benefits of streamlining systems, such as lighting and access controls. This allows higher energy efficiency in managing building systems as it allows control from one interface. This also facilitates the elimination of redundancy in systems and provides better occupant comfort, owing to better management. For instance, access controls integrated with HVAC controls allows building manages to use a single platform to monitor cooling and increase or decrease the cooling based on the number of people in the air conditioning environment. While these systems have already gained popularity in commercial office buildings, they are gaining popularity in hotels, healthcare facilities, schools, and retail outlets.”
According to the report, one driver in the market is affluent growth in developing countries. Developing countries are growing increasingly affluent. Most of these countries lie in the tropics and subtropics where the temperatures are high, due to which air conditioning is shifting from the high luxury segment to the mainstream category in residential and commercial settings. Earlier, air conditioners were treated as a status symbol in developing countries like India. However, the growth of the middle-class population in these regions because of the development of dual income households increases the disposable and per capita income of people. While the US has been the biggest user of air conditioning, developing countries such as India, China, Bangladesh, Pakistan, Indonesia, and the Philippines are set to surpass the US in the future. The growing middle-class population in these regions increases the demand for air conditioners. Following the living standard improvements and growing demand from consumers, the expansion of the air conditioning market is expected to further accelerate.
Further, the report states that one challenge in the market is volatility in oil prices. Oil prices are dependent on various factors beyond the company’s control, including the supply and demand of oil, weather conditions, and political influences among others. According to the US Energy Information Administration (EIA), North Sea Brent crude oil prices averaged $47/barrel in August 2015, a $10/b decrease over that in July 2015. This third consecutive monthly decrease in prices reflects the concerns about the lower economic growth in emerging markets, expectations of higher oil exports from Iran, and continuing growth in global inventories. EIA forecasts that Brent crude oil prices will average $54/b in 2015 and $59/b in 2016. West Texas Intermediate (WTI) crude oil prices in 2015 and 2016 are forecast to average $5/b lower than the Brent price. The price of WTI declined from $94.6/b in January 2014 to $47.2/b in January 2015 to $31.6/b in January 2016. With the decision of OPEC members to continue with the current production levels and Saudi Arabia’s decision to cut the selling price by $1.9/b for Asian importers, the price of crude oil is expected to remain volatile in the short term.
Daikin, GREE Electric Appliances, Midea, Mitsubishi Electric, Panasonic, Toshiba Carrier, Blue Star, Electrolux, Haier, Hitachi, Ingersoll Rand, Johnson Controls, LG, and Samsung.