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Global Inverter Technology Air Conditioner Market 2016-2020

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Base year
    • By retail distribution channel (revenue)
    • By geography
    • Definitions and descriptions
    • Key players
      • Table Key players
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Mechanism of inverter technology air conditioners
      • Table Comparison of the usage of cooling load and compressor depending on seasonality
      • Table Inverter-fed variable frequency induction motor speed controlled drive
    • Inverter technology used in different types of compressors
    • Top reasons that entice consumers to buy inverter technology air conditioners
      • Table Global electricity usage by regular household appliances in 2015 (%)
  • Market landscape
    • Market overview
    • Factors positively affecting the global inverter technology air conditioner market
    • Market size and forecast
      • Table Global inverter technology air conditioner market 2015-2020 ($ billions)
  • Five forces analysis
    • Table Five forces analysis
  • Market segmentation by retail format
    • Global inverter technology air conditioner market by retail format
      • Table Global inverter technology air conditioner market by retail format 2015
    • Analysis of different retail formats based on key parameters
      • Table Analysis of retail formats based on key parameters
  • Geographical segmentation
    • Global inverter technology air conditioner market by geography
      • Table Global inverter technology air conditioner market by geography 2015
      • Table CAGR by geographical segments 2016-2020
    • Inverter technology air conditioner market in APAC
      • Table Inverter technology air conditioner market in APAC 2015-2020 ($ billions)
      • Table Economic indicators of key leading countries in APAC for the inverter technology air conditioner market 2015
    • Inverter technology air conditioner market in Europe
      • Table Inverter technology air conditioner market in Europe 2015-2020 ($ billions)
    • Inverter technology air conditioner market in the Americas
      • Table Inverter technology air conditioner market in the Americas 2015-2020 ($ billions)
    • Inverter technology air conditioner market in MEA
      • Table Inverter technology air conditioner market in MEA 2015-2020 ($ billions)
  • Market drivers
    • Consumer and government perspectives: Superior performance
      • Table Means of regulation and consumption of energy
      • Table Comparison of on-off mechanism with inverter mechanism in terms temperature
    • Manufacturer and retailer perspective: Innovative inverter technology creating opportunity for new and upgrade purchases
    • Manufacturer and retailer perspective: Premium inverter technology air conditioners provide higher profit margins
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Lack of standardization for interface and core frequency control algorithm
    • Low awareness of inverter technology and its benefits
    • High prices of raw materials
    • Preference for HVAC centralized systems in smaller air conditioner markets
      • Table Comparison of household appliances' penetration in Western Europe and North America 2015
      • Table Penetration of air conditioners across regions 2015
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Inclusion of value-added features to justify the high cost of inverter technology air conditioners
    • Emphasis on green technology
    • Eco-friendly refrigerants and advancements in technology
  • Vendor landscape
    • Competitive landscape
    • Competitive assessment of key vendors
    • Daikin Industries
      • Table Daikin Industries: Business segmentation by revenue 2015
      • Table Daikin Industries: Product portfolio
    • Haier
      • Table Haier: Business segmentation by revenue 2015
      • Table Haier: Product portfolio
    • Johnson Controls
      • Table Johnson Controls: Business segmentation by revenue 2015
      • Table Johnson Controls: Product portfolio
    • LG Electronics
      • Table LG Electronics: Business segmentation by revenue 2015
      • Table LG Electronics: Product portfolio
    • Mitsubishi Electric
      • Table Mitsubishi Electric: Business segmentation by revenue 2015
      • Table Mitsubishi Electric: Product portfolio
    • Panasonic
      • Table Panasonic: Business segmentation by revenue 2016
      • Table Panasonic: Product portfolio
    • Samsung
      • Table Samsung: Business segmentation by revenue 2015
      • Table Samsung: Product portfolio
    • Toshiba Carrier
      • Table Toshiba Carrier: Product portfolio
    • United Technologies
      • Table United Technologies: Business segmentation by revenue 2015
      • Table United Technologies: Product portfolio
    • Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

About Inverter Technology Air Conditioner

Conventional air conditioner compressors can run at only one speed. Therefore, these compressors turn on and off at intervals to maintain the temperature inside an air conditioner. This results in high energy consumption. However, inverter technology air conditioner compressors can run at different speeds depending on the load required by the air conditioner. In inverter technology air conditioners, variable motor electronic speed drives modulate the power supplied to the motor as per load or set temperature (judged through additional circuitry), which further modulates the compressor's function. The flexible modulation thus achieved varies the speed of the compressor to provide the temperature that is required.

Technavio’s analysts forecast the global inverter technology air conditioner market to grow at a CAGR of 12.76% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global inverter technology air conditioner market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of residential inverter technology air conditioners through different retail channels.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • Europe
  • MEA
Technavio's report, Global Inverter Technology Air Conditioner Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Daikin Industries
  • Haier
  • Johnson Controls
  • LG Electronics
  • Mitsubishi Electric
  • Panasonic
  • Samsung
  • Toshiba Carrier
  • United Technologies
Other prominent vendors
  • Blue Star
  • Electrolux
  • Godrej Group
  • GREE ELECTRIC APPLIANCES
  • Hisense Group
  • Midea Group
  • Robert Bosch
  • Sharp
  • Voltas (TATA)
  • Whirlpool
Market driver
  • Consumer and government perspectives: Superior performance.
  • For a full, detailed list, view our report
Market challenge
  • Lack of standardization for interface and core frequency control algorithm.
  • For a full, detailed list, view our report
Market trend
  • Inclusion of value-added features to justify the high cost of inverter technology air conditioners.
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Inverter Technology Air Conditioner Market 2016-2020

Technavio recognizes the following companies as the key players in the global inverter technology air conditioner market: Daikin Industries, Haier, Johnson Controls, LG Electronics, Mitsubishi Electric, Panasonic, Samsung, Toshiba Carrier, and United Technologies.

Other prominent vendors in the market are: Blue Star, Electrolux, Godrej Group, GREE ELECTRIC APPLIANCES, Hisense Group, Midea Group, Robert Bosch, Sharp, Voltas (TATA), and Whirlpool.

Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is inclusion of value-added features to justify the high cost of inverter technology air conditioners. In recent times, manufacturers are focusing on providing value-added features such as four-way swing option, virus filters, and stylish design elements with inverter technology air conditioners in order to justify the higher price of these products. The benefits of inverter technology are also being promoted as features. Manufacturers are also differentiating their products with the inclusion of smart connect features and smart diagnosis enabled through NFC and Wi-Fi connectivity. For instance, Samsung introduced its new range of smart air conditioners, which offer high energy savings and cooling experience. The product is equipped with the world's first new 8-pole motor in its digital inverter compressor.”

According to the report, one of the primary drivers in the market is manufacturer and retailer perspective: Innovative inverter technology creating opportunity for new and upgrade purchases. New and replacement purchases upon the damage of previously owned air conditioners are high. However, to increase the upgrade sales of durable consumer goods like air conditioners, which have more than 8-10 years of average life, technological innovation in product offerings becomes extremely essential.

Further, the report states that one major challenge in the market is lack of standardization for interface and core frequency control algorithm. The adoption of inverter technology for the manufacture of household air conditioners has been low due to insufficient development and integration of components, poor reliability, high capital cost, and failure of demonstration installations that can produce the expected energy savings. Lack of standardization in core frequency control algorithm and lack of interface standardization of control are leading to poor compressor compatibility between different manufacturers. Also, components from different manufacturers cannot replace each other, and this has caused great difficulties for machine manufacturers. Low mass production and heavy reliance on a few brands also lead to the high price of products.

Companies Mentioned

Daikin Industries, Haier, Johnson Controls, LG Electronics, Mitsubishi Electric, Panasonic, Samsung, Toshiba Carrier, United Technologies, Blue Star, Electrolux, Godrej Group, GREE ELECTRIC APPLIANCES, Hisense Group, Midea Group, Robert Bosch, Sharp, Voltas (TATA), Whirlpool.

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