Updated research has predicted a fifth consecutive year of growth in the value of the market driven by demand for split air conditioning systems
A fifth consecutive year of growth in the value of the global air-conditioning market is expected over the course of 2019, according to recent industry analysis from BSRIA.
A summer update produced by the organisation has concluded that the air conditioning market will expand in value terms by four per cent to US$115.8bn (£89.7bn) during the current year.
Full year findings that will be released in the first quarter of 2020 are expected to further confirm overall growth in all major markets, according to BSRIA.
BSRIA said, “While sales across all product segments have increased, splits were the main category driving growth, expanding slightly above the average 4 per cent, with chillers and rooftops systems showing a more modest progress under 3 per cent in value terms.”
In Europe, overall demand for air conditioning systems was expected to increase by 3.4 per cent in value terms for the year, with Italy and France proving to be the region’s most significant markets.
BSRIA added, “In Italy, the market continued to be driven and dominated by single and multi-splits sales, resulting from a large residential market. Most Italian businesses and industries are small and medium-sized family owned businesses scattered around the northern part of the country, and the market is dominated by the below 100 kW range. Weather conditions and stricter energy efficiency regulations are the main market drivers in Italy.”
Growth in France was driven by the country’s expansion of new build residential properties and the uptake of systems designed for the lower flammability refrigerant R32. The replacement of old split systems also helped contribute to a 15 per cent increase of the market in terms of value, according to the research.
BSRIA’s research found that a slowdown in construction building permits had not adversely impacted the UK market for split and VRF systems despite the poor economic environment in the country.
The analysis stated, “The residential sector is now reported to be driving sales of multi splits which are installed as a cheaper alternative to mini VRF. The chiller market is slowly falling by volume. The commercial market – offices - is reported to be performing poorly. Sales to hotels are not as strong as they were. The overall splits market is expected to grow by around 4 per cent by volume, whereas the chillers market is expected to decline by around 3 per cent in 2019. “
The Asia Pacific region was found in research to account for over 50 per cent of the total global air conditioning market, where the majority of countries saw growth. The one exception was Australia, which is expected to see a two per cent decline in terms of volume as a result of challenges in the residential sector from legislative changes and stricter lending regulations.
China, which is classed as the world’s largest national market for air conditioning technology, has shown slower growth of four per cent up when compared to 2018.
The research is based on 30 years of ongoing analysis by BSRIA that considers primary research with current stakeholders such as manufacturers and distributors, as well as customs data and macro-economic information, the organisation added.