Overview of the China Air Conditioner Market
The China air conditioner market is currently the largest in the world, with sales totaling over $XXX billion in 2019. The market is forecast to grow at a CAGR of XXXX% between 2020 and 2025.
There are three main types of air conditioners available in China: window, split, and central. Window air conditioners are the most popular type, accounting for over XX% of all sales in 2019. Split air conditioners are the second most popular type, accounting for around XX% of all sales. Central air conditioners are the least popular type, accounting for just XX% of all sales.
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The majority of air conditioners sold in China are manufactured by domestic companies. However, there is a growing trend for Chinese consumers to purchase imported brands such as LG and Samsung. In 2019, around XX% of all air conditioners sold in China were imported brands. This figure is expected to grow to 20% by 2025.
China Air Conditioner Market Key Players and Segments
In 2018, the China air conditioner market was valued at $ XX million and is expected to grow at a CAGR of XXXX% during the forecast period 2019-2026. The market is segmented by type (room air conditioner, central air conditioner, and ductless air conditioner), by product (window AC, split AC, packaged AC, and others), by end-user (residential, commercial and industrial) and by distribution channel (online and offline).
The key players in the market are Gree Electric Appliances Inc. of Zhuhai, Midea Group Co., Ltd., Haier Electronics Group Co., Ltd., Johnson Controls International plc, LG Electronics Inc., Samsung Electronics Co., Ltd., Robert Bosch GmbH, Whirlpool Corporation, and Daikin Industries Ltd.
The room air conditioners segment accounted for the largest share of the China air conditioner market in 2018 and is expected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to rising disposable incomes, changing lifestyles, and increasing urbanization.
The residential segment accounted for the largest share of the China air conditioner market in 2018 owing to growing concerns about energy efficiency and comfort. The government initiatives such as subsidies for energy-efficient appliances are also driving the growth of this segment.
The online distribution channel is expected to grow at the highest CAGR during the forecast period due to increasing internet penetration and preference for convenient shopping.
Current Trends in the China Air Conditioner Market
- The air conditioner market in China is currently being driven by a combination of factors, including rising disposable incomes, increased urbanization, and hotter weather conditions.
- Airconditioner ownership levels in China are still relatively low compared to other developed countries but are growing rapidly. In 2013, only XX% of Chinese households owned an air conditioner, but this is expected to increase to XX% by 2018.
- The majority of air conditioners sold in China are window units, although split-type air conditioners are gaining popularity due to their higher energy efficiency.
- The China air conditioner market is highly competitive, with a large number of both domestic and international brands vying for market share. Some of the leading brands in the market include Haier, Midea, Gree, and LG.
- The Chinese government has implemented various policies to encourage the adoption of more energy-efficient air conditioners, such as providing subsidies for units with higher EER ratings.
- In recent years, smart and connected air conditioners have become increasingly popular in China, due to their convenience and energy-saving potential. Manufacturers such as Gree and Haier are now offering models that can be controlled remotely via a smartphone app.
Opportunities and Challenges in the China Air Conditioner Market
The China air conditioner market share has been growing rapidly in recent years due to the country’s rapidly urbanizing population and hot summer climate. However, the market faces several challenges, such as high prices, low energy efficiency, and environmental concerns.
High Prices: Air conditioners are relatively expensive in China, with a 1-ton unit costing around RMB XXXX (US$XXXX). This is due to a number of factors, including high import duties, taxes, and production costs. As a result, many Chinese consumers cannot afford to purchase air conditioners.
Low Energy Efficiency: Most air conditioners in China are low in energy efficiency, with an average EER of only XX. This is due to outdated technology and a lack of regulation. As a result, air conditioners consume a significant amount of energy and contribute to high levels of pollution.
Environmental Concerns: Air conditioners have a major impact on the environment due to their use of refrigerants that contribute to global warming. In addition, air conditioners also consume large amounts of electricity, which results in emissions of greenhouse gases.
Growth Drivers and Restraints for the China Air Conditioner Market
The China air conditioner market is expected to grow at a CAGR of over XXXX% during the forecast period of 2020-2025. The major growth drivers for the China air conditioner market are rising disposable incomes, changing climatic conditions, and the growing construction industry. However, the high cost of air conditioners and the lack of awareness about energy-efficient models are some of the major restraints to the growth of the China air conditioner market.
In recent years, there has been a significant rise in the disposable incomes of people in China. This has led to an increase in the demand for air conditioners as they are now seen as a necessity rather than a luxury product. Moreover, with the changing climatic conditions, people are now more aware of the need to have an air conditioner in their homes and offices. This is further fuelling the growth of the China air conditioner market.
The construction industry in China is also growing at a rapid pace. This is providing a boost to the sales of air conditioners as they are widely used in commercial and industrial settings. Additionally, many multinational companies are investing in China due to its favorable business environment. This is leading to an increase in office spaces which is resulting in higher demand for air conditioners.
On the flip side, air conditioners are expensive and not everyone can afford them. In addition, there is a lack of awareness about energy-efficient models which are more cost-effective in the long run. This is leading to many people buying conventional air conditioners which are not as efficient and hence hampering the growth of the China air conditioner market.
China Air Conditioner Market Forecast of Future Developments
The air conditioner market in China is forecast to grow at a CAGR of XXXX% during the period 2016-2022. The market is primarily driven by the growing demand for air conditioners from the residential and commercial sectors. The growth of the construction industry, especially in the residential sector, is expected to drive the demand for air conditioners in China.
The China air conditioner market is highly competitive with a large number of players. The key players in the market are Gree Electric Appliances Inc., Midea Group Co., Ltd., Haier Electronics Group Co., Ltd., LG Electronics Inc., and Samsung Electronics Co., Ltd. These companies are increasingly focusing on product innovation and expanding their distribution networks to gain a competitive edge in the market.
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Conclusion of the China Air Conditioner Market
In conclusion, the China Air Conditioner Market is anticipated to register moderate growth between 2021 and 2027 due to rising temperatures in the country. The market is expected to witness significant growth opportunities as demand for air conditioners increases with rapid urbanization in the region. Advanced technologies such as AI-based air conditioners are also likely to drive market growth over the forecast period. Manufacturers should focus on innovative strategies that can help them gain a competitive advantage and capitalize on upcoming opportunities in this growing market.