Global Trends in

Air Conditioning
Anette M Holley
Chillventa
October 2014

AC Global trends
Market Globalization &
Industry consolidation
US recovery
VRF vs. Chiller
European Economy
Energy Efficiency and
Smart
renewables
Ventilation/
buildings
DOAS
Refrigerants
smart homes

Very Certain

Joint Ventures
And Alliances

Emerging
Countries

Material
cost
Chinese
growth
slowdown

Legislation

Critical
Market Drivers
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Market Restraints
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Hitachi and JCI

January 2014: JCI purchases 60% of Hitachi AC Business
including the manufacturing facilities

Complete AC range
including ductless

JCI access to established and emerging

markets for ductless and VRF
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In the US the
Hitachi product
will be able to
rely on Yorks
extensive
dealership
network
3

Carrier UTC & CIAT

July 2014: Carrier UTC bid 53.9% shares from CIAT not finalised

Global with bias on North

America
Focus on commercial AC
and Chillers (Europe) and
residential (USA)

Focus on airside
products and hydronic

Europe (including Russia)

and South Africa market
presence

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One of the largest

European groups
serving the
commercial AC
market;
System sale
combining chillers
and airside;
Dominant in the
French market;
Production facilities
in France, Spain and
Italy.
Combined CP Market
Share in France of
35%
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World air conditioning market, 2012-2017

Total 2014:
Euro 72.3 billion

Total 2014:
128.5 million units

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Global minisplit market 2014 e

Top 10 countries in Europe in 2014 by units

(number of outdoor units) 6.5 million units
representing 6% of global total

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World inverter air conditioning market

Inverters (single + multi) by volume

2013 total market

sizes
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AC Chiller market
Top 10 countries in the world market for
chillers in 2014 by value (Euro millions)

World Market for chillers from 2012 to

2017 in value (Euro millions)
Top 10 countries in Europe for chillers in
2014 e by value (Euro millions)

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VRF market
Top 10 countries in the world market VRF in
2014 by units (outdoor units)

World market for VRF from 2011 to 2016

in units (outdoor units)
Top 10 countries in Europe in 2014 by units
(outdoor units)

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World fastest growing markets, CAGR 2012-17

Russia

UK

China

Turkey
Mexico

Venezuela

Colombia

India

Nigeria

Vietnam
Indonesia

Brazil
South
Africa

Argentina

Hot spots >10% growth

Warm spots >5-10% growth
Cold spots <0% growth

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AC growth rate in Europe,2014

-14%
7%

-8%

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-6%
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The Germany AC market

The sale of GEA's Heat Exchanger
Division to Triton is moving forward
; expected completion by the end of
the year
This division includes GEA Air
Treatment, the clear German
market leader in fan coils, one of the
top four in AHUs and a significant
player in chillers
The Kaut group established a new
company, C P Kaut, in September
2014. This will exclusively distribute
products from the large Chinese air
conditioning A/C company, Hisense,
in Germany.

The German AHU market showedg

reasonable growth in 2013, with an
increasing proportion of products
being sold with heat recovery
systems
The European ErP directive will
come into effect in Germany in
September 2015 and will have
significant effects on both the air
conditioning and heating markets

Swegon acquired the German

company Econdition GmbH, a
medium-sized player in industrial
and precision cooling systems, in
August 2014. This, together with its
previous acquisitions of Blue Box
and Walter Meier Germany has
considerably strengthened its
position in the German market

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Penetration of air conditioning in dwellings

Penetration
Spain

47%

Russia

36%

Italy

31%

Turkey

31%

France

10%

UK & Germany

<5%

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European air conditioning stock levels of splits

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Europe AC market growth 2013-14e

Turkey

Germany

UK

France

Italy

Spain

Russia

30%

24%
18%
12%
6%

0%
-6%
-12%
-18%

-24%
-30%
Splits+VRF (by
volume)

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Chillers (by value)

15

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Expected future growth for Europe (CAGR 20122017)

Turkey

Germany

UK

France

Italy

Spain

Russia

10%

8%
6%
4%
2%

0%
-2%
-4%
-6%

-8%
-10%
Splits+VRF (by
volume)

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Chillers (by value)

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World Refrigeration
& AC&R
Compressors
MCE, MARCH
2014
Anette Meyer
Holley

World refrigeration & World

compressors
2015-16
World AC &
Ref
compressors

2013-14
World
refrigeration; 9
countries

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Global drivers
Importance

EU Legislation/
Outlawing of R22;
Directive 2009/125/EC on
Ecodesign1 a framework
for energy reduction

high

Supermarkets
Energy Efficiency/
Green credentials

Inverters

Design

med

low

Quick
installation

Improve food
chain/avoid
waste

Discount
stores Lidl,
Aldi etc.

Reliability
Price of
Copper
Reduce noise
levels

Smaller
supermarkets

In EU countries supermarkets and energy efficiency are key

In India, China and Brazil, improving the food chain is a main driver

med
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high

Degree of Adoption
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Growth in refrigeration, by country, by

value, CAGR
2012 total: 31,034.5 US$ million
14.5%
8.7%
7.6%
7.0%
4.2%
3.7%
2.7%
2.5%
1.6%

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BSRIA as an advisor
on refrigeration

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RED

AMBER

Indicative energy savings

Low savings

Medium savings

High savings

GREEN

Where technology can be applied

Limited application

Some application, but

not widespread

Universal application

Ease of application

Complex

Medium

Simple

Maintenance of technology

Complex

Medium

Simple

Interaction with other technologies

High interaction

Some interaction

No interaction

Impact on water use

High

Medium

None

Applicability to Saudi Arabia

Not applicable

May be applicable

Applicable

21

Contact details

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