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World AC market highlights from new BSRIA studyMay 2006

Sales of windows in India are up 26% from 2004 by volume. India emerged to 3rd position in the world window market ahead of Saudi Arabia through sales of over 800,000 units, and is expected to move into 2nd place above Brazil in 2008. The residential sector is expected to enjoy continued high growth (20-25% per year) due to rising living standards and improving general economic conditions. India's market for split systems grew 35% by volume from 2004 to 2005.

Over the past few years, competition has led to consolidation of major brands. While the market share of big players has grown, only around 40 manufacturers remain in the market (out of up to 200 several years ago). Manufacturers' margins are still under attack due to increases in raw material costs on one side and the market's expectation of lower priced systems on the other. Overall AC sales in China are up around 9% compared to 2004. The Olympic Games in Beijing will see an increase in the city's hotels (20%) and other infrastructure, with the impact for the air conditioning sector occurring in the latter stages.

Sales of split systems in Italy, France and Greece were significantly lower than in 2004 mainly due to high stock levels. European sales as a whole were supported by Russia and Turkey which enjoyed very high volume sales growth in 2005 at 16% and 29% respectively. The 'key seven' markets averaged only 2% growth. Although recent price erosion appears to be stabilising, this can in part be attributed to increased sales of slightly more expensive R410a systems and continuation of the shift towards heat pumps and inverters.

Other market features
As Japan recovers from recession, 2005 saw commercial investment particularly in the IT industry and export businesses. Sales of split systems in Japan consequently rose 10% by volume, although the markets for other systems remain flat.

In India the market for chillers is expected to nearly double by 2009 to a level of 5,100 units. Non-residential construction activity is driving these sales, with double-digit growth for chillers also expected in Turkey and Russia over the next few years.

Many countries in the Middle East use rooftops for residential use due to high workload demands throughout the year. After the US and Canada, the Middle Eastern countries have the largest markets for rooftops, notably Saudi Arabia and UAE.

Sales of US-style ducted splits rose 17% by volume in 2005 in the USA. This is largely attributable to anticipation of SEER 13 in January 2006 and the associated higher prices from this point on.

The World Market for Air Conditioning 2006 is available now. This study is produced annually, with three-year subscriptions now available.

For more information contact BSRIA:

Tel: +44 (0)1344 465600