In 2009 the market had contracted by 11% to a global value of $63.2 billion. The market experienced a healthy recovery in 2010 with a growth rate of around 22%, by value. Furthermore the growth rate for 2011 is forecast to be in the region of 5%, by value.
Asia-Pacific remains the largest world region in terms of air conditioning sales, accounting for 55% of the total market by value, followed by the Americas region and Europe. The Chinese market is not only the largest market in Asia, but also the biggest market by value in the world; representing approximately 27% of the world air conditioning in terms of value in 2010. The Japanese market follows closely after the market leader with a value of US$13.5 billion. The US market dropped to become the third largest market with $11.6 billion in 2010. The US market is expected to regain its second position in 2012.
The UK economy is facing its longest recession on record with rising unemployment, weak investment levels and the recovery is proving to be slower than expected. Europe was hit the hardest by the economic downturn in 2009; overall the market declined by 25% by value. However the European market showed the first signs of recovery in 2010 with slow growth at the rate of 3.6%. The worst affected markets were Turkey, UK, Russia, Poland, Italy, Greece, Germany and Spain. The Russian economy had experienced the biggest annual fall in 15 years in 2009 according to the Federal Statistics. The sharp drop in energy prices has been blamed for the hit. Although it is an incredible recovery, which in 2010 saw a growth of 50%, this was primarily driven by the heat wave it experienced.
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