Saudi Arabia has implemented the most stringent energy-saving standards in the Middle East. It is expected that the energy efficiency upgrades will continue to combat the very fast-growing electricity demand. In the UAE, the cost of raw materials, custom tax and freight costs have increased significantly, which resulted in a price hike of around 5-10% for all AC products.
In Europe, employees continued to work from home in the first half of the year and hi-wall single splits in the residential side recorded positive sales. Germany and France have recorded double-digit growth in the split market. In Italy, the chiller market is showing a strong indication of recovery. However, in Turkey, the dramatic drop in the new construction industry had an impact on the Central plant market.
In the USA, the unexpected surge in demand of splits was met by a swindling supply. A global shortage in chips and semiconductors and a general lengthening of lead time for most components have created bottlenecks in the supply chain. In Mexico, with most large projects suspended or delayed, most of the chillers market growth was in medium sizes and in the air-cooled market. In Brazil, despite the economic and pandemic related crisis, ventilation and AC managed to keep afloat. Mini VRF is currently preferred in a modular form, while sustainable and profitable sales growth is expected by all chiller manufacturers.