Global AC Trends

MOSTRA, March

2014

Anette Meyer

Holley

2 Excellence in Market Intelligence 2

AC Global trends

Critical

Very Certain

Energy Efficiency and

renewables

Market Globalization &

Industry consolidation

Refrigerants

VRF vs. Chiller

Market Drivers

Joint Ventures

And Alliances

European Economy

Market Restraints

Emerging

Countries Material

cost

Chinese

growth

slowdown

Smart

buildings

smart homes

Legislation

Ventilation/

DOAS

US recovery

3 Excellence in Market Intelligence

World air conditioning market, 2011-2016

Value (US$m)

Volume (units)

Total 2013:

117.2 million units

Total 2013:

US$89.9 billion

3

4 Excellence in Market Intelligence 4

Global minisplit market

Top 10 countries in Europe in 2013 by units

(number of pieces)

5 Excellence in Market Intelligence 5

AC VRF market

World market for VRF from 2011 to 2016

in units (number of pieces)

Top 10 countries in the world market VRF in

2013 by units (number of pieces)

Top 10 countries in Europe in 2013 by units

(number of pieces)

6 Excellence in Market Intelligence 6

AC Chiller market

World Market for chillers from 2011 to

2016 in value (US$m)

Top 10 countries in the world market for

chillers in 2013 by value (US$m)

Top 10 countries in Europe for chillers in

2013 by value (US$m)

7 Excellence in Market Intelligence

The Italian Chiller market

7

8 Excellence in Market Intelligence

The Italian Packaged Market

8

9 Excellence in Market Intelligence

AC growth rate in Europe, 2013

9

12% -5%

-1% 1%

10 Excellence in Market Intelligence

World fastest growing markets, CAGR 2012-17

10

Warm spots >10-20% growth

Cold spots <0% growth

Hot spots >20% growth

India

Indonesia

Russia

Columbia

Chile

Nigeria

Brazil

Venezuela Vietnam

Australia

Turkey Japan

World Refrigeration

– 2011-2016

MOSTRA,

MARCH 2014

Anette Meyer

Holley

12 Excellence in Market Intelligence

The Output

12

13 Excellence in Market Intelligence

Definitions and double counting

13

compressors OEM – no

double count

Condensing

units

Racks/packs

Evaporator &

refrigeration

units

Heat

exchangers

OEM/local ref companies buying

from OEM outside

country – no

double count

Double

counting

no double

count

Double

counting

14 Excellence in Market Intelligence

Global drivers

14

Importance

Degree of Adoption

low

high

med

high

med

• In EU countries supermarkets and energy efficiency are key

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

EU Legislation/

Outlawing of R22;

Directive 2009/125/EC on

Ecodesign1 a framework

for energy reduction

Supermarkets –

Energy Efficiency/

Green credentials

Improve food

chain/avoid

waste

Discount

stores – Lidl,

Aldi etc.

Smaller

supermarkets

Design

Reliability

Quick

installation

Price of

Copper

Reduce noise

levels

Inverters

15 Excellence in Market Intelligence

Overview by country & product, by volume (units)

15

Total 2012: 19,287,606 units

20%

24%

3%

5% 6%

11%

5% 4%

22%

16 Excellence in Market Intelligence

End user sectors

16

• Food manufacturing, food distribution and storage and food retailing/ etc

account for the bulk of refrigeration – approximately 75-80%

Pharmaceutical Petro-Chemical Marine Leisure Building services

17 Excellence in Market Intelligence

Growth in refrigeration, by product area,

by value, CAGR

17

2012 total: 31,034.5 US$ million

7.2%

6.8%

6.2%

5.9%

5.6%

5.4%

18 Excellence in Market Intelligence

Contact details

18