April 18, 2024
Asia Pacific Condensing Unit Market

The Asia Pacific Condensing Unit Market Driven By Rising Adoption Of Air Conditioners

The condensing unit is a major component of air conditioners and refrigeration systems that condenses the refrigerant vapor from the evaporator unit into liquid form. Condensing units are used in a variety refrigeration and HVAC applications including residential air conditioners, commercial refrigerators and freezers, industrial cooling, and transportation refrigeration units. The Asia Pacific region has witnessed rapid urbanization and rising disposable incomes over the past few decades, fueling increased ownership of consumer durables especially air conditioners. This has emerged as a key growth driver for the condensing unit market in the region.

The Asia Pacific Condensing Unit Market is estimated to be valued at US$ 10.9 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

Rising adoption of air conditioners driven by consumer preference for cooling solutions and increasing construction of residential & commercial buildings has emerged as a key driver for the Asia Pacific condensing unit market over the forecast period. According to the report, the Asia Pacific region accounts for nearly 50% of the global air conditioner sales volume with China, India and other Southeast Asian countries anticipated to contribute majorly to residential AC installations over the coming decade. This steady rise in air conditioning demand would subsequently require additional condensing unit production to meet requirements from OEM manufacturers as well as cater to replacement demand from the aftermarket.

Another major factor influencing the condensing unit market includes stringent government regulations and adoption of energy efficiency standards for refrigeration systems and cooling products. Major countries have implemented MEPS (Minimum Energy Performance Standards) and ENERGY STAR programs to mandate energy performance levels for air conditioners and help reduce power consumption. This has compelled condensing unit producers to invest in developing cost-effective and high-efficiency condenser coil and compressor designs capable of complying with regulatory norms and offering performance benefits to end-users.

Segment Analysis:

The Asia Pacific condensing unit market is dominating by air conditioners segment which holds around 65% share in 2024. Air conditioners segment is dominating as the adoption of room air conditioners, window air conditioners, split air conditioners, central air conditioners is increasing rapidly across both residential and commercial sectors in the region. Countries like China, India, Japan, and South Korea are experiencing hot and humid weather conditions throughout the year which is driving the demand for air conditioners and consequently condensing units.

Asia Pacific Condensing Unit Market Segmentation:

  • By Product Type:
    • Air-cooled Condenser
    • Water-cooled Condenser
    • Evaporative Condenser
  • By Application:
    • High Temperature
    • Medium Temperature
    • Low Temperature
  • By End-user Industry:
    • Industrial
    • Commercial
    • Transportaion

PEST Analysis:

Political: The governments in various countries are providing subsidies and tax benefits for purchasing energy efficient appliances like air conditioners which is positively impacting the condensing unit market.

Economic: Rising disposable income, growing middle-class population, and improving living standards are driving the sales of consumer appliances and boosting the growth of condensing unit market.

Social: Changing weather patterns and increasing temperatures have led to growing adoption of air conditioners for thermal comfort indoor, which is driving the condensing unit demand.

Technological: Manufacturers are focusing on developing innovative and energy efficient condensing units to comply with the stringent eco-labels and energy efficiency standards.

Key Takeaways:

The Asia Pacific Condensing Unit Market Size is expected to witness high growth over the forecast period owing to rising construction activities and increasing demand for thermal comfort from both residential and commercial sectors across developing countries. China dominates the Asia Pacific condensing unit market with around 40% value share in 2024. This is attributed to the presence of a large manufacturing base of consumer appliances as well as expanding construction industry.

Key players like Emerson Electric Co., Carrier Global Corp., and Danfoss account for major share of the Asia Pacific condensing unit market. These companies are focusing on new product launches, partnerships, and mergers to strengthen their market position. For instance, in 2023 Emerson Electric Co. introduced CO2 condensing units to cater to pharmaceutical refrigeration segment.

1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it