Overview of the Russian HVAC market in the first half of 2011
In 2010, there was a sharp increase of sales of air conditioners in Russia. It was caused by the unusually hot weather in the biggest part of the European territory of the country. As a result, more than 1,8 million split systems were sold, and it brought Russia in to the 5th place in sales of this kind of equipment. However, as the main result of last season, should be considered the change of consumer psychology. Air conditioners became a necessity, especially in southern Russia and in big cities. It was confirmed by the unprecedented demand for air conditioning systems in the offseason 2010-2011: sales in the autumn-winter period 2010-2011 reached the level of spring of 2010. The exhibition “Climate World – 2011” in March 2011 has also set up a new record in a number of participants and visitors. Sales of air conditioners in the spring of 2011 proved to be the biggest for that period in the history of the Russian HVAC market. Up to June 1, 2011, about two million split systems were sold. It is expected that sales may exceed the level of 2.5 million units by the end of the year.
Taking into account the equipment unsold last year, the import of PAC and RAC exceeded 2.2 million air-conditioners for the first five months of 2011. It is projected that by the year-end about 3 million units of such equipment will be imported in to Russia.
As far as the segment of VRF and mini-VRF is concerned, the figures there for obvious reasons are more modest. The total supply of such systems didn’t differ very much from the same period of 2010 and hardly exceeded 3,000 units for the first five months of 2011. However, by the end of the year the import of VRF and mini-VRF systems may beat the level of 2010 and exceed 8500 units.
In 2011as well as in 2010, there was a higher demand for RAC < 5 kW, with increasing share of economy-class equipment. At the same time we can see a sharp shortage of equipment with power of 7000 - 9000 BTU / h. The buyers have to purchase instead more powerful air conditioners - 12 000 BTU / h and 18 000 BTU / h.
In 2011 increased the demand for inverter air conditioners. But in 2011 the supply of this equipment can not meet growing demand and often consumers have to buy only the equipment that is on sale.
As before, window air conditioners are not very popular in Russia. In 2010 only about 40 thousand units of AC of this type were sold, and a serious increase in sales in 2011 is not expected.
As far as the DROP in sales of mobile monoblocks is concerned, it can be explained solely by the lack of equipment of this type. Experts estimate that in summer 2010 there could have been sold 3 times as much of mobile air conditioners. There are some reasons to believe that sales of mobile monoblocks in 2011 would reach a level of 100 000 units.
A characteristic feature of the season of 2011 is a significant price rise for RAC, an average of 30% -40%. This can be explained by the increase of selling prices of manufacturers, especially Chinese ones by 10-15%. Prices for the components and consumables also increased by 7-15%. The expenditures of HVAC companies related with delivery of equipment and customs clearance increased 10% on average. Thus, the cost of sea freight increased by nearly 20% in comparison with 2009.
In the 2010-2011 year, all the major players of the Russian HVAC market declined to purchase equipment with the R-22 and completely gone to work with equipment using ozone-friendly Freon, such as R-410A. It also led to higher prices for air conditioners by 10-12%.
The growth of retail prices was to a large extent determined by the shortage of equipment and a very high demand for air conditioners, caused by the expectations of the hot summer, like the summer of the previous year.
Average price of a non-inverter model of economy-class air-conditioner with the power 7000 BTU/h in Moscow is 600 USD (excluding installation works).
In 2011, the leaders of deliveries to the Russian market remain the Korean companies LG and Samsung. The top ten best selling brands in Russia include also Japanese brands Panasonic, Daikin and MHI, as well as General Climate, Dantex, Ballu, Kentatsu and Electrolux.
In this article were used the materials of APIC and the company LITVINCHUK MARKETING.