Household air conditioner exports: a record high in 2017

According to China Customs statistics, in 2017, China's household air-conditioner exports were 54.241 million units, up 10.0% year-on-year; the export value was 10.21 billion yuan, up 5.1% year-on-year. Looking back at the export situation of household air conditioners in the past ten years, after surpassing 40 million mark in 2010, there has been no big growth. Since 2016, with the gradual improvement of the world economy, global trade has begun to gradually pick up, and air-conditioner exports have rebounded again.

According to the IMF, the global economy grew by 3.2% in 2016, the lowest level since the global financial crisis, and the global economic growth rate is expected to rise to 3.6% in 2017. Economic growth in developed economies has generally accelerated, and growth in emerging Asian economies remains strong. Some commodity exporting countries in Latin America, the CIS countries and sub-Saharan Africa still face difficulties, but there have been some signs of improvement. In this environment, China's household air conditioner exports have also achieved good growth.

Looking at the continents, in addition to Africa in 2017, the rest of the continents showed different growth. Among them, Oceania, Latin America and North America have relatively high growth rates, both exceeding 15%.

The US air conditioner market has matured and is one of the largest markets in North America and the world. In terms of weather, the deserts of the southwestern United States and California have higher temperatures in the summer of 2017. In terms of social economy, the US consumer confidence index reached a new high in 2017, meaning that consumers have a clearer plan to increase the purchase of home appliances and high-priced items. In addition, low oil prices and low unemployment have pushed up the US air conditioning demand in 2017.

After two years of sharp declines in Latin America, the number of domestic air conditioners exported to Latin America in 2017 was 7.644 million units, a year-on-year increase of 15.6%. On the one hand, the Latin American economy is gradually picking up; on the other hand, after several years of sustained lows, the purchasing power of the air-conditioning market is released with the recovery of the economy. Among them, Mexico, Brazil, Argentina, Paraguay and Uruguay are the top five countries in China, which are the largest exporters of household air conditioners in Latin America, all showing growth. Paraguay and Uruguay have increased by more than 100%.

Asia is the largest export market for household air conditioners in China. In 2017, China's household air conditioners exported 2.831 million units in Asia, a year-on-year increase of 10.7%. Among them, Southeast Asia is a relatively promising market for air conditioner manufacturers in recent years. Comprehensive climatic conditions, population structure and other factors have potential demand for air conditioners. The Middle East has a small increase of 6.8%. Among them, the UAE has the fastest growth, mainly from the upsurge in the construction market. In Iran, due to sanctions, a large number of air conditioners need to borrow Iraq, which has caused a sharp rise in imports to Iraq; Saudi Arabia has suffered from falling oil prices and economic stagnation. The impact of factors such as political uncertainty is small.

Europe experienced a strong growth of 88.5% in 2016, and its growth rate slowed in 2017, up 3.4% year-on-year. In the summer of 2017, the temperatures in different regions of Europe varied. Southern Europe and Eastern Europe have been swept by heat waves, including France, Spain, Bulgaria and Romania. In stark contrast to this is Europe's largest air-conditioning market in Russia, due to the local summer temperature is lower than the normal level of previous years, resulting in increased inventory, exports began to decline sharply after August, is expected to affect exports in 2018.

Africa imported Chinese household air conditioners in 2017 decreased by 12.7% year-on-year. Nigeria, Egypt, Algeria, Libya and South Africa are the main markets in the region. The overall economic situation in Africa has been sluggish in 2017, with relatively low temperatures in summer and a high export base in 2016, which has led to a decline.

The Oceania air-conditioning market is relatively stable, with Australia being the largest air-conditioning market in Oceania, which is mainly driven by the prosperity of the local housing market.

Based on the above analysis, Industry Online expects that China's household air conditioner exports will decline slightly in 2018. Among them, North America, Africa and Latin America will have different growth rates, which are expected to increase by 2.7%, 3.1% and 5.1% respectively; while Oceania, Europe and Asia will decline, the decline is expected to be 6.2 respectively. %, 8.2% and 5.3%.

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