The Southeast Asian (SEA) countries are experiencing an unprecedented increase in their population which is consequently increasing urbanization. The increased construction activities have boosted the demand for heating, ventilation, air conditioning, and refrigeration (HVACR) products. The key market players in the SEA region are looking for business expansion and gaining market presence in the untapped markets. However, the regulatory bodies existing in this region play a crucial role in determining the market for the HVACR products. Hence, the players are constantly developing innovative products to fulfill the demand of the consumers.
One of the leading players of the market is Daikin, which has made a mark worldwide, plans to double its vendor network in India to 10,000 stores by fiscal 2020, expanding beyond major cities and appealing to consumers with energy-efficient technology. The sales of the products are currently concentrated in major cities like New Delhi and Mumbai that have populations exceeding 5 million people. With Indian sales growing at a clip of 25% per year, Daikin expects that demand for air conditioners will also rise in less populated areas of 500,000 to 2 million people owing to the economic growth. The company is targeting Indian sales of 100 billion yen ($913 million) in fiscal 2020, nearly double the current total.1
LG Electronics will provide large-scale heating, ventilation, and air conditioning solutions to a thermal power plant in Vietnam. The Korean company announced in May 2017 that it signed a deal with Russia's Power Machines to supply heating and air-conditioning solutions to a power plant built by Petro Vietnam, the country's state-run petrochemical company.2
Acknowledging the growth trend in the market and shifting consumer preference, BIS Research has compiled a report titled ‘Southeast Asia Heating Ventilation Air-Conditioning and Refrigeration (HVACR) Market -Analysis and Forecast (2017-2023)'. According to the analyst, "the SEA HVACR market is witnessing a strong growth in the South East Asia (SEA) market majorly because of the growing construction sector. The market is expected to grow at a CAGR of 9.30% during the forecast period (2017-2023)."
The market is expected to grow strongly in the coming years due to the growing population and migration to cities. The market is attractive for local players as well, as it gives them the opportunity to offer a lower priced product, although the quality of the product is comparatively lower than the products with the brand name. Some of the companies in the SEA HVACR market are Daikin Industries ltd., Gree Electric Appliances inc., Johnson Controls, LG Corporation, Mitsubishi Electric, and Panasonic Corporation, etc.