In 2018, revenue for the Air-Conditioner Manufacturing industry in China is expected to total $87.2 billion, up 2.5% from 2017. The industry has been rising at an annualized rate of 1.5% over the past five years. There are 211 enterprises operating within this industry, employing about 326,794 people with a payroll of $4.9 billion.Investment from both domestic and foreign enterprises operating in this industry increased greatly in recent years, especially in the room air-conditioner (RAC) manufacturing segment. The major manufacturers in the world – LG and Samsung from Korea; Panasonic, Mitsubishi, Fujitsu and Hitachi from Japan; and Fedders from the United States – have all established factories in China...purchase to read more.

Industry Statistics & Market Size
Revenue
$87bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
326,794
Businesses
889

Industry Report - Industry Investment Chapter

For every dollar spent on wages, R&D and administrative costs in the Air-Conditioner Manufacturing industry, 17.8 cents are invested in capital, which indicates a medium level of capital intensity.Given the assembly production model, air-conditioner manufacturing requires a significant number of low-skilled workers. Start-up capital is not high as most products in this industry are assembled from pre-made parts. There are many small enterprises in provinces such as Zhejiang, Jiangsu and Guangdong, which often just purchase components and employ workers to assemble low-end products. During the year, many start to assemble room air-conditioners in March and stop production in August (spring and summer in China). Products manufactured by small firms are mainly sold in local markets...purchase to read more.

Additional Insights for the Air-Conditioner Manufacturing Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Air-Conditioner Manufacturing Industry are

  • Effective cost controls
  • Establishment of export markets
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Household Income and Domestic Goods Prices in the Air-Conditioner Manufacturing industry impact industry performance..

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    What's in this report

    What is the Air-Conditioner Manufacturing Industry?

    The Air-Conditioner Manufacturing industry in China manufactures residential room air-conditioners (RACs), residential central air-conditioning systems, dehumidifiers, humidifiers and air purifiers. These products are used to adjust the indoor temperature, moisture, airflow and air cleanliness.

    Industry Products
  • Dehumidifiers, humidifiers and air purifiers
  • Residential central air-conditioning systems
  • Room air-conditioners (RAC)
  • Industry Activities
  • Manufacturing residential room air-conditioners
  • Manufacturing residential central air-conditioning systems
  • Manufacturing dehumidifiers and humidifiers
  • Manufacturing air purifiers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Household Income
  • Domestic Goods Prices
  • Weather Conditions
  • Export Competition
  • Industry Competition - Highlights
  • Industry Growth - Construction

  • Current Performance
    Imports and exportsEmergence of specialty storesPrevalence of online distribution channelsOther industry trends
  • Chart: Revenue Growth

  • Industry Outlook
    Export trendsCompetitive landscapeNew marketing channels
  • Table: Air-Conditioner Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Air-Conditioner Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Building Completion & Interior Design
  • Department Stores & Shopping Malls
  • Home Appliance Stores

  • Key Selling Industries
  • Aluminum Smelting
  • Copper Smelting
  • Electrical Equipment and Machinery Manufacturing
  • Iron & Steel Casting

  • Products & Services
  • Room air-conditioners (RAC)
  • Residential central air-conditioning systems
  • Dehumidifiers, humidifiers and air purifiers
  • Chart: Air-Conditioner Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Weather
  • Real estate development
  • Economic development
  • Market saturation

  • Major Markets
  • Household appliance chain stores
  • Air-conditioner dealers
  • Exports
  • Online shops
  • Specialty stores
  • Agents and others
  • Housing decoration enterprises
  • Real estate developers
  • Chart: Major Market Segmentation for the Air-Conditioner Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Air-Conditioner Manufacturing

  • Basis of Competition
  • Price
  • Technological developments
  • Channel building
  • Advertising and promotional events
  • Supply of upstream inputs
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Air-Conditioner Manufacturing Industry

  • Industry Globalization
    Gree Electric Appliances, Inc., Midea Group, Qingdao Haier Co., Ltd., Hisense Kelon Electrical Holding Co. Ltd., Chigo Holdings Limited,
  • Table: Gree Electric Appliances, Inc. - financial performance
  • Table: Midea Group - financial performance
  • Table: Qingdao Haier Co., Ltd. - financial performance
  • Table: Hisense Kelon Electrical Holding Co. Ltd. - financial performance
  • Table: Chigo Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Air-Conditioner Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Air-Conditioner Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)
  • Output of Room Air-conditioners (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dehumidifier
  • Heats water or other liquid ingredients and releases the vapors into the air to obtain a required air moisture content.
  • Severe Acute Respiratory Syndrome (Sars)
  • A respiratory disease of unknown etiology that appears to have originated in mainland China in 2003 and is characterized by fever and coughing, breathing difficulties, or hypoxia.
  • Sterilization
  • The process of making an object free of live bacteria or other microorganisms usually by heat or chemical means.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Air-Conditioner Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Air-Conditioner Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Air-Conditioner Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Air-Conditioner Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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