Market Definition
An air conditioner is a central heating and cooling system that cools a space by eliminating heat and controlling the temperature & humidity of the air within that space.
Market Insights
The Africa Air Conditioner Market is projected to grow at a CAGR of around 7.5% during the forecast period, i.e., 2023-28. The market is driven by the rapidly growing home ownership across the continent, particularly in established nations like South Africa, Kenya, and Nigeria. Further, climate change, a growing appetite for better lifestyles, and advancements in the power grid system are other factors that could aid the African air conditioner market in gaining traction. In fact, as per the International Energy Agency, the electricity demand for ACs is likely to jump 10-fold across Africa by 2040, clearly hinting at their upward graph in the coming years.
However, they witnessed a significant decline in their demand due to the worldwide lockdown imposition, thereby interrupting production & sales due to the closure of manufacturing and disruptions in the income cycle of consumers. Besides this, a halt in various construction activities of hotels, restaurants, and other residential & commercial projects further hindered the market growth. But, with the lockdown upliftment, the market is reviving and shall grow significantly in the forecast years. Furthermore, in the subsequent years, as consumer disposable income rises and household ownership of electronic equipment rises, there will be a greater need for air conditioners throughout Africa, opening up a wide range of opportunities for the market for these products to expand.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 7.5% |
| Country Covered | South Africa, Nigeria, Kenya, Algeria, Morocco, and Others |
| Key Companies Profiled | Airconditioning & Heating International Carrier Fzc, Daikin Middle East and Africa FZE, Samsung Electronics Co. Ltd., LG Electronics, Midea Middle East, Sharp Middle East Fze, Haier Electronics Group Co., Ltd., Dunham-Bush International (Africa) (PTY) Ltd, Trane Inc., Gree Electric Appliances, Inc. Of Zhuhai, etc. |
| Unit Denominations | USD Million/Billion |
For instance, in 2018, Daikin, the top producer of heating, cooling, and refrigerant products worldwide, announced the release of GTKL-TV1, the first wall-mounted inverter split unit created specifically for the African market. With this new introduction, Daikin made a significant advancement in its commitment to creating environmentally friendly goods for global markets. In addition, the new range uses R-32, an alternative refrigerant with no potential to deplete the ozone layer compared to the previously used R-22 and less potential to cause global warming than R-410A.
Market Dynamics
Key Driver: Augmenting Demand for Energy-Efficient Air Conditioners
The need for environment-friendly and energy-efficient products is increasing in a bid to reduce the energy footprint created by air conditioners and electricity consumption. Similarly, to curb greenhouse gas emissions by 40 million tons by 2040, strict air conditioning efficiency standards are being adopted by African countries. Thus, investing in sustainable and energy-efficient conditioners would benefit the market players in the forecast years.
Possible Restraint: Frequent Power Outages Posing a Challenge
Since African countries are still evolving in terms of advancements, frequent power outages have been a major concern for the residents, who are compelled to withdraw from adopting air conditioners. Although the government has taken numerous initiatives to ensure an uninterrupted power supply, it might take time to achieve such targets. Thus, for the market for electrical products to grow more quickly in Africa, there are still several obstacles to be solved in terms of grid connectivity and electricity production.
Growth Opportunity: Proliferating Hospitality Industry Across African Countries
The Hospitality sector is projected to expand in African countries by garnering attention from international hospitality brands such as Hyatt, Radisson, and Marriott, raising consumers' interest. This expansion would quicken the sales of ACs, citing Africa's warm climate. In addition, it would aid in expanding the air conditioner supply by generating additional demand for VRF and chillers to support their infrastructural needs. According to the study, the investments made in Africa to build the nation and infrastructure also increase the disposable income of many people, resulting in the continued growth of the industry across the region.
Market Segmentation
Based on Product Type,
Split Air Conditioner acquired a significant share of the Africa Market in the previous few years. The deployment of these products in residential and small commercial buildings is burgeoning at a rapid pace. Split types, being cost-effective and easy to install, help lower household energy expenditure. Moreover, the significantly rising housing development projects and the increasing adoption rate of AC in the hospitality sector are crucial factors likely to accelerate market growth in the coming years.
Based on End-User,
Here, Commercial Sector is anticipated to witness massive adoption of air conditioners over the forecast period. It is primarily because robust growth in the construction industry is expected on the African continent, notably in the Sub-Saharan region, supported by government measures to revive the infrastructure sector. Over the ensuing years, the outlook for construction in nations like Nigeria, Ethiopia, and Kenya would remain favorable, driving the adoption of air conditioners. Likewise, consumer awareness regarding their use in various industries, including the residential and hospitality sectors, is growing, resulting in a significant surge in the sales of ACs in the coming years. In addition, government attempts to increase the residential supply in these nations and close the demand-supply gap would also boost real estate development, stimulating their adoption in Africa.
Country-Wise Projection
Geographically, the Africa Air Conditioner Market expands across following countries,
Among others, South Africa is expected to attain a sizable share in the African air conditioner market on account of shifting environmental patterns and escalating degrees of global warming each year. As a result, the market is expected to generate potential revenues and witness a significant surge over the following years, owing to the rising levels of heat and humidity around the region. In addition, the growing acceptance of air conditioning systems as utility products rather than luxury goods further accelerates market adoption. Moreover, the increase in the sales of a range of air conditioning systems that are energy-efficient and technically advanced has positively influenced market growth.
Recent Developments in the Market
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Frequently Asked Questions
A. The Africa Air Conditioner Market is projected to grow at a CAGR of around 7.5% during 2023-28.
A. Augmenting demand for energy-efficient air conditioners is likely to drive the market further during the projected time frame.
A. The prominent players anticipated to stiffen the competition across the region are Airconditioning & Heating International Carrier Fzc, Daikin Middle East and Africa FZE, Samsung Electronics Co. Ltd., LG Electronics, Midea Middle East, Sharp Middle East Fze, Haier Electronics Group Co., Ltd., Dunham-Bush International (Africa) (PTY) Ltd, Trane Inc., Gree Electric Appliances, Inc. Of Zhuhai, etc.
A. Split Air Conditioner is anticipated to emerge as an area of remunerative opportunities for the leading players in the Africa Air Conditioner Market during the forecast period.
A. Globally, South Africa would provide lucrative prospects for the Africa Air Conditioner Market in the years ahead.
A. South Africa would provide lucrative prospects for the Africa Air Conditioner Market in the years ahead.
A. Proliferating hospitality industry across African countries is expected to present remunerative opportunities for the leading players in the Africa Air Conditioner Market during the forecast period.
A. Frequent power outages posing a challenge for the Africa Air Conditioner Market during 2023-28.
