Nigeria Air Conditioner Market Research Report: Forecast (2023-2028)
Nigeria is witnessing a gradual improvement in its economy, i.e., leading to the improving purchasing power of the country's population. This change is demonstrating a greater inclination of people toward improving their living standards with the adoption of appliances like air conditioners.
In the country, industries like residential, commercial, retail, healthcare, hospitality, government, transportation, oil & gas, among others, are the prominent end-users of air conditioners and are playing a crucial role in expanding the air conditioner industry of Nigeria.
The Nigeria Air Conditioner Market is projected to grow at a CAGR of around 5.5% during the forecast period, i.e., 2023-28. The growth of the market is driven primarily by the rapidly increasing inclination of the Nigerian government toward infrastructural developments, i.e., leading to massive investments in the hospitality sector, coupled with improving economic conditions & changing living standards of people, thereby propelling the demand for air conditioners in the country.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Key Companies Profiled||Carrier Corporation, Chigo Holding Limited, Daikin Industries, Ltd., Johnson Controls, Inc. (York), LG Electronics, Inc., Midea Group Co., Ltd., Mitsubishi Electric Corporation, Panasonic Corporation, Qingdao Haier Co., Ltd., Samsung Electronics Co., Ltd., Trane Inc.|
|Unit Denominations||USD Million/Billion|
In addition, the growing establishment of offices & increasing migrant influx is another prominent aspect infusing the requirement for air conditioners and positively influencing the market expansion. Besides, the rapidly developing commercial sector, with an increasing number of hotels, shopping complexes, etc., in line with growing tourism, is also anticipated to generate remunerative growth opportunities for the leading market players to meet the mounting demand for air conditioners across Nigeria.
Moreover, the escalating focus of the Nigerian government on green energy is leading it to impose favorable policies for air conditioner manufacturers. It is principally for the research, development, and distribution of energy-efficient air conditioners to address the alarming carbon emissions, which would give the Nigeria Air Conditioner Market a notable boost through 2028.
Key Trend in the Nigeria Air Conditioner Market
With the surging need for air conditioners owing to the growing population & rapid urbanization, Nigeria is witnessing a significantly increasing demand for second-hand air conditioners from European countries. Besides, the swift establishment of prominent brands, multinational companies, & expanding tourism in Nigeria is also stimulating the demand for second-hand air conditioners, which, in turn, is fueling the import business & driving the Nigeria Air Conditioner Market.
Impact of Covid-19 on the Nigeria Air Conditioner Market
The Covid-19 pandemic severely impacted the Nigeria Air Conditioner Market, which witnessed several unprecedented growth challenges due to disruptions in the supply chain, unavailability of raw materials & labor, delays in the deliveries of pre-produced goods, reduced demand, the shutdown of manufacturing units, and halts on import & exports, among others.
Besides, since the population had to remain at home owing to stringent movement restrictions, tourism in Nigeria was catastrophically affected, resulting in the shutdown of hotels, resorts, and other hospitality sectors. In addition, the corporate sector adopted work-from-home schemes, owing to which the demand for air conditioners observed a massive decline and caused financial losses to the market players.
However, since the pandemic had a significant impact on the healthcare sector, where the government began to strengthen the infrastructure by installing necessary equipment, it demonstrated a temporary hike in the market growth amidst the crisis.
Nonetheless, the government uplifted the restrictions with the declining number of cases, and the leading market players resumed their production & distribution operations. They are actively working on increasing their manufacturing capacities to suffice the mounting requirements that indicate a steady growth of the Nigeria Air Conditioner Market in the years to come.
Based on End-Users:
Of them all, the Hospitality sector is expecting to dominate the Nigeria Air Conditioner Market with the largest share during the forecast period. It owes principally to the rapidly increasing establishment of brands like Marriott, Hyatt, and Radisson, among others, in the country, i.e., soaring the demand for air conditioners to stimulate the functioning of their facilities and, as a result, fueling the market growth.
Besides, the growing government focus on developing hotels, resorts, and other tourist attractions, to enhance tourism & hospitality in the country shall further play a crucial role in augmenting the growth of the air conditioner market in Nigeria during the forecast period.
On the other hand, the Healthcare sector is projected to demonstrate the fastest growth in the Nigeria Air Conditioner Market during 2023-28, owing primarily to massive government investments in boosting healthcare infrastructure, i.e., escalating the demand for air conditioners across healthcare facilities.
Based on the Type:
Here, Split air conditioners are anticipated to acquire a significant share in the Nigeria Air Conditioner Market during the forecast period. It owes principally to their growing demand for home applications and across the commercial sector in offices, institutions, etc. Besides, the growing awareness about their benefits like easy installation & operation, silent functioning, low & efficient maintenance, additional heating capability, and cost-effectiveness, among others, are also fueling their demand & augmenting the overall market growth.
In addition, mounting health concerns over dust allergies, asthma, and dehydration are also stimulating the demand for split air conditioners and boosting the market. Moreover, attractive designs & air purification features in split air conditioners are other crucial areas generating remunerative growth opportunities for the leading players in the industry, which, in turn, would drive the Nigeria Air Conditioner Market through 2028.
Key Driver: Continuous Infrastructural Developments Boosting the Need for Air Conditioners
Across Nigeria, the rising focus of the Nigerian government on infrastructural developments is displaying their massive investments in enhancing the hospitality sector, commercial & residential sector, & strengthening healthcare infrastructure, among others. It, in turn, is propelling the demand for air conditioners to facilitate the infrastructure, which, in turn, would drive the Nigeria Air Conditioner Market through 2028.
Possible Restraint: High Power Consumptions & Energy Supply Disruptions
Since air conditioners consume substantial energy to cool a facility, it might hinder their adoption among the cost-sensitive customers in Nigeria. Additionally, disruptions in the energy supply, grid connectivity, and power generations are other challenges that might restrain the demand for air conditioners and hamper the growth of the Air Conditioner Market in Nigeria through 2028.
Growth Opportunity: Rising Inclination on Developing Energy Efficient Air Conditioners
The Nigeria Air Conditioner Market is generating lucrative growth opportunities for the leading players to seek alternatives to address carbon emissions caused by air conditioners & curb the harmful environmental effects by developing & procuring energy-efficient products. It, in turn, would augment the overall market growth in the years to come.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Nigeria Air Conditioner Market is projected to grow at a CAGR of around 5.5% during 2023-28.
A. Hospitality is anticipated to emerge as an opportunity area for the leading players in the Nigeria Air Conditioner Market during 2023-28.
A. Continuous infrastructural developments by the Nigerian government and the growing establishment of prominent brands, coupled with a rising inclination toward developing energy-efficient air conditioners, are anticipated to generate lucrative growth opportunities for the Nigeria Air Conditioner Market through 2028.
A. In the coming years, the Nigeria Air Conditioner Market is anticipated to witness active participation of the leading players in the industry introducing new air conditioners and enhancing their product portfolio & visibility in the country.