Mobile Menu

Air-Conditioner Manufacturing in China - Market Research Report (2014-2029)

IBISWorld IBISWorld Beijing, China Last Updated: May 2024 3952

Revenue

$99.3bn

2024

$105.3bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

291k

Businesses

193

Wages

$X.Xbn

Air-Conditioner Manufacturing in China industry analysis

Revenue for the Air-Conditioner Manufacturing industry in China is expected to increase at a CAGR of 0.4% over the five years through 2023 from a high base year, to total $99.3 billion. This trend includes an expected increase of 5.8% in the current year. Approximately 193 enterprises are expected to operate in the industry over the period, employing an estimated 290,686 people with a payroll of $5.5 billion. The higher sales volume of high-end products has raised industry profitability to 8.6% in 2023.Investment from both domestic and foreign enterprises operating in the industry has increased significantly over the past five years, especially in the room air-conditioner (RAC) manufacturing segment. The major manufacturers in the world including LG and Samsung from Korea; Panasonic, Mitsubishi, Fujitsu and Hitachi from Japan; and Fedders from the United States, have all established factories in China. China's production output for room air-conditioners is estimated at 246.2 million units in 2023.The residential central air-conditioner manufacturing segment requires relatively high technical equipment and enterprise numbers in this segment are much smaller. Humidifiers and air purifiers are mainly exported, and enterprises in these two segments are small and low in number.While export growth has fluctuated over the past five years, the industry's export market has expanded over the period, especially in Europe and the United States. In 2023, exports are expected to account for an estimated 20.3% of industry revenue. Competing imports are low in the industry, accounting for an estimated 1.0% of domestic demand in 2023, with a value of $811.5 million.Industry revenue is forecast to increase at a CAGR of 5.4% over the five years through 2028, to total $129.0 billion. The industry is anticipated to continue developing into foreign markets like the Middle East, Central and South America, expanding exports of dehumidifiers, humidifiers and air purifiers. However, export competition will likely intensify, and foreign anti-dumping policies are projected to become more stringent and widespread.

Trends and Insights

  • Government assists development of this industry. The Government has introduced a number of policies to encourage the development and innovation of the air-conditioner industry.
  • Room air-conditioners comprise the industry's main product segment. China is the largest global production base for room air-conditioners, accounting for over 80% of industry revenue.
  • The production activities in this industry are highly concentrated. Guangdong province is the largest production base, accounting for about two-thirds of industry revenue in 2023.
  • The industrial duopolies contribute almost 60% of industry revenue. The four largest enterprises jointly account for over 70% of industry revenue, and this industry has high concentration level.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
  • PDF report or online database with Word, Excel and PowerPoint export options
  • 100% money back guarantee

Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated $99.3bn in 2024.

Trends and Insights

Consumption upgrading drive continual development of the air-conditioner industry

  • With the improvement of consumers' rising income level and the changing consumption concept, consumers' demand for air conditioning appliances is not limited to meet the basic cooling and heating functions, but pay more attention to the energy saving, intelligence, comfort, health, etc.
  • Additional trends and insights available with purchase
Air-Conditioner Manufacturing in China
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The sinking market will accelerate to release demand for air-conditioners

  • In 2022, the ownership of air conditioners in rural areas is only 92.2 units, far lower than the ownership of urban households (163.5). With development of a new round of home appliances to the countryside policy, the consumption potential of air conditioners in rural areas will be gradually released.

Biggest companies in the Air-Conditioner Manufacturing in China

Company

There are no companies that hold a large enough market share in the Air-Conditioner Manufacturing in China industry for IBISWorld to include in this product.

Products & Services Segmentation

Air-Conditioner Manufacturing in China
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Dehumidifiers, humidifiers and air purifiers, Residential central air-conditioning systems and Room air-conditioners (RAC). Dehumidifiers, humidifiers and air purifiers is the largest segment of the Air-Conditioner Manufacturing in China.

Trends and Insights

RAC comprise the industry's main product segment

  • Room air-conditioners (RACs) comprise the industry's main product segment, accounting for an estimated 81.5% of total industry revenue in 2023. China is the largest global production base for room air-conditioners.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

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.

What's included in this industry?

Residential room air-conditionersResidential central air-conditioning systemsDehumidifiers and humidifiersAir purifiers

Companies

Purchase this report to view all major companies in this industry.

Related Terms

DEHUMIDIFIERSEVERE ACUTE RESPIRATORY SYNDROME (SARS)STERILIZATION

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Government assists development of this industry. The Government has introduced a number of policies to encourage the development and innovation of the air-conditioner industr...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Room air-conditioners comprise the industry's main product segment. China is the largest global production base for room air-conditioners, accounting for over 80% of industry...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The production activities in this industry are highly concentrated. Guangdong province is the largest production base, accounting for about two-thirds of industry revenue in ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industrial duopolies contribute almost 60% of industry revenue. The four largest enterprises jointly account for over 70% of industry revenue, and this industry has high ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Top enterprises have established distinct brand awareness. Brand image establishment have become increasingly important for the enterprises within the industry.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    This industry develops at moderate fluctuation level. Multiple factors generate increases of demand for air-conditioners on the whole, while COVID-19 led to decrease of indus...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Products upgrading drive increase of profit margins. A higher sales volume of high-end air-conditioner products has raised profitability of this industry.

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Air-Conditioner Manufacturing industry in China in 2024?

    The market size of the Air-Conditioner Manufacturing industry in China is $99.3bn in 2024.

    How many businesses are there in the Air-Conditioner Manufacturing in China industry in 2024?

    There are 193 businesses in the Air-Conditioner Manufacturing industry in China, which has declined at a CAGR of 1.8 % between 2019 and 2024.

    Has the Air-Conditioner Manufacturing industry in China grown or declined over the past 5 years?

    The market size of the Air-Conditioner Manufacturing industry in China has been growing at a CAGR of 0.4 % between 2019 and 2024.

    What is the forecast growth of the Air-Conditioner Manufacturing industry in China over the next 5 years?

    Over the next five years, the Air-Conditioner Manufacturing industry in China is expected to grow.

    What does the Air-Conditioner Manufacturing in China include?

    Residential room air-conditioners and Residential central air-conditioning systems are part of the Air-Conditioner Manufacturing industry.

    How competitive is the Air-Conditioner Manufacturing industry in China?

    The level of competition is high and increasing in the Air-Conditioner Manufacturing industry in China.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • Household Electrical Appliance Manufacturing in China

    Complementors

    • Household Refrigerator and Freezer Manufacturing in China
    • TV, DVD & Video Equipment Manufacturing in China
    • Audio Equipment Manufacturing in China

    International industries

    • Heating & Air Conditioning Equipment Manufacturing in the US
    • Air Purification Equipment Manufacturing in the US
    • Commercial Washing Machine Manufacturing in the US
    • Heating & Air-Conditioning Equipment Manufacturing in Canada
    • Heating, Cooling and Ventilation Equipment Manufacturing in Australia

    View all industries in China

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in China include:

    • National Bureau of Statistics China
    • General Administration of Customs
    • People’s Bank of China

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

    Learn more about our methodology and data sourcing on the Help Center.