A new research report claims there is a price war between major players in the global air conditioning market which is pushing down unit prices.
The report, published on the officialwire.com network, has forecast a compound annual growth rate (CAGR) of 18.5 per cent up to 2015.
Having witnessed a temporary disruption in growth, due to the recent economic recession, the global market for air conditioning systems staged a remarkable recovery in 2010 and is now projected to register 144.30 million units in volume sales by 2017, the report said.
However, Fujitsu General deputy managing director, Philip Perham, said there is no price war in Australia.
Perham said fluctuating seasons have the greatest impact on air conditioner pricing, particularly in the eastern states.
He said other factors which contribute to price erosion include decreased consumer spending and the slower housing market, although these have not affected the local market as significantly as other consumer product categories.
“Australia is a fairly mature and stable market and as retail in general picks up we would expect to see a growth of between three to five per cent,” Perham said.
“Double digit growth may have been experienced years ago, but in the last five years the Australian market has only experienced minor changes from season to season.”
Perham said anything that happens globally has little impact on Fujitsu General’s business in Australia.
“Research indicates the penetration of air conditioners in the residential market is more than 60 per cent,” he said. “While 10 years ago it was viewed as a luxury, today air conditioning is considered a household essential.”
The Asia Pacific continues to be the largest regional market in the world for air conditioners.
