The report “Indonesia Air Conditioners Market, By Product Type (Splits, Windows, VRF, Chillers, and Others including Cassette, Ductable Splits, and Others), By End Use Sector (Commercial/Industrial and Residential), By Region, Competition, Forecast & Opportunities, 2015-2027F” has been added to ResearchAndMarkets.com’s offering.
“Indonesia Air Conditioners Market, By Product Type (Splits, Windows, VRF, Chillers, and Other includes Cassette, Ductable Splits, etc.), By End Use Sector (Commercial/Industrial and Residential), By Region, Competition, Forecast & Opportunities, 2015-2027F”
The Indonesia air conditioner market is expected to reach USD1,873.74 million by 2027 and grow at a CAGR of 4.30% during the forecast period, owing to rising residential demand, rising per capita income, an increase in sales through online platforms, and other factors.
During the COVID-19 pandemic, the manufacturing and production of air conditioners were severely impacted. Due to the country’s lockdown, both demand and supply of air conditioners were negatively impacted due to the halt in production activity, which further hampered overall market growth for a short period. Furthermore, because the Indonesian air conditioner market is import-driven, COVID-19 restrictions reduced air conditioner sales in Indonesia.
Furthermore, many air conditioning companies in Indonesia are focusing on expanding their manufacturing units to improve their services and reach a larger consumer base. Daikin, for example, will open its newest office in Indonesia in Batam in 2021. With the opening of this office, Daikin now has 13 official representative offices spread across Indonesian cities. Sharp, likewise, announced plans to build a new air conditioner manufacturing facility in Karawang Province’s Karawang International Industrial City (KIIC).
Consumers’ changing lifestyles are propelling market growth forward.
Several sociocultural, psychographic, and demographic factors influence consumer lifestyle. In recent years, Indonesia has undergone a significant transformation. The modern Indonesian consumer aspires to live a luxurious and comfortable life. Because of changing consumer lifestyles and the country’s hot and humid climate for most of the year, as well as the rapid growth of the service sector and per capita income, middle-class demand for air conditioners in Indonesia is expected to rise during the projection period.
Rising living standards are driving the market growth.
The rising income level improved living standards and expanding range of offers and discounts all influence demand for air conditioners in the Indonesian market. Furthermore, to make their products more accessible to customers of all income levels, air conditioning companies are now offering their products and services in equal monthly installments (EMI). These factors are expected to have an impact on Indonesia’s increasing air conditioner sales. Furthermore, Indonesia’s internet penetration rate is increasing, with 73.7% of the population having access as of January 2021. As a result, air conditioner manufacturers now have new e-commerce platforms through which to easily connect with their customers. The internet sales channel has enabled companies to expand their distribution networks and connect with customers in even the most remote areas, which has aided the growth of the Indonesian air conditioner industry.
Companies’ energy-efficient offerings are boosting the market growth.
To meet the demand for energy savings, manufacturers are working on product innovation and launching new products. LG, for example, has introduced the AC New Hercules by LG, which has a higher cooling capacity than other air conditioning products. The original 1/2 PK air conditioner has a 5,000 BTU (British thermal unit) capacity and only consumes 370 watts of power. Furthermore, government refrigerant regulations require businesses to develop eco-friendly and energy-efficient devices. The market has seen several technological advancements as a result of the phase-out of important refrigerants. CFCs (Chlorofluorocarbons), the most commonly used refrigerants, will be completely replaced by alternative refrigerants in the coming years. In the coming years, such factors are expected to drive growth in the Indonesian air conditioner market.
In this report, the Indonesia air conditioners market has been divided into the following categories, in addition to the industry trends discussed below:
Indonesia Air Conditioners Market, By Product Type:
- Others (Cassette, Ductable Splits, etc.)
Indonesia Air Conditioners Market, By End Use Sector:
Indonesia Air Conditioners Market, By Region:
- Rest of Indonesia