Russian HVAC-market
Swing - 2017
Chillers market. Light at the end of the tunnel?
Russian market of chillers
Year 2016. Hot and complex
Market: checking the bottom
June, 2015, at the St. Petersburg Economic Forum the top ranking officials pronounced that the crisis in Russia finished. Well, may be not completely finished, but the acute phase already passed. Is that true? May be, at least ruble renewed in the middle of August its minimum record to euro and dollar.
Hazy prospects
End of 2014 turned out to be difficult for both Russian climate industry and the country. Collapse of the rouble and sharp decline in the purchasing power of population suggest gloomy thoughts about the upcoming season. How to assess the prospects of the market for 2015? What could we compare the today situation with?
2014. What to expect in the new season?
2013 was a strange year. If follow the usual logic of the strict connection between weather and sales, is rather difficult to explain the behavior of AC market that year. For example, in the north of the European part of the country the summer was warm (Diagram 1). As to May, it was the hottest in the last 30 years. The temperature exceeded the norm by 3,7 ° C, that is equivalent to moving Moscow into the climatic zone of Rostov-on-Don. The hotter weather was registered only ones in the history of meteorological observations in 1979. And the «Hot Wave» happened just in time, from May 9 to 20, when the daytime temperature of 12 consecutive days did not fall below 25°C. The previous years, similar beginning of the season always provoked a sharp increase in demand and caused days-long queues for the installation of equipment and lack of popular models. In 2013, there was nothing like this. And if the absence of deficit can be attributed to the huge inventories, the nature of the May sales deserves special attention. They were higher than in 2012 and 2010, but the demand was smooth, grew gradually and stabilized at a comfortable level for the sellers without leaps. Then, the demand went down also gradually despite the warm (by 2,8°C above normal) June. In July, which turned out to be within the climatic norm, sales were significantly lower than in the previous years. As a result, in the central Russia and the Volga region sales fell by 16%, in the Moscow city by 8%. At the same time, in the south where the summer was cool the fall in demand was only 3%.
Russian market of chillers in 2013
After financial crisis of 2008 Russian construction market recovered faster than analysts had expected. As a result the sales of chillers in Russia in the end of 2011 reached the pre-crisis level and showed 2.6 % growth over sales of 2008 in 2012. In the 2013 a growth continues but not so fast. According to preliminary estimates, market increased by 5% in volume. And forecast to 2014 is cautious, because of country’s economic situation goes bad.
Russian market of chillers in 2014
After the 2008 financial crisis, the Russian construction market recovered faster than analysts had expected. As a result, by the end of 2011, sales of chillers in Russia came to the pre-crisis level. Sales of 2012 excided the volume of 2008 by 4,0%. In 2013 the market continued to rise, however, the growth was a small, according to preliminary data about 4.4%, if we assume that in terms of power. In the first half of 2014 the import of chillers decreased by 12%. Proceeding from the less optimistic forecasts, the resulting DROP in sales by the end of the year could reach 16-18%.
Overview of the Russian HVAC market in 2013
In 2013 the Russian RAC market shows negative growth again. In 2012 the volume of the sales of the split-systems to the end user was about 2.1 million sets. In 2013 it decreases to 1.9 million sets. In 2014 further sales decline is expected.
Russian market of central air conditioning systems
To understand the situation on the Russian market of the central air conditioning and ventilation systems it is necessary, first of all, to understand the structure of the Russian market of real estate. It is quite clear from Figures 1 and 2.
Brief summary of 2011 and prospects for 2012
In 2011, Russia imported about 4.0 million air conditioners. About 3.2 million of them were sold to installers (companies – installers of equipment), of which 2.9 million units were installed. This brought the Russian market to the 5th position in the world in sales of RAC/PAC, after China, USA, Japan and India.
Overview of the Russian HVAC market in the first half of 2011
In 2010, there was a sharp increase of sales of air conditioners in Russia. It was caused by the unusually hot weather in the biggest part of the European territory of the country. As a result, more than 1,8 million split systems were sold, and it brought Russia in to the 5th place in sales of this kind of equipment. However, as the main result of last season, should be considered the change of consumer psychology. Air conditioners became a necessity, especially in southern Russia and in big cities. It was confirmed by the unprecedented demand for air conditioning systems in the offseason 2010-2011: sales in the autumn-winter period 2010-2011 reached the level of spring of 2010. The exhibition “Climate World – 2011” in March 2011 has also set up a new record in a number of participants and visitors. Sales of air conditioners in the spring of 2011 proved to be the biggest for that period in the history of the Russian HVAC market. Up to June 1, 2011, about two million split systems were sold. It is expected that sales may exceed the level of 2.5 million units by the end of the year.
What should we expect in the coming season?
The past season gave yet another evidence that air conditioner sales depend, first of all, on the weather. Summarizing the results of 2010, which was a record by sales volumes, many market players are preparing for the forthcoming season with some caution, expecting serious excessive stocks at the market. How reasonable are these expectations? To answer this question, it is necessary to analyze in detail the events of the past year, first of all—from the climatic point of view.
A Review of the 2010 Global AC Market
The world economic is recovering. Strong growth is observed in emerging economies, particularly China and India, which stimulates consumer demand for air conditioners. Another driver of the global AC market is extremely hot summer weather.
CHERBROOKE: abnormal heat for us means a pleasant surprise, however, our success does not depend on weather
In the very heat of the hot summer season we were lucky enough to talk with Alexey Shabliy, General Director of Cherbrooke company. He takes a philosophical approach to the present that the abnormal heat made to our industry and this is probably why we were mostly talking about business development and the future than about the fortune of this summer.
Summer 2010: experts’ experience
This season will be remembered not only as good one, thanks to high earnings, but also as a very bad one – due to the unbelievable number of “crooked” installations and, as a consequence, due to the large number of equipment failures.
Climate World-2011 – we don’t promise – we do
Even now, many companies engaged in HVAC&R and construction business start preparing their marketing plans for 2011. Among other things, those companies decide on the form of participation in the largest HVAC&R exhibition Climate World-2011. To make your investments in this regard most efficient we decided to tell you about new opportunities for you in our exhibition project.
Climate World: Drag Race
For several years by now, Climate World Expo remains the main event for the HVAC industry of Russia. The perspectives of the project development, its competitive advantages, and the attempts to catch up with the leader are the topics we will discuss with those directly involved in the organization of the event: Executive Director of Association of the Association of Professional companies in Industry of Climate (APIC), Dmitri Kuzin, and Euroexpo company’s Exhibition Director, Oleg Nikishin.
The Russian Market of Climatic Equipment in 2009-2010
In 2009 and the beginning of 2010, the situation on the Russian market of climatic equipment was formed under the influence of three key factors: global economic decline, drastic contraction of import quotas established for R22, and termination from January 1, 2010 of state licenses issued in the building sector and establishment of self-regulating organizations (SRO).
Industrial refrigeration market
Construction industry is currently having hard times and heads of companies operating at the closely related market of HVAC market pay more and more attention to the adjacent field – industrial refrigeration.This market is especially attractive for them because of the similarity between refrigeration appliances and air conditioning equipment.
Russian Refrigerant Market in The Light of the Forthcoming Phase-Out of Hydrochlorofluorocarbons
Refrigeration and HVAC business in Russia has found itself in a rather difficult position. Besides the consequences of the global economical crisis, the industry faced the difficulties caused by the accelerated fulfillment of obligations under the Montreal Protocol.
Russian Compressor Market in 2009–2010
Generally, modern refrigerating equipment uses reciprocating, scroll and screw compressors. Rotary compressors widely used in air conditioning units are rare in refrigerating ones.
Expert opinion: Three “Stalin’s Blows” to the HVAC Business
Situation formed in 2009-2010 worsened the headache of Russian distributors of HVAC equipment. These problems can be grouped into three categories.
OZONE-DEPLETING SUBSTANCES IN RUSSIA: CURRENT SITUATION AND FORECAST
According to the current scientific data, the maximum concentration of ozone in the stratosphere is observed at heights ranging from 19 to 23 km. This is the very part of the atmospheric ozone constituting the so-called ozone layer. The role of the ozone layer in both germ of life and its further support is extremely important: the layer ensures the absorption of the biologically harmful UV radiation of the Sun with the wave length from 280 to 320 nm (UV-B).
The Russian Market of Climatic Equipment in 2009-2010
In 2009 and the beginning of 2010, the situation on the Russian market of climatic equipment was formed under the influence of three key factors: global economic decline, drastic contraction of import quotas established for R22, and termination from January 1, 2010 of state licenses issued in the building sector and establishment of self-regulating organizations (SRO).
What has come and what is to come in Russia?
The state of the climate industry at the beginning of the new season; the influence of the financial crisis on the industry, and the immediate prospects – Felix Tokarev, a leading analyst of APIC’s marketing and advertisement department and, Deputy Director.
HVAC MARKET OF SOCHI
Southern Russia is the most capacious market for room air conditioners in Russia. RAC are not a luxury there, it is a necessary thing to meet the requirements of comfort living conditions. It is a common thing in Southern Russia that groups of population with rather low income, such as pensioners, actively buy air conditioners. One of the specific features of the region is that there is no seasonal difference in sales. Construction works are carried out practically all year round there.
HVAC market of Samara
Samara was mentioned in chronicles for the first time in 1357, when Metropolitan Alexis stopped there on his way to the Golden Horde. Alexis predicted that a great town would be erected in that place. Town and river-jetty Samar was marked on the hand-made map of river Volga, drawn by Venetian merchants brothers Picigano in 1367.
HVAC Market of Krasnoyarsk
Distinctive features of the region, which influence the development of HVAC market.
HVAC market of Novosibirsk
Novosibirsk is the biggest megapolis in Siberia. Sometimes it is called 'technopolis' and 'city of science'. Novosibirsk is an important transport junction; it is a historical commercial center of Siberia. Unlike many other towns of Eastern Russia, Novosibirsk is not connected with some certain “town-making” enterprise or industry.
HVAC market of Far East
Far East of Russia is reach in minerals and other natural resources. It used to be wishful aim of famous travelers and the place of exile of rebels and freethinkers at the same time. China here is mach more close than Moscow. The Far East Federal District includes 10 regions: Republic of Sakha (Yakutia), Primorskiy Kray (territory), Khabarovskiy Kray, Amur Region, Kamchatka Kray, Magadan Region, Sakhalin Region, Jewish Autonomous Region, Chukotka Autonomous Region.
HVAC markets market of Surgut
One of the most remarkable things about HVAC market of Surgut is that there is no hostility between players of the market. The town is relatively closed, the biggest part of its everyday life is connected with the only one field of industry – a fuel-energy one. Because of this it's very difficult for newcomers to penetrate the market: all spheres of activity are already more or less distributed. Companies traditionally work with their customers for 5 – 10 years.
HVAC market of Kazan
The situation at the HVAC market of Kazan is greatly determined by the high level of social and economic development of the region. It is influenced by large-scale construction activity in both residential and industrial sectors. Local HVAC companies have good professional level and are familiar with modern high-tech equipment.
HVAC market of Ekaterinburg
DISTINCTIVE FEATURES OF ECONOMY AND CLIMATE OF THE REGION, WHICH INFLUENCE DEVELOPMENT OF HVAC MARKET.
Air-curtain market overview
This overview contain information on the state of air curtains market for 2007-2008, information on novelties of 2008-2009 season, and opinions of curtain manufacturers on the tendencies and perspectives of the market development. The source data and values for analysis have been provided by the largest manufacturers of air curtains at the Russian market.
HVAC market of Krasnodar
The Krasnodar region is the biggest region of the Southern Russia. It is situated between the Black Sea and the Sea of Azov on the one side and the republics of Northern Caucasus on the other. The population of the Krasnodar region is more than 5 million, about 700 thousand people live in the capital of the region city of Krasnodar.
HVAC Market of St. Petersburg
HVAC market of St. Petersburg demonstrates now a steady growth . According to the common opinion of experts, the main reasons for this growth are: general stabilization in Russia growth of industry caused by technological modernization; increased requirement to engineering systems caused by development of the commercial real estate market. Besides, the governments of the city of St. Petersburg and the Leningrad (St. Petersburg) Region introduce tax privileges and other preferences to investors, and it makes both the city and the region more attractive from investment point of view.
HVAC market of Omsk
According to agency “Litvinchuk Marketing” the share of Omsk region is 13,5% of the market of split systems of Siberian Federal district. In Russia such a market is considered to be semi-formed. Dynamic of sales in the following (outdoor units): 1999 – 1100 units; 2000 – 1600 units; 2001 2200 units; 2002 – 2500 units; 2003 – 2800 units; 2004 – 3500 units; 2005 – 4800 units. Companies from Omsk estimate the sales in 2006 year of 5000 – 7000 units.
Market Benchmark - 2
The first Part of article “Market Benchmark” was published In the previous issue of the “World of Climate” magazine. There was examined the structure of the market of ventilation equipment. In this part we would examine the market of air conditioning systems.
Air Conditioners: Year of Contradictions
There has never been such a strange year in the history of Russian HVAC market. The assessments of the results of the year are full of contradictions. Some companies announce a two-time increase of sales, some inform of a rather modest growth of around 20%. What happened indeed?
HFC move and … win
There are, probably, no representatives of climatic community still unaware of the fact that the majority of developed countries have already switched over to alternatives to ozone-depleting refrigerants and that HFC is the bright future of the industry. Only scientists go on arguing whether R-22 is to blame for ozone depletion over earth's poles or everything happened just by itself. The practitioners, climatic industry representatives among them, face a bit different issues. And the most important of them is what equipment range should be now offered in connection with the inevitable total change over to ozone-safe refrigerants.
HVAC market of Nizhniy Novgorod
Editors of magazine “The World of Climate” together with the information agency HVACNEWS start the new column – Regional Markets. Here you would find comprehensive information about developement of the climat business in the main regions of Russia. Our first material is about the region of Nizhniy Novgorod.
Season of the Forecasts that Came True
If we try to analyze the development of the Russian market of air conditioners for the last five years, we have to añknowledge that the season that has just ended was the most “quiet” when sales volumes and all the trends have been in good agreement with our forecasts (see “Climate World” ¹29 and ¹30).
Russian Fan Coil Market
Russian fan coil market is growing very fast (see Chart 1). There were 48200 units sold for the total sum of 27.6 million euro in 2004.The average growth rate in the last few years was 25–27%.This rate is expected to stay that high for about 5 to 7 years but later on it will gradually diminish. Office-construction boom will last that long, in the opinion of real estate analysts.
Chillers market in 2009
Construction industry is one of the most capital-intensive industries in Russia, that is why the decline caused by the economic crisis affected the construction industry most of all. The growth of commercial real estate commissioning volumes which characterized the past several years was supported exclusively by the unprecedentedly high oil prices and “cheap” loans. So, as the money ended the construction stopped. The lack of funding brought back to life such already forgotten concepts as “blocked object” and “retardation of work volumes figures”.
Looking For Heat
Recent years Russian producers of heating equipment have steadily expanded their share of the local market, and at the same time the prices and the profit level have been getting down. As a result this segment of market has become less interestting for HVAC manufacturies. Investments into the advertising fell down sharply. What are the trends on the Russian market of the Heat Curtains and Heat Guns nowadays?
Legend of Dinosaur
Will Window Air Conditioners Become Extinct?
An Alternative to Minichiller
Condensing units can be divided into two types. The first one includes specialized units based on chillers, let’s call them «chiller style». The second one are the usual outdoor units of powerful split systems — «split style». Over the past few years these devices have become a serious alternative to mini chillers as a cold source for central conditioners of the lower and medium capacity.