Although achieved a continuous five-months increasing in production and sales in the second half, 2016 is still a year be beset with problems to the domestic AC scroll compressor industry.
According to the newest data by ChinaIOL, in 2016, production of scroll compressor of air conditioner in China is 3.721 million units, fell 3.77% compared to the same period in last year; sales of 3.722 million units, fell 3.56% compared to the same period in last year. Bad performance in the first and second quarter in last year, the overall decline is more than 20%; thanks to the stock release and end-market requirement, the scroll market became better in the third quarter and grew strong in the fourth quarter.
Domestic sales hit a new low in the recent 7 years, competition in 3-7 HP range is intense
In 2016, China's air-conditioning scroll compressor domestic sales fell to the lowest level in nearly 7 years, showing a downward trend for two consecutive years. Destocking of refrigeration equipment and the impact of rotating products are the main reasons for the decline. Among them, the rotating frequency conversion products have occupied an absolute dominant position in this range; in the field of fixed frequency, scroll compressor of air conditioner still keep competition advantage in energy efficient products. But with Gree and other large customer self-sufficiency to expand, the market share left for 3-7HP fixed-frequency scroll compressor is also shrinking. The products more than 7HP ,air-conditioning scroll compressor maintains a good growth, the mainstream air-conditioning scroll compressor companies are vigorously grabing market share, of which 7-15HP products accounted for the largest, of 30HP and the above, the proportion is less than one percent .
From the refrigerant situation, R410a air conditioning scroll compressor ratio increased rapidly. With the mainstream air conditioning machine manufacturers began to adopt a new refrigerant, as a transitional refrigerant, R410a products were quickly favored by the market. With a high energy efficiency ratio and a lower low ODP value, R410a products are widely recognized by the end market.
From the point of view of fixed frequency products, with the re-rising of multi-couple unit market and the popularity of all-DC inverter multi-couple products, 2016 scroll compressor market of variable frequency air conditioner resumed a high-speed growth, while scroll compressor of fixed-speed air-conditioning fell slightly.
Overall decline in export market & emerging markets to be developed
For air conditioner scroll compressor, export proportion accounts for only about 15% of sales. In 2016, Export volume was 579000 units, the annual decline is more than 8%, mainly sold to Brazil and Thailand, but duing to Brazil's political instability and the economic downturn, it affected the domestic consumption of home appliances greatly, resulting in a exporting decline of air-conditioning scroll compressor in Brazil, same decline happened in Saudi Arabia & South Korea. In addition, the export to European and American countries is relatively stable, and as well as in India.
2017, mingled with hope and fear
Firstly, from a macroeconomic perspective, in 2017 the domestic economy will growly steadily and slow.
Secondly, although the domestic household and commercial air-conditioning market has experienced a rapid growth in the short term, but in the long run, it still full of challenge. Take the household air conditioner for example, because of the sharp increased cost in raw materials and transportation, it is hard to estimate the consumption of end-market.
Thirdly, from the point of view of product competition, Gree, Midea and other refrigeration enterprises prefer to choose twin-piston compressors instead of scroll compressors, the market share for the scroll compressors under 7HP will become smaller; In contrast, the products above 7 HP will still keep a stable growth .In addition, the north china heating market and replacement of screw Compressor with large cooling scroll compressor will be the profit chasing point.