Asia Pacific Condensing Unit Market Is Estimated To Witness High Growth Owing To Opportunity Of Increasing Adoption Of R

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A condensing unit is an important part of all refrigeration and air conditioning systems. It is used to condense gas refrigerant into a liquid state for cooling purposes. The condensing unit houses compressor, condenser coil and condenser fan. With increasing hotter weather conditions and rising disposable income in emerging countries, the demand for refrigeration systems is growing for various applications such as cold storages, food retail outlets and residential sector. This rising demand is driving the Asia Pacific condensing unit market.

The Asia Pacific condensing unit market is estimated to be valued at US$ 10.9 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Opportunity:

The increasing adoption of refrigeration systems in developing countries of Asia Pacific presents a major market opportunity for condensing units. Factors such as rising population, improving economic conditions and changing lifestyles are fueling the demand for consumer appliances requiring refrigeration like refrigerators, air conditioners and commercial refrigeration systems. Particularly in countries like China, India, Indonesia and other ASEAN nations, there is widespread development of organized retail, quick service restaurants, cold chain infrastructure and urbanization. This is leading to strong growth in installation of commercial refrigeration equipment. New infrastructure projects and replacement of old equipment also provides a continuous demand driver. Condensing unit manufacturers can leverage this opportunity by tailoring their product offerings to match the specific requirements of various end-use industries in developing Asian markets. Entering into strategic partnerships with refrigeration OEMs catering to these emerging markets can help gain higher market share.

Porter's Analysis:

Threat of new entrants: The Asia Pacific condensing unit market is moderate as the market requires significant capital investment and technical expertise to establish a manufacturing facility. However, the growing demand provides opportunities for new players.

 Bargaining power of buyers: Buyers have moderate bargaining power due to availability of multiple established brands and differentiated products. However, large buyers can negotiate better pricing.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute components and dominance of few global component suppliers.

Threat of new substitutes: Threat of substitutes is low as condensing units have irreplaceable functions for HVAC equipment. However, electric heat pumps are emerging as an energy-efficient alternative.

Competitive rivalry: The market is moderately competitive due to presence of multiple regional and global brands offering similar products. Market consolidation is observed through acquisitions.

SWOT Analysis:

Strength: Growing construction and HVAC industries in the region along with rising disposable income and commercial infrastructure development are driving demand.
Weakness: High initial investment and seasonal fluctuations in demand pose challenges. Raw material price volatility also impacts margins.
Opportunity: Untapped rural markets, replacement demand from aging equipment, and focus on energy-efficient products provide growth opportunities.
Threats: Trade restrictions and policies favoring locally manufactured units can impact imports and global suppliers. Slowdown in economic activities may dampen demand.

Asia Pacific Condensing Unit Market Segmentation:

  • By Product Type:
    • Air-cooled Condenser
    • Water-cooled Condenser
    • Evaporative Condenser
  • By Application:
    • High Temperature
    • Medium Temperature
    • Low Temperature
  • By End-user Industry:
    • Industrial
    • Commercial
    • Transportaion

Key Takeaways:

The Asia Pacific Condensing Unit Market Size is expected to witness high growth during the forecast period supported by robust economic expansion, growth in construction and HVAC industries, and rising disposable incomes across emerging countries.

Regional analysis indicates that China dominates the market currently attributed to large manufacturing base and rapid urbanization. India is expected to grow at the fastest pace backed by government measures to develop infrastructure and "Housing for All" initiative.

Key players operating in the Asia Pacific Condensing Unit market are Emerson Electric Co., Carrier Global Corp., Danfoss, GEA Group Aktiengesellschaft, Voltas Ltd., Bitzer SE, Dorin S.p.A., Tecumseh Products Company LLC, The Kirby Company, Reftech Engineering Pte Ltd. The industry players face intense competition and focus on product innovation and expansion into growing regional markets through collaborations.

Get More Insights on This Topic https://www.marketwebjournal.com/asia-pacific-condensing-unit-market-growth-and-trends/

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