China air conditioning market was blooming in 2017, with growth rates of 29.4% and 35.4% to 55.72 million units and 190.6 billion yuan, respectively.  The retail price per unit recorded 3,420 yuan of the history level.

Influenced by La Nina phenomenon, the summer temperature in China was generally higher than before, which spurred the shipments of air conditioners.  But in 2018, because of negative factors of high raw materials prices and stagnation of real estate market, air conditioning market development will slow down accordingly.

Risk in high stock

As statistics, air conditioning market was increased 5.3% during the first 48 weeks of 2017, but turned to -4.6% during last four weeks.  China air conditioning shipments were 137.4 billion yuan and 41.70 million units in 2015, decreased 4.8% and 1.1%, respectively.

Featuring the seasonal sale, high stock will bring suppliers more risks.  Additionally, raw materials prices such as copper increased 22% in the past three years and will keep the trend in 2018, which also lead the high prices of air conditioners.  By the end of October 2017, the total stock of whole air conditioning industry was 32.20 million units.

New products and new markets

Many manufactures has focused on three- and four-tier cities.  Development of urbanization and income increase marked the rapid growth of rural air conditioning market.  Moreover, there are 126 million units of room air conditioners needed to replacement. 

Innovation is always one of the key words of China air conditioning industry.  The shipments of intelligent air conditioners almost doubled in 2016-2017, with market share of over 40%.  Primary air system and room purification are also welcomed by the customers.  The sales of primary air system were nearly 8 billion yuan in 2016 and over 12 billion yuan in 2017, increased over 50%.

Although the air conditioning market cannot keep the momentum, but it will still be uptick.