Market research company BSRIA (owned by The Building Services Research and Information Association) has revealed that African air conditioning market is forecast to grow at a record 5.5 per cent compound annual growth rate between 2017–2023 by volume.
This surpasses the global forecast of 4.9 per cent in the same period, and follows a 4 per cent growth in volume from 2017.
The main drivers are predicted to be from population growth, better performing economies, more stable governments, new construction, urbanisation and rising disposable income. Ghana, Kenya, Nigeria and Tanzania have the strongest growth forecast.
“In spite of its political uncertainty and economic challenges, the continent continues to attract investors’ attention, especially from China. Chinese interest is evident with Chinese AC manufacturers accounting for a significant market share in 2018, followed by the South Korean players,” says Saziye Dickson, Research Manager – Air Conditioning, Ventilation & Refrigeration, Worldwide Market Intelligence, BSRIA.
“The main reason behind the growing interest in the region is its strong economic growth. According to the latest Oxford Economics forecast, GDP growth for Africa is set to outstrip that of any other world region from 2012 to 2030. This is driven by rapid economic and population growth, resulting in faster urbanisation than any other continent over this period.”
Statistics reveal that the sale of 2.8m units mostly consists of single un-ducted splits, which enjoy the strongest forecasted growth (6 per cent) due to demand from residential and light commercial projects. The VRF sector (4 per cent growth) is the second fastest growth area in Africa.
The growth of 3 per cent CAGR (2017–2023) in the chiller market will match the growth levels of the Americas and the European AC market.