The total market volume of air conditioners in Southeast Asia amounted to 8.9 million units, showing 10.5% year-on-year growth in 2015. Indonesia, the Philippines, Vietnam, and Thailand accounted for most of the RAC demand in the region.
The penetration rate of air conditioners is still low in Indonesia, the Philippines, Thailand, and Vietnam. Demand from the burgeoning Southeast Asian middle class that does not yet own an air conditioner is expected to climb in the near term. In addition, local markets with relatively young populations and hot weather all year round present huge business potential.
A general market trend in Southeast Asia is a shift away from window- type to split-type RACs. Splittype RACs have already reached almost 100% penetration in Indonesia, Malaysia, Vietnam, and Thailand. Cooling-only split-type air conditioners driven by R22 non-inverter compressors account for the majority of models present in the Southeast Asian market. In the region, the Philippines is the only market in which window units are still dominant. Demand for portable air conditioners is negligible. Unitary units also have a very small share of the market.