The long decline in the Spanish economy has finally come to an end and the last five quarters have registered appreciable growth. Construction industry output is expected to reflect this with an upturn of around 4% forecast for 2016. Refurbishment continues to be a major force in the health of the air conditioning products market. Plant renewal or upgrading, which has long been postponed, is expected to give a renewed impetus in the near future.
The total market for PAC equipment in 2015 was estimated at around US$ 705 million. Sales in the commercial sector are mainly reliant on refurbishment projects. Residential sales benefited in 2015 from the unusually hot summer.
The industry continues to be highly fragmented and one leading supplier (Termoven) ceased trading in 2015. Japanese brands head the residential and commercial sectors. Heat pump versions of packaged units are becoming standard and most units now use inverter drives.