Economic recession in Latin America over the past two years obliged many international companies, including U.S. and Japanese companies, to close local businesses and withdraw from the local market. It also worsened the shrinking of the local air conditioner market.
Latin American air conditioner demand decreased by 18.7% in 2016. Brazil, Argentina, and Mexico were the top three markets in the region, with a combined market scale of 4.8 million units in 2016. Air conditioners sold in Latin America were mainly imported from Asian countries including China, and few local brands are present in the marketplace. Many manufacturers now have huge inventory, and market recovery is not expected in the near future.
In Latin America, non-inverter split-type RACs have become main-stream in the market. The market ratio of window units has already fallen to less than one-quarter in the RAC market. Demand for portable air conditioners has grown over the last few years and surpassed 117,000 units in 2016.