China’s central air conditioner market in 2016 is estimated to have reached RMB 75 billion (US$ 10 billion), a year-on-year increase of more than 10%. The increase was mainly attributed to variable refrigerant flow (VRF) systems, which are included in central air conditioners in China, especially in the home decoration retail market.
In 2016, the home decoration retail market scale reached RMB 22 billion (US$ 3 billion), an increase of 29.4% compared with RMB 17 billion (US$ 2.5 billion) in 2015. It only took four years to double the market scale from RMB 11 billion (US$ 1.5 billion) in 2013 to RMB 22 billion in 2016.
Because of the overall growth of the home decoration retail market, central air conditioner markets in the eastern, southwestern, and central regions of China have all increased. However, the market in the northern region has decreased, mainly because of a huge decline in engineering projects and the relatively smaller growth rate of the home decoration retail market compared with the national average level.