Sep 24, 2021
Chinese variable refrigerant flow (VRF) market has seen recovery year after year. Compared with the year-on-year high growth rate of over 100% in the first quarter, the VRF market saw rational performance in April.
According to statistics from ChinaIOL, commercial air conditioners saw a total sales value of RMB 11.88 billion (about US$ 1.83 billion) in April, 2021, indicating a 26.7% year-on-year growth rate. Among them, VRFs saw a sales value of RMB 6.88 billion (about US$ 1.06 billion), growing by 31.8% year on year, presenting the leading growth rate in the commercial air conditioner industry segment. Domestic sales remained the major market for commercial air conditioners. In April, commercial air conditioners saw their sales value reach RMB 10.78 billion (about US$ 1.66 billion) in the domestic market, and VRFs saw a sales value of RMB 6.524 billion (about US$ 1.01 billion), growing by 34.2% year on year. The domestic market benefitted from the rapidly implemented new infrastructure construction and from the gradual recovery in the residential market, bringing new growth potentials for VRFs air conditioning.
In fact, the real estate market, including project construction and delivery, is recovering from the impacts of the pandemic.
According to the State Statistics Bureau, in the first quarter of 2021, the accumulated area of newly constructed commercial residential buildings came to 138.9 million m2 across China, growing by 27.1% year on year. A better understanding of cozy housing and living concepts led to rising demand for new smart buildings and also offered development opportunities for VRFs.
The increasing prices of raw materials pushed up VRF prices, resulting in an increase in the sales value of VRFs. Some bulk commodities have seen continuous price increases this year, and copper prices also hit a record high; this is due to multiple factors including difficulties with international shipping. As one of the most important raw materials in VRF production and installation, copper’s rising price has obviously squeezed the profit margins of companies. Raw material price increases will finally be transferred to the end customers, and manufacturers have announced a succession of price increases to offset impacts from the price fluctuation of raw materials. Some dealers also purchased and stocked products in advance, triggering a small peak in product delivery.
In terms of future development trends, there is a great expectation of increased demand for VRFs generated by the smart home and improvement market, and current demand for decorated apartments in new first-tier cities such as Hangzhou, Chengdu, and Wuhan and many second-and third-tier cities will support the steady progress of the whole industry.
Zero VRF system air conditioner is a high efficient energy-saving system for your next HVAC project if you are looking for the most cost-effective solution.
Source: 2021-08-31 JARN Chinese VRF Market Still Showing Solid Growth
