Posted On: 2019-09-16
Recovering construction sector on account of reviving economy is expected to drive the demand for Latin American commercial air conditioner market over the coming years – 6Wresearch
Over the last few years, the relatively slow economic growth in several Latin American countries resulted in uncertainty amongst private investors is committing to new infrastructural projects. Due to this, countries such as Brazil, Mexico and Argentina experienced poor growth in construction leading to decline in demand for commercial air conditioners. However, governments have responded by setting new infrastructure targets and laws to increase project procurement transparency and reduce the risk for the private sector. This is expected to have a positive impact on the construction sector and therefore, increase the demand for commercial air conditioners in the region over the coming years.
According to 6Wresearch, Latin America commercial air conditioner market size is projected to grow at a CAGR of 2.3% during 2019–2025. Rejuvenation construction activities in countries such as Brazil and Mexico on account of public-private partnerships (PPP) is one of the primary growth factors for the commercial air conditioner market in Latin America. While improving economic conditions would allow a modest revival in the commercial and industrial sectors, the expansion of commercial spaces, new office floor space, corporate hubs, special economic zones (SEZs), and organized retail outlets would further drive the demand for commercial air conditioners across many Latin American countries.
According to Akshay Thakur, Senior Research Analyst, Research and Consulting, 6Wresearch, "Development of public infrastructure constitutes the largest share in the overall construction market in Latin America, accounting for almost half of the construction spending in the region. While large regional economies, such as Brazil and Argentina, are anticipated to remain in economic distress, even in 2019, the Latin American construction spending is expected to start showing signs of recovery from 2020. Progressive economic improvement and infrastructure investment supported by a robust PPP framework would help in the strengthening of construction sector in the region.”
According to Prateek Gupta, Research Analyst, Research and Consulting, 6Wresearch, “By applications, chillers, VRFs and rooftop packaged units were the major revenue generating segments on account of significant deployment in infrastructural, retail and hospitality projects. Increasing demand for energy efficient air conditioners and growth in infrastructure, housing and commercial development would drive the growth of the commercial air conditioner market in the region."
“Additionally, chillers and VRFs are expected to gain stronger foothold in some Latin American countries over the next six years owing to expected recovery of government and private investment in the infrastructural projects in the region.” Prateek concluded.
Some of the major companies in the Latin America commercial air conditioner market include Daikin, LG, Midea, Trane and Johnson Controls.
“Latin America Commercial Air Conditioner Market (2019-2025)” report provides an in-depth analysis with 132 figures and 6 tables covered in more than 120 pages. The report estimates and forecast the overall Latin America commercial air conditioner market revenues by types, applications and countries. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.