Daikin Plans to Start Manufacturing Unit for Air Conditioners in Vietnam
Vietnam: The
growing demand of air conditioners in Southeast Asia market is expected to
grow over USD93.6 billion and the plant will be situated in government
designated industrial zone. Daikin’s Production of air conditioner is expected
to start in 2018, with yearly capacity of around 500,000 air conditioner units.
The capacity of the air conditioner plant will increase approximately to 1
million units by 2020, which will be depending on demand in southeast Asia.
Daikin imports air conditioners to Vietnam, mainly from the air
conditioner factory in Thailand. Daikin’s production factory in Thailand had
been operating at full capacity since 2015, because of rising demand from
Vietnam and other Asian markets., But due to rapid growth in demand of air
conditioner the Daikin’s production in Thailand has failed to keep the pace of
supply.
According to TechSci Research, with a population is approximately
93 million in 2015, the country ranks third among the Southeast Asian Nations,
behind Indonesia and the Philippines. The growing demand of household air
conditioner in the Vietnamese market, is one of the biggest market in Southeast
Asian region, with estimated annual demand is 2 million units of air
conditioners. The sales of air conditioners in Vietnam are projected to grow at
an average of over 30% year-on-year. Daikin has more competition in maturing
markets at home, and in other developing & developed countries. Globally in
air conditioner market, Daikin is competing against China’s Gree Electric
Appliances, United Technologies of the U.S. and other multinational industry in
this segment. All the competing companies are also investing in Southeast Asian
market, due to growing demand of air conditioners.
According to a
recent report published by TechSci
Research, “Global Air Conditioners Market Forecast and
Opportunities, 2020”, global air
conditioner market is projected to grow at a CAGR of 8.5% during 2015-20. In
addition to the residential segment, growing hospitality and tourism sectors
are contributing significantly towards rising demand for air conditioners
across the globe. Introduction of energy-efficient air conditioners and air
conditioners with in-built air purifiers is expected to boost air conditioner
sales in the coming years. Split air conditioners dominated the global air
conditioners market over window air conditioners, and this trend is expected to
continue during the forecast period. The adoption of window air conditioners,
VRF system, chillers and portable air conditioners is also expected to grow
over the next five years. Few of the major air conditioner manufacturers with
significant global footprint include Gree, Daikin, Toshiba, Carrier, Midea, LG,
Panasonic and Trane.