(CBN - Global) May 13 -- China's central air conditioner market capacity was CNY68 billion (USD10.43 billion) last year, down nearly seven percent year-on-year. However, the residential central air conditioning segment performed well.
Midea Group's commercial central air conditioning sales had limited growth last year, but sales of household central air conditioners increased over 70 percent, according to Mr. Huang Guoqiang, Marketing Manager at Midea's Central Air Conditioner Division.
The penetration of central air conditioners in homes in developed countries such as Japan has reached 70 percent. By contrast, penetration in China is less than 10 percent, indicating enormous market potential.
Midea Group Co., Gree Electric Appliances Inc., Haier Electronics Group Co. and Hisense Co. have all increased investment into the household central air conditioner market, CNB has learnt. Midea currently has more than 2,300 stores selling household central air conditioner products in China. Gree and Midea's smart home technologies include household central air conditioners.
Haier's premium brand Casarte, which focuses on artistic consumer electric appliances, is also preparing to enter the central air conditioner market and will first launch household central air conditioner products, the company stated.
Foreign firms such as Osaka-based Daikin Industries Ltd. and Wisconsin-based Johnson Controls Inc.'s have also stepped up operations in the field and plan to increase their number of stores in China.