he Indian airconditioning industry is on a high growth trajectory with an overall volume growth rate of 20–25 percent per annum

. In 2010, air conditioner sales were `7,200 crores at 3.88 million units, up from 2.8 million units in 2009. This growth rate is expected to be maintained in 2011 too. In fact, LG Electronics is targeting India as its largest air-conditioner market by next year, ahead of the current leader US. In 2010, India contributed 18 percent to the company’s global air conditioner revenues in 2010, while the US contribution was over 30 percent. The consumer is certainly not being shortchanged; he is at par with his global counterpart. The new range of ACs are spread across window, split, multi-split, inverter ACs, floor standing, cassette, and tower ACs, albeit the split segment dominates with 70 percent market share. Star rated, energy efficient models with superior features continue to rate high on consumer demand. Gaining from ongoing technological advances they have been transformed into products that can provide


Air Conditioners
health benefits as well. Korean models, Chinese imports and aggressive stance of Japanese players have maintained competitive pricing. This is set to be rationalized with an increase of 8–10 percent. Stiffening of commodity pricing like copper, aluminum, and steel coupled with high crude oil prices have increased logistics expenses. Growing affluent middle class population, robust economic growth coupled with the booming retail sector will ensure that the expectation of a 25-30 percent growth in 2011 is a reality for this segment.

Global scenario
While man’s desire to control the indoor environment led to the invention of air conditioning systems, growth in population, sturdy economic progress, industrialization, rising standards of living, affordability of technology, and increase in commercial applications have led to its rapid proliferation across the globe. Hitherto a luxury proposition limited to wealthy and prosperous layer of the society, comfort conditioning is fast becoming a necessity in

62 | TV VEOPAR JOURNAL | APRIL 11 | adi-media.com | An ADI Media Publication

Iran and Saudi were the only growth areas in the region. US demand for HVAC equipment is expected to rise over 7 percent a year through 2014. the global market for room air conditioners mainly used for individual rooms (ductless split.7 percent decrease compared with 2008. France 90 percent. In Western Europe.8 million units.4 million units were sold.2 million units.P. Global warming continues to remain a major factor propelling market demand. However.8 million units in volume sales by 2015. Asia-Pacific continues to be the largest regional market. a decline of more than 20 percent compared with 2008. In Japan. Haier Group. Depletion of ozone layer.. other regions will have modest growth. and unemployment has left many comfort and luxury product markets across the globe in a state of turmoil. there is a strong emphasis on larger-capacity chillers above 500 kW.9 percent over 2008. given the product’s status as a discretionary item. particularly in mature markets such as the US and Europe.. which is expected to steer the market in the next few years is the rapidly growing replacement need. As stated by the new market research report on the global air conditioning systems market. The global market is expected to recover poise and reach 78. Goodman Manufacturing Company. Gains will result from recovery in residential building construction expenditures. Advances in other developed areas.com | APRIL 11 | TV VEOPAR JOURNAL | 63 . The economic recession and subsequent trends such as job uncertainty. outside Dubai. Replacement demand is also generated by the consumers’ need to replace their existing air conditioning systems with quieter and more feature rich air conditioner models. favorable job market. Due to the nature of construction and the use of district cooling in many parts of the region.9 million units. with the trend moving towards scroll and screw compressors. This metamorphosis has opened a completely new world of opportunities for the air conditioning market. However. thereby adding to market gains. LG Electronics Inc. down 13. but at a less significant scale. almost the same as 2008. Some 11.. cutbacks in employee salaries. Hisense Group. GD Midea Holding Co. window units. as it promises to drive demand for energy efficient air conditioning systems such as inverter based air conditioners in the upcoming years. Panasonic Corporation.most of the nations. Key players in this marketplace include Airwell Group. as the recession made its impact felt. driving its increased sales. Purchase and use of air conditioning systems in both residential and commercial applications often goes hand in hand with the health of economy in a given country or region. cushioned impact of the global recession on regional economies. Electrolux AB. an increase in per capita income pushes up consumer demand for comfort living and eventually drives demand for high-value products such as air conditioning systems. Low-cost feature and ease of installation and maintenance adds to the attraction of room air conditioners. hope in the form of government driven focus on energy efficiency injects optimism among air conditioner manufacturers. Illustrative of this trend is the pal of gloom set over worldwide air conditioning systems markets against the backdrop of the recent economic recession. Lennox Industries Inc. Nordyne Inc. Mitsubishi Electric. and Italy 40 percent. Growth in Asia-Pacific is fuelled by factors such as rise in urban population. and the air conditioning market. Ltd. Daikin Industries. demand recedes rapidly as consumers quickly axe their spending on highpriced products. Inverter air conditioner energy saving advantages is obvious. will be minimal..9 million units were sold in Europe. reflecting high penetration rates and modest construction gains. which plummeted in 2009 due to the economic recession. Hitachi.8 million air conditioners were sold in the US. increased household gains and rising per capita incomes in countries such as China and India. Carrier Corporation. Given the growing focus on energy conservation. the room air conditioning systems market has been the largest market segment for air conditioning systems. Another major factor. Spain 45 percent. GE Appliances & Lighting. Reciprocating compressors continue to disappear from the majority of markets. In 2009. For instance. and global warming make up for the primary reasons that create the need for air conditioning systems. is no exception to this trend. L. especially in developing countries. 7. De’Longhi SpA. mini-split room air-conditioners will post solid gains due to the lack of ductwork in most European homes. There was an 11 percent decline in the Middle East region in particular. the demand for replacing old air conditioning systems with new energy efficient models will be on the rise. Although the fixed-frequency airconditioning dominates the segment. El Nino effect. especially in the residential segment. Rheem Manufactur- An ADI Media Publication | adi-media. About 4.4 percent decrease over 2008.. Detailed global sales data for 2010 is not available. such as Canada and Japan. while conversely in periods of slowdown. China strengthened its leading position with a market size of 28. and moveable type air conditioners) and packaged air conditioners mainly used for light commercial applications and whole houses (unitary air conditioners and ductless split PACs) was about 73. Sales in Asian countries not including China and Japan came to some 9. marking a 37. a 3. The foreign penetration rate of these is as high as in Japan upto 97 percent. inverter air conditioners are bound to become the future mainstream. By product. and resulting high income levels.

greater employee comfort or productivity. In humid climes. the US Government and 190 countries world-wide. Even the businesses and building owners that deem these technologies too expensive to install and maintain can be persuaded with a demonstration of the technology’s long-term returns on investment. Backed by the Environmental Protection Agency (EPA). evaporative cooling. and a fan blows air through the wet mesh to create humid.. consumers are increasingly basing their purchase decisions on the product’s environment friendliness and their ability to reduce energy costs and carbon footprints. However. Water flows over a mesh.com | An ADI Media Publication . reduced wastage. easy-to-navigate website. which. this enhanced environmental consciousness among consumers is compelling companies and industries to become more responsible corporate citizens and invest in green HVAC. there will be a ban on the production of HCFC. the impact of this phase out will include repairing the ozone layer and reducing the incidents of skin cancer and cataracts. Hydrochlorofluorocarbons. and lighting systems. Because R-22 has been the refrigerant of choice for residential air conditioning systems for over four decades. The cooling bumps up 64 | TV VEOPAR JOURNAL | APRIL 11 | adi-media. In hot places. Go Green With various governments implementing national or regional initiatives and programs to encourage energy conservation activities. The market is likely to register more than 10 percent growth annually until 2015 due to the increasing price of conventional energy. nongovernment organizations (NGOs). companies can also set themselves apart in their markets. lowers users’ electricity bills. “In the BAS sector. results in a by-product that contributes significantly to global warming. businesses. and lighting technologies can greatly improve the bottom line of the business. the evaporative cooler can bring down the temperature. There are no legal requirements to stop using HCFC in the existing air conditioner or other equipment and there is a lengthy phase out period which does provide time to switch to ozone-friendly refrigerants. Trane Inc. a great number of homeowners may be made aware of this phase out. The idea is to revolutionize cooling.” Refrigerants On January 1. BAS. provided that they are applied properly. The Green Building trend is breaking out of the confines of the Japanese market and is gaining currency in many other countries in the Asia Pacific. so consumers will need to rely solely on the recycled or reclaimed quantities to service any system that is in operation after this date. BAS. Whirlpool Corporation. “The HVAC segment has been using advanced technology that allow air conditioners to intelligently lower power levels once the ideal ambient temperature is reached. Releases of HCFC’s damage the ozone layer. building owners and facility managers are provided with a web-based BAS that unifies diverse equipment systems and control devices into a single. A proper policy framework and enforcements on green efforts and initiatives could also give a huge boost to the market. the green trend is taking off in a big way in the Asia Pacific.” says Frost & Sullivan Consultant Melvin Leong.. Samsung Electronics Corp.ing Company. energy and water savings. and the media. It uses membranes. “Green HVAC. in turn. education. we witnessed the largest and most dramatic change to the air conditioning industry that affects every one of us on this planet. Furthermore. 2010. starting in 2020. but not enough to make it pleasant inside on a 100-degree day or during the four to eight week monsoon season. January 1 marked the beginning of the phase out of hydrochloroflurocarbons. In addition. homeowners should be aware that supplies of HCFC that run the air conditioning system will be limited due to the phase out. Despite green technologies’ high costs. Sanden Corporation. and York International Corporation among others. The governments’ endeavors offer tremendous opportunities to technologists in the green and energy efficiency space. as well as lower operations and maintenance costs. Additionally. causing prices to rise. Evaporative coolers are a lower-cost alternative to airconditioning in dry climates that do not get too hot or humid. Sharp Corporation. By coming together. By advertising their green drives. In fact. “They generate financial benefits through energy efficiency. Toshiba Carrier Corporation. improved indoor environmental quality.” These benefits have to be conveyed using effective promotion. Latest developments The US Department of Energy’s National Renewable Energy Laboratory has invented a new air conditioning process with the potential of using 50 percent to 90 percent less energy than today’s top-of-the-line units. which shields the Earth from harmful ultraviolent radiation. and liquid desiccants in a way that has never been done before in the centuries-old science of removing heat from the air. Hot and humid climates are tricky. and public awareness programs through collaborations with all parties such as the government. cool air.” notes Leong. the air cannot absorb enough water to become cold. HCFC is a greenhouse gas and when manufactured. while removing millions of metric tons of carbon from the air. adding water to the air creates a hot and sticky building environment. are chemicals that are mainly used as refrigerants in the air conditioning industry. or HCFC such as R-22.

they have traditionally only been used in industrial drying processes. and NREL expects that over the next couple of years they will be working on making the device smaller and simpler and perfecting the heat transfer to make DEVap more cost effective. Principle Program Manager for Building Energy Research at NREL. By no means is the concept novel. NREL has patented the DEVap concept. DEVap: Liquid Desiccants. Most people know of desiccants as the pebble-sized handfuls that come with new shoes to keep them dry. It relies on the desiccants’ capacity to create dry air using heat and evaporative coolers’ capacity to take dry air and make cold air. The kind NREL uses are syrupy liquids – highly concentrated aqueous salt solutions of lithium chloride or calcium chloride. The membranes in the DEVap A/C are hydrophobic. The wet bulb temperature could be 75 or 80 degrees on a mid-summer day. desiccants. the lowest temperature to which air can be cooled by evaporating without changing the pressure.000 pounds of carbon dioxide. These result in an air conditioning system that provides superior comfort and humidity control. That’s based on the Environmental Protection Agency’s fuel efficiency rating for the 2010 Toyota Prius and on the standard of 19. This all happens in a fraction of a second as air flows through the DEVap air conditioner. However. A typical residential size AC has as much as 13 pounds of these refrigerants.against the wet bulb temperature. The air is cooled and dried from a hot-humid condition to a cold and dry condition all in one step. The desiccant and evaporative cooling effect work together and create cold-dry air. The water and liquid desiccant are brought into DEVap’s heat-mass exchanger core. That way. and can thus create very dry air. Willis Haviland Carrier.sensible cooling. Imagine rain falling on a freshly waxed car. They have a high affinity for water vapor. the NREL device uses thin membranes that simplify the process of integrating air flow.” said Ron Judkoff. it still does not provide cold air or humidity control. which is a temperature drop. DEVap uses 50 percent to 90 percent less energy than topof-the-line refrigeration-based air conditioning. for most of the country. Because DEVap uses salt solutions rather than refrigerants. “But we’d like to work with manufacturers to bring DEVap to market and create a more efficient and environmentally benign air conditioning product. It can be powered by natural gas or solar energy and uses very little electricity. Because of the complexity of desiccant cooling systems. “We’re never going to be in the air conditioner manufacturing business. Eventually. the Coolerado can cool the air all the way to the wet-bulb temperature. So. Typically. The release of this much refrigerant is equivalent to burning more than 1. Traditional air conditioners use a lot of electricity to run the refrigeration cycle. To solve that problem. or driving over 60. knew of its potential. A pound of CFC or HCFC in refrigerant-based ACs contributes as much to global warming as 2. in a humid climate. Cooling requires temperature drop and less moisture.com | APRIL 11 | TV VEOPAR JOURNAL | 65 . The DEVap solves that problem. Permeable Membranes. the idea of combining the two. temperate climates is the Coolerado cooler. Inventing a device simple enough for easy installation and maintenance is what has impaired desiccant cooling from entering into commercial and residential cooling markets.300 gallons of gasoline. This means that DEVap could become the most energy efficient way to cool your house in any climate. Indirect evaporative systems use a purge air stream that removes heat from the product or supply air stream that is then directed into a building. NREL will license the technology to industry.5 pounds of carbon dioxide for every gallon of gasoline burned. In fact. That property allows the membranes to control the liquid flows within the cooling core. refrigeration-based air conditioning is the preferred way of keeping cool. DEVap helps the environment in many ways. It differs from a typical evaporative cooler by never increasing the moisture content of the supply air. But no one has been able to come up with a practical and cost-effective way to do it. which comes from pulling the moisture out of the air. It is a big improvement on evaporative cooling because it does not add moisture and still gives cold air. there are no harmful chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs) to worry about. One intriguing product already on the market in arid. HVAC engineers have known for decades the value of desiccants to air conditioning. It provides cool air through indirect evaporative cooling. and latent cooling.” Research conducted in March 2011 An ADI Media Publication | adi-media. which means water tends to bead up rather than soak through the membranes. Cooling comes in two forms . It’s that property that keeps the water and the desiccant separated from the air stream.000 miles in a 2010 Toyota Prius. but DEVap replaces that refrigeration cycle with an absorption cycle that is thermally activated. The result is an air conditioner that controls both thermal and humidity loads. but opted to go the refrigeration route. one of the pioneers of early airconditioning. evaporative coolers only can bring the temperatures about 85 percent of the way to the wet bulb level. and evaporative cooling.