In the first half of 2020, the full outbreak of the COVID-19 has brought great challenges to the global air conditioning market, and the interruption of cross regional trade caused serious negative impact on the global supply chain.
Affected by the COVID-19, global production activities and supply chains were affected to varying degrees in the first half of 2020. Chinese manufacturers were forced to close their factories for a period of time, and cargo transportation was also greatly restricted. But the impact varies among different countries and products. The air conditioning market in most countries experienced a significant decline in the second quarter of 2020, but the Chinese market began to gradually recover after experiencing a decline in the first quarter. Many people work from home at the suggestion of the government and use the saved transportation and entertainment expenses to purchase air conditioning during the summer, which brings opportunities for the development of the air conditioning market. This attitude has eased the impact of the epidemic on the market, which is particularly prominent in Europe.
The COVID-19 has the biggest impact on the light business market, including retail stores, cafes, restaurants, hotels and other leisure places, which mostly use split air conditioners or multi connected machines with a capacity of>5kW. Medical facilities have higher requirements for ventilation, and multi split units are usually installed together with fresh air systems. The demand for fresh air systems in office buildings is also increasing. In addition to creating a comfortable and safe working environment, the requirements for air quality in office buildings are also becoming higher and higher. With the growth of online sales, there is also a greater demand for air conditioning and fresh air systems in the warehousing industry. Encouraging education investment by some governments has also driven market development.
Overall, the mid to large commercial market has experienced a significant decline due to factory closures, supply chain disruptions, social disruptions, and workers' inability to return to work on time. Many HVAC companies have reported that a large number of projects have been postponed or put on hold.
The COVID-19 has posed a huge challenge to the HVAC industry, but it has also brought some new opportunities. The requirements for indoor environmental quality in residential and non residential scenarios are becoming increasingly high, and the demand for products with self-cleaning, ventilation, and air purification functions is significantly increasing.