Emerging Markets Leadโ the Charge in Efficient Air Conditioning Technology
Aโข surge inโค demand โฃfor air conditioning, particularly in rapidly developing economies,โ is driving innovation in energy-efficient cooling technologies. while โACโ ownership is rising โglobally โฃ- reachingโ a record 171 units โperโฃ 100 urban households โinโ China by the endโ of โ2023, up from under 150 in 2020, and projected to increase nine-fold across Southeast Asia between 2020 and 2040 โ- emerging market manufacturers are increasingly at โขthe forefront of developing โขsolutions to mitigate the associated energy strain.China,โ india, โandโ Indonesia are anticipated to account for nearly half of the world’s growth โขin โcooling energyโข demandโข by mid-century. This demand โis already creating challenges,with increased AC โuse causing critically important spikes in โคelectricity demandโ and threatening grid stability,especially โขin regionsโ with vulnerable โขinfrastructure. In China, electricityโ demand growthโ due to airโข coolingโฃ doubled between August and September 2024 compared to the same period last โฃyear.
However,this โฃpressure is fostering a wave of innovation,withโ companies basedโ in the emerging world gaining aโฃ competitive edge. According to thinktank Ember, โขChina nowโข dominates the global AC market, โcapturing over halfโฃ of units โsold and installed capacityโ in 2024, aโ ampleโค increaseโข from 36% in 2017.
A key development is the widespread adoption of inverter technology. Unlike traditional โAC โคunitsโค that rely on single-speed compressors -โข operating โsimply on or โฃoff – inverter ACs utilize advancedโ technology to โadjust compressorโ motor speed, โคdelivering onyl the necessary cooling. This results in energy savings of 60-70% compared to fixed-speed models (based on dataโ from Daikin and LG).
This โขshift is โคparticularly evident in China, where โคstringentโค minimum energy performance standards (MEPS) forโ room air conditioners, updated in 2020, areโข driving rapid โฃmarket change. A โsurvey revealed โฃthe domestic market quickly responded, โฃwith the shareโข of inverter ACs jumping from โข53% in 2017 โฃto 95% โคin 2021.
Chinese firms like Gree Electric Appliances, Midea, and AUX Group areโ leading the charge in developing and deploying these โefficient inverter โคmodels. Simultaneously occurring, South korean giants LG and Samsung are also investing in advanced cooling โขsolutions, including dual inverterโค and AI-powered systems, alongside smart connectivity and โขintegrated air purification features. โค
These developments highlight a โgrowing trend: emerging โขmarkets are not simply consumers โof cooling technology, but โคincreasingly, innovators driving the โdevelopment of adaptation and resilience technologies crucial for a sustainable future.