Heatwaves in Europe boost China's AC industry

Heatwaves in Europe boost China's AC industry

China’s exports of air conditioners are seeing robust growth as unprecedented heatwaves sweep across Europe this summer, leading to surging demand for cooling appliances and prompting domestic household appliance manufacturers to make their products more intelligent and energy-efficient. Industry experts said the overall penetration rate of air conditioners in European countries is much lower than that of other major economies worldwide. About 20% of households in Europe are equipped with cooling equipment, with the figure standing at just 5% in the United Kingdom and 3% in Germany, respectively. But with scorching temperatures gripping much of the Northern Hemisphere, China’s leading home appliance makers have witnessed a significant rise in sales to Europe and have stepped up efforts to make forays into overseas markets to seek new sources of revenue. Data from the China Household Electrical Appliances Association show that China’s air conditioner exports to the European Union and the UK reached USD1.39 billion from January to May, up 20.25% year-on-year.

Hisense Group said that sales of its air conditioners achieved robust growth in many European countries such as Italy, Hungary and Spain in the first half of this year. Sales in Hungary doubled year-on-year during this period, while the turnover in Italy increased more than 20% on a yearly basis, and online sales in Spain soared approximately 42% from a year earlier. “The extreme weather is changing European consumers’ perception about air conditioning products and their willingness to purchase such items,” said Feng Xuezhi, General Manager of Hisense Europe’s air conditioning division. Feng noted that younger consumers and middle-income households have become the main forces bolstering the growth of sales as their acceptance of cooling devices is growing dramatically. “The European market has very high requirements for energy efficiency and environmental protection, which sets higher standards for the design and technology of our products,” he said. The company has been investing in fields such as high energy efficiency and low carbon to respond to European consumers’ concerns about energy conservation and air quality, he said, adding that it takes time for European consumers to build recognition and trust toward Chinese household appliance brands.

Hisense is strengthening cooperation with local retailers and e-commerce platforms in Europe, while also enhancing brand awareness and influence through sponsoring major sporting events such as the UEFA soccer championships, he said. “Chinese home appliance companies need to make systematic considerations in product research and development (R&D), marketing, channel management and after-sales service when expanding into the European market.”

Midea Group said its air conditioner sales in Europe skyrocketed 35% in the first six months, compared with the same period in 2024, while sales of its self-owned brands in France surged 68% year-on-year. Zhu Zhou, Director of Midea’s air conditioning division in Europe, said its artificial intelligence-powered air conditioners featuring energy-saving functions are gaining strong popularity among consumers in Greece, Cyprus, Spain and Italy. Zhu said the air conditioners can automatically monitor indoor temperature and humidity changes every 30 seconds and make predictions and adjustments based on historical weather, current electricity prices and users’ behaviors to achieve precise temperature control, thus reducing unnecessary energy consumption.

Due to extreme weather conditions, the inventory of air conditioners has significantly decreased driven by the sudden spike in demand from local consumers this summer, according to Gree Electric Appliances. The Zhuhai, Guangdong province-based home appliance manufacturer said its air conditioners are now available in 48 European countries, with sales of products equipped with AI and energy-saving technologies reporting sustained growth. The company has said it will consider localized production and operations in Europe to enhance the influence of its self- owned brands.

Haier Smart Home Co, a subsidiary of China’s largest home appliance manufacturer Haier Group, said that as global temperatures hit record highs, the cumulative sales of its air conditioners in Europe have increased about 30% year-on-year since the start of this year, while the transaction volume from retail channels in Italy and Spain has gained strong momentum. The company is committed to continuously improving the proportion of midrange and high-end products, while also expanding its sales networks in Italy and Spain. Experts said intelligent and high-end home appliances with high energy efficiency and high cost-effectiveness are increasingly favored by European consumers. Data from ChinaIOL.com show that Chinese exports of air conditioners stood at 49.25 million units from January to May, an increase of 11.3% year-on-year. Conditioner exports to Europe rose about 20% year-on-year in the first five months of the year. China accounts for nearly 80% of the global air conditioning production capacity, the China Daily reports.