Digest №2 - Russian VAC/R market
Once in 2 weeks we will release a digest for you with current useful materials: articles, market researches, news, webinars, video-conferences – as the industry is continuing its development!
Today in our digest: a high increase of sales of VAC equipment in Russia, VAC market in Russia in 2019, trends of European HVAC/R market in 2020, financing and construction of low temperature warehouses
We continue to keep you up to date with market trends, current news, latest changes and innovations and help your professional development.
Our second digest is devoted to VAC/R sector. You will learn about the high increase in sales of VAC equipment in Russia and in Moscow particularly in 2020, analyze the results of the VAC/R sales in Russia in 2019, assess the level of financing and construction of refrigerated warehouses in Russia in 2020, read the REHVA Covid-19 guidance on how to operate and use building services in areas with a coronavirus outbreak to prevent the spread of COVID-19 depending on HVAC or plumbing systems related factors.
Moreover, you will read about current trends on the HVAC/R market in Europe and may take them into account when determining the strategy of your company development.
At the end of the digest, you will find interesting videos which help you learn more about the Russian mentality and important tips for better understanding between you and your Russian customers.
Growth in sales of HVAC equipment in Russia in 2020
Sales of equipment for creating a comfortable indoor microclimate increased several times in April compared to last year because of the self-isolation regime in the Russian Federation due to the spread of coronavirus.
“Analysts at AliExpress Russia noted an increase in sales of household appliances, which helps Russians make their homes more comfortable, cleaner and safer during self-isolation. In April this year, the category of air purifiers showed a significant increase: sales grew by 100% vs last year. The average bill grew by 30% vs 2019 - consumers became more concerned about choosing this home appliance during a pandemic,” noted in Aliexpress.
In addition to air purification, buyers also purchase humidifiers. The category showed an increase of 23% compared to the same period last year, the average bill grew by 8%. Sales of robotic vacuum cleaners grew by 35% compared to April last year, the average bill in the category grew by 15%. The company's experts note that customers have become more likely to purchase models with remote control, and wet cleaning has also become an important function.
Source (in Russian)
The demand for air conditioners and fans in Moscow has increased dramatically in May 2020
According to the fiscal data operator Platform OFD, fan sales in Moscow increased by 98% in quantitative and 136% in monetary terms from May 1 to May 20, 2020 vs the same period last year. The average bill amounted to 1.6 thousand rubles. Sales of split systems and other types of air conditioners grew by 132% in quantitative terms and by 116% in monetary terms. The average bill in this segment amounted to 17.2 thousand rubles, which is 10% less than last year.
In Russia as a whole, the number of fan purchases increased by 16%, sales increased by 30% in monetary terms. The number of purchases of split systems and other air conditioners decreased by 3%, but in monetary terms due to an increase in the average receipt, sales increased – by 7%.
There were many weather forecasts in May about the approaching abnormal heat, which may fuel consumer interest.
The increased demand for fans and air conditioners, in addition to the capital, was recorded in Novosibirsk and the regions of Siberia, where the weather was already hot in May.
Source (in Russian)
VAC market in Russia in 2019 – summing up the results
May and June in 2019 provided the Moscow market with an increase in sales compared to 2018. Much of the growth was due to the need to replace previously installed equipment, which provoked an early start to the season. When the fact of a malfunction of the air conditioner is revealed in May, they try not to postpone the problem until next year.
In the south of the country, the situation developed a little differently.
the heat occurred in the first summer month, when the difference between daytime and nighttime temperatures is maximum. The land, ponds and the buildings themselves have not yet warmed up, and at night you can sleep comfortably without air conditioning.
As a result, in two key markets of the Russian Federation, the dynamics of sales was multidirectional. In Moscow – an increase, in the south - a drop in sales.
But the coronavirus epidemic made some adjustments to the estimates. Its beginning was at the time of the holidays, dedicated to the Chinese New Year. As a result, a substantial part of the workers left their places of work in their small homeland and were unable to return due to quarantine. As a result, some enterprises could not resume work on time. This threatens delays in the supply of air conditioners in 2020. At the same time, the trend for market growth due to an increase in the number of replacements continued, plus deferred demand formed in most regions. These two facts will cause a stable demand in VAC equipment in Russia in 2020.
Trends of European HVAC/R market in 2020
Growing concerns about climate change are pushing the global market to switch to refrigerants with reduced global warming potential (GWP), including natural refrigerants. The fluorinated gas regulations require a 79% reduction in the use of HFCs from 2015 to 2030 to mitigate the effects of climate change.
The R32 is rapidly gaining popularity. In 2019, approximately 37% of all split systems used this refrigerant. Their share is expected to exceed 80% by 2023.
Representatives of the new generation give greater importance to sustainable solutions, which are not only more effective, but also have less impact on the environment.
HVAC industry solutions are becoming not only tailored to the needs of users, but also environmentally friendly. Intelligent air conditioning, economical heating or the use of renewable energy sources are already standard. Nevertheless, the process of automation and remote control is considered the most innovative direction.
Precision air conditioning is one of the hottest trends this year.
The segment of green commercial construction is developing dynamically, more and more environmentally friendly office buildings and shopping centers are being built.
Rising electricity prices will force investors to seek more cost-effective solutions. Getting energy from renewable sources is becoming more common, especially in modern enterprises that are trying to optimize costs in every possible way.
REHVA COVID-19 Guidance
As response to the coronavirus (COVID-19 or SARS-CoV-2) pandemic, REHVA experts drafted a guidance document on how to operate and use building services in areas with a coronavirus outbreak to prevent the spread of COVID-19 depending on HVAC or plumbing systems related factors.
This REHVA document has been updated (as of 3 April) and considers the best available evidence and knowledge to date, utilizing an ongoing Dutch literature review elaborated by dr. Francesco Franchimon, complemented by international REHVA experts as a joint effort.
The document includes:
- Latest information on the airborne transmission and implications to HVAC systems
- Ventilation continuous operation guideline
- SARS-CoV-2 stability data at different temperatures and relative humidity
- Heat recovery equipment guidance
- Guidance for room level circulation units
- HVAC maintenance personnel protection recommendation
- A summary of 14 points of practical measures for building services operation
The level of financing and volume of construction on the low temperature warehouse market in Russia
Hundreds of millions are invested in fruit refrigerated warehouses in Crimea this year.
Until the end of 2020, about 118 thousand square meters of refrigeration and freezing areas will appear in the Moscow region.
A large refrigeration complex for fruit storage is being built in Krasnodar.
Let’s watch together!
When doing business in Russia, you should take into account the Russian mentality to be on the same wavelength with your clients and partners and strengthen trustworthy business relationships with them.
Your one awkward movement or word can offend people from Russia and spoil negotiations.
We offer you to watch videos about the Russian habits you should adopt, Russian superstitions and found out what your actions can be considered annoying or strange in Russia. All this will contribute to better understanding between you and customers from Russia.
We are already in an active process of Aquatherm Moscow 2021 preparation and look forward to meeting and connecting you with the Russian buyers at our 25th international exhibition on February 2-5!
Aquatherm Moscow presents the AirVent section - specialised area for companies with VAC/R equipment. Exhibitors of this section get a special discounted price and a separate promotion among the Russian buyers interested in climate control equipment.