Due to the rising middle-class population, the market for Air Conditioners in Bangladesh is growing year on year. Besides, the increasing number of houses, buildings, apartments, and urbanization comprises Air Conditioners’ demand.
The AC market is highly competitive and also fragmented with the participation of domestic and international market participants. However, amid the Coronavirus outbreak in the early stage of 2020, it was a challenging year for the AC industry.
This report from Bikroy.com focuses on the Air Conditioner buying and selling trends in Bangladesh based on the data collected in 2020. It provides an unbiased and detailed analysis of the ongoing trends, market drives, opportunities, which will help stakeholders to align market strategies according to the current and future AC market trends and AC price in Bangladesh. Let’s dig deep.
Air Conditioner Buying and Selling Trends
According to the report from Bikroy, in the last five years, the AC market has shot 30% higher in the last year. The industry is expected to witness massive growth due to the soaring temperature and humidity levels across the country, especially when the weather remains hot for almost 9 months across the year in Bangladesh.
Besides, the emergence of technologically advanced ACs, like inverter ACs or air purification technologies, is further anticipated to positively impact the AC market in upcoming years.
Where ACs are being used mostly?
Though the spread of COVID-19 disrupted the market demand and the supply chain in 2020, the market has shown good growth compared to a few years.
The major demand for Air Conditioners from Dhaka is due to the placement of rapid infrastructure development and the rising inclination of people toward the capital city. Dhaka dominates the market by rendering a 77% market share. Chittagong holds the second position with a 16% market share of AC. Sylhet and Khulna are the other markets where people are using AC, proclaiming 3% and 2% successively.
What are the top-selling AC brands?
To cope up with the hot climate, every summer the demand for Air Conditioners rises as a requirement for many. Bangladesh is among those countries where the need for AC always lies high on summer days, especially in metropolitan areas.
From the report of Bikroy.com, we can see that Midea has reached the first position by holding the market share of 43% alone and then there lies the other favorite brands like General, Gree, and Chigo with the market share of 18%, 15%, and 14% respectively.
Besides, the domestic brands are doing very well as they are providing quality parts, easy AC maintenance techniques, and after-sale services to their consumers. Vision, Walton, Minister, and Jamuna are a few of the popular brands among the people here in Bangladesh.
What should be the ideal budget for buying AC?
Over the years AC has become a vital gadget for modern Bangladeshi households and corporate houses. With sweltering heat in the summer, or the humid rainy season, or even in winters, AC often proves necessary throughout the year in our country.
If you look at the market to have a clear perception of the Air Conditioner price range, you can see that- ACs are popular at the price range of BDT 30,000- 40,000 and almost 26% of ads have been posted within this price range.
With 24% of the space, the second-highest AC price range is BDT 20,000-30,000. Those who are looking for ACs with air purification systems or inverters, surely need to set a price range of above BDT 50K, and this group has allocated 22% of the whole AC buying and selling trend.
Buying new ACs are on trend
With the evident effects of climate change, people planning to buy an AC are choosing the new ones. Besides, installing a new Air Conditioner ensures that you will need significantly less energy to cool your space.
Based on the data from Bikroy, we can see that most of the ads posted- which is almost 81% are for new Air Conditioners. While the remaining 19% of ads are about trading second-hand ACs.
How many tons of air conditioning is being used largely?
The first thing one needs to consider while installing an AC is the size of the room where it will be placed. You also can find online tools to measure your room size and it will show you the appropriate weight of the AC that would be sufficient for your room cooling.
Depending on the room size, window numbers, and sun-faced windows, customers mostly buy 1.5-ton ACs for use, which is covering 82% of the space of the whole AC trading. Where 10% and 8% ads are representing 2 Ton AC and 1 Ton Ac ads respectively.
Final Words
In addition to the numbers above, the industry is awaiting massive progress in 2021. Incentivizing investment in the domestic market might be the crucial link to float the industry in upcoming years.
In 2020, the pandemic has proven that online trading is way convenient, time-saving, and safe, and due to this, we hope the home appliance sector will get a movement towards e-commerce. Whatever the purchasing method is, having AC has now become a necessity rather than a luxury.
