Thailand's Air Conditioner Market Grows by 30% Amid Rising Temperatures

Thailand: High temperatures are expected to drive a significant increase in air conditioner sales and maintenance in Thailand, with the market projected to grow by 30% this year, according to TCL Electronics, a Chinese consumer electronics manufacturer. From May to July, the nationwide average temperature is anticipated to be 1°C higher than the historical average, with Upper Thailand experiencing mean maximum temperatures between 34-36°C, as reported by the Thai Meteorological Department.

Despite these favourable conditions, Thailand's high household debt levels remain a concern. The country's household debt-to-GDP ratio stood at 91.3% in the fourth quarter of 2023, according to the National Economic and Social Development Council. High household debt may impact consumer purchasing power, but the intense heat could prompt people to allocate their budget for air conditioners.

To support consumers, TCL Electronics is collaborating with financial institutions and distribution channels to offer promotions such as instalment payment plans. The air conditioner market in Thailand was valued at 28-billion-baht (USD 760 million) last year, and in the first quarter of 2024, it grew by approximately 20% in value.

The industry is also facing rising costs due to increases in prices for copper, aluminium, and sea freight, leading manufacturers to avoid price war campaigns. However, the anticipated demand from the extreme heat is expected to boost the market significantly.

TCL Electronics plans to construct a new air conditioner factory in Thailand to serve both local and international markets. The company's air conditioner sales reached around 1.6 billion baht (USD 43.5 million) last year.

Source: Bangkok Post