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Hvac r
1.
HVAC-R INDUSTRY
Prepared by Tarhan SEZGİN 2006 Export Promotion Center of Turkey
2.
HVAC-R INDUSTRY Turkey has
Mediterranean climate, with hot summers and a cold winters. Both climates necessitate extensive air conditioning or heating. The Turkish companies involved in HVAC-R (Heating, Ventilation, Air-Conditioning- Refrigeration) products had started operating in the 50’s. Since the '50s, except during crisis periods, The Turkish air-conditioning and heating sector has been rapidly developing both in production and capacity and the market is growing. In fact, the increase in population and living standards has resulted in the need to produce more HVAC-R products. However, the actual market development began in the late 80’s. The number of companies and the type of equipment available on the Turkish HVAC-R market increased rapidly in the 90’s. This was also in line with positive developments in the economy of the country. Today, Turkey is the fifth largest HVAC-R market in Europe. The percentage of domestic air conditioners being used is assumed to be around 2% of the total population of 73 million people. Though air conditioning, as well as modern heating systems, is still considered a luxury by the majority of the population sales in larger urban centers or resort areas are growing. Turkish consumers who are always looking for new products, prefer to use home- produced HVAC-R products, though the Turkish market is wide-open to all world products. This in fact, leads to the success of the Turkish HVAC-R industry. Turkish HVAC-R producers have created their own brands, which lead to tight consumer-dependence in the domestic market and these brands are gaining ground in foreign markets, mainly in the EU countries. Major brands in the domestic market are: Arçelik, Beko, Aygaz, Demirdöküm, Profilo, Teba, Alarko and Vestel. In recent years, companies in the sector have begun to form joint ventures with global firms that they had previously represented for years, thus creating technology transfer opportunities both for Turkey and the HVAC-R sector. At the same time, the corporate activities of Turkish and international investors are opening the gates of international distribution and marketing. The sector is well organized under various associations. About 130 White Goods Parts and components supplier firms have been organized under the “White Goods Parts Suppliers Association of Turkey- BEYSAD”, and six major producers are members of the “White Goods Industrialists Association of Turkey-BESD”. In 1993, ISKID-Turkish Air-Conditioning & Refrigeration Manufacturers’ Association was established to ensure healthy, effective and systematic development of the air conditioning sector in Turkey. Today, ISKID has 49 member companies. The Turkish Heating/Cooling Research and Education Foundation (ISKAV) was established in December 1997. It has four purposes: to develop the HVAC market, to strengthen ties between universities and industrial establishments with a view to better- coordinated research and development, to raise the sector's technology to European Union standards, and to educate and train qualified assembly and service technicians. The Turkish HVAC-R sector has a wide range of products from heaters to split A/C systems, boilers, DX units, fan coils, air handling units, refrigerators, freezers, VRF © İGEME – Export Promotion Center of Turkey, 2006
3.
(Variable Refrigerant Flow
systems), cooling towers, chillers, cold rooms, heating and cooling coils and rooftop/packaged units, heaters and boilers. The product range is wide enough to supply world markets and satisfy sophisticated customer needs. According to HVAC-R production statistics provided by “Turkish Air-Conditioning & Refrigeration Manufacturers’ Association” (İSKİD) and the “White Goods Industrialists Association of Turkey” (BESD); window-type air conditioner production has steadily decreased to 2,000 units in 2004, while window-type air conditioner produced 10,000 units in 2001. It is known that window-type air conditioners have been replaced by split air conditioners. Mini split indoor units and outdoor units reached about 743,000 units and 722,000 units in 2004 with 90 % and 85 % growth. While previous year 28 units ducted split were produced in 2004 the production reached 165 units. The production of rooftop/package units is around 348 units in 2004. Most of the production is for exports. In 2004, 341 units were exported. The production of fan coil units has slowly increased as well in the last 3 years. In 2004, 45,662 fan coil units were produced in Turkey. The export of these goods has also improved considerably. This is probably due to the increasing number of Eurovent Certified Turkish manufacturers. Production and domestic sales of air-handling units is quite high in Turkey. In 2004, 30 thousand air-handling units were produced in the sector. In the market there are a large number of local producers, as well as major world producers. In sector there are very few absorption chiller unit producers but there are reasonable numbers of centrifugal chiller unit producers. Most of the chiller production is for less than 200 kW air-cooled units. In 2004, 223 units water chiller were produced. Air-cooled units are definitely the preferred types, while water-cooled units are mostly used on the large capacity applications. In recent years, refrigerator production has had shown an upward trend. While in 2002 and 2003, production of refrigerators were 3,3 million units and 4,2 million units, in 2004 production exceeded 5,3 million units, with 24% growth. Turkish HVAC-R Industry Production (Units) Products 2002 2003 2004 Window / Portable Air Conditioners 90 2,915 2,098 Mini Split (indoor unit) 214,282 392,360 743,478 Mini Split (outdoor unit) 211,687 390,143 721,823 Ducted Split 47 28 165 Rooftop / Packaged Units (DX) 40 110 348 Fan Coil Units 37,195 38,110 45,662 Air-Handling Unit (AHU) Sections 31,366 21,590 30,098 Water Chillers 258 239 223 Refrigerators 3,318,000 4,286,000 5,308,000 Sources : İSKİD and BESD © İGEME – Export Promotion Center of Turkey, 2006
4.
All of these
data in general show that there is a continuing positive trend for the HVAC-R market in Turkey. The exports at most of the above products have had a significant increase in the last years. The Split Air Conditioner domestic market has a lot of room for improvement. The central system equipment manufacture is also expected to continue growing steadily in the following years. The building sector has already shown promising signs of an increase in the need for air-conditioners in 2005. Since Turkish HVAC-R manufacturers give high priority to innovation and new product development, research and development activities are continuously conducted. Turkish HVAC-R manufacturers are also aware of the need to continue to implement procedures necessary for the acquisition of standardization certificates of ISO Standards, CE or Eurovent-Cecomaf. Recently a large number of Turkish manufacturers have affixed the CE Mark to their products for export to the EU. At the beginning of 2003, it became obligatory to fulfill CE Mark requirements in order to sell products in the Turkish domestic market. At the same time, Turkish HVAC-R manufacturers follow international and national developments in environmental issues closely and comply with environmental legislation and regulations. As to consumer services, end-users are well served by the after-sales services of the appliance manufacturers. The HVAC-R industry follows strict legislation on after-sales services in Turkey. Exports In the last decade, the HVAC-R sector of Turkey has turned its attention to exporting its products. The high-technology used in the production process, the high priority given to research and development activities by Turkish HVAC manufacturers, the rising number of Turkish firms which have ISO Certificates and quality standards, the consideration of customer preferences during the designing phase, the consideration of the priorities of the foreign end-users, improved marketing techniques used and well-established after sales services are the reasons for the continuous growth in exports in recent years. After the economic crisis of 2001, Turkish HVAC-R producers concentrated on the export markets. Thus, the HVAC-R industry was less affected by the crisis and the growth trend in production and exports of the sector has continued. Turkish exports of the HVAC-R industry have had an upward trend. While in 2003 and 2004, exports of the HVAC-R industry were valued at US$630 million and US$1 billion, in 2005 exports exceeded US$1.6 billion, with 64% growth. In 2005 the largest export product of the industry was refrigerators and freezers (US$913 million) with a share of 56%. In 2004 about 63.3 % of refrigerators and freezers production was exported. Turkish refrigerators and freezers export ranks eighth in the world exports and ranks fourth in the EU in 2004. The second largest was stoves, ranges, barbecues and braziers with an export value of US$285 million. Central heating boilers with an export value of US$125 million emerged as new products for export. The others were air conditioning machines (7%) and parts of vacuum pumps, compressors, fans, blowers (3%). © İGEME – Export Promotion Center of Turkey, 2006
5.
Turkey’s Exports of
HVAC-R Industry (Value: US$ 1000) HS % Share of Products 2003 2004 2005 Codes countries in 2005 Bulgaria (14), 732181- Domestic iron/steel Bosnia-Herzegovina 732182- liquid/solid fuel 20,769 24,872 27.935 (8), Algeria (5), Italy 732183 appliances (5), Albania (4) UK (14), Bulgaria Parts for domestic (9), France (9), 732190 non-electric thermic 6,430 7,619 8.201 Greece (9), appliances Romania (8) UK (33), Romania Stoves, ranges, (12), Greece (9), 7322 barbecues, braziers 140,997 226,041 285.586 Italy (7), Germany etc. (5) Italy (24), Germany Steam or vapour 8402 12,859 17,163 23.489 (10), Belgium (7), generating boilers Peru (5), TRNC (4) Germany (35), UK Central heating 8403 86,180 106,925 125.048 (15),Spain (14), Italy boilers, non-electric (12), Romania (4) Azerbaijan (7), Auxiliary plant for use Russia Fed. (6), Iraq 8404 1,579 1,083 3.998 with boilers (4), TRNC (3), Romania (2) Russia Fed. (22), Table, window, ceiling USA (12), France 841451 fans, electric motor 4,830 5,764 8.583 (11), Greece (11), <125 watt Romania (8) Germany (16), Electric fans, motor > Bulgaria (7), Russia 841459 6,640 7,098 8.761 125 watts Fed.(7), France (6), Ukraine (4) Germany (35), Ventilating hoods Russia Fed.(23), 841460 having a maximum 9,927 18,399 25.497 Italy (12), Israel (4), width < 120 cm Greece (3), USA (24), Russia Air or gas 841480 8,368 15,474 25.959 Fed.(10), France compressors, hoods (8), UK (4), Iraq (4) USA (18), Belgium Parts of vacuum (17), Germany (9), 841490 pumps, compressors, 14,883 23,137 43.923 Ireland (5), Thailand fans, blowers, hoods (4) Air conditioning Iraq (15), Spain 8415 75,931 98,777 110.139 machines, comprising (13), Nigeria (6), © İGEME – Export Promotion Center of Turkey, 2006
6.
a motor-driven fan
Italy (5), Bulgaria (4) and elements Furnace burners for Germany (44), liquid fuel or Azerbaijan (7), Iran 8416 3,593 3,561 6.558 pulverized solid fuel (4), Kazakhstan (4), or gas, Georgia (3) UK (11), France Refrigerators, (10), Spain (8), 8418 freezers, electric or 589,250 730,176 913.811 Germany (8), Iraq other, (7), Ukraine (21), Spain Instantaneous gas (17), Russia 841911 13,426 10,726 11.974 water heaters Fed.(13), Azerbaijan (10), Romania (9) Germany (14), Instantaneous or Morocco (12), 841919 storage water 1,929 3,411 4.155 Bulgaria (7), Spain heaters, non-electric (6), Iraq (5) Automatic beverage- Georgia (22), vending machines Kazakhstan (17), 847621 incorporating heating 4 13 22 Azerbaijan (8), or refrigerating Greece (5), Hungary devices (4) Automatic goods- vending machines 847681 incorporating heating 93 0 0 - or refrigerating devices, France (15), Evaporative air Morocco (11), Spain 847960 97 305 295 coolers (9), UAE (8), Ukraine (6) Electric Germany (39), Iraq instantaneous, (12), Austria (10), 851610 storage and 2,268 4,526 6.197 Afghanistan (8), immersion water TRNC (5) heaters Germany (35), Kazakhstan (33), Electric storage 851621 122 42 43 Turkmenistan (24), heating radiators Canada (3), Tajikistan (2) UK (14), Germany Total of the list 630,998 1,000,177 1.640.182 (10), France (7), Spain (7), Italy (7) *Turkish Republic of Northern Cyprus Source: Undersecretariat of Foreign Trade © İGEME – Export Promotion Center of Turkey, 2006
7.
Turkish HVAC-R industry
products were exported to about 149 countries in 2005. The European Union (25) has a share of 61% in the HVAC-R industry exports of Turkey. The main export markets are the UK, Germany, France, Spain and Italy. Turkish HVAC-R industry products are exhibited in international and local fairs organised in Turkey. In 2006, 6 fairs, which are listed below, will be organised in Turkey. “KONYA NATURALGAS” (Konya Natural Gas, Heating, Cooling, Air-Conditioning, Pumps, Valves, Installation and Insulation Equipment and Supplies Fair) in Konya in March, “Bursa Natural Gas” (Heating, Cooling Technologies and Installations Equipment Fair) in Bursa in March, “UNICERA” (International Ceramic and Bathroom Fair) in Istanbul in April, “ISK-SODEX” (International Sanitary and HVAC Exhibition) in Istanbul in May, “SODEX” (Kayseri Sanitary and HVAC Exhibition) in Kayseri in June, “TURKEYBUILD” (International Building and Construction Exhibition) in Ankara in September, © İGEME – Export Promotion Center of Turkey, 2006
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