[China Refrigeration Network] 2019 is gradually drawing to a close, and production and sales of fully sealed piston compressors continue to grow. Industrial online statistics show that 139.367 million units of fully sealed piston compressors were produced in the first three quarters, up 10.0% year on year. Sales of 139.288 million units increased by 8.3% year-on-year, a further increase from the 5.2% growth rate in 2018.
Faced with the slow growth of the downstream refrigerator and freezer market, all sealed piston compressor enterprises have done all they can to actively explore foreign markets, and at the same time continue to innovate in the subdivided product areas.
High Export Drives Industry Growth
China is the world's largest producer of fully sealed piston compressors. judging from the global production capacity, China's production capacity of fully sealed piston compressors in 2019 is close to 260 million units, accounting for 70% of the global market share. The proportion of sales volume in the global market is also increasing year by year.
In 2019, the domestic sales growth rate of fully sealed piston compressors is relatively stable, basically maintaining at about 4%. While steadily supplying the domestic market, the enterprises in the industry continued to expand their overseas markets and their exports increased significantly. From January to September 2019, they exported 50.208 million fully sealed piston compressors, up 16.7% year-on-year, further weakening the seasonal characteristics.
From the point of view of export regions, the export volume of all continents has increased to varying degrees. Part of this is due to the increase in the overall production of refrigerators and freezers in some countries. The other part is that China's fully sealed piston compressor enterprises pay more attention to the improvement and upgrading of product quality, seizing the market share of other foreign brands with high cost performance and other advantages.
From a country-by-country perspective, most of the top 15 export countries have increased to varying degrees. It is worth noting that the uncertainty brought about by the Sino-US trade war has increased. Compressors exported to North America as a whole have increased by nearly 25%, of which those exported to Mexico have increased by nearly 70% and those exported to the United States have decreased by 18% year on year.
January-September 2019 Top 15 Countries with Fully Sealed Piston Compressors for Export and Their GrowthSource: Industry Online
Judging from the performance of major enterprises, Anhui gmcc is a dark horse compared with En Blaco, which has a global layout, and Kasibera, which has already opened up the US market. The compressor export data to the US has increased sharply, accounting for 15% of the industry's export to the US, and the proportion has risen to be close to that of En Blaco. Although the profit of the models exported from Anhui gmcc to North America is low, they have opened up the North American market and sold at a small profit.
Frequency Conversion and Light Business Leading the Market Segment
In terms of subdivided product markets, the sales growth rate of variable frequency compressors and light commercial compressors both maintained double-digit growth.
Frequency conversion field
In recent years, energy-saving and fresh-keeping intelligent high-end variable-frequency refrigerators have gradually become the mainstream trend. As the "heart" of variable-frequency refrigerators, the demand for variable-frequency fully-enclosed piston compressors has further increased, while promoting the iterative upgrading of variable-frequency compressors. According to industry online statistics, from January to September 2019, 25.61 million units of variable frequency fully sealed piston compressors were sold, up 27.6% year on year, of which about 45% of variable frequency compressors were used for export.
Comparison of Sales Increase of Variable Frequency Compressor and Constant Speed Compressor from 2015 to 2019
Source: Industry Online
The growth rate of variable frequency compressor has slowed down in the past two years, but the development trend of variable frequency compressor is recognized by the industry. The energy-saving target of 2019 "Electrical Appliance Technology Road Map" shows that the energy efficiency level of refrigerators will be 25% higher than that of 2019 by 2025, and the usage proportion of variable frequency compressor will reach 50%. In the future, variable frequency refrigerators still have a large growth space.
Every compressor enterprise has made every effort in the frequency conversion upgrade iteration:
Dongbei launched a more efficient VDU series variable frequency compressor at the end of 2018, filling the gap of 240-400 L variable frequency refrigerators in China.
Kasibela released a new generation of VM+ inverter compressor at the end of 2018. The product has many advantages, such as ultra-low noise, wide cooling capacity range, accurate control, small speed fluctuation, etc. It is also planned to add a special inverter production line in 2019.
En Blaco showed a new solution VESG9C on 2019AWE, improving refrigerator energy efficiency by 40%.
On August 30, Anhui gmcc released a series of fresh cores for special compressors for high-efficiency variable-frequency refrigerators. A 3 million-capacity hybrid line will be added next year to produce fixed frequency conversion.
Light business field
In recent years, the light commercial refrigeration equipment industry has maintained a stable growth trend driven by the rapid growth of small formats such as boutique supermarkets and community supermarkets and the rapid development of new retail. As the core component of the compressor, the light commercial fully sealed piston compressor market has also maintained a double-digit sustained and stable growth.
From January to September 2019, 9.58 million light commercial compressors were sold, up 20% year on year, ahead of the industry as a whole and domestic products. Among them, about 90% of light commercial compressors are sold in China.
At present, the overall market scale of light commercial compressors is still relatively small, but with the development of China's economy and the continuous improvement of consumer quality, the demand for light commercial refrigeration equipment products will also continue to grow, and the market potential of light commercial compressors will be large in the future.
Comparison of Sales Growth of Young Commercial Compressors and Domestic Compressors from 2015 to 2019
Source: Industry Online
In the application of refrigerants in the field of light commercial refrigeration equipment, R290, a new environmentally friendly refrigerant with the greatest potential for development, has received extensive attention. According to industry online data statistics, the proportion of R290 refrigerant used in 2018 young commercial compressors is 28%, and the proportion of R290 refrigerant used in 2019 light commercial compressors is expected to be about 34%.
The replacement of R290 refrigerant is being carried out step by step, and R134a and R404A will still dominate the light commercial compressors in the short term. With the implementation of various environmental protection policies, R290 will usher in rapid development.
According to the Kigali amendment, which will come into effect in 2019, R134a and R404A will be gradually reduced. The International Electrotechnical Commission (IEC) announced approval on May 9 to increase the filling limit of A3 (flammable) refrigerant from 150 grams to 500 grams. U.S. Environmental Protection Agency (EPA) announced that starting from January 1, 2021, R134a refrigerant is prohibited from being used in newly produced household refrigerators and freezers, and R404A and R507A refrigerants are prohibited from being used in newly produced food retail refrigeration equipment. All these will push forward the pace of conversion of refrigerants for light commercial refrigeration equipment to R290.
With the increasing demand for light commercial compressors and the deepening research on R290 application technology, domestic compressor enterprises are paying close attention to this field and are constantly enriching the types of light commercial compressors:
EnBlaco Commercial Compressor, which is used in light commercial fields such as food display, food retail and food service, showed EH brand-new intercooling R290 platform, NJX series single cylinder 2HP compressor and FMFT brand-new commercial variable frequency compressor at the commercial roadshow in July this year.
In October this year, Changhong Huayi's China Business Research and Development Center was established in Kasibera.
Dongbei developed a new generation of NE, NCT and other series of light commercial compressors as well as a new NV series of commercial products this year, and developed a VC series of DC vehicle-mounted variable frequency compressors for mobile refrigeration equipment.
On the basis of the continuous growth of exports and the continuous digging of subdivided fields, the industry online predicted that the whole piston compressor industry would continue to grow in the fourth quarter, with the industry sales increasing by about 8% year-on-year.