Market Survey Report on the Air-conditioning and - Engineering ...

Overseas Information
Overseas <strong>Market</strong> Information
<strong>Market</strong> <strong>Survey</strong> <strong>Report</strong> on the Air-conditioning and Refrigeration Industry in Germany
Introduction
In 2005 the sector obtained a production value of approximately
9.8 Bln. Euro. There are approximately 230 companies representing
this particular segment of the industry employing more than
57.200 employees in Germany.
The market for the HVAC industry is expected to rise in the next
year due to good economic forecast for the coming year as well
as there are various issues in the field of energy are revisited by
the policy makers in Germany. Other contributing factor which
would seem to impact the market according to industry analyst
is the need for replacement of equipments which should been done
earlier but was not carried due to poor economic developments
in recent years. The integration of various policies of Governments
in the EU has led to regulations that which would impact the
development of the industry. Issues such as use of harmful chemicals,
health concerns in the work place, environment concerns would
eventfully have along term impact on the industry development.
Nature of the German Industry
The German refrigeration and air-conditioning market is a very
sophisticated industry. This industry’s development is led by
export, where the products from the industry is fed to the various
markets around the globe.
The German market for air-conditioning and refrigeration, the
largest in the EU, increased by approximately 2 per cent in 2004
and also the increase continued in 2005. Initially the demand
came from the various big projects that were undertaken in the
public sector generally known as public sector investment. This
was concentrated mainly in the eastern part of Germany. But as
the projects undertaken in the early 1990s came to be completed
the demand decreased and thereby impacting the industry progress.
But after some very lean period the industry is seen resurgent
activities which moderate gains in the last two years. As export
is the main driver majority of the production at home went to the
various destinations globally however there is a rise of construction
and the same is expected in the next years, raising the forecast
to be extremely positive.
Exports
The exports of the German air-conditioning and refrigeration equipment
are expected to perform better in the next two years. The
destination for exports are mainly to the European countries
which would be accounting for approximately about 65 per
cent, next followed by the markets of South East Asia and also
East Asia. These are major regions where the German’s exports
are concentrated.
Imports
It is estimated that the import market for air-conditioning and
refrigeration equipment would be approximately around Euro 4
to 4.5 billion.
Major trade statistics for products according to HS Code are
identified to give the imports as well the countries having
dominant position in Germany. The HS Code 7322, 8418, 8419,
8421 & 8479 would represent the products covered in the airconditioning
& refrigeration industry.
Import into Germany
Trade Statistics (Imports)
Germany/all Partners
For product 7322 in Year 2005
Product label : Radiators for central heating, non-electrically
heated, and parts thereof, of iron or steel; air heaters and hot-air
distributors, incl. distributors which can also distribute fresh or
conditioned air, non-electrically heated, incorporating a motordriven
fan or blower, and parts thereof, of iron or steel.
Import Value (1000 EURO)
Partners Year 2005
China 1 906.790
India 518.040
Japan 311.120
US 149.810
Switzerland 22 335.461
Turkey 14 323.480
Serbia 197.020
Serbia and Montenegro 106.470
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Overseas Information
For product 8418 in Year 2005
Product label : Refrigerators, freezers and other refrigerating or
freezing equipment, electric or other; heat pumps; parts thereof
(excl. air-conditioning machines of heading 8415)
Import Value (1000 EURO)
Partners Year 2005
Australia 759.810
Belarus 309.930
Brazil 7 021.090
Bulgaria 34 867.430
Canada 398.970
China 62 760.988
India 984.580
Hong Kong 4 436.270
Japan 8 707.320
Korea 38 366.641
Turkey 57 995.109
Romania 17 661.900
Switzerland 11 083.010
Thailand 2 265.740
United States 34 875.660
For product 8419 in Year 2005
Product label : Machinery, plant or laboratory equipment
whether or not electrically heated (excl. furnaces, ovens and
other equipment of heading 8514), for the treatment of materials
by a process involving a change of temperature such as heating,
cooking, roasting, distilling, rectifying, sterilising, pasteurising,
steaming, drying, evaporating, vaporising, condensing or
cooling (excl. those used for domestic purposes); instantaneous
or storage water heaters, non-electric; parts thereof
Import Value (1000 EURO)
Partners Year 2005
Australia 1 512.050
Brazil 11 058.410
Bulgaria 1 433.910
Canada 3 822.530
China 14 209.390
India 1 521.850
Japan 16 441.480
United States 136 330.953
Switzerland 203 065.828
Taiwan 3 199.990
For product 8421 in Year 2005
Product label : Centrifuges, incl. centrifugal dryers (excl. those for
isotope separation); filtering or purifying machinery and apparatus,
for liquids or gases; parts thereof (excl. artificial kidneys)
Import Value (1000 EURO)
Partners Year 2005
China 17 475.480
Canada 7 073.560
Japan 165 552.062
India 4 620.140
Switzerland 93 006.180
United States 103 328.797
For product 8479 in Year 2005
Product label : Machines and mechanical appliances having
individual functions, not specified or included elsewhere in this
chapter; parts thereof
Import Value (1000 EURO)
Partners Year 2005
Brazil 71 998.148
Canada 10 925.850
China 55 979.711
India 5 481.350
Japan 146 393.828
Korea 49 006.840
United States 244 749.500
It is observed that the share in the overall market segments in
dismal for India and there are ample scope of improvements.
Some of the major countries which have dominated the markets
in Germany are given below :
Countries of importance are Japan, France, Italy, Czech Republic,
Korea, United Kingdom, Switzerland & US.
Others which do not significantly influence the market but do
have some kind of share in Germany are Austria, Ireland, Poland,
The Netherlands, Denmark & China.
Some of the important product segments are identified as follows :
- Refrigeration products
- Refrigeration systems and components for building services,
commerce, industry and transport
- Refrigerants
- Refrigerated cabinets, cold storage cells and cooling units
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Overseas Information
- Tools and supplies for installation and servicing
- Disposal equipment for refrigerants and oils
- Fuels
- Heating, ventilation and air-conditioning products - Airconditioning
- Systems and components for room air-conditioning in the
low-and-medium power ranges
- Air-conditioners, split and multisplit units, VRF systems
- Room air-conditioning plants in the high-power range
- Cooling ceilings
- Systems for building cooling and heating
- Heat pumps
- Systems with gas-powered engines
- Sorption heating and air-conditioning systems
- Chillers
- Condensers and water re-coolers
- Anti-vibration fittings
- Heating, ventilation and air-conditioning products - Ventilation
products
- Systems and components for air movement, treatment and
distribution
- Central ventilation systems with heat/moisture recovery
- Air humidifying systems
- Air filtering, cleaning and conduction
- Fans
Some of the trend which are noticed in the market indicates that
the industry would pursue the directions in the following areas :
- Energy efficient systems and plants
-CO reduction equipment
2
- Heat pump technology
- Absorption equipment for medium and lower power range
- Gas-powered systems
- Air handling units
- Natural refrigerants (CO as a refrigerant)
2
-CO compressors
2
<strong>Market</strong> Overview
Central Plant ACR
The German central plant market is valued at approximately
US$ 470 million. It is the largest in Europe and accounts for
25 per cent of the total European German or European market.
The leading products by sales volume are chillers and air handling
units, followed by fan coils. The following table describes the
situation per product segment :
Product Situation
Chillers
The German market value is US$ 198 million and continues to
grow by 1.5 per cent per year. Only Spain and France have higher
growth rates. Over the past 4 years, the market has been number
three among the fastest growing chiller markets worldwide. In
Germany, commercial boiler plants are preferred over heat pump
systems. In 2003, about 6,000 chillers were sold in the market.
The predominant parts were air-cooled systems and compressor
systems, with nearly equal production between the segments of
100 kW.
Air Handling Units
Germany accounts for about 48 per cent of the US$ 600 million,
122,000 unit European market. Standard units dominate the market
with 72 per cent of the total sales volume. With regard to manufacturers,
the market is very fragmented with the German firms of Wolf,
AL-KO and GEA Happel controlling less than 50 with the German firms
of Wolf, AL-KO and GEA Happel controlling less than 50 per cent.
Fan Coils
This market is rather small. Only between 40,000 and 50,000 units
were sold in 2003. The 2-pipe system dominates the market and
ceiling concealed chassis units are the popular product for hotels
and offices.
Air Terminal Units
With total sales of US$ 64.4 million, Germany is one of the major
VAV (Variable Air Volume systems) markets in Europe. Fan assisted
Air Terminal Units account for the majority of the sales in the
German market.
Heat Exchangers
With 29 per cent of the US$ 3 billion European heat exchanger
market, Germany accounts for the largest share within that segment.
The heat exchanger market is expected to continue to grow
slightly in the future due to the continuous need for replacements,
as new technologies are increasingly accepted and demand is
growing. All-welded plate exchangers, for example, are increasingly
replacing tube heat exchangers, since these systems are easier to
use and have a higher tolerance to temperature and pressure.
Room Air-conditioning <strong>Market</strong>
75 per cent of all room air-conditioners sold in Germany are split
units. The other 25 per cent consists of compact, window, and
movable air-conditioning systems. With a total of 85,000 to
100,000 units sold, the German ACR market in this segment is
relatively small compared to its southern European neighbours.
Refrigeration Systems
The European and German refrigeration markets are rather mature
and growth potential is limited. Expected growth is modest and
will be driven primarily by natural refrigerant systems, which are
long-term, economic, environmentally friendly alternatives to
traditional systems that employ fluorocarbon gases. It is anticipated
that the introduction of natural refrigerants will provide growth
opportunities, as they can increase the demand for replacements.
Additionally, the market will be supported by upward trends in
the bakery sector, which requires professional refrigeration in
order to transport the semi-finished and uncooked products to
individual retailers.
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Overseas Information
Cold Ceilings
Since German customers typically prefer “silent cooling” (no
draft and noise), cold ceilings are very popular in Germany. An
estimated 400,000 to 500,000 square meters of cold ceiling are
installed in Germany each year. They are also highly regarded by
architects since they are discreet and can be disguised as
architectural features. Low operating costs are another benefit of
cold ceilings.
Target <strong>Market</strong>
Main end-users of German industrial air-conditioners and refrigeration
equipment continue to be the food industry and the retail
sector. German retail companies continue their expansion in
Europe, particularly in Eastern Europe, driven by competition
from larger US retailers in their attempt to maintain their market
share. Due to an exceptionally hot summer in 2003, when many
perishable goods were ruined, one of Germany’s major discounters,
Aldi Sued, ordered more than 1,100 ACR products for their
supermarket chain.
The food processing industry is followed by users in the chemical,
pharmaceutical, plastics, electronic/IT, and aerospace industries.
Private customers – Commercial Businesses
Germany still represents one of the least developed markets for
home air-conditioning systems. Private customers and small
businesses only account for about 4 per cent of annual sales. This
market depends heavily on the weather and is subject to strong
annual fluctuations. Summer in Germany is becoming more and
more severe and this has led to upswing in demand in the airconditioning
market in the otherwise lacklustre home segments.
However this market segment provides a high growth segment
as this is still a very untapped market. This market provides high
growth potential in the future, and is estimated to have around
16 million private homes as customers.
Lack of knowledge about air-conditioning systems is one of the
reasons that the market is developing rather slowly. Some of the
commercial and administered building are increasingly equipped
with air-conditioning equipment due to health and productivity
concerns. The following table provides an overview on the usage of
air-conditioning systems within commercial space in Germany :
Category : Air-Conditioned
Space in per cent
Office 20-30%
Retail 30%
Hotel Rooms 30%
Super markets 5%
Restaurants 5%
Hospital Rooms

Overseas Information
IKK : (Cooling, Air-conditioning and Ventilating). IKK, an annual
trade fair, has a focus on refrigeration, air-conditioning and
ventilating equipment. It is a very international event. More than
60 per cent of visitors and exhibitors are from foreign countries.
Another exhibition which is of importance to this industry is
held in Frankfurt know as ISH (focus on Building and Energy)
focuses on heating, plumbing and air-conditioning/ventilation
products.
Promotion and Publicity through Advertising in trade magazine.
Details on some specialised trade magazine for the air-conditioning
and refrigeration can be found at the following websites :
- www.cci-promotor.de
- www.gentnerverlag.de
- www.huethig.de
- www.bauverlag.de
Some important resource and website for the industry are as
follows :
Trade Associations
VDMA (German Association of Machinery and Plant Manufacturers) :
www.vdma.de
VDKF (Associations of Air-conditioning and Refrigeration
Equipment Installers) : www.vdkf.com
DKV (Cooling and Air-conditioning Equipment) : www.dkv.org
FGK (Air-conditioning for Buildings) : www.fgk.de
Some useful contacts in the Industry
Distributors of Air-conditioning Equipment
ACE KLIMATECHNIK GMBH
Berner Str. 43 60437
Frankfurt Am Main, Germany
Tel. : +49 (69) 50 70 20
Fax : +49 (69) 50 70 22 50
BECKER & HILSS KAELTE- UND KLIMATECHNIK GMBH
Brunnenstr. 1 61194 Niddatal, Germany
Tel. : +49 (6187) 252 60
Fax : +49 (6187) 221 74
BLECH TECH GMBH
Schönfelder Str. 6a 07973 Greiz, Germany
Tel. : +49 (3661) 710
Fax : +49 (3661) 712 06
COOL AIR-CONDITIONING GMBH
Eppendorfer Baum 39a 20249, Hamburg, Germany
Tel. : +49 (40) 423 13 30
Fax : +49 (40) 42 31 33 13
CTM CLIMATECHNIK MÜNCH GMBH
An Der Wachsfabrik 1 50996 Köln, Germany
Tel. : +49 (2236) 96 22 70
Fax : +49 (2236) 630 44
DINGFELDER+HADLER U. CO. GMBH
Brookstieg 13 22145 Stapelfeld, Germany
Tel. : +49 (40) 671 02 00
Fax : +49 (40) 67 10 20 55
EUROPEAN EXPORT TRADE CONSULTING
Heinrich-Heine-Str. 2 90537 Feucht, Germany
Tel. : +49 (9128) 21 25
Fax : +49 (9128) 83 25
FELLBACHER KUEHLANLAGEN TRUMPFHELLER GMBH
Ohmstr. 26 70736 Fellbach, Germany
Tel. : +49 (711) 58 26 98
Fax : +49 (711) 58 26 51
H.-J. LOJEWSKI GMBH & CO. KAELTE-UND
KLIMAANLAGEN KG
Am Hoffeldsgraben 22 32312 Lübbecke, Germany
Tel. : +49 (5741) 82 14
Fax : +49 (5741) 905 36
HAFNER-MUSCHLER GMBH & CO. KG
Mühlsteigstr. 6/1 72336 Balingen, Germany
Tel. : +49 (7433) 969 20
Fax : +49 (7433) 96 92 30
HAMANN & NEUMANN GMBH
Breithauptstr. 1 64404 Bickenbach, Germany
Tel. : +49 (6257) 695 34
Fax : +49 (6257) 695 36
HEUBERGER KÄLTE - KLIMA -
VERPFLEGUNGSAUTOMATEN GMBH
Bindlacher Str. 5 95448 Bayreuth, Germany
Tel. : +49 (921) 797 30
Fax : +49 (921) 79 73 23
HS-C. HEMPELMANN KG
Bayernstr. 6 30855 Langenhagen, Germany
Tel. : +49 (511) 74 09 31 55
Fax : +49 (511) 74 09 33 67
HTH GIESSEN HAUSTECHNISCHE HANDELSGES. MBH
Ursulum 7 35396 Gießen, Germany
Tel. : +49 (641) 94 01 20
Fax : +49 (641) 49 47 81
KAELTETECHNIK AIRCOOL GMBH
Sigmund-Riefler-Bogen 8 81829 München, Germany
Tel. : +49 (89) 357 14 50
Fax : +49 (89) 35 71 45 50
KIEFER GMBH LUFT- U. KLIMATECHNIK
Heilbronner Str. 380-396 Feuerbach 70469 Stuttgart, Germany
Tel. : +49 (711) 810 90
Fax : +49 (711) 810 92 05
KÄLTE KLIMA GRÄSSLIN GMBH
Kanderner Str. 59 79588 Efringen-Kirchen, Germany
Tel. : +49 (7628) 590
Fax : +49 (7628) 83 90
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Overseas Information
LENNOX DEUTSCHLAND GMBH
Karl-Arnold-Str. 4 47877 Willich, Germany
Tel. : +49 (69) 420 97 90
Fax : +49 (69) 42 09 79 40
OTMAR STOCKER
Heinrich-Hertz-Str. 9 88250 Weingarten, Germany
Tel. : +49 (751) 530 53
Fax : +49 (751) 536 49
RATHKE KÄLTE/KLIMATECHNIK GMBH
Carl-Feichtner-Ring 2 83714 Miesbach, Germany
Tel. : +49 (8025) 707 90
S & M SIMON UND MATZER GMBH & CO. KG
Lindenstr. 81 75175 Pforzheim, Germany
Tel. : +49 (7231) 35 60 36
Fax : +49 (7231) 35 66 00
SCHICK GRUPPE GMBH & CO KG
Wernerstr. 28 PF 301049 70469 Stuttgart, Germany
Tel. : +49 (711) 81 49 10
Fax : +49 (711) 814 91 13
UNIVERSAL-KLIMATECHNIK GMBH
Dreihäusergasse 16 60433, Frankfurt Am Main, Germany
Tel. : +49 (69) 72 00 76
Fax : +49 (69) 72 75 90
W & W WASSER UND WÄRME GMBH
Albert-Einstein-Str., 12 89584 Ehingen, Germany
Tel. : +49 (7391) 50 60
Fax : +49 (7391) 32 67
WILHELM GIENGER GMBH & CO. KG
Lise-Meitner-Str. 2 70806 Kornwestheim, Germany
Tel. : +49 (7154) 13 60
Fax : +49 (7154) 13 62 78
Distributors of Refrigeration Equipment
CONTRINEX GMBH
Lötscher Weg 78 41334 Nettetal, Germany
Tel. : +49 (2153) 737 40
Fax : +49 (2153) 73 74 10
DIETER HESS
Freiherr-Von-Stein-Str. 26 35216 Biedenkopf
Germany
Tel. : +49 (6461) 34 45
Fax : +49 (6461) 58 53
EPTA DEUTSCHLAND GMBH
Ludolf-Krehl-Str. 7-11 68167 Mannheim
Germany
Tel. : +49 (621) 128 10
Fax : +49 (621) 128 11 00
FLEISCHERRING EG
Straßburgstr. 8 PF 4110 97424 Schweinfurt, Germany
Tel. : +49 (9721) 650
GEORG BIRNER
Dorfstr. 2c 09569 Frankenstein, Germany
Tel. : +49 (37292) 209 16
Fax : +49 (96145) 240
HEFA KUEHLUNG EXNER U. AUMER OHG
Haidstr. 2 91217 Hersbruck, Germany
Tel. : +49 (9151) 49 08
KAELTETECHNIK AIRCOOL GMBH
Sigmund-Riefler-Bogen 8 81829 München, Germany
Tel. : +49 (89) 357 14 50
Fax : +49 (89) 35 71 45 50
KALBRUNNER & RAUSCH GMBH & CO. KÄLTETECHNIK
KG
Dieselstr. 2 69221 Dossenheim, Germany
Tel. : +49 (6221) 86 44 88
Fax : +49 (6221) 86 31 70
KÜHLANLAGEN GABLER
Kanzelwandweg 10 86199 Augsburg, Germany
Tel. : +49 (821) 921 73
Fax : +49 (821) 99 38 48
ONI-WÄRMETRAFO GMBH
Habbacher Str. 17 51789 Lindlar, Germany
Tel. : +49 (2266) 474 80
Fax : +49 (2266) 39 27
STETTNER KUEHLANLAGEN GMBH & CO. KG
Max-Planck-Str. 30 40699 Erkrath
Germany
Tel. : +49 (211) 540 05 40
T. K. V. KAELTE - UND KLIMAANLAGEN VERTRIEBSGES.
MBH
Kornwestheimer Str. 200 70825 Korntal-Münchingen
Germany
Tel. : +49 (7150) 946 50
Fax : +49 (7150) 94 65 50
TRANSPORT-KÄLTE-VERTRIEB GMBH
Himmelweiler 9 Industriegebiet Ulm-Nord 89081 Ulm
Germany
Tel. : +49 (731) 96 64 30
Fax : +49 (731) 966 43 40
ZIMMERMANN GMBH
Hauptschwendaer Str. 1 34626 Neukirchen
Germany
Tel. : +49 (6694) 960 20
Fax : +49 (6694) 96 02 22
DANFOSS GMBH
63073 Offenbach
Germany
Tel. : +49 (69) 890 20
Fax : +49 (69) 890 23 19
(Source : EEPC Duesseldorf Office)
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