According to industry sources on the 5th, SamsungElectronics’ air conditioner sales in the European market grew by double digits in the first half of this year compared to the same period last year. In particular, the company recorded double-digit sales growth rates in major countries such as Italy, Spain, and France.
As air conditioner penetration rates in Europe have historically been relatively low, demand for new installations is growing rapidly amid repeated heat waves. However, due to the large number of existing buildings and historic sites, installing outdoor units and running ductwork is challenging, and installation costs often run into the tens of millions of won. Consequently, demand is growing for products that offer ease of installation and space efficiency.
Taking these market characteristics into account, SamsungElectronics is strengthening its push into the European market by focusing on premium residential Wind-Free air conditioners and large-scale commercial system air conditioners. A prime example is the high-efficiency heating and cooling solution supplied last April to the “Hotel Marriott Trieste” in Trieste, Italy.
The hotel is housed in the historic “Palazzo Fulle,” which was remodeled with the requirement to preserve its heritage features while installing heating and cooling equipment. SamsungElectronics installed the “Wind-Free 4-Way Ceiling Cassette,” featuring a compact design just 204 mm high, to maximize space utilization and minimize damage to the heritage site.
The “DVM S2+ (R32)” large-scale system air conditioner outdoor unit, supplied alongside the indoor units, can connect up to 64 indoor units to a single outdoor unit, thereby reducing the installation footprint and minimizing impact on the building’s exterior. SamsungElectronics supplied the “DVM S2 (R410A)” large-scale system air conditioner outdoor unit and the “Wind-Free 1-Way Ceiling Cassette” commercial system air conditioner to the “Hotel Esmeralda” in Calpe, Spain.
LGELECTRONICS is also targeting the European market by launching easy-to-install portable air conditioners locally. Demand for portable air conditioners is steadily increasing in the European market, where there are many existing buildings, as they do not require outdoor unit installation or large-scale piping work. LGELECTRONICS reported a roughly 20% increase in residential air conditioner sales in Southern Europe and a roughly 10% increase in Western Europe, including Germany and France. In particular, residential air conditioner sales are reported to have recorded double-digit growth since June.
SHINIL ELECTRONICS is also focusing on portable industrial air conditioners that can be used in a variety of locations because they do not require an outdoor unit. These units feature powerful cooling performance of up to 5,150 W (watts) based on a three-outlet configuration. Since the cooling outlet can be extended up to 9 meters, it can be widely used in spaces where installing an air conditioner is difficult. PASECO CO.LTD is also focusing on window-type air conditioners that do not require an outdoor unit as it works to enter the European market. Exports to France were successfully completed in the first quarter of this year.
However, penetrating the European market is not without its challenges. This is because Chinese appliance manufacturers such as Midea, Haier, and Gree are rapidly dominating the market by leveraging their price competitiveness. While SamsungElectronics and LGELECTRONICS are maintaining their competitiveness in the premium product segment, Chinese appliance manufacturers are focusing on the value-for-money market with niche products tailored for Europe.Industry experts believe that Korean companies need to expand the development of locally tailored products that offer greater ease of installation and better space utilization. An official from the electronics industry stated, “In Europe, demand for air conditioners is steadily increasing due to recurring summer heatwaves, but price competition is also becoming increasingly fierce,” adding, “It is crucial to secure technology and product competitiveness tailored to the European market that can differentiate us from Chinese companies.”