BANGKOK – Thailand is experiencing hotter weather than last year, with the Meteorological Department predicting that the average maximum temperature could reach 45 degrees Celsius. This has led to a surge in demand for air conditioners.
Mr. Amnaj Singhanchan, Marketing Manager of LG Electronics (Thailand) Co., Ltd., said that the air conditioner market in 2024 is expected to be worth 34,327 million baht, a 20 percent growth from 2023, which was worth 28,606 million baht. This is the second consecutive year of growth after the market contracted for three consecutive years (2020-2022) due to the COVID-19 pandemic.
LG estimates that energy-efficient air conditioners will be in high demand, especially after the Electricity Generating Authority of Thailand (EGAT) promoted the use of new No. 5 energy-saving label products. This has made consumers more aware of the difference in electricity costs between old air conditioners and new models. This has stimulated the purchase of replacements for old units, as well as the purchase of first-time air conditioners or additional units.
Many retailers expect demand to be higher this year due to the hot and prolonged weather. This could lead to sales continuing into June, which is about a month longer than the usual end of May.
Mr. Warut Lekajirakul, Assistant General Manager of Marketing at Siam Daikin Sales Co., Ltd., said that the low-priced air conditioner segment, such as 12,000 BTU inverter air conditioners priced below 16,000 baht, which accounts for 45 percent of the total market, will be another segment with high demand and high competition.
Part of the reason is that new Chinese air conditioner brands have set up factories in Thailand and are selling their products at low prices through e-commerce platforms. This coincides with the economic downturn and weak purchasing power, which has caused both mass and middle class consumers to be more cautious in their spending. As a result, they are turning to cheap air conditioners.
A survey by Prachachat Business revealed that there are currently a large number of Chinese air conditioner brands in the market, such as Gree, Haier, Candy, Midea, Hisense, etc. They have begun to invest heavily in marketing to increase awareness and are gradually carrying out promotional activities to promote sales.
Previously, they were not very active in marketing. For example, Gree advertises the GREE Luxuri series on the MRT electric train and Midea has hired the famous boxer “Buakaw Banchamek” as a presenter.
Mr. Pirapan Salirathavibhaga Deputy Prime Minister and Minister of Energy, said that on March 7, 2024, the highest electricity consumption (peak) of the year was recorded at 32,704 megawatts at 7:47 p.m. due to the earlier start of the summer season. The amount of electricity consumption is expected to continue to increase during the summer season. This year’s peak is considered to be quite early compared to last year, which was on 6 May 2023 at 9:41 p.m. at 34,826 megawatts.
“I have instructed the relevant authorities, particularly EGAT, to review and maintain the power generation system so that it can meet the needs of all sectors, both domestic and industrial, and avoid blackouts. It is important that people and businesses are not affected,” he said.
