- Portable split ACs drive export surge amid shortages across Europe
- Low AC ownership, installation barriers create growth opportunity
SteelDaily: An exceptional summer heatwave across Europe has sharply increased demand for Chinese-made air conditioners, turning them into must-have appliances in several markets. Portable split air conditioners, which do not require drilling through exterior walls for installation, are reportedly in particularly short supply, with some units selling at significant premiums on the secondary market.
In contrast, China’s domestic air conditioner market has stagnated, weighed down by persistent rainfall and weak consumer sentiment, highlighting a widening divergence between export and local demand.
According to China’s home appliance industry, shipments to Europe have surged in recent months, exhausting inventories across local distribution channels and prompting manufacturers to arrange emergency deliveries.
While European demand remains robust, sales in China have been subdued. Dealers in regions such as North China said shipments have remained at normal levels, while promotional campaigns have generated only limited sales.
Industry participants expect the European residential air conditioner market to retain long-term growth potential if hotter summers linked to El Nino-related weather patterns continue.
Chinese manufacturers ramp up production for Europe
With temperatures exceeding 40°C across parts of Europe, demand for cooling equipment has risen sharply.
Chinese media, citing customs data, reported that China’s air conditioner exports to the European Union increased significantly in the first half of 2026. Export value rose 43.2% y-o-y to $3.76 billion, while exports of portable air conditioners requiring no permanent installation jumped by more than 70%, driving overall growth.
Chinese appliance makers have benefited from the surge.
According to Midea Group, European B2B shipments of its PortaSplit portable split air conditioner exceeded 200,000 units in H1CY’26, more than doubling from a year earlier.
A Midea executive responsible for Europe said that, unlike in previous years when the company actively sought distributors, distributors are now approaching the company to secure supplies. To meet urgent orders, Midea is operating factories at full capacity and has shifted some shipments to China-Europe freight trains, reducing transit times by around 25 days compared with sea freight.
Gree Electric said retail sales of cooling appliances in France rose 50% y-o-y during January-June. Distributor inventories in France, Spain, and Portugal have been depleted, while installation appointments for wall-mounted air conditioners in France are fully booked until the end of August.
Hisense reported that revenue in Western Europe increased by more than 20% y-o-y during the first half. The company said inventories of portable air conditioners built ahead of the summer were sold out faster than expected, prompting production lines to move to 24-hour, two-shift operations.
Sichuan Changhong said its cumulative European shipments and revenue reached record highs during January-May, while TCL reported Western Europe revenue growth of more than 27% y-o-y in the second quarter.
Low penetration creates room for growth
Industry analysts believe Europe’s residential air conditioner market still has considerable growth potential. Household air conditioner penetration across Europe is estimated at around 20% and below 15% in countries such as Germany and France.
Historically, relatively mild summers reduced the need for cooling, while Europe’s older housing units created installation challenges. Many historic buildings prohibit drilling into exterior walls, and certified installation services are both expensive and difficult to secure. Installing a conventional wall-mounted air conditioner in Western Europe can cost several thousand euros and involve waiting periods of up to a month.
Portable split air conditioners have addressed these constraints. The units place the outdoor compressor outside a window and connect it to the indoor unit using a thin, flat refrigerant pipe that passes through the window opening without requiring structural modifications. They also offer lower noise levels and improved cooling efficiency compared with conventional portable units.
Midea’s window-mounted portable split model, designed with an outdoor unit weighing less than 10 kg and compliant with European environmental regulations, has become particularly popular. Some units have reportedly been resold for EUR 1,500-5,000, several times their official retail price, while dedicated websites have emerged in Germany to track inventory availability.
China’s domestic market remains subdued
Despite strong exports, China’s domestic air conditioner market has remained weak.
According to market research firm AVC, retail sales value across China’s air conditioner distribution channels fell 10.3% y-o-y in May. AVC attributed the decline to heavy discounting last year that hurt industry profitability, combined with prolonged rainfall across key consumption regions in southern China during the peak cooling season, which reduced demand.
Retailers in Guangxi also reported limited sales growth as cooler, rainy weather curbed purchases. However, data from Suning.com showed smart air conditioner sales in Xinjiang, Ningxia, and Henan increased 114%, 47%, and 26% m-o-m, respectively, in June.
AVC said while some late-season demand could emerge if northwestern China experiences the forecast summer heat in July and August, supported by replacement purchases of ageing units, the market is expected to weaken again afterwards. As a result, the firm said it remains difficult to take an optimistic view of China’s overall air conditioner sales in the second half of 2026.
Note: This article has been published as part of a content exchange agreement between SteelDaily and BigMint.
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