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| MS29002 |
| MSI AIR CONDITIONING EQUIPMENT : UK: 2002 |
This report covers: Air Conditioning, air conditioning equipment,
Companies covered include: Aggreko, Airedale International Air Conditioning, Daikin europe, Dean & Wood, De'Longhi, Dunham-Bush, Hitachi Europe, HRP, IMI, Lennox International, LG Electronics UK, Mitsubishi Electric Europe, Panasonic UK, Mitsubishi Electric Europe, Panasonic UK, Smiths Group, Toshiba Carrier UK, Trane (UK), Trox (UK) Wolseley, York International,

| 1 | Key Findings | 1 |
| 2 | INTRODUCTION | 3 |
| 2.1 | Definitions | 3 |
| 2.2 | Methodology | 5 |
| 2.3 | UK Economy | 5 |
| 2.3.1 | Overview | 5 |
| 2.3.2 | Interest Rates | 8 |
| 2.3.3 | Inflation | 9 |
| 2.3.4 | The Budget 2002 | 9 |
| 2.3.5 | Forecasts | 10 |
| 2.4 | Exchange Rates | 12 |
| 2.5 | Abbreviations | 12 |
| 3 | MARKET Size | 15 |
| 3.1 | Market Overview And Trends, 1997-2001 | 15 |
| 3.2 | Market Segmentation, 1997-2001 | 19 |
| 3.2.1 | Overview | 19 |
| 3.2.2 | Packaged Air Conditioning Equipment | 21 |
| 3.2.3 | Central Station Air Conditioning Equipment | 25 |
| 3.2.4 | Chilled Beams And Ceilings | 26 |
| 3.3 | Factors Affecting Demand | 27 |
| 3.4 | Forecast Market Overview And Trends, 2002-2006 | 31 |
| 3.4.1 | Overview | 31 |
| 3.5 | Forecast Market Segmentation, 2002-2006 | 34 |
| 3.5.1 | Overview | 34 |
| 3.5.2 | Packaged Air Conditioning Equipment | 35 |
| 3.5.3 | Central Station Air Conditioning Equipment | 38 |
| 3.5.4 | Chilled Beams And Ceilings | 39 |
| 4 | Distribution | 42 |
| 5 | Production | 46 |
| 5.1 | Overview | 46 |
| 5.2 | Critical Success Factors | 46 |
| 6 | International Trade | 48 |
| 6.1 | Imports | 48 |
| 6.1.1 | Overview | 48 |
| 6.1.2 | Import Penetration | 48 |
| 6.1.3 | Implications For Importers | 49 |
| 6.2 | Exports | 50 |
| 6.2.1 | Overview | 50 |
| 6.2.2 | Exports as a percentage of Production | 51 |
| 6.3 | Trade Deficit | 52 |
| 7 | INDUSTRY STRUCTURE | 53 |
| 7.1 | Overview | 53 |
| 7.2 | Company Profiles | 54 |
| 7.2.1 | Aggreko | 54 |
| 7.2.2 | Airedale International Air Conditioning | 56 |
| 7.2.3 | Daikin Europe | 57 |
| 7.2.4 | Dean & Wood | 58 |
| 7.2.5 | DeLonghi | 59 |
| 7.2.6 | Dunham-Bush (Europe) | 60 |
| 7.2.7 | Hitachi Europe | 61 |
| 7.2.8 | HRP | 62 |
| 7.2.9 | IMI | 63 |
| 7.2.10 | Lennox International | 65 |
| 7.2.11 | LG Electronics UK | 67 |
| 7.2.12 | Mitsubishi Electric Europe | 68 |
| 7.2.13 | Panasonic UK | 69 |
| 7.2.14 | Smiths Group | 70 |
| 7.2.15 | Toshiba Carrier UK | 72 |
| 7.2.16 | Trane (UK) | 74 |
| 7.2.17 | Trox (UK) | 75 |
| 7.2.18 | Wolseley | 77 |
| 7.2.19 | York International | 79 |
| 8 | MAGAZINE Addresses | 81 |
| 9 | Trade Association Addresses | 82 |
| 10 | TRADE FAIRS AND EXHIBITIONS | 84 |
| List of Tables | |
| 1. Economic Indicators On The UK Economy, 2000?2003 | 8 |
| 2. The UK Market For Air Conditioning Equipment, 1997-2001 | 15 |
| 3. Total Construction Output In Great Britain, By Type Of Work, 1997?2001 | 16 |
| 4. New Non-House BUilding Construction Output In Great Britain, By End User, 1997?2001 | 18 |
| 5. The UK Market For Air Conditioning Equipment, By Type, 1997-2001 | 19 |
| 6. The UK Market For Packaged Air Conditioning Equipment, By Type, 1997-2001 | 22 |
| 7. The UK Market For Central Station Air Conditioning Equipment, By Type, 1997?2001 | 25 |
| 8. The UK Market For Chilled Beams And Ceilings, 1997-2001 | 26 |
| 9. Forecast UK Market For Air Conditioning Equipment, 2002?2006 | 31 |
| 10. Forecast Total Construction Output In Great Britain, By Type Of Work, 2002?2006 | 32 |
| 11. Forecast Non-House Building Construction Output In Great Britain, By End User, 2002?2006 | 33 |
| 12. Forecast UK Market For Air Conditioning Equipment, By Type, 2002-2006 | 35 |
| 13. Forecast UK Market For Packaged Air Conditioning Equipment, By Type, 2002?2006 | 36 |
| 14. Forecast UK Market For Central Station Air Conditioning Equipment, By Type, 2002?2006 | 38 |
| 15. Forecast UK Market For Chilled Beams And Ceilings, 2002-2006 | 40 |
| 16. UK Distribution Of Packaged Air Conditioning Equipment, By Channel, 2001 | 43 |
| 17. UK Production Of Air Conditioning Equipment, 1997-2001 | 46 |
| 18. UK Imports Of Air Conditioning Equipment, 1997-2001 | 48 |
| 19. Import Penetration In The UK Air Conditioning Market, 1997-2001 | 49 |
| 20. UK Exports Of Air Conditioning Equipment, 1997-2001 | 51 |
| 21. UK Exports Of Air Conditioning Equipment As A percentage Of UK Production, 1997-2001 | 51 |
| 22. UK Trade Deficit In Air Conditioning Equipment, 1997-2001 | 52 |
| 23. Financial Summary Of Aggreko, 1997-2001 | 55 |
| 24. Aggrekos Turnover, By Geographical Region, 2000 And 2001 | 55 |
| 25. Financial Summary Of Airedale International Air Conditioning, 1997-2001 | 56 |
| 26. Airedale International Air Conditionings Turnover, By Geographical Region, 2000 And 2001 | 57 |
| 27. Financial Summary Of Daikin Europe, 1999-2001 | 58 |
| 28. Financial Summary Of Dean & Wood, 1996-2000 | 59 |
| 29. Financial Summary Of DeLonghi, 1996-2000 | 60 |
| 30. Financial Summary Of Dunham-Bush, 1997-2001 | 61 |
| 31. Financial Summary Of Hitachis Undertakings In Europe, 1999-2001 | 62 |
| 32. Financial Summary Of HRP, 1996-2000 | 63 |
| 33. Financial Summary Of IMI, 1997-2001 | 64 |
| 34. IMIs Turnover, By Geographical Destination, 2000 And 2001 | 65 |
| 35. Financial Summary Of Lennox International, 1996-2000 | 66 |
| 36. Lennox Internationals Turnover, By Business Segment, 1999 And 2000 | 66 |
| 37. Financial Summary Of LG Electronics UK, 1996-2000 | 67 |
| 38. Mitsubishi Electric Corporations Turnover, By Geographical Area, 2000 And 2001 | 69 |
| 39. Financial Summary Of Panasonic UK, 1997-2001 | 70 |
| 40. Financial Summary Of Smiths Group, 1997-2001 | 71 |
| 41. Smiths Groups Turnover, By Geographical Destination, 2000 And 2001 | 72 |
| 42. Financial Summary Of Toshiba Carrier UK, 1999 And 2000 | 73 |
| 43. Toshiba Carrier UKs Turnover, By Geographical Region, 1999 And 2000 | 74 |
| 44. American Standards Turnover, By Division, 2000 And 2001 | 75 |
| 45. Financial Summary Of Trox (UK), 1997-2001 | 76 |
| 46. Trox (UK)s Turnover, By Geographical Region, 2000 And 2001 | 76 |
| 47. Financial Summary Of Wolseley, 1997-2001 | 78 |
| 48. Wolseleys Turnover, By Geographical Origin And Destination, 2000 And 2001 | 78 |
| 49. Financial Summary Of York International, 1997-2001 | 80 |
| 50. York Internationals Turnover, By Segment, 2000 And 2001 | 80 |
| List of Diagrams | |
| 1. The UK Market For Air Conditioning Equipment, 1997-2006 | 2 |
| 2. The UK Market For Air Conditioning Equipment, By Type, 2001 | 21 |
| 3. The UK Market For Air Conditioning Equipment, By Type, 2006 | 35 |
| 4. The UK Distribution Network For Central Station Air Conditioning Equipment, By Channel, 2001 | 44 |
| 5. The UK Distribution Network For Chilled Beams And Ceilings, By Channel, 2001 | 45 |
| 1 | KEY FINDINGS |
| · | MSI believe that the UK market for air conditioning equipment has increased by some 11 percent over the last five years to reach some £552.6 million (889.7 million) in 2001 |
| · | Demand for packaged air conditioning equipment has increased by some 15 percent during the review period. Sales of packaged air conditioning equipment account for the largest proportion of the market with some 60 percent of the total market in 2001 |
| · | Central station air conditioning products account for the second largest proportion of the total UK air conditioning market. , sales of which have increased by only 3 percent during the review period |
| · | MSI believe that the market for chilled beams and ceilings has developed particularly buoyantly throughout the review period. Indeed, sales in this small segment of the air conditioning market have increased by 35 percent between 1997 and 2001 |
| · | MSI believe that there are a number of factors which stimulate demand for air conditioning equipment in the UK. These include: |
| - | the state of the UK economy |
| - | the state of the UK construction market |
| - | increase in internal heat gains |
| - | developments in building design |
| - | public awareness of air conditioning |
| - | climatic changes |
| - | legislation |
| · | The UK market for air conditioning equipment is expected to increase by 7 percent in real terms between 2002 and 2006 |
| · | Sales of packaged air conditioning equipment will continue to account for the largest proportion of sales during the forecast period |
| · | MSI forecast that the UK market for central station air conditioning equipment will increase by some 3 percent throughout the forecast period |
| · | The UK market for chilled beams and ceilings is expected to grow rapidly throughout the forecast period. Indeed, MSI believe that this sector of the market will grow by some 39 percent between 2002 and 2006 |
Text © 2002MSI
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Last updated by Amanda Porteous October 2002