H. Yoo
Research expert covering South Korea
HVACR industry in South Korea - statistics & facts
While various solutions have been utilized all over the world to adapt to all types of climates and geographies, climate change has created new challenges and opportunities for the heating, ventilation, air conditioning, and refrigeration (HVACR) industry. This is no exception for South Korea. On top of heatwaves, in 2022 the country saw its coldest winter in nearly 50 years. Indeed, this has led to increased demand for energy-efficient systems among households for both heating and cooling to buffer against such temperatures. Companies that produce these appliances, such as LG Electronics, Daewoo Electronics, and Autec Carrier, stand to gain the most from this demand.
Heating systems in South Korea
While floor heating seems like a relatively new concept for some, it has existed as a form of temperature control in Korea for thousands of years. The traditional ondol had smoke and heat from an outdoor wooden stove travel underneath the floor of the home before leaving through the chimney. Nowadays, most people live in apartments, having replaced smoke with hot water from boilers. Over half of all housing in the country uses stand-alone gas boilers for heating. Domestic demand for boilers has seen a clear increase, with imports of central heating boilers tripling in the last 10 years. While electric heat pumps are considered more eco-friendly than gas boilers, heat pumps have not been widely adopted as installation is difficult in dense apartment complexes.Cooling and ventilation demand
In contrast to heating are cooling systems that combat the ever-worsening tropical summers that Korea also faces. Large companies, such as LG, manufacture high-quality cooling systems for both home and produce. However, domestic supply has seemingly fallen short of meeting demand with the volume of air conditioners imported more than doubling in the last decade. Refrigerator and freezer imports have also more than tripled during this time. Adding to the heat are mold concerns. With high outdoor humidity and air pollution levels, opening the window is often not an option. As such, air purifiers and dehumidifiers have become common sights in Korean homes. Indeed, imports of air pumps, compressors, and fans have gradually increased in the last decade.Outlook on the HVACR market
In the coming years, new developments will likely make for more efficient HVACR systems. While smart or eco-friendly alternatives still suffer from high installation costs, the demand for air conditioners in Asia and other temperature control systems will likely rise as future extreme weather conditions seem unavoidable. Eco-friendly alternatives will also become more attractive. However, concerns over high power costs for the average household may become a barrier to influencing consumer behavior.
