An air conditioner is a device that treats the air in a cycle of refrigeration by eliminating the hot air and switching it with a cooler one thus dropping the temperature of an enclosed space. The devices are widely used in regions that experience high temperatures. Air conditioners are classified as a four-digit HS92 merchandise. Other names of an air conditioner include A/C, ac, HVAC, parts, thermistor, duct, fan, and exhaust. In the ranking of the most traded products in the globe, air conditioners come 78th. According to the Product Complexity Index (PCI), they rank 398th as the most complex merchandise.
The World’s Top Exporters of Air Conditioners
China is in the first position with total exports hitting a colossal $13 billion. China is followed by Mexico with $3.13 billion in the second position. The United States of America comes third with exports totalling $2.72 billion, the Czech Republic with $1.85 billion in the fourth position, and Germany is last with $1.61 billion.
China’s dominance in the market is no surprise considering the country is the leading market for exports in the world. To put China’s dominance into perspective, the other four countries in the list do not come anywhere near China’s figure. Combined, the last four states make up a total of $9.31 billion which is at least $3 billion short of China’s figure. China makes at least four times what Mexico makes in this sector. Compared to the last nation, Germany, China exports air conditioners worth at least ten times. China’s exports in the year 2016 were slightly above $2 trillion with a favorable trade balance of $736 billion. Of the total export, air conditioners in China account for 0.65%.
In Mexico, 2016 saw a total export value of $373 billion with a negative trade balance value of $6.62 billion. Air conditioners exports contributed 0.84% of the total exports for Mexico in 2016.
The US had a total export figure of $1.42 trillion with air conditioners contributing 0.19% of the total exports in 2016. The US recorded a negative balance of $783 billion.
Czech Republic’s trade balance in 2016 was $22.5 billion with total exports hitting $160 billion. The contribution of air conditioners to the export economy of the Czech Republic in 2016 was 1.16%.
Lastly, in 2016, Germany’s total exports value of $1.32 trillion ensured a favorable trade balance of $273 billion. Of the $1.32 trillion, only 0.12% came from the exportation of air conditioners.
From the above analysis, the contribution of exporting air conditioners to the economies of each of the five states becomes apparent. In the first position, Czech Republic comes in with 1.16%, followed by Mexico with 0.84%, and China with 0.65%. The US is in the fourth place with 0.19% while Germany is last with 0.12%. The analysis also shows that the sector of exporting air conditioners is dominated by two continents; Europe (Germany and the Czech Republic), and North America (the US and Mexico).