China heats up Thailand’s THB30B air conditioner market

Thailand’s air conditioner market, valued at over 34.5 billion baht, is expected to grow by 6% this year, according to estimates from major electronics brand LG. The company attributes this projected growth to delayed seasonal heat in 2025, with warmer weather arriving in mid-February instead of early February as in previous years.

Mitsubishi, another leading player in the market, forecasts a slightly lower growth rate of 5%, with the market valued at approximately 33.5 billion baht. 

Both projections, however, fall short of the impressive 14% growth recorded last year, driven by persistent and extreme heat that boosted demand across the country.

Japan-based brands continue to dominate the Thai air conditioner market, with Mitsubishi claiming a 30% market share. 

Chinese brands follow closely behind and are increasingly expanding their presence by ramping up local production and marketing strategies, leveraging Thailand’s long-standing role as a manufacturing hub for home appliances.

In the first quarter of 2025, several global and regional players launched new air conditioner models in Thailand, including Mitsubishi, Toshiba, LG, Carrier, Haier, TCL, Midea, and Hisense. These brands emphasised cutting-edge technologies such as AI features, energy efficiency, and advanced air purification systems. 

Pricing competition has also intensified, particularly between Chinese and Korean brands, with Chinese models typically priced 10–20% lower.

One notable newcomer to the market is Chinese tech giant Xiaomi, previously known for smartphones and small household appliances. Xiaomi is entering the Thai air conditioner segment with a strong focus on technology, targeting online platforms and flagship stores such as the one in Siam Paragon.

Ratchata Suttapattanon, Chief Product Officer at The Mall Group’s Power Mall, commented on the influx of Chinese brands: “The growing presence of Chinese home appliance brands in Thailand—marked by increased investment, new factories, and aggressive marketing—is driven by trade wars, tax considerations, and the strength of Thailand’s supply chain, which is comparable to the automotive industry. This makes Thailand an attractive investment location despite higher labour costs compared to neighbouring countries like Vietnam.”

The entry of emerging Chinese brands is expected to further intensify price competition in Thailand’s air conditioner market. With each brand aiming for leadership, the battle for market share is set to become even fiercer in the months ahead.