Strong Growth in Air Conditioner Production: Can This Market Boost NdFeB Demand? [SMM Analysis]

According to data from the National Bureau of Statistics (NBS), the national production of air conditioners in November 2024 reached 19.679 million units, marking a 27% increase compared to the same period last year. This significant growth not only reflects the robust demand for air conditioners but also highlights improvements in production efficiency and the accelerated pace of product upgrades driven by technological advancements. Furthermore, the cumulative production of air conditioners from January to November 2024 reaches 242.374 million units, representing a 9.4% increase from last year, indicating a steady expansion trend in the overall market.

Among air conditioner types, inverter air conditioners have shown particularly outstanding market performance. As of now, the market penetration rate of inverter air conditioners has reached 85%. This high market share is primarily attributed to the replacement of outdated air conditioners, a trend that has not only promoted the adoption of inverter air conditioners but also strengthened consumer recognition of high-efficiency and energy-saving products.

In the composition of inverter air conditioners, NdFeB air conditioners hold a particularly important position. Currently, the penetration rate of NdFeB air conditioners within inverter air conditioners has reached 80%. Each NdFeB inverter air conditioner requires approximately 100 grams of NdFeB, making this material a key factor in enhancing the performance of inverter air conditioner products. The use of NdFeB not only improves the energy efficiency of air conditioners but also drives the development of the energy-saving industry. In recent years, with the rapid growth of the home appliance industry, the demand for NdFeB has shown a robust trend. Especially under the implementation of the national home appliance recycling policy, the increase in home appliance consumption has significantly boosted the high growth rate of inverter air conditioner production.

It is expected that in the future, with further technological breakthroughs and growing market demand for energy-saving products, the production of inverter air conditioners will continue to increase. This will not only significantly boost the demand for NdFeB, promote the development of the domestic rare earth materials industry chain, but also provide momentum for the growth of the environmental protection and energy-saving industries.