The document discusses Turkey's HVAC-R (heating, ventilation, air conditioning, and refrigeration) industry. It notes that Turkey has a Mediterranean climate requiring extensive air conditioning and heating. The Turkish HVAC-R industry began in the 1950s and has grown significantly since then to meet increasing demand. Today, Turkey has a large domestic HVAC-R market and is the fifth largest market in Europe. Major Turkish brands have been established and are also gaining ground in foreign markets, especially EU countries. Exports of Turkish HVAC-R products have increased substantially in recent years, with refrigerators and freezers being the largest export.

1. HVAC-R INDUSTRY
Prepared by
Tarhan SEZGİN
2006
Export Promotion Center of Turkey

2. HVAC-R INDUSTRY
Turkey has Mediterranean climate, with hot summers and a cold winters. Both climates
necessitate extensive air conditioning or heating.
The Turkish companies involved in HVAC-R (Heating, Ventilation, Air-Conditioning-
Refrigeration) products had started operating in the 50’s. Since the '50s, except during
crisis periods, The Turkish air-conditioning and heating sector has been rapidly developing
both in production and capacity and the market is growing. In fact, the increase in
population and living standards has resulted in the need to produce more HVAC-R
products. However, the actual market development began in the late 80’s. The number of
companies and the type of equipment available on the Turkish HVAC-R market increased
rapidly in the 90’s. This was also in line with positive developments in the economy of the
country. Today, Turkey is the fifth largest HVAC-R market in Europe. The percentage of
domestic air conditioners being used is assumed to be around 2% of the total population of
73 million people.
Though air conditioning, as well as modern heating systems, is still considered a luxury by
the majority of the population sales in larger urban centers or resort areas are growing.
Turkish consumers who are always looking for new products, prefer to use home-
produced HVAC-R products, though the Turkish market is wide-open to all world products.
This in fact, leads to the success of the Turkish HVAC-R industry. Turkish HVAC-R
producers have created their own brands, which lead to tight consumer-dependence in the
domestic market and these brands are gaining ground in foreign markets, mainly in the EU
countries. Major brands in the domestic market are: Arçelik, Beko, Aygaz, Demirdöküm,
Profilo, Teba, Alarko and Vestel.
In recent years, companies in the sector have begun to form joint ventures with global
firms that they had previously represented for years, thus creating technology transfer
opportunities both for Turkey and the HVAC-R sector. At the same time, the corporate
activities of Turkish and international investors are opening the gates of international
distribution and marketing.
The sector is well organized under various associations. About 130 White Goods Parts
and components supplier firms have been organized under the “White Goods Parts
Suppliers Association of Turkey- BEYSAD”, and six major producers are members of the
“White Goods Industrialists Association of Turkey-BESD”.
In 1993, ISKID-Turkish Air-Conditioning & Refrigeration Manufacturers’ Association was
established to ensure healthy, effective and systematic development of the air conditioning
sector in Turkey. Today, ISKID has 49 member companies.
The Turkish Heating/Cooling Research and Education Foundation (ISKAV) was
established in December 1997. It has four purposes: to develop the HVAC market, to
strengthen ties between universities and industrial establishments with a view to better-
coordinated research and development, to raise the sector's technology to European
Union standards, and to educate and train qualified assembly and service technicians.
The Turkish HVAC-R sector has a wide range of products from heaters to split A/C
systems, boilers, DX units, fan coils, air handling units, refrigerators, freezers, VRF
© İGEME – Export Promotion Center of Turkey, 2006

3. (Variable Refrigerant Flow systems), cooling towers, chillers, cold rooms, heating and
cooling coils and rooftop/packaged units, heaters and boilers. The product range is wide
enough to supply world markets and satisfy sophisticated customer needs.
According to HVAC-R production statistics provided by “Turkish Air-Conditioning &
Refrigeration Manufacturers’ Association” (İSKİD) and the “White Goods Industrialists
Association of Turkey” (BESD); window-type air conditioner production has steadily
decreased to 2,000 units in 2004, while window-type air conditioner produced 10,000 units
in 2001. It is known that window-type air conditioners have been replaced by split air
conditioners. Mini split indoor units and outdoor units reached about 743,000 units and
722,000 units in 2004 with 90 % and 85 % growth. While previous year 28 units ducted
split were produced in 2004 the production reached 165 units.
The production of rooftop/package units is around 348 units in 2004. Most of the
production is for exports. In 2004, 341 units were exported.
The production of fan coil units has slowly increased as well in the last 3 years. In 2004,
45,662 fan coil units were produced in Turkey. The export of these goods has also
improved considerably. This is probably due to the increasing number of Eurovent
Certified Turkish manufacturers.
Production and domestic sales of air-handling units is quite high in Turkey. In 2004, 30
thousand air-handling units were produced in the sector. In the market there are a large
number of local producers, as well as major world producers.
In sector there are very few absorption chiller unit producers but there are reasonable
numbers of centrifugal chiller unit producers. Most of the chiller production is for less than
200 kW air-cooled units. In 2004, 223 units water chiller were produced. Air-cooled units
are definitely the preferred types, while water-cooled units are mostly used on the large
capacity applications.
In recent years, refrigerator production has had shown an upward trend. While in 2002 and
2003, production of refrigerators were 3,3 million units and 4,2 million units, in 2004
production exceeded 5,3 million units, with 24% growth.
Turkish HVAC-R Industry Production (Units)
Products 2002 2003 2004
Window / Portable Air Conditioners 90 2,915 2,098
Mini Split (indoor unit) 214,282 392,360 743,478
Mini Split (outdoor unit) 211,687 390,143 721,823
Ducted Split 47 28 165
Rooftop / Packaged Units (DX) 40 110 348
Fan Coil Units 37,195 38,110 45,662
Air-Handling Unit (AHU) Sections 31,366 21,590 30,098
Water Chillers 258 239 223
Refrigerators 3,318,000 4,286,000 5,308,000
Sources : İSKİD and BESD
© İGEME – Export Promotion Center of Turkey, 2006

4. All of these data in general show that there is a continuing positive trend for the HVAC-R
market in Turkey. The exports at most of the above products have had a significant
increase in the last years. The Split Air Conditioner domestic market has a lot of room for
improvement. The central system equipment manufacture is also expected to continue
growing steadily in the following years. The building sector has already shown promising
signs of an increase in the need for air-conditioners in 2005.
Since Turkish HVAC-R manufacturers give high priority to innovation and new product
development, research and development activities are continuously conducted.
Turkish HVAC-R manufacturers are also aware of the need to continue to implement
procedures necessary for the acquisition of standardization certificates of ISO Standards,
CE or Eurovent-Cecomaf. Recently a large number of Turkish manufacturers have affixed
the CE Mark to their products for export to the EU. At the beginning of 2003, it became
obligatory to fulfill CE Mark requirements in order to sell products in the Turkish domestic
market. At the same time, Turkish HVAC-R manufacturers follow international and national
developments in environmental issues closely and comply with environmental legislation
and regulations.
As to consumer services, end-users are well served by the after-sales services of the
appliance manufacturers. The HVAC-R industry follows strict legislation on after-sales
services in Turkey.
Exports
In the last decade, the HVAC-R sector of Turkey has turned its attention to exporting its
products. The high-technology used in the production process, the high priority given to
research and development activities by Turkish HVAC manufacturers, the rising number of
Turkish firms which have ISO Certificates and quality standards, the consideration of
customer preferences during the designing phase, the consideration of the priorities of the
foreign end-users, improved marketing techniques used and well-established after sales
services are the reasons for the continuous growth in exports in recent years.
After the economic crisis of 2001, Turkish HVAC-R producers concentrated on the export
markets. Thus, the HVAC-R industry was less affected by the crisis and the growth trend
in production and exports of the sector has continued. Turkish exports of the HVAC-R
industry have had an upward trend. While in 2003 and 2004, exports of the HVAC-R
industry were valued at US$630 million and US$1 billion, in 2005 exports exceeded
US$1.6 billion, with 64% growth.
In 2005 the largest export product of the industry was refrigerators and freezers (US$913
million) with a share of 56%. In 2004 about 63.3 % of refrigerators and freezers production
was exported. Turkish refrigerators and freezers export ranks eighth in the world exports
and ranks fourth in the EU in 2004. The second largest was stoves, ranges, barbecues
and braziers with an export value of US$285 million. Central heating boilers with an export
value of US$125 million emerged as new products for export. The others were air
conditioning machines (7%) and parts of vacuum pumps, compressors, fans, blowers
(3%).
© İGEME – Export Promotion Center of Turkey, 2006

5. Turkey’s Exports of HVAC-R Industry (Value: US$ 1000)
HS % Share of
Products 2003 2004 2005
Codes countries in 2005
Bulgaria (14),
732181- Domestic iron/steel
Bosnia-Herzegovina
732182- liquid/solid fuel 20,769 24,872 27.935
(8), Algeria (5), Italy
732183 appliances
(5), Albania (4)
UK (14), Bulgaria
Parts for domestic
(9), France (9),
732190 non-electric thermic 6,430 7,619 8.201
Greece (9),
appliances
Romania (8)
UK (33), Romania
Stoves, ranges,
(12), Greece (9),
7322 barbecues, braziers 140,997 226,041 285.586
Italy (7), Germany
etc.
(5)
Italy (24), Germany
Steam or vapour
8402 12,859 17,163 23.489 (10), Belgium (7),
generating boilers
Peru (5), TRNC (4)
Germany (35), UK
Central heating
8403 86,180 106,925 125.048 (15),Spain (14), Italy
boilers, non-electric
(12), Romania (4)
Azerbaijan (7),
Auxiliary plant for use Russia Fed. (6), Iraq
8404 1,579 1,083 3.998
with boilers (4), TRNC (3),
Romania (2)
Russia Fed. (22),
Table, window, ceiling
USA (12), France
841451 fans, electric motor 4,830 5,764 8.583
(11), Greece (11),
<125 watt
Romania (8)
Germany (16),
Electric fans, motor > Bulgaria (7), Russia
841459 6,640 7,098 8.761
125 watts Fed.(7), France (6),
Ukraine (4)
Germany (35),
Ventilating hoods
Russia Fed.(23),
841460 having a maximum 9,927 18,399 25.497
Italy (12), Israel (4),
width < 120 cm
Greece (3),
USA (24), Russia
Air or gas
841480 8,368 15,474 25.959 Fed.(10), France
compressors, hoods
(8), UK (4), Iraq (4)
USA (18), Belgium
Parts of vacuum
(17), Germany (9),
841490 pumps, compressors, 14,883 23,137 43.923
Ireland (5), Thailand
fans, blowers, hoods
(4)
Air conditioning Iraq (15), Spain
8415 75,931 98,777 110.139
machines, comprising (13), Nigeria (6),
© İGEME – Export Promotion Center of Turkey, 2006

6. a motor-driven fan Italy (5), Bulgaria (4)
and elements
Furnace burners for Germany (44),
liquid fuel or Azerbaijan (7), Iran
8416 3,593 3,561 6.558
pulverized solid fuel (4), Kazakhstan (4),
or gas, Georgia (3)
UK (11), France
Refrigerators,
(10), Spain (8),
8418 freezers, electric or 589,250 730,176 913.811
Germany (8), Iraq
other,
(7),
Ukraine (21), Spain
Instantaneous gas (17), Russia
841911 13,426 10,726 11.974
water heaters Fed.(13), Azerbaijan
(10), Romania (9)
Germany (14),
Instantaneous or
Morocco (12),
841919 storage water 1,929 3,411 4.155
Bulgaria (7), Spain
heaters, non-electric
(6), Iraq (5)
Automatic beverage- Georgia (22),
vending machines Kazakhstan (17),
847621 incorporating heating 4 13 22 Azerbaijan (8),
or refrigerating Greece (5), Hungary
devices (4)
Automatic goods-
vending machines
847681 incorporating heating 93 0 0 -
or refrigerating
devices,
France (15),
Evaporative air Morocco (11), Spain
847960 97 305 295
coolers (9), UAE (8),
Ukraine (6)
Electric
Germany (39), Iraq
instantaneous,
(12), Austria (10),
851610 storage and 2,268 4,526 6.197
Afghanistan (8),
immersion water
TRNC (5)
heaters
Germany (35),
Kazakhstan (33),
Electric storage
851621 122 42 43 Turkmenistan (24),
heating radiators
Canada (3),
Tajikistan (2)
UK (14), Germany
Total of the list 630,998 1,000,177 1.640.182 (10), France (7),
Spain (7), Italy (7)
*Turkish Republic of Northern Cyprus
Source: Undersecretariat of Foreign Trade
© İGEME – Export Promotion Center of Turkey, 2006

7. Turkish HVAC-R industry products were exported to about 149 countries in 2005. The
European Union (25) has a share of 61% in the HVAC-R industry exports of Turkey. The
main export markets are the UK, Germany, France, Spain and Italy.
Turkish HVAC-R industry products are exhibited in international and local fairs organised
in Turkey. In 2006, 6 fairs, which are listed below, will be organised in Turkey.
“KONYA NATURALGAS” (Konya Natural Gas, Heating, Cooling, Air-Conditioning,
Pumps, Valves, Installation and Insulation Equipment and Supplies Fair) in Konya in
March,
“Bursa Natural Gas” (Heating, Cooling Technologies and Installations Equipment Fair)
in Bursa in March,
“UNICERA” (International Ceramic and Bathroom Fair) in Istanbul in April,
“ISK-SODEX” (International Sanitary and HVAC Exhibition) in Istanbul in May,
“SODEX” (Kayseri Sanitary and HVAC Exhibition) in Kayseri in June,
“TURKEYBUILD” (International Building and Construction Exhibition) in Ankara in
September,
© İGEME – Export Promotion Center of Turkey, 2006