Key Market Overview:
Air Conditioning Systems Market is projected to grow from USD 120.14 Billion in 2022 to USD 183.58 Billion by 2030, at a CAGR of 5.44% during the forecast period.
Air conditioning systems are devices that control the temperature, humidity, and air quality of indoor spaces by extracting heat and moisture from indoor air and transferring it outside. Air conditioning systems are powered by electricity and use refrigerants to cool the air. Proper maintenance and efficient use of air conditioning systems help to reduce energy consumption thereby cooling and dehumidifying the indoor air.
Rising temperatures due to climate change are a major driver of the air conditioning system market. The demand for air conditioning systems rises in regions with hot and humid climates as people seek to maintain comfortable living and working conditions. For instance, in March 2022, Voltas launched its new range of PureAir Inverter AC with HEPA filter technology. The Voltas PureAir AC has an air quality index (AQI) indicator to show the AQI range along with a PM sensor to detect the presence of particulate matter in the air. Therefore, market players are focusing on developing more energy-efficient air conditioning systems thereby driving the growth of the market.
Technological advancements in air conditioning systems are driving growth and innovation in the industry. Advances in air conditioning technology, such as the development of more energy-efficient systems and the use of smart controls and sensors, are boosting growth in the air conditioning systems market. Therefore, technological advancements provide greater comfort and convenience for users and also contribute to a more sustainable and energy-efficient future. For instance, in April 2022, Mitsubishi Electric TRANE HVAC US launched Lossnay RVX2, an advanced Energy Recovery Ventilator (ERV). The ERV is designed to help building owners, engineers, and architects meet ventilation requirements and improve indoor air quality.
Environmental concerns are a significant restraint on the air conditioning system market. Air conditioning systems rely on refrigerants that are harmful to the environment, such as chlorofluorocarbons (CFCs) and hydrofluorocarbons (HFCs). As a result, the use of air conditioning systems contributes to greenhouse gas emissions and climate change. Therefore, environmental concerns related to air conditioning systems are limiting the growth of the market.
The integration of smart technology and the Internet of Things (IoT) is expected to accelerate growth in the air conditioning systems market. Smart and connected systems provide greater control and automation, as well as real-time monitoring and analysis of energy use and performance data. For instance, the Voice control feature allows users to control their air conditioning systems remotely, providing greater convenience and flexibility.
Air Conditioning Systems Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||USD 183.58 Billion|
|By Type||Unitary, Rooftop, and PTAC|
|By Technology||Inverter and Non-Inverter|
|By Sales Channel||Online and Offline|
|By End-User||Residential, Industrial, and Commercial|
|By Geography||North America, Europe, Asia Pacific
Latin America, Middle East and Africa
|Key Players||Daikin Industries, Ltd., Mitsubishi Electric Trane HVAC US LLC, Hitachi Ltd, Carrier, Whirlpool Corporation, Haier Group, Blue star, Whirlpool, Videocon, Voltas|
Based on the type, the market is trifurcated into unitary, rooftop, and PTAC. The unitary ACs segment dominates the global market due to the increasing demand from the residential sector. Unitary air conditioning systems are used in small to medium-sized buildings and homes as they are relatively inexpensive and easier to install in residential and small commercial spaces. Unitary air conditioning systems are designed to cool a single room or area and are commonly found in window-mounted or split air conditioning units. For instance, in January 2022, GE Appliances launched its unitary HVAC system at the 2022 AHR Expo. The unitary HVAC system is designed to provide energy-efficient heating and cooling solutions for residential and light commercial applications.
The PTAC segment is anticipated to emerge as the fastest-growing segment during the forecast period. PTAC systems are used in hotels, motels, and other multi-unit buildings and are installed through the wall consisting of both the evaporator and the air handler. Manufacturers are investing to create units with improved features such as smart thermostats, wireless control, and remote monitoring capabilities, contributing to the growth of this segment.
Based on the technology, the market is bifurcated into inverter and non-inverter. The non-inverter segment dominates the air conditioning systems market. Non-inverter ACs are suitable for smaller rooms and spaces requiring a lower cooling or heating load. Therefore, a variable-speed compressor is not necessary for cooling small spaces making them easier to install, repair, and maintain. Furthermore, non-inverter ACs are more durable as they have fewer moving parts and simpler technology, contributing to the growth of this segment.
The inverter air conditioning systems segment is expected to grow during the forecast period. The growth of this segment is attributed to its energy efficiency and lower operating costs. The inverter air conditioning system uses a variable-speed compressor that adjusts its speed to match the cooling or heating load of the room, resulting in significant energy savings. For instance, in February 2022, LG Electronics launched its new range of AI Dual Inverter Air Conditioners featuring a dual inverter compressor capable of adjusting the cooling or heating according to the room’s temperature.
By Sales Channel
Based on the sales channel, the market is bifurcated into online and offline. The offline channel dominates the market as air conditioning systems are available in a wide range of stores including electronics stores and home appliance stores. The offline channel holds a significant advantage as customers exhibit a preference for physical product testing before purchase, particularly for expensive items such as air conditioners. Offline stores provide the opportunity to understand product features and functionality to make appropriate decisions.
The online segment is expected to witness the fastest CAGR during the forecast period. The growth of this segment is attributed to the shift in customer behavior of shopping online through e-commerce websites, online marketplaces, and mobile applications. For instance, ACs are marketed globally through e-commerce platforms such as Amazon and FlipKart.
Based on end-user, the market is segmented into residential, industrial, and commercial. The residential segment dominates the global market due to the rising temperatures in many regions. As a result, consumers are looking for affordable, energy-efficient, and sustainable air conditioning systems for their homes, thereby driving the growth of the residential segment. Furthermore, the introduction of smart air conditioning systems that are controlled via smartphones has also attracted a large number of consumers towards advanced air conditioning systems. For instance, in August 2020, Fujitsu General launched its first air conditioner jointly developed with Rheem. The two companies have developed new HVAC systems offering outstanding energy efficiency and enhanced comfort for customers.
The commercial segment is anticipated to witness robust growth during the forecast period. Rising number of commercial buildings such as offices, shopping malls, hotels, and hospitals is demanding air conditioning systems to maintain a comfortable and temperature-controlled indoor environments. Furthermore, the demand for energy efficiency in commercial spaces for significant cost savings is boosting the growth of the air conditioning systems market.
The Asia-Pacific region dominates the air conditioning systems market. In countries with hot and humid climates such as India, Indonesia, and Singapore, air conditioning systems are essential for creating a comfortable indoor environment. As a result, there is a high demand for air conditioning systems in homes, offices, and commercial buildings in hot and humid regions. According to the International Energy Agency, the number of air conditioning units in buildings worldwide is expected to triple by 2050, driven by rising temperatures in countries such as India and China. In response to this demand, manufacturers are investing in research and development to create more energy-efficient and eco-friendly air conditioning systems.
North America is anticipated to emerge as the fastest-growing region during the forecast period. The growth of the regional market is attributed to the increasing focus on energy efficiency and sustainability in the region. Many consumers are looking for air conditioning systems that are energy-efficient and eco-friendly, as a way to reduce their carbon footprint and save money on their energy bills. As a result, demand for energy-efficient ACs is contributing to the growth of the regional market.
Air Conditioning Systems Market Competitive Landscape:
Key players in the air conditioning systems market are investing in product innovation to remain competitive in the market. The data in this report is related to business collaborations, mergers and acquisitions, product innovations, and strategies adopted by competitors. Following are the major market players that comprise the latest market concentration–
- Daikin Industries, Ltd.
- Mitsubishi Electric Trane HVAC US LLC
- Hitachi Ltd
- Whirlpool Corporation
- Haier Group
- Blue star
- In January 2023, Johnson Controls-Hitachi Air Conditioning launched air365 Max, a new HVAC solution that aims to provide a cost-efficient and energy-efficient solution for professionals, architects, and building owners.
- In November 2022, Daikin Industries, Ltd. opened new air conditioner factory in Indonesia. The factory produces a wide range of air conditioning products, including split air conditioners, window air conditioners, and air purifiers.
Table of Content
To check our Table of Contents, please mail us at: [email protected]
Research MethodologyThe Market Research Community offers numerous solutions and its full addition in the research methods to be skilled at each step. We use wide-ranging resources to produce the best outcome for our customers. The achievement of a research development is completely reliant on the research methods implemented by the company. We always faithful to our clients to find opportunities by examining the global market and offering economic insights.
Market Research Community are proud of our widespread coverage that encompasses the understanding of numerous major industry domains. Company offers consistency in our research report, we also offers on the part of the analysis of forecast across a range of coverage geographies and coverage. The research teams carry out primary and secondary research to carry out and design the data collection methods.