Global Air Conditioner Market Size, Share & Forecast 2024–2032

Air Conditioner Market Size and Forecast 2024-2032

Air Conditioners Market Overview

Commonly referred to as AC, A/C, or air con, air conditioning entails removing heat and moisture from a confined space while creating a comfortable atmosphere for people. It's also utilized to maintain a regulated temperature in areas that house electronic devices. All industries and verticals have expressed a longer need for ACs. Manufacturers of air conditioners are being compelled by strict government regulations on refrigerants to create more environmentally and energy-friendly devices.

The improved economic climate, rising per capita income, and rising pollution levels will likely cause the global air conditioning market to develop significantly in the future years. Innovations in technology observed in developing nations are also propelling the global air conditioning industry. The environment and the people who live there are being harmed by the increasing levels of air pollution. Fatigue and headaches are becoming more widespread due to pollution, which is a common indication of poor air quality. This is driving the global market for air conditioners even further. However, the expansion of this industry may be hampered by the high cost of air conditioning systems. The challenge for air conditioning manufacturing businesses will be to make air conditioning systems more affordable and efficient than before, as air cooling has become more of a need, needs, and wants aside.

Growth Factors in the Air Conditioners Industry

Fast Urbanization and Infrastructure Development

Rapid urbanization, mainly in developing countries, is contributing considerably to the increase in the demand for air conditioners. As cities grow larger, new modern houses and office buildings are erected and people require energy-efficient HVAC (heating, ventilation, and air conditioning) systems. The huge multi-story buildings and smart city complexes often include air conditioning as a standard feature. Besides, an increased desire to live better among the middle-class consumers in all urban houses has led to the increase of air conditioners. The growth of this infrastructure, combined with technological innovations in cool solutions, drives the market.

Technological Advancements and Energy Efficiency

Improvements in air condition technologies, like inverter-based systems, smart controls, and eco-friendly refrigerants, transform the market. Consumers prefer energy-efficient models that lower power bills and are in harmony with the environmental policies. Smart air conditioners, with IoT integration, have made it easy to operate and monitor energy consumption from remote locations, thus offering convenience, sustainability, and lowered power costs. Government incentives and policies supporting green technology have increased the adoption of these advanced air conditioners. These technological advancements cater not only to the eco-conscious purchaser but also to the ailing performance of air conditioners in general, which fuels steady growth in this market.

Increasing Temperatures Worldwide

The market is seeing a rise in demand for air conditioners due to rising worldwide temperatures. People are looking for efficient solutions to cool their homes, workplaces, and public areas as heatwaves become more common and harsh. The market has produced energy-efficient solutions and cutting-edge technologies in response to this need.

To lessen the negative effects of air conditioning on the environment, manufacturers are concentrating on creating sustainable and environmentally friendly cooling systems. Due to their ability to lower electricity usage and mitigate climate change, energy-efficient models are becoming more and more popular.

The market for air conditioners is also expanding due to growing economies and urbanization trends, especially in areas where population growth and industrialization are happening quickly. The government's campaigns to increase energy efficiency and educate consumers about the value of cooling solutions also help to drive the market for air conditioners.

Population and income increase will accelerate market expansion.

The population expansion that is predicted to have a positive effect on residential and commercial building is also expected to lead to an increase in demand for the air conditioning market, according to market dynamics. For example, the growing population in the Gulf countries is anticipated to have a significant effect on construction expenditures in those regions. The population of the Region is expected to rise from 350 million to over 600 million by 2050. This is expected to help communities by encouraging expansion in building-related activities and infrastructure, especially in housing, healthcare, and educational facilities.

Moreover, air conditioners and electric fans account for around 20% of the electricity used in buildings globally today. Globally, the need for space cooling is driving up emissions and severely taxing the electrical grid. Without considerable government intervention, there is little doubt that the amount of energy required to provide space cooling will increase significantly over the next few decades.

Residential vs. Commercial AC Market Growth Globally

The global air conditioning (AC) market is experiencing strong growth in residential as well as commercial areas. In the residential market, higher temperatures, heightened urbanization, and improving incomes, particularly in new markets, are fueling consistent demand for air conditioners. As more consumers choose comfort and convenience, especially in markets like Asia-Pacific, residential AC uptake continues to increase. Meanwhile, the commercial AC market is growing at a faster pace with the commercial infrastructure development boom. Demand from retail, healthcare, hospitality, and IT industries is driving this growth. Moreover, the commercial sector's focus on energy-efficient and smart systems promotes market growth. By 2027, the world AC market is expected to be USD 204.25 billion, with both residential and commercial segments growing strongly.

Smart Air Conditioner Adoption Trends

The world implementation of smart air conditioners is quickly rising, driven by the surge in demand for energy-efficient and smart home solutions. These units combine innovative technologies such as the Internet of Things (IoT), making it possible for customers to manage temperatures remotely using smartphones or voice assistants. Smart air conditioners provide such functionalities as energy consumption tracking, automatic temperature regulation, and interoperability with home automation systems, offering convenience and savings. The increase in awareness about sustainability and energy efficiency, coupled with the increasing phenomenon of smart homes, is boosting this market. The Asia-Pacific region, mainly China and India, is fast adopting due to urbanization as well as a rise in temperature. With the focus of customers on comfort as well as ecological living, the global smart AC market is forecasted to record strong growth over the next few years.

Global Inverter AC Technology Market Growth

The world market for inverter air conditioners (AC) is experiencing steady and robust growth as a result of increasing demand for energy-efficient cooling solutions. Inverter ACs employ variable-speed compressors, varying power according to cooling needs, that greatly minimize power consumption and increase overall efficiency. Customers are more and more adopting these units owing to their lower electricity bills, reduced noise levels, and extended lifespan. The market is growing at a fast pace in developed and emerging economies, spurred by environmental regulations that encourage energy-efficient appliances. Asia-Pacific, particularly nations such as China, India, and Japan, dominates the adoption based on fast urbanization and harsh climatic conditions. Furthermore, increasing awareness about sustainable living and technological innovation in smart HVAC systems are likely to further drive the global inverter AC market in the future.

Impact of Climate Change and Regulation Policies on the Air Conditioner Market

Climate change is strongly affecting the world air conditioner (AC) market. Global warming has heightened the need for air conditioning systems, especially in warmer climates and in extended, more severe heatwaves. This heightened demand is propelling AC use in households and businesses. But the ecological footprint of conventional AC systems—mainly their high energy draw and refrigerant with high global warming potential—has necessitated stricter regulation. Governments and international organizations are imposing energy efficiency standards and transitioning away from harmful refrigerants in treaties such as the Kigali Amendment. These regulations are compelling industry to create environmentally friendly and energy-efficient products, like inverter ACs and low-impact refrigerant-based systems. The dual pressure of climate change and regulatory environments is redefining the AC industry towards sustainability and innovation.

United States Air Conditioner Market

The United States is a dominant market for air conditioners in North America, induced by the ever-increasing demand for cooling solutions in both residential and commercial spaces. Extreme climatic conditions, especially recurrently occurring heatwaves, have made air conditioners a necessity than luxury, especially in states like Texas, Arizona, and Florida. The growing demand for smart homes in which the air conditioning system is merged with IoT further accelerates the market. An increase in the demand for energy-efficient units because of increased electricity rates also contributes to making the U.S. a huge potential holder in the North American air conditioner market.

Germany Air Conditioner Market

Germany leads the market within Europe and the need for comfort indoors is on an increase, mainly in offices, commercial buildings, and apartments. As summers are becoming warmer and temperatures are on the rise in the continent, air conditioning is becoming a common phenomenon in new buildings as well as those being upgraded. Energy-efficient cooling systems and eco-friendly refrigerants are being sought by German consumers more than ever due to this country's stringent environmental regulations. Thus, the market is witnessing strong demand for advanced, low-energy solutions, thereby making Germany one of the key market players in Europe.

India Air Conditioner Market

India is witnessing a rapid growth in the market of air conditioner, mainly driven by the middle class, increasing disposable income, and urbanization. The demand for air conditioners also lies in large metropolitan areas, where extreme heat during summer months creates a demand for effective cooling solutions. Increased awareness regarding energy-efficient and affordable models has also encouraged consumption of air conditioning systems. The growing real estate market and commercial infrastructure in India will give the air conditioner market a boost in the future years, mainly in tier 2 and tier 3 cities.

United Arab Emirates Air Conditioner Market

The United Arab Emirates is in fact one of the biggest air conditioner markets in the Middle East, with its tough climate and hot temperatures for most of the year. Air conditioning is a dire necessity in any residence, commercial place, and public sectors in the UAE, mainly during summer. The construction boom, characterized by large-scale developments such as residential complexes, malls, and offices, drives market growth. In addition, more focus on energy and environmental-friendly solutions in the UAE makes smart air conditioning systems the great contributor to the air conditioner market in the region.

Brazil Air Conditioner Market

Brazil is currently the prime market for air conditioners in South America owing to the hot climate prevailing in the country and due to the fast-growing middle class. As urbanization increases, more Brazilians are making an investment in air conditioning for homes and offices in relation to the high temperatures of the country, especially in regions such as the Northeast. This demand is further bolstered by economic growth and an aspiration towards better living standards. The interest for energy-efficient as well as IoT-enabled smart air conditioners is also growing in Brazil with smart homes on the rise. This trend, along with expanding the construction industry, is creating a smooth growth curve for the air conditioner industry.

Saudi Arabia Air Conditioner Market

The air conditioner market in Saudi Arabia is expanding at a steady rate due to factors such as; rising temperatures, increase in the number of people moving to urban areas and relatively higher disposable income. The circumstances are that it becomes extremely hot in the summer and thus the need for air conditioning particularly for residential, commercial and industrial use. The increased pace of constructing buildings in cities and more so growth of infrastructural building projects like new homes, offices and shopping malls fuels the market even more. Also, the Saudi Arabian government has launched its Vision 2030 which has a plan for investing in infrastructure and smart technologies and hence promotes the use of efficient and innovative air conditioning systems. This coupled with the fact that consumer’s tastes and preferences have changed over the years and are now looking for eco-friendly and Monetary models, has seen the demand for energy-efficient models arise. Technological changes also affect the efficiency of the market such as smart Air conditioners that offer IoT to improve on the controls of homes. With the growth and development of the country the air conditioner market in Saudi Arabia will also grow in response to demands for efficient cooling solutions. February 2023, Zamil Air Conditioners Company and Samsung Electronics have agreed to cooperate in order to increase the level of local content production of air conditioners based on the VRF technology. The issue is to increase the effectiveness of cooperation in manufacturing in the framework of the partnership.

Air Conditioners Market News

• In February 2023, Godrej Appliances used innovative anti-leak technology to develop the first split air conditioner that was leak-proof in India. This strategic application of anti-leak technology demonstrates the company's commitment to enhancing user experience and developing an unrivaled value proposition in the air conditioning sector.
• In January 2022, At the 2022 AHR show in Las Vegas, LG Electronics USA unveiled a wide range of ventilation, heating, and air conditioning systems for use in light commercial, residential, and industrial applications.

Global Air Conditioner (AC)– Market breakup in 2 viewpoints:

1. Commercial Air Conditioners Market
2. Room Air Conditioners Market

Country – Market breakup in 2 viewpoints:

1. Commercial Air Conditioners Market

• PAC
• VRF

2. Room Air Conditioners Market

• Window-Type
• Split-Type

• United States
• Canada
• Russia
• France
• Germany
• Italy
• Spain
• United Kingdom
• Belgium
• Netherlands
• Turkey
• China
• Vietnam
• Philippines
• India
• Australia
• Thailand
• Malaysia
• Indonesia
• New Zealand
• Brazil
• Mexico
• South Africa
• Saudia Arabia
• United Arab Emirates
• Rest of the World

Type – Market breakup in 5 viewpoints:

1. Split Type (Single)
2. Split Type (Multi)
3. PAC
4. VRF
5. Others

All the Key players have been covered from 5 Viewpoints:

• Overviews
• Key Person
• Recent Developments & Strategies
• Product Portfolio & Product Launch in Last 1 Year
• Revenue

Company Analysis:

1. Daikin Industries
2. Carrier
3. Electrolux
4. Emerson Electric Company
5. Hitachi-Johnson Controls Air Conditioning Inc.
6. Trane Technologies plc
7. Mitsubishi Heavy Industries Ltd
8. Ingersoll-Rand plc.

Report Details: