USD 138.91 Billion
Air Conditioning Market Size, Share, Growth Analysis, By Type(Room AC, Ducted AC, Ductless AC, Centralized AC), By Application(Residential, Commercial offices and Retail, Industrial and Others), By Technology(Semi-automatic or Manual, Automatic, Inverter, Non-inverter), By Distribution channels(Online retail, Retail shops, Direct sales, and Distribution sales), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25A2191 |
Region:
Global |
Published Date: April, 2024
Pages:
223
|Tables:
121
|Figures:
73
Air Conditioning Market Insights
Air Conditioning Market size was valued at USD 148.49 Billion in 2023 and is poised to grow from USD 158.74 Billion in 2024 to USD 270.71 Billion by 2032, growing at a CAGR of 6.9% during the forecast period (2025-2032).
The air conditioning (AC) industry is poised for substantial growth owing to several converging factors. Escalating global temperatures and increased humidity levels worldwide are driving a surge in the demand for air conditioning systems. This shift in perception contributes significantly to the expanding market.
Moreover, the advent of technologically advanced air conditioning solutions, including inverters and air purification technologies, is set to be a key driver throughout the forecast period.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Commercial
Fastest Growth
Growth Rate
6.9% CAGR
Global Air Conditioning Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Air Conditioning Market Segmental Analysis
The global Air Conditioning market is segmented into various segments. By type, the air conditioner market can be segmented into room AC, ducted AC, ductless AC, centralized AC, and others. Based on application, the global air conditioner market is segmented into residential, commercial offices and retail, industrial and others. By technology, the air conditioner market is segmented based on semi-automatic or manual and automatic. Based on distribution channels, the air conditioner market can be segmented into online retail, retail shops, direct sales, and distribution sales. By technology, the air conditioner market is segmented into inverter, non-inverter. Based on end-use, the air conditioner market can be segmented into residential, commercial. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
Analysis by Technology
In 2022, the inverter segment emerged as a dominant force within the market, commanding the largest revenue share at approximately 67.6%. This segment is projected to continue its rapid growth, foreseeing the fastest CAGR of 8.4% throughout the forecast period. The unparalleled growth of inverter air conditioners stems from their innovative capability to regulate temperature by controlling the speed of the compressor motor.
The non-inverter segment is projected to experience more moderate growth compared to its inverter counterpart, influenced by several key factors that impact their market standing. This segment faces challenges associated with relatively higher energy consumption, fluctuations in frequencies, and a comparatively shorter lifespan. These factors collectively limit the segment's appeal, impacting its growth potential within the market.
Analysis by End-Use
In 2022, the residential segment secured the largest revenue share, commanding 42.0% of the market, and is poised to exhibit the fastest CAGR at 9.2% throughout the forecast period. The undeniable impact of climate change has become evident with rising temperatures witnessed across numerous countries in recent years. This climate shift has reshaped perspectives on air conditioning systems, transforming them from a luxury to a necessity. As temperatures soar, the demand for air conditioning systems in residential settings has surged globally.
The commercial segment is poised to witness a robust CAGR of 5.7% throughout the forecast period, fueled by the forces of rapid urbanization and escalating demand for commercial spaces. Within this segment, commercial air conditioning units play a pivotal role, often occupying substantial rooftop space in various establishments such as hotels, shopping malls, offices, theaters, and large restaurants.
Global Air Conditioning Market By End-Use
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Air Conditioning Market Regional Insights
Asia Pacific stands as a powerhouse in the global air conditioning market, primarily due to its extensive manufacturing base featuring industry giants such as LG, Samsung, Voltas, Daikin, and other major players. This robust presence of renowned manufacturers has established Asia Pacific as a dominant force in the production and supply of air conditioning systems.
North America is poised for substantial growth between 2023 and 2030, driven by a heightened awareness of the benefits of energy-efficient air conditioning systems. This increased awareness contributes to a rising demand for air conditioning products across the region. Moreover, the growing acceptance of central air conditioners positions Mexico as a promising hub for the air conditioner market's expansion. This trend underscores the potential for significant growth within the market segment for centralized cooling systems.
Global Air Conditioning Market By Region
- Largest
- Fastest
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Air Conditioning Market Dynamics
Drivers
Rising Temperatures
- As global temperatures surge due to the effects of climate change, air conditioners (ACs) are rapidly evolving from being perceived as a luxury item to becoming an indispensable necessity. This fundamental shift in perspective is poised to wield a substantial and positive influence on the overall value of the global air conditioner market. The intensifying heatwaves and escalating temperatures worldwide are compelling individuals and communities to view air conditioning as an essential element for maintaining comfortable indoor environments.
Restraints
Excessive Maintenance and Repairing Cost is Impeding Market Growth
- The rapid expansion of the Heating, Ventilation, and Air Conditioning (HVAC) industry has spurred the integration of automation into every facet of its products and services. This growth trajectory has significantly heightened the need for the manufacturing and installation of sophisticated systems across various sectors including commercial, industrial, and residential applications. However, amidst this surge, a key limitation emerges in the form of high replacement and maintenance costs.
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Air Conditioning Market Competitive Landscape
The competitive environment of the Global Air Conditioning Market is dynamic and characterized by the presence of a mix of well-established brands, emerging players, and niche producers. Innovation is a key competitive factor. Leading brands invest in research and development to introduce new flavors, packaging formats, and health-focused variations to cater to changing consumer preferences. They often set the trends in the industry.
Top Player’s Company Profiles
- Daikin Industries Ltd.
- Gree Electrical Appliances, Inc. of Zhuhai
- United Technologies Corporation
- Midea Group Co. Ltd.
- Hitachi-Johnson Controls Air Conditioning, Inc.
- Ingersoll-Rand plc.
- LG Electronics Inc.
- Qingdao Haier Co. Ltd.
- Panasonic Corporation
- Toshiba Corporation
- Eberspaecher
- Hanon Systems
- Keihin Corporation
- Sanden Holdings Corporation
- Mitsubishi Heavy Industries Ltd.
- Subros Limited
Recent Developments
- In July 2023, Voltas, a subsidiary of the Tata Group, reported the sale of approximately 1.2 million household air conditioners during the first half of CY22, marking an impressive 60% increase in sales. This surge in sales was attributed to several key factors, notably the sweltering summer heat experienced in the region and the company's extensive and diversified sales network. Voltas' success was further fueled by its strong brand reputation, offering a unique range of products tailored to consumer needs.
- In February 2023, Godrej Appliances announced the first leak-proof split air conditioner in India, exhibiting a creative use of anti-leak technology. This strategic application of anti-leak technology highlights the business's dedication to improving the user experience and creating an unmatched value offer in the air conditioning industry.
- In February 2023, LG Electronics (LG) exhibited its new heating, ventilation, and air conditioning (HVAC) solutions at AHR Expo 2023, the largest HVAC event in the United States. Two exposition booths display the company's tailored, high-efficiency solutions for commercial and residential applications: the HVAC Solution booth and the Component Solutions booth.
Air Conditioning Key Market Trends
- Product Innovation: In response to the escalating need for energy-efficient solutions, manufacturers in the air conditioning industry are prioritizing product innovation. Notably, companies such as LG have spearheaded advancements by introducing window inverter air conditioners integrated with Dual Inverter technology. These innovative units significantly reduce energy consumption compared to conventional air conditioning systems, aligning with the growing demand for environmentally friendly and cost-effective cooling options. Moreover, within the fiercely competitive market landscape, manufacturers are intensifying efforts to offer value-added features.
Air Conditioning Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
Several segments within the air conditioning industry are poised for notable expansion in the upcoming years, with particular attention drawn to the burgeoning market. The surge in demand for smart gadgets capable of transforming conventional remote-controlled AC units into smart devices stands as a primary growth catalyst in this segment. This trend reflects the increasing consumer preference for connected technologies in household appliances, propelling the smart air conditioner market forward. Simultaneously, the push for improved housing standards contributes to heightened demand for room air conditioners, reflecting a parallel growth trajectory.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 138.91 Billion |
| Market size value in 2031 | USD 253.24 Billion |
| Growth Rate | 6.9% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Air Conditioning Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Air Conditioning Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Air Conditioning Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Air Conditioning Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Air Conditioning Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Air Conditioning Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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