Global Air Conditioning Systems
Market Report
2024
Delivery Includes:- Market Timeline 2019 till 2031, Market Size, Revenue/Volume Share, Forecast and CAGR, Competitor Analysis, Regional Analysis, Country Analysis, Segment Analysis, Market Trends, Drivers, Opportunities, Restraints, ESG Analysis, Porters Analysis, PESTEL Analysis, Market Attractiveness, Patent Analysis, Technological Trend, SWOT Analysis, COVID-19 Analysis, Consumer Behavior Analysis, etc.
The base year for the calculation is 2023 and 2019 to 2023 will be historical period. The year 2024 will be estimated one while the forecasted data will be from year 2025 to 2031. When we deliver the report that time we updated report data till the purchase date.
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• The global air conditioning system market will expand significantly by XX% CAGR between 2024 and 2031.
• The unitary type segment accounts for the largest market share and is anticipated for a healthy growth over the approaching years.
• The central air conditioning systems had a market share of about XX% in 2022.
• The inverter sector holds the largest share and is expected to grow in the coming years as well.
• Residential application is the markets largest contributor and is anticipated to expand at a CAGR of XX% during the projected period.
• The sector has seen a transformation in indirect sales with the rise of e-commerce and online marketplaces
• Asia Pacific region dominated the market and accounted for the highest revenue of XX% in 2022 and it is projected that it will grow at a CAGR of XX% in the future
Base Year | 2023 |
Historical Data Time Period | 2019-2023 |
Forecast Period | 2024-2031 |
Global Market Size | 121212 |
Country Market Size | 121212 |
North Americ Market Size | 121212 |
Europe Market Size | 121212 |
Asia Pacific Market Size | 121212 |
South America Market Size | 121212 |
Middle East and Africa Market Size | 121212 |
Market Split by Type |
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Market Split by Application |
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Market Split by Product |
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Market Split by Technology |
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Market Split by Cooling Capacity |
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Market Split by Distribution Channel |
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List of Competitors |
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Regional Analysis |
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Country Analysis |
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Key Qualitative Information Covered |
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Report scope is customizable as we have a huge database of Air Conditioning Systems industry. We can deliver an exclusive report Edition/Consultation as per your data requirements. Request for your Free Sample Pages.
Air Conditioning Systems Market is Segmented as below. Particular segment of your interest can be provided without any additional cost. Download the Sample Pages!
It is an electrical device explicitly intended to remove and reduce heat and moisture from the inside of a populated space and is known as an air conditioning system. Aircon, AC, and A/C are common acronyms for air conditioning. In the air conditioning system, by the refrigeration cycle, cooling is accomplished, however, evaporation or free cooling might also be used sometimes. For instance, Americans are increasingly turning up the air conditioning. Recent statistics from the US Energy Information Administration shows that about 90% of American houses use air conditioning in some capacity. There is growing usage of Air conditioning systems. Growing construction sector spending due to rapid urbanization, rise in air pollution levels, increasing temperatures and the introduction of government tax credits and rebate programs are a few key drivers in the growth of market demand.
Additionally, these systems offer many features and functions including motion control, humidity and control of temperature as per need, and personalized changing options as per requirement which has led to the customers growing inclination as these features provide comfort and convenience leading to the upsurge in the market demand. Air conditioning systems are pervasive with their applications and end-use ranging from apartments, shopping complexes, and commercial buildings to theatres. In developing economies, ACs are still a desirable product; yet, the affordability of environmentally improved products is still a huge task. Various governments of different countries are coming up with different schemes to achieve efficient air conditioning. For instance, the Energy Efficiency Services Limited (EESL), a state-run agency in India implemented the Super-Efficient Air Conditioning program, which aimed at encouraging the usage of energy-efficient know-hows and bringing about a decrease in energy consumption. Through this program, the Ministry of Power in India also aims to execute India’s Hydrochlorofluro carbons Phase-out Management Plan and Cooling Action Plan by 2032. (Source: https://eeslindia.org/en/super-efficient-ac/)
Rapid urbanization and construction activities lead to boost in the demand for air conditioners
Growing urbanization leads to the building of residential and commercial buildings and spaces, ranging from offices, and homes to shopping centres to entertainment centres increasing the demand for air conditioners and it is projected to positively impact the industry in the future as well. For instance, in 2019 and beyond, the revenue growth of construction enterprises global is projected to average 5%. The construction sector is one of the significant driving forces in the growth of air conditioning systems. The necessity of overcoming the global infrastructure and development gaps is what contributes to the construction industry's expansion.
As per Invest India, the Indian construction industry will reach $1.4 Trillion by 2025
(Source:https://www.investindia.gov.in/sector/construction).
More area is needed for housing due to population growth, particularly in Tier 1 cities. Government agencies and businesses in the private sector have both stepped up their construction efforts to meet the demand. The development of rural areas is a priority for the Indian government as well. These are the main elements driving the construction industry's expansion.
Thus, widespread urbanization, population growth, and industrialization are the driving forces for the growth in the construction sector and spending.
The need for air conditioning systems in the residential sector has increased due to the building of new houses and flats in response to the growing demand for housing units. Since most individuals spend most of their time indoors, installing air conditioning systems can help preserve indoor air quality. Additionally, AC systems offer cooling and heating options that raise occupant comfort levels.
Real estate industry is also a driving force for the AC Market
The upward trends, such as the development of several real estate investment options which include real estate investment trusts (REITs), commercial mortgage-backed securities, and real estate private equity funds seen in the residential sector, are fundamental forces in the growth of the real estate industry. This positive growth in real estate has a favourable impact on the global AC industry, braced together by a rise in construction expenditure and an increase in building authorizations for the construction of housing, commercial, and industrial purposes.
For example, in the U.S., the construction sector is probable to grow as the Federal Government spends more on infrastructural expansion. Private commercial structures and projects are growing, boosting the market and government-sponsored building projects. (Source: https://www.cfr.org/backgrounder/state-us-infrastructure )
Increasing income of the population creates demand for air conditioning products
Economic factors include the increase in disposable income and consumer purchasing power. Both play a vital role in the growth of the market. In developing economies and countries, growing middle-class populations and increases in incomes are driving demand for air conditioning systems. Growing improvements in living standards are a major element propelling the global market for air conditioners.
Government Tax Credit and Reimbursement Agendas
The air conditioning market is likely to witness augmented sales backed up and supported by the tax credit and rebate programs and other monetary assistances linked with purchase of energy-efficient systems. Standards to advance the operation of AC systems are established by governments at various levels. The governments have established some standard norms and criteria to manufacture energy-efficient systems, to reduce environmental hazards and carbon footprints.
For instance, under the Taxpayer Relief Act of 2012 (U.S.)-2017, customers can apply for the Federal Energy Tax Credit. The credit is not availed to all HVAC units. HVAC systems, including Acs which are ideal and suitable for the tax credits, can claim 25C tax credits, which is 10% of the overall installation costs (maximum up to USD 500) or a certain amount ranging from USD 50 to USD 300.
(Source: https://www.everycrsreport.com/reports/R42089.html )
The increasing popularity of Variable Refrigerant Flow (VRF) air conditioners lead to a rise in demand
These air conditioners are recognized for their high energy efficacy and cost-effectiveness gaining power in niche markets globally, further contributing to the global market expansion. In the United States, Variable Refrigerant Flow systems are becoming increasingly popular as demand for zoning systems, sustainable solutions, and energy efficiency continues to grow. In fact, in the American HVAC industry, VRF systems are the fastest-growing segment.
For instance, Johnson Controls has invested $2.8 billion in buying 60% of Hitachi's Air-Conditioning division, bringing the best of both worlds to the North American market: unmet VRF innovation from a major VRF supplier through one of the most known manufacturers of traditional HVAC systems and controls. Johnson Controls recently launched the second generation of VRF HVAC equipment for the North American market, the Hitachi Variable Refrigerant Flow (VRF) Gen II. (Source: https://engineeredproducts.com/hitachi-vrf/ )
High Installation Costs and Maintenance and Repair
One of the major challenges for this market is the constant high cost of installation and maintenance of AC units and systems. It is observed that the cost of installation is comparatively quite higher, though it keeps varying, conditional on the type of unit.
The installation of an air conditioner involves several components, such as an outside electric disconnect, an outdoor pad, an inside evaporator coil, PVC pipe, a drain line, and a new copper line set connecting the indoor coil to the air conditioner. The installation cost, which varies from $100 to $600, is determined by how complicated the electrical adjustments are. A home building's replacement air conditioner might cost anywhere from $4,400 and $13,000. High-end or variable speed air conditioners range in price from $8,200 to $13,000, while entry-level or single-stage air conditioners cost between $4,400 and $8,000, and mid-range or two-stage air conditioners between $6,200 and $9,500.
In order to maintain the Quality of Life (QoL), it is thus necessary for regular and constant maintenance of existing units which in turn impacts the industry growth. Also, increases in prices push customers to shift to lower-cost options and alternatives even though they might be less effective and efficient.
Growing Environmental Concerns and Awareness
Increasing environmental cognizance has created a shift on the road to eco-friendly refrigerants and energy-efficient systems to moderate the ecological effect of air conditioning. Harsh regulations and consumer preferences for green resolutions are influencing market dynamics. For instance, In America, air conditioners are found in 75% of all households. Air conditioners cost homeowners over $29 billion a year, or roughly 6% of all electricity produced in the United States.
Consequently, yearly emissions of carbon dioxide into the atmosphere amount to about 117 million metric tons. Approximately 20% of the electricity used in buildings today comes from air conditioning, which accounts for 10% of global electricity usage. Air conditioning is contributing to an increase in greenhouse gas emissions, which now make up about 4% of global emissions.
(Source: https://www.iea.org/reports/the-future-of-cooling)
However, the new systems are planned in such a way that are energy efficient, which can help people save money on their electricity bills. The latest systems are frequently prepared with features like programmable thermostats and energy-efficient mechanisms that can help in reducing energy consumption.
Development of IoT AC Systems
The Internet of Things is an innovative technology in the AC industry, especially for residential and commercial purposes. IoT-enabled AC systems will significantly decrease the risk of system interruption. It will also help in the reduction of energy costs and improve the overall operational competence. Moreover, these systems offer real-time signals for the maintenance and repair essentials, which help increase the overall product's life. For instance, in 2021, To better serve customers' changing lifestyles, Haier has introduced the first IoT-enabled Sharing AC service in India at the SPS Plaza Hotel in Delhi NCR. Users can use the Smart Sharing AC app on their smartphones to control, monitor, and share the service thanks to its smartphone-enabled features.
Technicians can also access systems anywhere with the help of the internet and fix the system's faults. This leads to a reduction in the overall costs and the reduced consumption of time in repair and maintenance.Moreover, major producers such as Blue Star Limited, Onida, and Daikin Industries, Ltd. deeply emphasize developing IoT-enabled AC systems that aid improve and developing the company's market presence and financial health.
For example, With Particle, Watsco has been able to develop products that help system owners and contractors monitor their HVAC systems 24/7. In the first 16 months after launching its Sentree product, Watsco connected over 2,000 A/C systems, caught 500 issues and collected 600 million data points. As Watsco continues to innovate, more contractors are signing up to use their connected products.
(Source:https://www.watsco.com/newsitem/watsco-ventures-products-are-changing-our-customers-business-2)
Technological Developments and Improvements
Constant inventions, modernization, and technological advancements, including energy-efficient designs and smart features in the designs and specifications and others, are driving the market frontward. Clients search for cutting-edge solutions that offer improved performance and suitability.
Also, Daikin’s AC’s FTKP series comes with the 3D airflow function which blows cool air in multiple directions to ensure thorough cooling inside the room.
The Air Conditioning Systems Market has experienced significant impacts as a result of the COVID-19 pandemic. The pandemic led to a lot of disruptions and commotions in the supply chains leading to postponements and delays in the manufacturing and distribution of the systems. Different disturbances like worldwide lockdowns, closing down factories, and restrictions on transportation impacted the availability of raw materials and types of equipment. According to reports in JARN (Japan Air Conditioning, Heating & Refrigeration News) the air conditioning markets (AC) affected greatest by the instability of the international health crisis, which include Mali, the Philippines, Thailand and the US.
For instance, in Vietnam, lockdown measures were implemented by the government from April 1st to April 22nd in an effort to curb the Covid-19 pandemic. As a result, compared to the prior year, the AC sales performance for that month decreased by about 50%. Moreover, the pandemic led to delays in large-scale projects related to hotels, restaurants, and offices and as a result this led to massive declines in the sales of commercial air conditioners.
Source-(https://iifiir.org/en/news/the-global-ac-market-during-the-covid-19-pandemic)
On the brighter side, consumers are now concerned about indoor air quality and risks related to transmission of the virus which led to an increase in the demand which offered advanced air filtration and purifying technologies and solutions.
For instance, in March 2021, the World Health Organization (WHO) released a roadmap to improve ventilation in different settings. The roadmap strives to outline the key questions users should consider to assess indoor ventilation and the primary steps that users should consider to reach recommended ventilation levels or simply improve indoor air quality (IAQ) to reduce the risk of COVID-19 spreading.
(Source:https://www.who.int/publications/i/item/9789240021280 )
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In order to meet the increasing demands of consumers the industry players are now investing and giving more attention to their research and development of Air Conditioning Systems so that they sustain and survive in the competition. ensuring a competitive edge. Robust distribution networks and adherence to quality standards amplify market presence, fostering an environment where agility and innovation define industry leaders.
Top Companies Market Share in Air Conditioning Systems Industry: (In no particular order of Rank)
If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.
According to Cognitive Research , Asia Pacific region dominated the market and accounted for the highest revenue of XX% in 2022 and it is projected that it will grow at a CAGR of XX% in the future. This growth is supported by growing demand from the growing residential marketplace in emerging economies and nations like China and India. According to statistics, China is leading in regards to the number of air conditioning units being sold, with more than two times the number of AC units in the U.S.
North America is projected to grow at a CAGR of XX% over the period. The revenue share of the region is credited to the high penetration of air conditioners and other related systems in the U.S. Also, the US has experienced heat waves that exceed records, which has led to a notable increase in air conditioner sales in the region.
The current report Scope analyzes Air Conditioning Systems Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com
The above graph is for illustrative purposes only. To learn more about geographical trends request the free sample pages. Contact US!
Global Air Conditioning Systems Market Report 2024 Edition talks about crucial market insights with the help of segments and sub-segments analysis. In this section, we reveal an in-depth analysis of the key factors influencing Air Conditioning Systems Industry growth. Air Conditioning Systems market has been segmented with the help of its Type, Application Product, and others. Air Conditioning Systems market analysis helps to understand key industry segments, and their global, regional, and country-level insights. Furthermore, this analysis also provides information pertaining to segments that are going to be most lucrative in the near future and their expected growth rate and future market opportunities. The report also provides detailed insights into factors responsible for the positive or negative growth of each industry segment.
The unitary type segment is accounts for the largest market share and is expected to rise at a over the period. Unitary ACs are anticipated for a healthy growth over the approaching years. This growth is credited to the increasing demand for unitary AC in residential applications and spaces due to their numerous benefits, such as low energy consumption, affordable and low costs, and providing green cooling to consumers.
PTACs are also becoming more prevalent owing to technological enhancements, including inverter technology, energy-efficient systems, and wireless connectivity. For instance, Friedrich's FreshAire PTAC has an inverter compressor that lessens temperature swings, surges efficiency, and improves dehumidification.
The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Air Conditioning Systems Industry. Request a Free Sample PDF!
The market's largest contributor, the residential category, is anticipated to expand. Climate change has caused temperatures to rise in several countries in recent years. Air conditioning systems are becoming more and more necessary as a result of rising temperatures. People are putting air conditioning units in their houses as a result, and as global temperatures rise, it is projected that this tendency will continue.
For instance, North America uses 23 percent of the world's total amount of air conditioning, more than any other nation. Air conditioning accounts for at least 5% of residential electricity use in the United States. Throughout the forecast period, household air conditioners are anticipated to increase healthily due to changing climatic conditions.
The above Graph is for representation purposes only. This chart does not depict actual Market share. Please purchase the Air Conditioning Systems market report 2024 Edition by contacting our team.
By product, In 2022, the central air conditioning systems had the largest share compared to others Concerns over indoor air quality are growing among consumers (IAQ). To enhance indoor air quality (IAQ), central air conditioning systems are integrating cutting-edge air filtration and purification technology including UV-C germicidal lights and HEPA filters.
By technology, During the projection period, the inverter sector holds the largest market share. Because inverter technology can regulate the speed of the compressor motor, it can aid in the constant regulation of temperature. As a result, it is anticipated to increase significantly. When compared with non-inverter air conditioners, the variable speed compressor contributes to over 50% greater energy and power savings. Other benefits including no temperature swings, longer durability, faster cooling, and less noise than non-inverter ACs are expected to drive up demand for inverter technology.
Compared to its competitor, the non-inverter market is expected to grow at a slower pace. This could be attributed to a number of problems, such as excessive energy use, irregular frequency, and brief lifespan. Nonetheless, the inexpensive cost of these air conditioning units may contribute to the segment's growing market share
By cooling capacity, Medium-capacity inverter-driven systems are becoming more and more common because of how energy-efficient they are. These systems offer accurate temperature control and lower energy use by adjusting the compressor speed in response to cooling demands. The need for medium-capacity cooling systems in households and small business premises has been fueled by the development and growth of residential developments in urban and suburban locations.
By distribution channel, The sector has seen a transformation in indirect sales with the rise of e-commerce and online marketplaces. Nowadays, a lot of consumers use third-party vendors to research, compare, and buy air conditioning systems online. The COVID-19 pandemic and people's penchant for internet purchasing have intensified this tendency. An omnichannel strategy, which incorporates online and offline sales channels, is being adopted by indirect sales channels. Customers can now easily move between different touchpoints, such internet research and in-store purchases.
Senior Research Analyst at Cognitive Market Research
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Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.
The Global Air Conditioning Systems Market is witnessing significant growth in the near future.
In 2023, the Unitary segment accounted for noticeable share of global Air Conditioning Systems Market and is projected to experience significant growth in the near future.
The Residential segment is expected to expand at the significant CAGR retaining position throughout the forecast period.
Some of the key companies Daikin Industries Ltd. , Whirlpool Corporation and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.
Disclaimer:
Type | Unitary, Rooftop, PTAC |
Application | Residential , Commercial , Industrial |
Product | Mini Split Ac, Multi Split AC, VRF, Floor Ceiling |
Technology | Inverter, Non-Inverter |
Cooling Capacity | Low Capacity, Medium Capacity, High Capacity, Ultra-High Capacity |
Distribution Channel | Online, Offline |
List of Competitors | Daikin Industries Ltd., Mitsubishi Electric Corporation, Whirlpool Corporation, LG Electronics Inc., Hitachi Ltd., Panasonic Corporation, Carrier Corporation, Johnson Controls International plc, Haier Group Corporation, Midea Group Co. Ltd., Toshiba Corporation, Hisense Kelon Electrical Holdings Company Limited, Voltas Limited |
This chapter will help you gain GLOBAL Market Analysis of Air Conditioning Systems. Further deep in this chapter, you will be able to review Global Air Conditioning Systems Market Split by various segments and Geographical Split.
Chapter 1 Global Market Analysis
Global Market has been segmented on the basis 5 major regions such as North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.
You can purchase only the Executive Summary of Global Market (2019 vs 2024 vs 2031)
Global Market Dynamics, Trends, Drivers, Restraints, Opportunities, Only Pointers will be deliverable
Chapter 2 North America Market Analysis
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Qualitative Analysis for the North America Market: North America Air Conditioning Systems Market Trends North America Air Conditioning Systems Technological Road Map North America Air Conditioning Systems Market Drivers North America Air Conditioning Systems Market Restraints North America Air Conditioning Systems Market Opportunity Market Attractiveness Analysis COVID – 19 Impact Analysis PESTEL Analysis Porter’s Five Forces Analysis Product Life Cycle Industrial Chain Analysis
You can purchase only the Executive Summary North America Market (2019 vs 2024 vs 2031)
Chapter 3 Europe Market Analysis
You can purchase only the Executive Summary Europe Market (2019 vs 2024 vs 2031)
Chapter 4 Asia-Pacific Market Analysis
You can purchase only the Executive Summary Asia Pacific Market (2019 vs 2024 vs 2031)
Chapter 5 South America Market Analysis
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Chapter 6 Middle East and Africa Market Analysis
You can purchase only the Executive Summary Middle East and Africa Market (2019 vs 2024 vs 2031)
Only Available with Corporate User License
Chapter 7 Top 10 Countries Analysis
Competitor's Market Share and Revenue (Subject to Data Availability for Private Players)
Chapter 8 Competitor Analysis (Subject to Data Availability (Private Players))
(Subject to Data Availability (Private Players))
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Chapter 9 Qualitative Analysis (Subject to Data Availability)
Segmentation Type Analysis 2019 -2031, will provide market size split by Type. This Information is provided at Global Level, Regional Level and Top Countries Level The report with the segmentation perspective mentioned under this chapters will be delivered to you On Demand. So please let us know if you would like to receive this additional data as well. No additional cost will be applicable for the same.
Chapter 10 Market Split by Type Analysis 2019 -2031
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Chapter 11 Market Split by Application Analysis 2019 -2031
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Chapter 12 Market Split by Product Analysis 2019 -2031
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Chapter 13 Market Split by Technology Analysis 2019 -2031
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Chapter 14 Market Split by Cooling Capacity Analysis 2019 -2031
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Chapter 15 Market Split by Distribution Channel Analysis 2019 -2031
This chapter helps you understand the Key Takeaways and Analyst Point of View of the global Air Conditioning Systems market
Chapter 16 Research Findings
Here the analyst will summarize the content of entire report and will share his view point on the current industry scenario and how the market is expected to perform in the near future. The points shared by the analyst are based on his/her detailed in-depth understanding of the market during the course of this report study. You will be provided exclusive rights to interact with the concerned analyst for unlimited time pre purchase as well as post purchase of the report.
Why Unitary have a significant impact on Air Conditioning Systems market? |
What are the key factors affecting the Unitary and Rooftop of Air Conditioning Systems Market? |
What is the CAGR/Growth Rate of Residential during the forecast period? |
By type, which segment accounted for largest share of the global Air Conditioning Systems Market? |
Which region is expected to dominate the global Air Conditioning Systems Market within the forecast period? |
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Additional Qualitative Data |
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