Air Conditioning System Market

Global Air Conditioning System Market Outlook

The global air conditioning system market is estimated at USD 123 Billion in 2022 and is forecast to surpass USD 198 Billion by 2032, growing at a CAGR of 4.8% during 2022-2032.

Report Attributes	Details
Base Year Value (2021A)	USD 118 Billion
Estimated Year Value (2022E)	USD 123 Billion
Projected Year Value (2032F)	USD 198 Billion
Global Growth Rate (2022-2032)	CAGR 4.8%
North America Market Value in 2021	USD 28 Billion
North America Growth Rate (2022-2032)	CAGR 5.2%
Collective Value Share (US, China, India) 2021: Top 3 Countries	~39%
Top 5 Companies Market Share in 2021	~24%
Key Companies Profiled	Daikin Industries Ltd. Mitsubhishi Qingdo Haier Samsung Electronics Electrolux LG Electronics Panasonic UTC Hitachi Gree Electric Appliances Sharp Corp. Midea Group Co. Ltd. Carrier Corp Fuji Electric Honeywall International Ingersoll Rand

The global air conditioning system market accounts for ~58% of the global HVAC (Heating, Ventilation and Air Conditioning) market in 2022. Inclination of consumers towards convenient and comfortable air conditioning systems motivates its manufacturers to practise technological advancements in a constant manner. Trend of growing popularity for portable and energy-efficient air conditioning systems is anticipated to provide maximum opportunities through white space assessment executed on global level.

The global air conditioning system market is estimated to have an absolute $ opportunity of USD 75 Billion during the assessment period of 2022-2032. Whereas, North America air conditioning market generated around 25% of the overall market valuation for this market in 2021 and is expected to grow owing to the demand for energy-efficient air conditioning systems.

Owing to rapid industrialization and escalating global warming due to increase in population growth, the use of air conditioning systems is increased within both residential and commercial segments. In addition, high demand raised from residential sector, predominantly households is expected to provide considerable profit margins to unitary air conditioning systems manufacturers.

Considering the technical insights for air conditioning systems in present market, its energy saving ability through speed controlled compressor, less temperature fluctuations, less noise, higher durability, faster cooling and optimum energy consumption acts as real drivers for this product.

Additionally, the demand for air conditioning systems is poised to multiply its market by 1.5X of its present market valuation during the forecast years of 2022-2032, owing to the innovation in the product and integration of building controls and HVAC systems and IAQ innovations.

2017-2021 Global Air Conditioning System Market Outlook in Comparison to 2022-2032 Growth Forecast

Noteworthy enlargement of the residential sector, due to the escalating disposable income of the population worldwide, is expected to be the chief factor in driving demand for air conditioning systems. 

Additionally, the rising middle-class population is adopting air conditioning systems because of their tumbling costs. Rapid urbanization, industrialization and escalating number of data centres are expected to provide a gain of 260 BPS during the forecast period of 2022-2032, to the overall demand for air conditioning systems. 

Fact.MR projects the air conditioning system market is expected to witness exhibiting growth at 4.8% CAGR during 2022-2032 in comparison to a CAGR of 3.2% with which it grew from 2017 to 2021.

Augmenting Demand for IAQ Leading to Enhanced Quality

Consumer awareness regarding the benefits of improved air in promoting healthy indoor spaces is placing 1.3X demand on the table for improved air quality (IAQ) in parallel. Therefore, manufacturers of air conditioning systems are stimulating IAQ innovation, seeing the rising demand for novel technologies.

Escalating demand for IAQ has made these manufacturers focus more on quality offerings. Expanded filter testing technology, mandatory regulatory compliance, and online monitoring offered by manufacturers have resulted in the provision of high convenience to consumers.

Moreover, some IAQ innovations in air conditioning systems address challenges ranging from detection of emissions and air particulate management to air exchange and fresh air intake. This is poised to enhance market demand by 25% of present demand levels.

Key Trends in Air Conditioning System Market

The integration of building controls and HVAC systems is the latest trend in the air conditioning system market. This integration is resulting in high energy efficiency in building management systems. This is poised to enhance market growth by 1.5X during the forecast years of 2022-2032.

The next trend in line is the movement towards green technologies. The air conditioning system owing to the emission of hazardous gases such as chlorofluorocarbons (CFC) and hydro-chlorofluorocarbons (HCFC) in the environment, is the major contributor to global warming. This creates negative impacts on the environment and results in ozone layer depletion. Therefore, manufacturers are incorporating new technologies to combat harmful effects on the environment. Therefore, the sales of air conditioning systems worldwide is expected to grow by 25% of current levels over the assessment period of 2022-2032.

Region-wise Insights

Which Region can Account More Revenue-Generating Opportunities for Air Conditioning Systems Market?

North America air conditioning system market holds the potential to account large number of sale units for air conditioning systems. The region currently accounts for 24.8% of the overall market share. Owing to the changing standards of American Society of Heating, Refrigerating and Air Conditioning, ongoing technological innovation, and the presence of policies have enhanced the demand for technologically advanced, energy-efficient and eco-friendly air conditioning systems in the regions. Therefore, the market is projected to grow at a CAGR of 5.2% during the forecast years of 2022-2032.

What is the Market Scenario for Air Conditioning Systems in Asia?

The Asia-Pacific air conditioning system market consisting of East Asia and South Asia holds 35.8% of the overall market share together and is projected to grow at a CAGR of 4.8% in coming years. This is attributed to the Asia-Pacific being the fastest expanding market for the product owing to rising disposable income and living standards of the population in countries like China and India.

Category-wise Insights

Which type of AC is expected to be the largest contributor in market share during the forecast period in Air Conditioning System Market?

Unitary ACs under AC type accounts for nearly 38.9% of the overall market share. As the unitary air conditioners are used in households, increasing demand from the residential sector is fueling the demand in the air conditioning systems market. Moreover, the functionality of easy pairing of unitary AC with furnaces in the same ductwork for both residential and commercial use is estimated to provide a gain of 310 BPS during the forecast period.

Moreover, the Packaged Terminal Air Conditioner (PTAC) which holds 33.7% of the overall market share is expected to grow at a healthy CAGR of 4.9% over the assessment years. The growth is attributed to the enhanced adoption of PTAC in the residential and hospitality sectors. The segment is also gaining traction because of technological advancements in the product such as the use of energy-efficient systems, inverter technology, and wireless connectivity.

Which end-use segment holds more market share and is poised to show more growth in Air Conditioning System Market?

The residential application of air conditioning systems currently holds a major market share of 35.2% of the overall market share. The growth in this segment is attributed to the increased temperature because of climate change which has rendered the deployment of air conditioning systems a necessity. Therefore, the trend to install an air conditioning system for residential application is projected to provide growth of 4.5% CAGR during the forecast years of 2022-2032.

Additionally, the commercial segment which holds 34.5% of the market share is projected to register a CAGR of 4.9% over the forecast period. The growth is attributed to retrofitting and replacement of products to minimize energy consumption to augment the adoption of air conditioning systems for commercial use.

Competitive Landscape: Top Companies in Air Conditioning System Market

The global air conditioning system market is highly fragmented and competitive owing to the existence of many domestic and regional players. Various marketing strategies are adopted by key players such as mergers and acquisitions, expansions, collaborations and partnerships.

Also, new product development as a strategic approach is adopted by the leading companies to upscale their market presence among consumers. These strategies have resulted in the incorporation of advanced air conditioning system.

Fact.MR has provided detailed information about price points of top manufacturers of air conditioning system market positioned across regions, sales growth, production capacity, and speculative technological expansion in the recently published report.

For instance:

• Eco Innovation Group, Inc. company developing new and advanced technologies for green energy solutions announced in 2021, the signing of a Letter of Intent (LOI), with Keith E. Prime, who invents technologies for the air conditioning industry. This is likely to make additions to the offerings in line with eco-friendly energy solutions. 
• Mitsubishi Corporation along with Global Bain Corporation announced in 2022, the launch of ME Innovative Fund. This corporate venture capital (CVC) will invest funds in startups globally, in digital and green-innovation domains. The fund is set up with a commitment to invest approximately USD 43.5 million in capital over ten years. 

Global Air Conditioning System Market by Category

• By Product Type :

  • Portable Air Conditioning System
  • Window Air Conditioning System
  • Split Air Conditioning System
  • Cassette Air Conditioning System
  • Single Packaged Air Conditioning System
  • Chillers Air Conditioning System
  • Airside Air Conditioning System

• By AC Type :

  • Unitary
  • Rooftop
  • PTAC

• By End-Use :

  • Residential
  • Commercial
  • Industrial

• By Sales Channel :

  • B2B
  • Authorized Stores
  • Independent Electronic Stores
  • E-commerce

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • MEA