U.S. Air Conditioning System Market

U.S. Air Conditioning System Market Outlook (2022-2032)

The United States air conditioning system market is currently valued at US$ 20.3 billion and is estimated to top a market valuation of US$ 35.2 billion by the end of 2032, expanding at a noteworthy CAGR of 5.6% over the decade. As a result, the market is poised to generate US$ 14.9 billion absolute dollar opportunity during the forecast years of 2022-2032.

Of all homes in the United States, three-quarters had air conditioners, as of 2015, and by 2021, nearly 90% of American households had some form of air conditioning, more than any other country in the world, except Japan.

Report Attributes	Details
U.S. Air Conditioning System Market Size (2021A)	US$ 19.3 Billion
Estimated Market Value (2022E)	US$ 20.3 Billion
Forecasted Market Value (2032F)	US$ 35.2 Billion
U.S. Market Growth Rate (2022-2032)	5.6% CAGR
South-West U.S. Market Share (2021)	~27.8%
South-West U.S. Growth Rate (2022-2032)	~6.2% CAGR
Market Share of Top 5 Companies	~49%
Key Companies Profiled	Daikin U.S. Corporation United Technologies Honeywell International Inc. Ingersoll Rand Mitsubishi Corporation (Americas) Haier Electronics Group Co. Ltd. Samsung Electronics Carrier Corporation Sharp Corporation

Rising use of air conditioning systems for industrial, commercial, and residential applications, alike, along with the integration of building controls and HVAC systems, will drive market growth over the forecast years (2022-2032).

U.S. Sales Analysis of Air Conditioning Systems (2017-2021) Vs. Market Growth Forecasts (2022-2032)

Air conditioning systems follow the basic operating principle of heat transfer with the help of electricity to cool the surrounding area. Consumers are getting inclined towards comfortable and convenient air conditioning systems, which are inducing manufacturers to incorporate technological advancements, thus paving the way for energy-efficient and portable air conditioning systems.

With the rise in global warming coupled with rapid industrialization, the demand for air conditioning systems has increased in commercial, residential, and industrial applications alike. Also, improved features such as high durability, less noise, fewer temperature fluctuations, speed controlled compressors, faster cooling, etc., attributed to technical insights, are expected to support air conditioning system market growth in the United States over the coming years.

• Short Term (2022 Q2 to 2025): Short-term demand will be fueled by rising application of air conditioning systems in industrial, commercial and residential dwellings.
• Medium Term (2025-2028): Market growth in the medium term will be aided by the rising inclination of consumers towards green air conditioning systems.
• Long Term (2028-2032): Product innovation and integration of building controls and HVAC systems, along with IAQ innovations, will fuel long-term market growth.

The U.S. air conditioning system market registered a historic CAGR of 3.9% during the 2017-2021 period and is projected to exhibit 5.6% CAGR during the assessment period (2022-2032).

Market share analysis of system type and region has been provided in the above image. Under system type, chiller air conditioners accounted for the largest market share of 37.7% in 2021.

Which Key Trends are Being Witnessed in the U.S. Market for Air Conditioning Systems?

“Emergence of Green Air Conditioning Systems for Green Building Technology”

Cooling appliances are known to emit large volumes of GHGs or greenhouse gases & CFCs, and are energy-intensive, which has led to the need for green air conditioning systems. Rising preference for sustainable green technologies has challenged manufacturers of air conditioning devices as well. They are now focusing on improving system designs, providing optimum cooling load management, along with the use of natural refrigerants to develop energy-efficient solutions in air conditioning.

Thus, technological developments in air conditioning provide for green air conditioning systems that do not emit GHGs and are highly energy-efficient. These are highly adopted in green building technologies to impact green technology outcomes.

“Integration of Building Controls and HVAC Systems to Set New Trends in the Market”

The integration of HVAC systems and building controls results in high energy efficiency in building management systems. An integrated system performs energy management through a single interface, which aids in increasing efficiency. This interface provides a common platform to adjust temperature and monitor cooling and adjust it according to the people present in the conditioned environment.

Also, the advanced designs of HVAC systems are suitable for integrated and connected systems to reduce redundancy and increase convenience in operation.

Furthermore, the penetration of IoT and electronic-printed circuit board communication with built-in sensors to enable better connectivity is increasing. These factors are likely to drive the growth of the air conditioning system market in the United States over the coming years.

Region-wise Insights

Which Region Leads the United States Market?

“South-West United States to Remain Market Leader, Followed by South-East U.S.”

The South-West U.S. air conditioning system market dominates the United States as it holds 27.8% market share and is projected to expand at 6.2% CAGR during the forecast years of 2022-2032.

This is followed by the South-East U.S. air conditioning system market, which is projected to expand at a CAGR of 5.7% to increase its market share from the current 23.4%.

These two regions account for the most sales of air conditioning units in the country.

Attributed to factors such as changing standards of the American Society of Heating, Refrigerating, and Air Conditioning, the presence of policies leading to the incorporation of technological innovation, enhancing the demand for technologically advanced, energy-efficient, and eco-friendly air conditioning systems, has been propelling demand for air conditioning equipment in these regions over the years.

Category-wise Insights

Which Type of Air Conditioning System Dominates the U.S. Market?

“Chiller Air Conditioners Hugely Popular across the U.S.”

Under system type, the air conditioning system market in the U.S. is segmented into different air conditioning systems of portable, split, cassette, window, single-packaged, chillers, and airside.

Amongst these, chiller air conditioning systems dominate the market by holding 37.7% share. The segment is projected to expand at 6% CAGR on the back of this technology protecting the equipment from overheating and also being a cost-effective way to cool down the machinery.

In addition, chiller air conditioning systems provide for reduced costs in terms of saving money on utility bills, less operating costs, etc. They also provide powerful cooling levels considering less running costs.

Which Application Segment Continues to Drive High Demand?

“Commercial Air Conditioners to Enjoy Higher Demand Growth”

The air conditioning system market, under application, is segmented into residential, commercial, and industrial applications.

The commercial application of air conditioning systems holds the largest market share of 36.1% and is projected to expand at 5.9% CAGR over the forecast years due to rapid urbanization and rising demand for commercial spaces.

As air conditioning units at commercial places require significant space and are located on the rooftops of buildings such as hotels, shopping malls, theatres, offices, etc., they account for optimum energy consumption. Thus, to minimize the energy consumption of AC units, retrofitting and replacement are preferred. This is expected to escalate the adoption of air conditioning systems in commercial places over the coming years.

Residential and industrial applications hold 30.9% and 33.0% market share, respectively, and are projected to rise at 6.3% and 6.8% CAGRs through 2032. Factors such as climate change have resulted in rising temperatures across the globe, making the use of air conditioning systems a necessity. Thus, air conditioning units are finding their increased installation in homes across the U.S., and this trend is expected to continue over the years ahead as well.

Competitive Landscape

Prominent air conditioning system manufacturers are incorporating software automation and are focusing on introducing eco-friendly systems to increase their market share.

Moreover, the market is witnessing the development of thermal-driven air conditioning systems coupled with the development of chillers that uses gas and solar panels for their operation, along with being energy-efficient.

For instance :

• Carrier Corporation agreed to acquire VRF and light commercial HVAC business of Toshiba in 2022. This acquisition is likely to strengthen the position of the company in the HVAC segment, along with providing differentiated technology and adding a renowned brand to its product portfolio.
• Honeywell International Inc., in 2020, announced the development of a new air conditioning system for electric aircraft and Urban Air Mobility (UAM). It is equipped with an oil-free Micro Vapor Cycle System (Micro VCS), to save on weight and reduce maintenance costs.

Fact.MR has provided detailed information about the price points of key manufacturers of air conditioning systems positioned across the U.S., sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of U.S. Air Conditioning System Industry Survey

• By System Type :

  • Portable Air Conditioning Systems
  • Window Air Conditioning Systems
  • Split Air Conditioning Systems
  • Cassette Air Conditioning Systems
  • Single Packaged Air Conditioning Systems
  • Chiller Air Conditioning Systems
  • Airside Air Conditioning Systems

• By Technology :

  • Automatic Air Conditioning Systems
  • Manual Air Conditioning Systems

• By Mounting Type :

  • Unitary Air Conditioning Systems
  • Rooftop Air Conditioning Systems
  • PTAC Air Conditioning Systems

• By End Use :

  • Residential Air Conditioning Systems
  • Commercial Air Conditioning Systems
  • Industrial Air Conditioning Systems

• By Sales Channel :

  • Direct Sales of Air Conditioning Systems
  • Indirect Sales of Air Conditioning Systems

• By Region :

  • West U.S.
  • South-West U.S.
  • Mid-West U.S.
  • North-East U.S.
  • South-East U.S.