New Delhi, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Global air conditioning market was valued at US$ 164.28 billion in 2023 and is expected to more than double, reaching a staggering US$ 398.60 billion by 2032 at a CAGR of 10.36% between 2024 and 2032.
The air conditioning industry is undergoing a significant transformation, fueled by the pressing needs for improved energy efficiency, environmental sustainability, and integration with intelligent technologies. Faced with the projection that global energy used for space cooling could triple by 2050 (IEA – International Energy Agency), manufacturers are responding with innovations such as high SEER-rated air conditioners and smart thermostats designed to optimize energy usage based on patterns and occupancy. Alongside energy efficiency, there's a strong movement towards environmentally conscious HVAC solutions. Refrigerants with high global warming potential are being replaced with low-GWP alternatives like R-32, with increasing interest in natural refrigerants like CO2.
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Key players in the air conditioning industry prioritize energy efficiency through inverter technology, heat pumps, and adherence to stricter global standards. This focus blends with sustainable practices like low-GWP refrigerants and energy-saving innovations. Smart controls, including Wi-Fi, AI optimization, and voice integration, are core features. Companies recognize the link between cooling and indoor air quality, driving integration with advanced purification systems. This innovation is mirrored by strategic global expansion into emerging markets, emphasizing the worldwide growth of the air conditioning market.
Key Findings in Air Conditioning Market
| Market Forecast (2032) | US$ 398.60 billion |
| CAGR | 10.36% |
| By Type | Ductless AC (61.02%) |
| By Technology | Membrane Based Air Conditioning (42.53%) |
| By Mode | Smart (55.96%) |
| By Component | Compressor (27.04%) |
| By Distribution Channel | Offline (73.21%) |
| By End User | Residential (48.48%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Air Conditioners with Ductless, Inverter Enabled, and Smart Connectivity are in High Demand
Smart technology is rapidly becoming a core element of the industry. Wi-Fi enabled thermostats provide remote control and energy monitoring, while AI-powered AC systems adapt to user preferences and weather data for unprecedented optimization. Astute Analytica’s projections indicate the smart HVAC market could reach a value of $58.5 billion by 2032. Beyond temperature control, there's a growing emphasis on indoor air quality (IAQ) in the air conditioning market. The recognition that indoor air can be far more polluted than outdoor air (US Environmental Protection Agency) has driven demand for air purification systems integrated with HVAC units and the use of UV light systems for sanitation.
Ductless technology is also seeing rapid growth, with sales of mini-split heat pumps showing an 11% increase between 2020-2021 (AHRI). These systems offer flexible, zoned control, making them ideal for renovations, retrofits, and both residential and commercial settings. This industry-wide transformation extends beyond technology - rapid urbanization in emerging economies and growth in Asia (particularly India and China) are accelerating the adoption of AC in regions previously less accustomed to widespread use.
Technologies like inverter-driven systems, replacing inefficient on-off cycles, and heat pumps for both heating and cooling are increasingly prevalent in the market. However, the market is facing with challenges such as retrofitting aging infrastructure and mitigating urban "heat island" effects will continue to drive innovation. We can also expect stricter government regulations, a post-pandemic emphasis on ventilation solutions, and predictive maintenance technologies to play significant roles in the industry's ongoing evolution. Additional noteworthy trends include the popularity of portable AC units, the early development of solar-powered AC systems, demand response programs through utility partnerships, modular cooling solutions, a resurgence of evaporative cooling in arid regions, and exploration into cutting-edge cooling technologies like radiant cooling.
Membrane-Based Air Conditioning Technology to Continue Contributing More than 42% Revenue Share
What makes membrane-based air conditioning systems popular is their innovative way of controlling temperature and humidity. Unlike conventional systems, it achieves significant energy savings while doing away with refrigerants that are detrimental to the environment. This efficiency can go a long way in reducing energy use by 30%-50%, which meets today’s sustainability targets in the air conditioning market. Moreover, its versatility concerning different kinds of HVAC systems makes it attractive. Additionally, one may access more information about membrane-based air-conditioning on the Department of Energy website.
This technology also has a thrilling comfort level alongside its eco-consciousness. With traditional units failing to address both moisture content as well as heat quantity in the air, water molecules only move selectively over a unique barrier made for them. Not only does this change present opportunities for broader usage rather than consumers just checking “green” box but from households to commercial buildings you will find it anywhere where people need custom-made relaxation spaces.
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Key Players and Recent Developments in the Air Conditioning Market
Samsung, LG, Daikin Industries, Ltd, Hitachi and Carrier are top 5 players in the global air conditioning market. They collectively hold over 55% revenue share of the market. Wherein, Samsung is leading the market with more than 14.95% revenue share.
Daikin Industries:
- Focus on Sustainability: Major investments in R-32 refrigerant adoption, aiming for carbon neutrality by 2050.
- Expansion: Growth into new markets, particularly Southeast Asia and North America, as well as factory expansion in India.
- Smart Technology: Increased emphasis on smart AC systems that connect to IoT platforms and enable automation.
Carrier Global:
- Energy Efficiency: Continued development of high-efficiency systems and heat pumps for both residential and commercial sectors in the air conditioning market.
- IAQ and Healthy Buildings: Carrier invested in air purification technologies and created its 'Healthy Buildings Program' aimed at improving the health of indoor spaces.
- Partnerships: Collaborations with technology companies for smart control and building management integration.
Johnson Controls-Hitachi Air Conditioning:
- VRF expansion: Heavy focus on Variable Refrigerant Flow (VRF) systems for commercial buildings due to their efficiency and flexibility.
- Global Markets: Expanding production facilities globally, including increasing capacity in India and Mexico.
- Ductless & Smart Systems: Increased emphasis on ductless solutions and intelligent AC systems with app control and advanced energy management.
Gree Electric Appliances:
- Technological Innovation: Development of cutting-edge magnetic bearing centrifugal chillers for super-high efficiency and ultra-low noise.
- Acquisitions: Expansion through acquisitions of smaller HVAC companies to accelerate growth.
- Renewable Energy: Investment and focus on solar-powered air conditioning systems.
Midea Group:
- Smart Building Focus: Pushing into smart building and home automation ecosystems through partnerships and acquisitions.
- Residential & Commercial Expansion: Increased market share in both residential and commercial sectors with product diversification.
- International Growth: Expanding its global footprint, particularly in Europe and Southeast Asia.
North America and Europe are Matured Air Conditioning Market, But Asia Pacific is Growing Aggressively
Unlike many parts of the world where AC is just starting to become the norm, in North America and Europe, it's a fixture of modern life. About 90% of US homes have some form of air conditioning, with equally high numbers in many European countries. This means those sweltering days are met with cool comfort, but it also suggests the market here isn't about getting AC to people for the first time, but rather the next generation of cooling tech. With strict energy efficiency rules, consumers won't find the cheapest, outdated systems on shelves here. This drives up costs, but also means even a basic new AC unit will sip electricity instead of guzzling it.
Speaking of old, many homes in these regions do have aging AC systems chugging along. This drives a whole different market – not new houses needing AC, but replacing worn-out units. This is where we see high-tech options like ductless systems (great for old builds without space for ductwork) and fancy heat pumps becoming more common. Heat pumps are basically two-way AC, providing heat in the winter too, offering energy savings year-round, something very appealing in Europe. Because so many buildings already have decent AC, we also see a big focus on things beyond just cold air – like adding super air filters for healthier spaces or smart thermostats to track every bit of energy use.
On the other hand, Asia Pacific is leading the global air conditioning market with more than 38% revenue contribution and is also poised to keep growing at the highest CAGR in the years to come. This is attributed to rapid urbanization, affordable prices of the Acs, easy availability of consumer durable loans, increasing disposable income across India, China, and Indonesia.
Global Air Conditioning Market Key Players
- Calsonic Kansei Corporation
- Carrier
- Daikin Industries, Ltd.
- Denso Corporation
- Eberspaecher Holding GmbH & Co. KG
- Emerson Electric Co.
- Fujitsu General
- Haier Group
- Hanon Systems
- Hitachi
- Voltas Limited
- LG Electronics
- Mahle GmbH
- Midea Group
- Mitsubishi Heavy Industries Ltd.
- Panasonic Holdings Corporation
- Samsung
- Sanden Holdings Corporation
- Subros Limited
- Toshiba Corporation
- Other prominent players
Key Segmentation:
By Type
- Ducted AC
- Split Central Air Conditioners
- Packaged Central Air Conditioners
- Ductless AC
- Floor Mounted Mini-Splits
- Wall Mounted Mini Splits
- Single Zone Mini Splits
- Multi-Zone Mini Splits
- Window Air Conditioners
- Portable Air Conditioners
- Cassette Air Conditioner
By Technology
- Variable Refrigerant Flow Systems (VRFs)
- Air-To-Water Systems (ATWs)
- Membrane Based Air Conditioning
- Thermally Driven Air Conditioning
- Hybrid Air Conditioners
By Mode
- Conventional
- Smart
By Component
- Compressor
- Evaporator
- Expansion Valve
- Drier/Receiver
- Condenser
- Ventilation Units
- Others
By Distribution Channel
- Online
- Brand Websites
- E-commerce Websites
- Offline
- Multi-Brand Stores
- Exclusive Stores
- Distributors
- Others
By End User
- Residential
- Commercial
- Retail
- Corporate Buildings
- Education
- Others
- Government
- Industrial
By Region
- North America
- South America
- Europe
- Asia Pacific
- Middle East & Africa
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