Air Condition Market Size

Air Condition Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

In the United States the use of air-conditioning is very common. The report projects a CAGR of 6.91% for the period 2024 to 2032. The rising demand for energy-efficient cooling solutions is a major factor driving this growth. Also, the growing awareness about the indoor air quality and the need for advanced HVAC systems will fuel the growth. Technological advancements such as integration of smart features and development of environment-friendly refrigerants will also drive the market growth. Daikin, Carrier, and Trane are the key players in this market. They are continuously investing in research and development to enhance the energy efficiency and the environment friendliness of their products. Strategic initiatives such as strategic alliances and product launches are some of the strategies adopted by these players to tap the opportunities in the emerging economies where the demand for ACs is increasing. These efforts will further augment the market growth.

Regional Market Size

Regional Deep Dive

The air-conditioning market is growing rapidly in several regions. The growth is mainly due to increasing temperatures, urbanization and rising disposable incomes. North America is characterized by a high penetration of advanced, energy-efficient systems, while Europe is characterized by a focus on regulatory compliance and sustainable development. The Asia-Pacific region is characterized by rapid urbanization and a growing middle class, which has led to a growing demand for cooling solutions. The Middle East and Africa face special challenges due to the extreme heat and this has led to increased investments in cooling technology. Latin America is gradually adopting air-conditioning solutions, which is influenced by climate change and economic development.

North America

• A new regulation on the energy efficiency of domestic air-conditioners, imposed by the American Department of Energy, is pushing manufacturers to make their products more energy-efficient.
• Thermotechnical companies like Carrier and Trane are investing heavily in smart heating and air conditioning systems, with IoT-based features that can improve both the user experience and energy management.
• The increasing automation of the home is a growing trend in the use of smart air-conditioning systems that can be controlled remotely and programmed to optimize energy consumption.

Europe

• The Green Deal is a European Union initiative to reduce greenhouse gas emissions by requiring manufacturers to produce green refrigerants and energy-efficient air conditioning systems.
• The air conditioning market is a booming one. Daikin and Mitsubishi Electric are focusing on the heat pump, which is a sustainable alternative to the conventional air conditioning system.
• In the case of Germany and France, where regulations have been imposed on the use of low-GWP refrigerants, product development and market offerings have been affected.

Asia-Pacific

• Air conditioning is a growing market, especially in the Indian and Chinese cities. The local manufacturers, Voltas and Gree, are expanding their production.
• Southeast Asia’s rising middle class is able to spend more on comfort and convenience, which has a very positive effect on the AC market.
• Japan, for example, is promoting the use of energy-saving appliances and reimbursing consumers who buy high-efficiency air-conditioners.

MEA

• The heat of the Gulf Cooperation Council countries is causing a rush for air conditioning, with companies like LG and Samsung expanding their business.
• The cooling systems of the future, such as district cooling, are already being used in places like Dubai to manage energy consumption and reduce costs.
• The Saudi government has started a programme to make its buildings more energy-efficient, which will encourage the use of more efficient air-conditioning systems.

Latin America

• Brazil's growing economy and urbanization are creating an increased demand for air conditioning, which has led to the emergence of local manufacturers such as Springer and Midea.
• Governments in the region are therefore putting increasing emphasis on the development of energy-saving cooling solutions and launching initiatives to reduce energy consumption.
• Air conditioning is now available in all parts of the country, thanks to the development of e-commerce.

Did You Know?

“In the United States, nine out of ten new houses are fitted with air-conditioning, a fact which shows the importance of this installation in modern comfort.” — U.S. Energy Information Administration (EIA)

Segmental Market Size

The residential air-conditioning market is an important part of the total air-conditioning market, which is currently experiencing a steady rise in growth. The growth is being driven by the increasing demand for comfort and energy efficiency. The rising temperatures, which are a result of climate change, are causing an increase in the demand for cooling and regulation of energy consumption. And the technological development of smart home integration is attracting consumers to modern AC systems.

At present, the acclimatization of the house is a mature business, with the leading companies being Daikin and Carrier. The main applications are for residential cooling, smart home and energy management. The main trends are those of energy efficiency, of the development of the Internet of Things and the use of VRF systems. The evolution of the sector is also influenced by the use of variable refrigerant flow systems and the use of IoT.

Future Outlook

The Air-conditioning Market is set to see strong growth from 2024 to 2032, with a CAGR of 6.91%. The rising temperatures, the urbanization and the demand for energy-efficient cooling solutions are driving the market. The penetration of air conditioning will continue to increase, especially in emerging economies where the penetration of this system is still low. By 2032, the share of households with air conditioning is expected to reach about 30 % in developing regions, compared to 15 % in 2024, which is a major market opportunity.

Moreover, the development of new technology, such as the integration of smart technology and the development of green refrigerants, will also contribute to the growth of the market. The development of smart air conditioning, which can not only realize energy conservation and emission reduction, but also bring convenience to the use of air conditioning, will be popularized by both technology-savvy people and green people. Government policies to reduce carbon emissions and promote energy conservation will also have a significant impact on the development of the market. If the government tightens the policy, manufacturers will have to develop new products to meet the needs of the public, and the products will be more efficient and sustainable. The air conditioning market will have a new development trend in the future, which is driven by changes in the market demand, technological innovation, and policy environment.