Ductless HVAC system Market Size

Ductless HVAC system Market Size Snapshot

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

The ductless air-conditioning system market is expected to reach a size of $60.06 billion by 2024, and is projected to reach a size of $100.17 billion by 2032. The CAGR of this market is expected to be 6.6%. This growth is driven by the growing demand for energy-efficient and environment-friendly heating and cooling systems. The ductless system, which is a very flexible and efficient system, is becoming more and more popular. The integration of smart technology and the Internet of Things in ductless air-conditioning systems is also driving market growth. This not only improves the convenience of users through remote control and monitoring, but also saves energy. Daikin Industries, Mitsubishi Electric, and LG are actively investing in research and development, establishing strategic cooperation, and launching new products to seize market opportunities. Daikin has recently launched a new ductless air-conditioning system that uses advanced inverter technology.

Regional Market Size

Regional Deep Dive

DUCTLESS AIR CONDITIONING SYSTEM MARKET - DUCTLESS AIR CONDITIONING SYSTEM MARKET GROWTH - DUE TO : - Increasing energy efficiency requirements, urbanization and sustainable building practices are driving the ductless ac market growth across various regions. In North America, the market is characterized by high penetration of advanced technologies and a strong focus on energy-efficient solutions. In Europe, stringent government regulations to reduce carbon emissions are boosting the ductless ac market growth. In Asia-Pacific, the market is growing rapidly, owing to urbanization, rising incomes and increasing investments in residential and commercial buildings. The Middle East and Africa are increasingly adopting ductless systems to meet the extreme climatic conditions. The Latin American market is gradually adopting these systems as part of its modernization drive in the HVAC industry.

North America

• The U.S. Department of Energy has set new standards for energy efficiency in heating, ventilation, and air-conditioning systems. These standards will encourage the use of ductless systems that meet the standards, which will spur growth in the ductless market.
• The Japanese companies Daikin and Mitsubishi are leading the way with their products, which offer smart-tech features and increased energy efficiency.
• The spread of the automation and the “smart home” has increased the demand for ductless air conditioning systems.

Europe

• The Green Deal aims to make Europe climate-neutral by 2050. It encourages the use of energy-efficient HVAC solutions, such as ductless systems.
• In countries such as Germany and France, new regulations are driving the replacement of older systems with ductless alternatives, which is influencing the dynamics of the market.
• Besides, the introduction of low GWP (global warming potential) refrigerants by major companies like Bosch and Panasonic, in line with the latest regulations, is a key element of the overall effort to comply with the regulations.

Asia-Pacific

• Among the countries of the East, China and India, the rapid industrialization of cities is increasing the need for efficient cooling devices, and the space-saving ductless air-conditioners are gaining in popularity.
• The government has taken steps, through the Pradhan Mantri Ujjwala Yojana, to provide energy-efficient appliances, including ductless heat pumps, in order to improve living conditions.
• The market for ductless air conditioning is growing, with a growing middle class demanding comfort and energy savings.

MEA

• DUCTILE AIR CONDITIONING SYSTEMS HAVE GAINED IN POPULARITY IN THE MIDDLE EAST. They are finding a large following, as they are efficient in cooling both residential and commercial premises.
• In the United Arab Emirates, for example, governmental initiatives to promote energy efficiency in buildings are driving a move towards ductless systems as part of the country’s sustainable development goals.
• Despite the many challenges, companies such as Trane and Carrier are investing in the region, introducing new ductless systems that meet the specific needs of the region.

Latin America

• The trend of urbanization in Latin America is leading to a growing demand for residential and commercial real estate, and consequently for ductless systems.
• In some countries, as in Brazil, the regulations are changing to encourage the use of energy-saving devices, such as ductless split systems, to reduce energy consumption.
• Local manufacturers are beginning to enter the market, offering cost-effective ductless systems that meet the region’s specific requirements.

Did You Know?

“Ductless systems are up to thirty percent more efficient than conventional central heating and cooling systems. This is why they are so popular with energy-conscious consumers.” — U.S. Department of Energy

Segmental Market Size

Ductless heat pumps are playing a key role in the overall market for heating and air conditioning systems. This is because of the increasing demand for energy-efficient, flexible heating and cooling systems. In addition, the rising awareness of energy efficiency, which is aimed at reducing energy costs, and the regulatory policies that encourage the use of environment-friendly products are also contributing to the market's development. Furthermore, advances in inverter technology are improving the systems' energy efficiency, thus driving demand.

Until now, the use of ductless heat pumps has been in the adolescent stage, with the big leaders, Mitsubishi and Daikin, establishing their leadership in North America and Europe. Especially in the residential sector, where the space is limited and ducted systems are not an option, and in commercial premises where the temperature zones must be regulated separately, ductless systems are preferred. The trend towards a sustainable lifestyle and the incentives offered by the government for energy-saving systems will further stimulate the growth of ductless systems. The use of smart controllers and the integration of the Internet of Things will further increase the user experience and the operational efficiency.

Future Outlook

Ductless HVAC systems are a very important trend in the world, and they are destined to grow at a high rate of growth from 2024 to 2032, and the value of the market is expected to increase from $60.06 billion to $100.17 billion, with a high compound annual growth rate of 6.6%. The driving force for this growth is the increasing demand for energy-saving and environmentally friendly heating and cooling solutions, and the continuous reduction of the carbon footprint of both the public and the private sector. The increasing penetration of ductless systems in both the residential and commercial sectors will reach about 30% by 2032, up from about 20% in 2024, and awareness of the benefits of these systems will continue to increase.

Ductless systems are expected to be further enhanced by key technological developments such as the integration of smart home technology and the Internet of Things. These innovations not only make the systems more energy-efficient but also give users greater control over the indoor climate. In addition, supportive government policies promoting energy-efficient appliances and reducing greenhouse gas emissions will also boost market growth. Mini-split systems and variable refrigerant flow (VRF) technology will continue to gain in popularity, enabling manufacturers to meet the growing demand for flexible and energy-efficient air conditioning solutions.