Market Overview
The Global Air Conditioning Systems market is expected to reach a value of USD 137.9 billion in 2023, and it is further anticipated to reach a market value of USD 237.6 billion by 2032 at a CAGR of 6.2% over the forecasted period.
The Market has seen significant growth over the past few years. Air conditioning systems have become universal, finding applications in a wide range of settings, such as residences, shopping complexes, commercial establishments, and entertainment venues. Even in developing countries, there is a strong need for air conditioning.
These systems have played a major role in reshaping indoor environments, particularly in hot and arid regions, and have become an integral part of the infrastructure that sustains modern spaces. Furthermore, with the ongoing economic growth in emerging markets, the need for air conditioning is anticipated to experience substantial growth in the coming years.
Market Dynamic
The market is anticipated to be driven by the promising growth of the construction and tourism sectors. Furthermore, the growing disposable incomes of individuals across the globe are expected to stimulate the adoption of many air conditioning systems in the coming future. Additionally, factors like the growing consumer preference for energy-efficient systems and the increasing popularity of portable units are poised to have a great effect on the expansion of the air conditioning systems market. The rising global population, expected to have a positive impact on both residential and commercial construction activities, is also projected to drive a growing demand for air conditioning systems.
However, a significant challenge lies in making products more affordable. Balancing sustainability & cost-effectiveness remains challenging, as eco-friendly air conditioning systems often come at an expensive price due to high-end technologies. Integrating this affordability gap while maintaining sustainability is a major restraint for widespread adoption and a greener future of the market.
Research Scope and Analysis
By Type
In 2022, unitary air conditioners dominated the type segment share of the market by having a market share of 40.0% and are projected to experience a significant growth throughout the forecast period. These air conditioning systems are majorly utilized in residential settings, and the growing demand in the expanding residential sector is anticipated to sustain the requirement for unitary air conditioning systems. Furthermore, the seamless compatibility of unitary air conditioners with warm furnaces within the same ductwork, applicable to both commercial & residential buildings, is expected to contribute to the growth of this segment.
In addition to unitary air conditioners, the category comprises of Packaged Terminal Air Conditioners (PTAC) and rooftop ACs. Notably, the PTAC segment is also anticipated for significant growth in the forecasted period. This growth in Packaged Terminal Air Conditioners is driven by their rising popularity in the hospitality and residential sectors. PTACs are also gaining attention due to technological innovations like the integration of inverter technology, energy-efficient systems, and wireless connectivity.
By Technology
The inverter technology for the global air condition system market had a major market share in 2022 is expected to experience significant boost during the forecasted period. This growth is prominently attributed to the capability of inverter air conditioners to regulate temperature effectively by stabilizing the speed of the compressor motor continuously. This technology adds to energy and power conservation through the usage of a variable speed compressor. Furthermore, the advantages of inverter technology, having stable temperature control, extended durability, faster cooling, and reduced noise levels compared to non-inverter ACs, are anticipated to fuel the need for inverter-based air conditioning systems.
Further, the non-inverter technology is also expected to experience relatively moderate growth in comparison to its inverter counterpart. This can be due to various factors, including elevated energy consumption, fluctuating frequency operation, and a short lifespan. Nonetheless, the affordability of these air conditioning systems may strengthen the segment's market presence.
By End-user Industry
The commercial sector contributed significantly towards the growth of market in 2022 and is expected to continue so in the coming future as well, due to the fast urbanization and growing demand for commercial real estate. Commercial air conditioning systems, which typically need ample space, are commonly situated on the roofs of buildings like shopping malls, hotels, large restaurants, theaters, and commercial offices, and play an important role in optimizing energy consumption. Further, there is an anticipation that the retrofitting & replacement of these units, aimed at lessening the energy consumption, will significantly fuel the adoption of air conditioning solutions within the commercial segment.
Further, the residential sector will remain a major focus for various market vendors, with substantial growth anticipated in the coming future. Recent years have seen increase in temperatures in many countries due to climate change. This rise in temperatures has changed air conditioning systems from being seen as a luxury to becoming a necessity. Simultaneously, people across the globe are largely installing air conditioning systems in their homes, a trend that is anticipated to continue as global temperatures continue to rise. Given the changing climate conditions, residential air conditioning units are forecasted to experience robust growth during the projected period.
Global Air Conditioning Systems Market Segmentation
By Type
By Technology
By End-user
- Commercial
- Industrial
- Residential
Regional Analysis
In 2023, the Asia-Pacific region is anticipated to have a substantial market share, commanding more than 36.0% of the total revenue in the Global Air Conditioning Systems Market. As the major air conditioner demand is found in the Asia-Pacific region, thanks to its fast infrastructure expansion and the growing preference of residents for lifestyle-oriented products.
Within the Asia-Pacific area, packaged air conditioners (PAC) & room air conditioners (RAC) hold a major position in the market when compared to other types of air conditioning systems. Further, China stands as the biggest market for air conditioning systems in the world, with room air conditioners leading the market in the country. Moreover, Japan and India also represent significant markets for global air conditioning manufacturers in the region.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global air conditioning systems market features strong competition among various industry players. The market players constantly strive to innovate & emphasize energy efficiency & sustainability. Market dynamics are taking place caused by technological advancements, regulatory shifts, and evolving consumer preferences toward environmentally friendly and smart air conditioning solutions. Collaborations, mergers, and acquisitions are commonly opted strategies for expanding market presence and product offerings by the players in the market, reflecting the dynamic nature of competition in the industry.
For instance, in January 2022, the AHR (American Society of Heating, Refrigerating and Air-Conditioning Engineers) Expo held in Las Vegas, saw LG Electronics USA unveil its latest 2022 range of HVAC solutions for residential, light commercial, and commercial applications in which the air conditioning system was a major part of the solution.
Some of the prominent players in the Global Air Conditioning Systems Market are
- Hitachi- Johnson Controls Air Conditioning Inc
- Midea Group Co Ltd
- Emerson Electric Company
- LG Electronics Inc
- Toshiba Corp
- Whirlpool
- Robert Bosch
- Haier Group Corp
- Daikin Industries Ltd
- Carrier
- Other
COVID-19 Pandemic & Recession: Impact on the Global Air Conditioning Systems Market
The COVID-19 pandemic and subsequent economic recession had a major impact on the global air conditioning systems market. Lockdowns, decreased economic activity, and financial inconsistency led to a temporary slowdown in need for the air conditioning system, mainly in the commercial sector. However, as people spent more time indoors and prioritized indoor air quality, the residential market saw some resilience. Moreover, the pandemic boosted the adoption of energy-efficient and smart air conditioning solutions, reflecting changing consumer needs. The market is anticipated to rebound as economies recover and the importance of air quality remains a major consideration for both residential & commercial applications.
Report Characteristics |
Market Size (2023)
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USD 137.9 Bn
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Forecast Value (2032)
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USD 237.6 Bn
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CAGR (2023-2032)
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6.2%
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Historical Data
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2017 - 2022
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Forecast Data
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2023 - 2032
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Base Year
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2022
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Estimate Year
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2023
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Report Coverage
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Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc.
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Segments Covered
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By Type (Unitary, PTAC and Rooftop), By Technology (Non-Inverter and Inverter), By End-user Industry (Commercial, Industrial and Residential)
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Regional Coverage
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North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
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Prominent Players
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Hitachi – Johnson Controls Air Conditioning Inc, Midea Group Co Ltd, Emerson Electric Company, LG Electronics Inc, Toshiba Corp, Whirlpool, Robert Bosch, Haier Group Corp, Daikin Industries Ltd, Carrier, and Other Key Players
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Purchase Options
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We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively.
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Frequently Asked Questions
The Global Air Conditioning Systems Market size was estimated at USD 129.6 billion in 2022 and is expected to reach USD 237.6 billion in 2032.
Asia Pacific is anticipated to have the largest market share for the Global Air Conditioning Systems Market with a share of about 36.8% in 2023.
Some of the major key players for the Global Air Conditioning Systems Market are Carrier, Whirlpool, Toshiba Corp and many others.
The market is growing at a CAGR of 6.2 percent over the forecasted period.