Air conditioners are central heating & cooling system that control the temperature & humidity of an area. They are widely used for removing the warm air from a defined area through a refrigeration cycle and diverse applications, ranging from residential buildings, malls, & office spaces to theatres, and many more.
Market Insights & Analysis: Global Air Conditioner Market (2023-28)
The Global Air Conditioner Market is valued at USD 195 Billion in 2022 and is projected to grow at a CAGR of around 5.98% during the forecast period, i.e., 2023-2028. Globally, particularly in metropolitan areas, rising levels of air pollution, temperature, and humidity levels have influenced the adoption of such comforting products. The National Space Science and Technology Centre (NSSTC) reports that for many places worldwide, November 2019 was the warmest month on record, prompting the usage of air conditioning equipment in order to live comfortably. The relevance of ACs to consumers is a result of their many features, including the ability to manage air velocity, humidity, temperature, moisture, and personalized altering options.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, Qatar, South Africa, Egypt, Rest of MEA|
|Key Companies Profiled||Alfa Laval, Bluestar, Carrier, Daikin Industries, Electrolux, Gree, Haier Group, Hitachi, LG Electronics, Mitsubishi Electric, Panasonic, Samsung, Trane Technologies, Voltas, Whirlpool|
|Market Value in 2022||USD 195 Billion|
Moreover, it is also projected that the advent of technologically sophisticated ACs, such as inverters and air purification technologies, will benefit the market, leading to an increase in supply and demand worldwide. Besides, rapid economic expansion aids in raising people's disposable incomes and drive need for such products for residential and commercial uses. According to NOAA, the National Oceanic and Atmospheric Administration of the United States, the planet's average temperature in July 2019 was about 1°C higher than the average for the 20th century.
Given this, China has emerged as the single-largest producer of room air conditioners (RAC) in the world and the market with the highest demand for ACs. The country ranks among the top users and manufacturers of these items despite being hindered by the pandemic. Its dominance can be attributed to the large-scale exports of various raw materials that are fundamentally used to make finished goods to a wide range of nations.
Global Air Conditioner Market Key Drivers:
The Expansion of Construction Activities Stems from Increasing Population and Modernization - The market is mainly driven by the upsurge of the construction sector, increasing replacement market, energy efficiency, regulations, and growing technological advancements. In addition, the rising population, increased purchasing power, and global warming encourage its adoption worldwide. Furthermore, customers are enticed to purchase such cooling products and fulfill their requirements with market participants' innovative marketing efforts and the introduction of new technology features such as IoT, smart checking and changing systems, and other automation technology.
Global Air Conditioner Market Possible Restraint:
Higher Maintenance Costs and Stringent Laws Pertaining to Certain Refrigerants - One factor that hinders air conditioning businesses is the higher maintenance cost, which elevates consumer spending further. In addition, incorporating more recent technologies into the product's design is restricted by several laws regarding its configuration. For instance, using R22R refrigerants in air conditioner service and maintenance is against the law in the United Kingdom. Because of this, manufacturers need help switching from the current R22R refrigerant to the new one.
Global Air Conditioner Market Growth Opportunities
The Introduction of Advanced and Eco-Friendly Models - Technological advancements and increased customer demand, particularly from the Asia-Pacific region, are likely to create ample opportunities. In addition, environmentally friendly models that can effectively replace conventional ACs in the residential, commercial, and automotive markets are becoming increasingly popular as a result of significant changes in government regulations, such as the ban on the use of R-22 refrigerants. Thus, a growing number of companies that make electronic spare parts help manufacturers get easy access to the parts they need to design and package AC, which allows the market to expand, creating a replacement requirement that boosts the industry's overall growth rate.
Global Air Conditioner Market Key Trends:
Significant Rise in Temperature in the Past few Years - Climate change has caused temperatures to rise, so air conditioning has emerged as the best adaptation policy or action in the past few years. According to Orbringer, an assistant professor at Pennsylvania State University's School of Energy and Mineral Mining, if the world heats by two degrees Celsius, household demand for air conditioning will rise by 13%. If global temperatures rise by half a degree Celsius, the need for air conditioning in Indiana and Ohio could triple in the coming years.
Global Air Conditioner Market (2023-28): Segmentation Analysis
The Global Air Conditioner Market study from MarkNtel Advisors analyses the major trends in each sub-segment and includes predictions for the period 2023–2028 at the global, regional, and national levels. The market has been segmented in our analysis based on type and end-user.
Based on Type,
Among these, the Window AC segment dominated the market with the highest revenue share. Unlike wall- or ceiling-mounted units, window mounted can be moved from room to room without incurring installation fees, which is a significant contributor to the segment's growing market revenue. Conversely, a split variant, mounted on a wall alters the appearance of a house, and artworks such as paintings have witnessed maximized wall installation in recent years and are likely to prevail in the same dominance during the forecast period, thus, projected to experience the highest revenue CAGR.
Based on End-User,
Among others, the Residential segment accounted for the largest revenue share due to rising global temperatures and the ever-growing prosperous middle and lower classes, accelerating the adoption of air conditioners across the world. Along similar lines, the commercial segment is anticipated to experience the highest revenue CAGR owing to product replacement and retrofitting to reduce energy usage, thereby enhancing the use of air conditioning systems in businesses. In addition, the maximized adoption in sectors like construction, hospitality, tourism, and healthcare further drives this segment's revenue growth.
Global Air Conditioner Market Regional Projection
Geographically, the Global Air Conditioner Market expands across:
The Asia Pacific had the largest revenue share among other regional markets in the historical period. It owes principally to rapid infrastructure development and a growing preference for lifestyle goods throughout the region. The region accounts for the majority of products installation worldwide, with room AC and packaged AC holding the prominent market share, among others. The world's largest market for air conditioning systems is located in China. Other significant air conditioning markets for global manufacturers include India and Japan.
On the Other hand, the record-breaking heatwaves have accentuated the air conditioning systems in the United States, affecting millions of Americans. In addition, increased air conditioning and energy capacity have been viewed as critical for health reasons, as extreme heat accounts for more weather-related deaths in the country than other hazards. As a result, residents in previously underserved areas are seeing an increase in air conditioning adoption. For example, in Seattle, where only 44% of households have a window unit or central air conditioning, massive demand has been witnessed by the installation companies with pre-booking before summer arrives.
Global Air Conditioner Market Recent Developments
Gain a Competitive Edge with Our Global Air Conditioner Market Report
Frequently Asked Questions
A. The Air Conditioner Market is expected to register a CAGR of 5.98% during 2023-28.
A. The expansion of construction activities & increased population makes customers enticed to purchase products that are expected to drive the air conditioner market during 2023-28.
A. LG Electronics, Carrier, Daikin Industries, Samsung, Panasonic, Hitachi, Whirlpool, Voltas, Bluestar, Haier Group, Mitsubishi Electric, Electrolux, Alfa Laval, Gree, Trane Technologies are the top players in the Luxury Perfume Market during 2023-28.
A. The Window AC segment accounts for a significantly robust revenue share in the Air Conditioning Market.
A. Asia-Pacific region would present growth prospects in the Air Conditioner Market during 2023-28.
A. Significant rise in temperature in the past few years shaping the growth of the Air Conditioner Market during 2023-28.
A. The introduction of advanced & eco-friendly models is the major growth opportunity driving the Air Conditioner Market through 2028.
A. The higher maintenance cost & regulatory laws pertaining to air conditioners design is a possible restraints affecting the growth of the air conditioner market during 2023-28.
Global Air Conditioner Market Research Report (2023-2028) - Table of Contents