Global Air Conditioner Market Research Report: Forecast (2023-2028)

Market Definition

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.

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,

• Window AC
• Split AC
• Floor Standing AC
• Cassette AC
• Packaged AC
• Ducted Split AC
• Centralized AC

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,

• Residential
• Commercial Buildings
• Retail
• Health Care
• Hospitality
• Government & Transportation
• Oil & Gas
• Others           

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:

• Asia Pacific
• North America
• Europe
• South America
• Africa & Middle East

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 

• In January 2022, at the AHR Expo, which took place in Las Vegas, LG Electronics USA presented its brand-new and extensive 2022 line-up of HVAC solutions for residential, light commercial, and commercial applications.
• On January 6, 2021, Samsung introduced large-capacity Variable Refrigerant Flow (VRF) air conditioning systems in India. These systems can be installed in luxury apartments, villas, bungalows, houses, and commercial and retail establishments in as little as 0.5 square meters.

Gain a Competitive Edge with Our Global Air Conditioner Market Report

1. Global Air Conditioner Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Air Conditioner Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.