Ethiopia Air Conditioners Market Research Report: Forecast (2026-2032)

Ethiopia Air Conditioners Market Report Key Takeaways:

• Market size was valued at around USD58 million in 2025 and is projected to reach USD105 million by 2032. The estimated CAGR from 2026 to 2032 is around 10.32%, indicating strong growth.
• By Product Type, the Room AC segment represented a significant share of about 64% in the Ethiopia Air Conditioners Market in 2025. Split Air Conditioners are showing a steady CAGR of around 12.11%.
• By Refrigerant Type, the R410A segment represented a significant share of about 55% in 2025.
• Leading air conditioners companies in Ethiopia are Daikin Industries, Carrier, LG Electronics, Samsung Electronics, Gree Electric Appliances, Awal Gulf Manufacturing, Midea Group, TCL Electronics, Hisense, Chigo, and Others.

Market Insights & Analysis: Ethiopia Air Conditioners Market (2026-32):

The Ethiopia Air Conditioners Market size was valued at around USD58 million in 2025 and is projected to reach USD105 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 10.32% during the forecast period, i.e., 2026-32.

Ethiopia’s Air Conditioners Market is increasingly shaped by a combination of climate pressures, energy policy direction, and cross-border trade integration, which together are strengthening long-term demand and import-led growth. The World Meteorological Organization confirms that 2023–2024 were among the warmest years on record in Africa, intensifying heat stress across Eastern Africa and increasing the need for indoor cooling in Ethiopia’s urban and lowland regions.

In parallel, cross-border trade agreements are directly enabling market expansion. For instance, Ethiopia signed the African Continental Free Trade Area (AfCFTA) Agreement in March 2018, ratified it in April 2019, and began trading under AfCFTA rules in January 2021. AfCFTA aims to progressively reduce tariffs on goods, simplify customs procedures, and improve access to regional markets. For the air conditioners market, this has improved Ethiopia’s access to regional manufacturing and re-export hubs such as Egypt, South Africa, and the UAE, facilitating imports of modern AC systems.

Additionally, Ethiopia’s reliance on the Djibouti corridor, which handles over 90% of the country’s external trade , has benefited from trade facilitation and logistics improvements, helping ensure steady inflows of imported appliances. Since Ethiopia lacks domestic AC manufacturing, import growth directly translates into market growth, improving product availability and accelerating technology upgrades.

Moreover, Chinese air-conditioner brands continue to command a strong presence in Ethiopia due to their cost-effective pricing and wide product availability. However, their overall market share has marginally declined during 2022–2025 as buyers increasingly consider efficiency, durability, and long-term operating costs.

Also, air conditioners from Turkish and Indian manufacturers are gaining traction, recording estimated growth of around 22% and 18%, respectively. Although their market share remains lower, they are witnessing rising acceptance due to a balanced combination of cost, quality, and energy efficiency.

Furthermore, Ethiopia’s participation in the Global Cooling Pledge, which targets a 50% improvement in the average efficiency of new air conditioners by 2030 and a 68% reduction in cooling-related emissions by 2050 , is further increasing the market demand. Additionally, national frameworks such as the Ten-Year Development Plan (2021–2030) emphasize energy efficiency, climate resilience, and sustainable urban development, indirectly supporting the adoption of high-efficiency AC systems and increasing the market demand.

Ethiopia Air Conditioners Market Driver:

High Temperatures & Heat Stress

Rising temperatures and increasing heat stress are becoming a major driver of air-conditioner demand in Ethiopia. Long-term climate records from the Ethiopian Meteorological Institute show that the country has experienced a steady increase in average temperatures over recent decades, with more frequent hot days and warmer nights, particularly in lowland regions. These trends have intensified heat discomfort in areas such as Afar, Somali, and parts of Oromia, where daytime temperatures often exceed 35–40°C during dry seasons.

Additionally, as per the World Meteorological Organization (WMO), 2023–2024 ranked among the warmest years on record in Africa, increasing the frequency and severity of heatwaves across Eastern Africa, including Ethiopia. Urban areas are especially affected, as dense construction and limited green cover contribute to rising indoor temperatures in cities such as Addis Ababa and Dire Dawa.

Heat stress has direct impacts on health, productivity, and service delivery, particularly in offices, hospitals, hotels, and educational facilities. As a result, air conditioning is increasingly viewed as a necessary adaptation measure, rather than a luxury. Consequently, sustained temperature increases and recent heat extremes are structurally driving growth in Ethiopia’s air conditioner market.

Ethiopia Air Conditioners Market Trend:

Widespread Adoption of Inverter Air Conditioners

The adoption of inverter air conditioners in Ethiopia is increasing mainly because of energy-efficiency needs and electricity constraints. Ethiopia’s electricity system faces supply limitations and periodic interruptions, which makes consumers and businesses more conscious of power consumption. As a result, buyers increasingly prefer appliances that can reduce electricity usage while delivering stable performance. For reference, several global air-conditioner manufacturers are actively supporting the shift toward energy-efficient inverter ACs in Ethiopia through imported products, including Daikin Industries, Carrier, LG Electronics, Samsung Electronics, Gree Electric Appliances, etc.

For instance, inverter ACs operate by adjusting compressor speed based on cooling demand, unlike conventional fixed-speed units that repeatedly switch on and off. This operating mechanism significantly lowers electricity consumption, making inverter models more suitable for Ethiopia’s power-sensitive environment. Additionally, electricity cost awareness is rising, particularly among commercial users such as offices, hotels, hospitals, and retail spaces that run air conditioners for long hours. These users increasingly recognize that inverter ACs, although more expensive upfront, help reduce monthly electricity bills over time.

Ethiopia Air Conditioners Market Challenges:

High Import Dependence Impeding Market Growth

Ethiopia’s Air Conditioners Industry is heavily constrained by high import dependence, which directly influences pricing, supply stability, and market expansion. Since Ethiopia does not have large-scale domestic manufacturing or assembly facilities for air conditioners, almost all finished units and critical components are imported.

For instance, Ethiopia imported air-conditioning machines worth approximately USD12.5 million in 2023. Additionally, Ethiopia imported air-conditioner parts valued at about USD1.7 million in 2023 , underscoring continued reliance on overseas supply chains even for maintenance and repairs.

Therefore, reliance on foreign supply chains for both finished ACs and components makes the market highly sensitive to foreign exchange shortages, shipping delays, and global logistics disruptions.

Because Ethiopia lacks significant local AC manufacturing facilities, distributors and retailers must secure foreign currency to pay for imports. This raises costs when the when foreign reserves are limited, challenges that directly raise retail prices and reduce affordability for consumers. High import dependence also increases vulnerability to international tariff changes and supply chain interruptions, limiting market growth potential.

Ethiopia Air Conditioners Market (2026-32) Segmentation Analysis:

The Ethiopia Air Conditioners Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Product Type:

• Room Air Conditioners
  • Window AC
  • Split AC
• VRF Systems
• Chillers
  • Air-Cooled Chillers
  • Water-Cooled Chillers
  • Others
• Packaged Air Conditioners
• Cassette Air Conditioners
• Ducted Split Systems
• Others

Room air conditioners, particularly split AC systems, are leading this market with a market share of about 64% because they align closely with the country’s built environment, electricity conditions, and practical cooling requirements. Ethiopia’s buildings are largely low-rise residential and small commercial structures, including apartments, clinics, offices, hotels, and retail outlets, which are typically constructed without centralized ducting or integrated HVAC infrastructure. As a result, installing large central cooling systems is often impractical and costly. In this context, split ACs provide a simple and adaptable solution, offering straightforward installation, room-specific temperature control, and minimal structural modification.

This structural suitability is reinforced by electricity system realities. Although power generation capacity in Ethiopia is gradually expanding, the grid continues to face capacity limitations and reliability challenges, particularly during peak demand periods. Consequently, consumers and businesses prefer cooling technologies that operate with lower connected loads and greater operational flexibility. Split ACs meet this requirement by enabling users to cool only occupied rooms, rather than entire buildings, which helps limit electricity consumption and manage operating costs.

Based on Refrigerant Type:

• R32
• R410A
• R134a
• R1234ze / R1234yf
• R744
• Others

The R-410A refrigerant segment currently holds a dominant position in Ethiopia’s Air Conditioners Market, accounting for a market share of about 55% due to the combined effects of technology transition, equipment availability, and regulatory compliance. Ethiopia has been phasing out ozone-depleting refrigerants under the Montreal Protocol, which accelerated the replacement of older HCFC-based systems with HFC-based refrigerants, particularly R-410A, in modern room and split air conditioners.

As per the data by Ethiopia to the Ozone Secretariat, R-410A accounted for about 13.18 metric tonnes of national consumption in 2024, representing around 13.8% of total HFC consumption in the refrigeration and air-conditioning sector . This places R-410A among the most widely used refrigerants for air-conditioning applications in the country. The prevalence of R-410A reflects its strong association with imported split and room AC systems, which dominate Ethiopia’s installed base.

At the same time, Ethiopia’s obligations under the Kigali Amendment require systematic monitoring of HFC use rather than an immediate ban, allowing R-410A-based systems to remain prevalent during the transition phase. Consequently, existing equipment stock, import patterns, and regulatory timelines together sustain the dominance of R-410A in Ethiopia’s air conditioners market.

Gain a Competitive Edge with Our Ethiopia Air Conditioners Market Report:

• Ethiopia Air Conditioners 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.
• 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.
• Ethiopia Air Conditioners 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.

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