Air Conditioner (AC) Market Overview, 2023-28

The global air conditioner market is an important and dynamic component of the larger HVAC (Heating, Ventilation, and Air Conditioning) business, serving as an essential link between technological advancement, environmental concerns, and consumer demand. As our globe grapples with the continuous difficulties of climate change and variable temperatures, there is a greater need for effective and environmentally friendly cooling solutions. This sector, which is distinguished by a diverse range of products and a complex web of market players that includes manufacturers, distributors, and service providers, has undergone steady evolution as a result of factors such as rising urbanization, rising disposable incomes, and increased awareness of energy efficiency. Furthermore, regulatory programs aimed at decreasing greenhouse gas emissions, promoting energy-efficient technologies, and supporting sustainable behaviors have had a significant impact on the business. In this sense, the global air conditioner industry is a microcosm of larger global efforts to reconcile contemporary life's comfort and convenience with the imperative of environmental stewardship. The global air conditioner market is a multidimensional and dynamic business that is critical to sustaining comfort and climate control in a variety of settings, ranging from private residences to commercial complexes and industrial buildings. This market has seen substantial expansion and transformation in recent years, driven by a relentless pursuit of innovation and environmental sustainability. Population growth, urbanization, and rising global temperatures are driving this transition, all of which contribute to an increase in demand for cooling solutions. Furthermore, changing lifestyles and increased disposable incomes have accelerated the adoption of air conditioning systems in emerging economies, while the replacement and upgrade of older, less energy-efficient units continue to be major drivers in developed markets.

According to the research report, “Global Air Conditioner (AC) Market Overview, 2023-2028” the market is anticipated to cross USD 226.75 Billion by 2028, increasing from USD 158.86 Billion in 2022. One notable trend in the global air conditioner market is the increased emphasis on energy efficiency and environmental friendliness. Stricter environmental restrictions, as well as a greater awareness of the environmental impact of cooling systems, have resulted in the development of more energy-efficient and environmentally friendly technology. This includes the increased use of inverter-based systems, which vary their cooling capacity based on demand, resulting in significant energy savings. Furthermore, as the sector attempts to reduce its carbon impact, the use of ecologically friendly refrigerants such as R-32 and R-410A is gaining traction. The rise of the Internet of Things (IoT) has resulted in the development of smart and interconnected air conditioning systems. These air conditioners can be controlled remotely via smartphone apps or voice commands, allowing users to alter settings, monitor energy consumption, and schedule cooling or heating cycles. Connectivity with home automation systems is one of the smart features that increase convenience and energy management. Asia, South America, and Africa's emerging economies are quickly urbanizing and increasing disposable incomes. As a result, demand for air conditioning equipment in these locations has increased. In order to tap into these expanding markets, manufacturers are extending their operations and distribution networks, resulting in severe competition and innovation. Inverter technology has become commonplace, improving both energy efficiency and temperature control by altering the compressor's speed to match the cooling or heating load. Heat pump technology has developed in favor of a versatile and energy-efficient solution that can offer both heating and cooling. This technology is especially appealing in temperate climates, where it can efficiently maintain indoor comfort while reducing energy use.

The global Air Conditioner market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, Asia-Pacific is expected to grow with more than 7% CAGR by 2023-28. The growing popularity of a pleasant lifestyle is expected to drive the Asia Pacific Air Conditioner (AC) market to new heights. The sector is quickly expanding, and it will continue to grow as the need for air conditioners rises in the coming years. Since it first began functioning in the area, the sector has flourished. A variety of crucial reasons are driving growth in the Asia-Pacific air conditioner market. Population growth, disposable income, and urbanization are just a few of the drivers propelling the African industry. Asian governments have also lent their support to the industry, launching a number of projects to expand the region's market. These reasons have fueled the expansion of the Asia-Pacific air conditioner (AC) market. Because of local technical achievements, the region is also increasing and becoming more contemporary and efficient. The air conditioner market size in Asia and the Pacific is constantly rising as businesses are now able to meet all of their consumers' needs thanks to cutting-edge technology. These factors have contributed to the growth of the Asia-Pacific air conditioner (AC) industry. Because of local technological advances, the region is growing and becoming more modern and efficient. The Asia Pacific air conditioner industry is constantly expanding as firms are now able to meet all of their consumers' expectations thanks to cutting-edge technology.

Based on product type market is divided into window AC, portable AC, ductless multi split AC, packaged AC, floor mounted AC, central AC, variable refrigerant AC and others. Among them ductless multi split AC type is expected to dominate the market globally. Ductless multi-split air conditioning systems offer exceptional zoning and temperature control versatility. These systems are comprised of a single outdoor unit linked to multiple interior units, each of which serves a distinct room or zone. This setup allows users to alter the temperature in different locations independently, maximizing comfort and energy efficiency. Traditional ductwork-based central HVAC systems, on the other hand, frequently struggle to achieve precise zoning, resulting in inefficient cooling and heating. The energy efficiency of ductless multi-split systems contributes significantly to their appeal. The majority of models have inverter technology, which adjusts the compressor speed to match the cooling or heating demand. Furthermore portable type is expected to register highest CAGR globally. Portable air conditioners provide unparalleled versatility. Users can easily transport them from one room to another, delivering quick cooling wherever it is required. This mobility is especially appealing to renters who cannot install permanent cooling systems in their homes or apartments. Portable air conditioners are frequently less expensive to purchase than standard central air conditioning systems or ductless mini-split units. Because of their low cost, they are available to a broader spectrum of consumers, including students, renters, and people on a tight budget.

Based on end user market is segmented into residential, commercial and industrial. Commercial end user segment is predicted to grow at fastest rate globally. Commercial structures, such as office complexes, retail spaces, and hospitality organizations, are being built as part of the continuous urbanization trend. These business areas require efficient air conditioning systems to keep staff, clients, and visitors comfortable. The worldwide tourist business is growing, which is fueling the development of hotels, resorts, and other lodging facilities. In order to provide a comfortable experience for guests, these facilities must have proper climate control. In order to preserve patient comfort and assure the effective operation of medical equipment, hospitals and healthcare facilities require precise temperature and humidity management. The expansion of the healthcare industry is pushing up demand for specialized air conditioning systems. Furthermore based on tonnage market is segmented into pto 2 ton, 2 ton to 5 ton, 5 ton to 10 ton, and more than 10 ton. 2 ton 5 ton segment is predicted to grow rapidly globally. As global temperatures rise as a result of climate change and increased urbanization, there is an increasing demand for more powerful air conditioning solutions that can efficiently cool larger spaces. Air conditioners in the 2-to-5-ton range are ideal for cooling larger residential residences, commercial buildings, and industrial sectors. Commercial buildings, such as offices, retail stores, and restaurants, as well as industrial sites, frequently require larger-capacity air conditioning systems to maintain appropriate indoor temperatures and support varied functions. As a result, demand for 2- to 5-ton units has surged.

Based on technology market is segmented into invertor ACs and non-invertor ACs. Inverter air conditioners keep a more consistent temperature because they can adjust their output to match the cooling or heating demand. Traditional non-inverter units may function in an on/off cycle, resulting in temperature swings and less accurate management. Inverter technology creates a more comfortable and stable interior atmosphere. Inverters offer rapid cooling or heating as needed. They can reach the desired temperature faster than non-inverter models, which is especially useful in extreme weather conditions where comfort is critical. Inverter air conditioners are known to be more energy efficient than traditional non-inverter models. They use variable-speed compressors, which can alter their cooling or heating capacity depending on the temperature of the room and the desired set point. Furthermore based on distribution channel market is segmented into multi brand stores, exclusive stores, online and others. Online channel is expected to grow at significant pace in Global Air conditioner market. The rapid rise of e-commerce platforms and online marketplaces has established a simple and accessible route for consumers to purchase air conditioning equipment. Online shops provide a diverse choice of products, including various air conditioner types, at cheap costs. Consumers benefit from unrivaled ease through online platforms. Shoppers can explore and compare numerous air conditioner brands, models, and pricing from the comfort of their own homes or on their mobile devices, saving time and effort compared to visiting physical stores. Online platforms make it simple for customers to compare costs across numerous stores, allowing them to locate the best offers and discounts. This transparency encourages price-conscious customers to look into online options.

Competitive Landscape:

Samsung Electronics, Panasonic Holdings Corporation, Haier Group Corporation, Whirlpool Corporation, Havells India Limited, Daikin Industries, Ltd, LG Corporation, Electrolux AB, Robert Bosch GmbH, Carrier Global Corporation.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Air Conditioner (AC) market Outlook with its value and forecast along with its segments
• Region wise Air Conditioner (AC) market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report

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

By Product Type:

• Window AC
• Portable AC
• Ductless Multi Split AC
• Packaged AC
• Floor Mounted AC
• Central AC
• Variable Refrigerant AC
• Others

By End User:

• Residential
• Commercial
• Industrial

By Tonnage:

• Up to 2 Ton
• 2 Ton to 5 Ton
• 5 Ton to 10 Ton
• More Than 10 Ton

By Technology:

• Inverter ACs
• Non-Inverter ACs

By Distribution Channel:

• Multi-brand Stores
• Exclusive Stores
• Online
• Other Channels

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Air Conditioner (AC) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.