Air Conditioner (AC) Market Outlook, 2028

Global air conditioner is growing owing to factors like the rising inclination of consumers toward energy-efficient systems and the growing popularity of portable systems are also expected to positively impact the air conditioning systems market growth. The air conditioning market is rapidly expanding. The air conditioning (AC) sector is predicted to develop dramatically as a result of rising temperatures and humidity levels around the world, as well as a growing acceptance of air conditioners as utility products rather than luxury items. The advent of technologically improved air conditioners, such as inverter air conditioners and air purification technologies, is also expected to have a favourable impact on the air conditioner market throughout the forecast period. The industry is also predicted to be pushed by factors such as the building and tourist industries' optimistic growth. Individuals' increased discretionary incomes are also projected to boost the adoption of a variety of air conditioning technologies over the forecast period. Furthermore, factors such as rising customer preference for energy-efficient systems and the growing popularity of portable systems are likely to favourably impact the air conditioning systems market growth. The expanding population, which is predicted to have a favourable impact on residential and commercial buildings, will also raise demand for air conditioning systems. For example, the increased population in Gulf countries is expected to contribute significantly to GCC building spending. The emergence of the Internet of Things (IoT) has resulted in the creation of smart and linked air conditioning systems. These air conditioners are managed remotely via smartphone apps or voice commands, allowing users to change settings, monitor energy usage, and schedule cooling or heating cycles. Smart features include connectivity with home automation systems, which improves convenience and energy management. Emerging economies in Asia, South America, and Africa are rapidly urbanizing and growing disposable incomes. This has resulted in an increase in demand for air conditioning systems in these areas. Manufacturers are expanding their operations and distribution networks to tap into these increasing markets, resulting in fierce rivalry and innovation.

According to the research report, “Global Air Conditioner (AC) Market Outlook, 2028” the market is anticipated to cross USD 226.75 Billion by 2028, increasing from USD 158.86 Billion in 2022. The market is expected to grow with more than 6% CAGR by 2023-28. In recent years, the global air conditioner market has seen an array of technical innovations that have shaped the industry's evolution to fulfill the demands of energy efficiency, convenience, and environmental sustainability. The incorporation of smart and linked technology into air conditioning systems is one significant trend. Manufacturers have embraced the Internet of Things (IoT), allowing users to remotely manage and monitor their air conditioners via smartphone apps or voice assistants. This improves user convenience while also facilitating energy optimization by allowing users to set cooling or heating cycles and monitor energy consumption. Another notable development is the emphasis on energy efficiency. Air conditioner manufacturers are creating systems with improved Seasonal Energy Efficiency Ratio (SEER) ratings in response to environmental concerns and rising energy costs. Inverter technology has become commonplace, improving both energy economy and temperature control by adjusting the compressor's speed to match the cooling or heating load. Heat pump technology has grown in popularity as a versatile and energy-efficient solution that can provide both heating and cooling. This technology is especially appealing in temperate settings, where it can efficiently maintain indoor comfort while reducing energy use. Sustainability and green construction methods have had a huge impact on the air conditioner market. Manufacturers are creating systems that adhere to green building requirements, focusing on energy efficiency and ecologically friendly construction procedures.

Asia-Pacific region shares the maximum market of Global Air conditioner market with significant market share.

The rising popularity of a comfortable way of life is predicted to propel the Asia Pacific Air Conditioner (AC) market to new heights. The sector is rapidly increasing in the area, and it will continue to expand as the need for air conditioners rises in the coming years. The sector has grown since it initially started operating in the area. The Asia-Pacific Air Conditioner Market is expanding as a result of a number of important factors. Increases in population, disposable income, and urbanization are just a few of the factors driving business on the African continent. Asian governments support the business as well, launching several programs to boost the region's market. These factors have been fueling the Asia-Pacific Air Conditioner (AC) market growth. The region is also expanding and becoming more modern and efficient due to local technological breakthroughs. With the aid of cutting-edge technology, the air conditioner market size in Asia Pacific is constantly expanding as business companies are now able to satisfy all of their customers' needs. 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 Pacific is constantly rising as businesses are now able to meet all of their consumers' needs thanks to cutting-edge technology.

Based on product type ductless multi split AC type is leading the market with more than 40% of market share globally.

Ductless multi-split AC systems provide outstanding zoning and temperature control flexibility. These systems are made up of one outdoor unit connected to several indoor units, each of which serves a separate room or zone. This configuration enables users to individually change the temperature in different regions, maximizing comfort and energy economy. Traditional central HVAC systems using ductwork, on the other hand, frequently struggle to achieve exact zoning, result in inefficient cooling and heating. The popularity of ductless multi-split systems is largely due to their energy efficiency. Most versions use inverter technology, which adjusts the speed of the compressor to fit the cooling or heating load. When compared to non-inverter versions and typical central systems, this results in consistent temperature regulation and significant energy savings. The ability to cool or heat only the rooms in use further contributes to reduced energy consumption. Installation flexibility is another critical factor. Ductless multi-split systems are relatively easy to install since they do not require extensive ductwork. This simplicity makes them an ideal choice for retrofitting older buildings or for installations in homes and offices where ductwork is impractical or cost-prohibitive. The streamlined installation process typically translates to lower installation costs and shorter downtime during the setup.

Based on end user market is segmented into residential, commercial and industrial. 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.

The sheer number of residential buildings and homes significantly outweighs the number of commercial or industrial spaces. This demographic advantage translates into a larger potential customer base for residential air conditioning systems. As urbanization continues to increase, especially in emerging economies, the construction of new residential buildings and housing projects escalates, further driving the demand for residential air conditioners. The importance of indoor comfort in residential settings cannot be overstated. People spend a substantial amount of time at home, and comfort is a paramount consideration for homeowners and renters. Air conditioning plays a crucial role in maintaining a pleasant indoor environment, especially during hot summers or in regions with extreme climates. Residential consumers prioritize factors like temperature control, humidity regulation, and air quality, making air conditioners essential appliances for creating a comfortable living space. A 2-ton air conditioner is capable of adequately cooling a room or space with an area of 300-600 square feet. This size is appropriate for most average-sized bedrooms, living rooms, and small to medium-sized office areas. Because the majority of residential and commercial areas are this size, 2-ton AC units provide an adequate cooling solution for a wide range of consumers. The cooling capacity and energy efficiency of 2-ton air conditioners are balanced. They are adaptable enough to handle both small and large areas, making them a popular choice for both home and light commercial applications. They can quickly cool a space while being energy efficient, which is critical for both comfort and cost-effectiveness. Energy efficiency policies and guidelines influence various locations in the design and manufacturing of air conditioning units. A 2-ton AC unit can meet these standards while providing efficient cooling making it a preferred choice for homeowners and businesses looking to save on energy bills and reduce their environmental impact.

Based on technology market is divided into invertor ACs and non-invertor ACs. Based on distribution channel market is segmented into multi brand stores, exclusive stores, online and others.

Inverter ACs maintains a more consistent temperature because they can regulate their output to match the cooling or heating demand. Traditional non-inverter units sometimes operate in an on/off cycle, creating temperature swings and less accurate control. Inverter technology provides a more comfortable and stable indoor environment. When necessary, inverters enable quick cooling or heating. They can attain the appropriate temperature faster than non-inverter models, which is very useful during extreme weather situations where rapid comfort is essential. Inverter air conditioners are noted for being more energy efficient than classic non-inverter models. They use variable-speed compressors, which may vary their cooling or heating capacity depending on the temperature of the room and the desired set point. Majority of Air conditioners are distributed through multi brans stores. Multi-brand stores offer a wide range of air conditioner brands and models under one roof. This variety allows customers to compare different products based on features, price, energy efficiency, and brand reputation. Customers can find options that best suit their specific cooling and heating needs, budget, and preferences. Multi-brand stores provide consumers with choices. Instead of being limited to a single brand or model, customers can select from a diverse selection of air conditioners. This empowers consumers to make informed decisions and find the most suitable AC unit for their requirements. Multi-brand stores provide a convenient shopping experience by offering multiple brands and related accessories or services in one location. Customers can purchase not only the air conditioner unit itself but also installation services, maintenance contracts, and additional accessories such as filters or smart thermostats, all in one visit.

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, Rheem Manufacturing Company, Johnson Controls Hitachi AC Limited, Gree Electric Appliances Inc, Voltas Limited, Midea Group, Fujitsu General Limited, Trane Technologies plc, Lennox International Inc., Sharp Corporation, Blue Star Ltd.

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 & Country-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 (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South 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.