Air-Conditioning Equipment Market Report 2026

The air-conditioning equipment market size has grown steadily in recent years. It will grow from $223.43 billion in 2025 to $232.47 billion in 2026 at a compound annual growth rate (CAGR) of 4%. The growth in the historic period can be attributed to increasing urban residential construction, rising penetration of air conditioning in hot climates, expansion of commercial building infrastructure, growing demand for thermal comfort, wider availability of affordable room air conditioners.

The air-conditioning equipment market size is expected to see strong growth in the next few years. It will grow to $287.68 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to increasing adoption of smart and connected hvac systems, rising demand for low-global-warming-potential refrigerants, expansion of energy-efficient building standards, growing focus on decarbonized cooling solutions, increasing replacement of legacy air conditioning units. Major trends in the forecast period include increasing adoption of energy-efficient cooling systems, rising demand for variable refrigerant flow systems, growing integration of smart thermostats and controls, expansion of compact and modular hvac designs, enhanced focus on indoor air quality management.

Rising global temperatures are expected to be a significant driver of growth in the air-conditioning equipment market during the forecast period. Rising global temperatures refer to the increasing average surface temperature of the Earth caused by the greenhouse effect and climate change. Higher temperatures have increased the need for cooling solutions, particularly in regions experiencing frequent and severe heatwaves, as air-conditioning equipment is essential for maintaining comfortable living and working environments while protecting health and productivity. For example, in June 2023, the NOAA (National Oceanic and Atmospheric Administration) National Centers for Environmental Information, a US-based authority on climate and environmental data, reported that global surface temperatures reached 1.0 °C (1.8 °F) above the average, marking the fourth-warmest April in their 174-year record and a notable rise from 0.85 °C (1.53 °F) in April 2022. Consequently, rising global temperatures are expected to drive demand for air-conditioning equipment.

Leading air-conditioning equipment manufacturers are focusing on integrating wind-free technology into their products to enhance consumer offerings. Wind-Free technology is designed to provide a more comfortable cooling experience by minimizing direct airflow, enabling quieter, more energy-efficient, and user-friendly operation. For instance, in February 2023, Samsung Electronics Co. Ltd., a South Korea-based electronics company, launched its latest generation of Wind-Free air conditioners in India. The new models are Wi-Fi-enabled and feature advanced functions such as AI auto-cooling, welcome cooling, motion detection sensors, and voice control. Wind-Free technology in these units can achieve energy savings of up to 77%, while convertible 5-in-1 ACs with digital inverter technology deliver energy savings of up to 41%.

In March 2023, Panasonic Holdings Corporation, a Japan-based electronics firm, acquired the air-conditioning business of Systemair AB for an undisclosed amount. This acquisition allows Panasonic to expand its capabilities in commercial hydronic systems and better address growing environmental regulations. Systemair AB is a Sweden-based manufacturer of air-conditioning equipment.

Major companies operating in the air-conditioning equipment market are Daikin Industries Ltd, Midea Group Co. Ltd, Haier Group, Carrier Global Corporation, Hitachi Ltd, Samsung Electronics, Mitsubishi Electric Corporation, LG Electronics, Fujitsu General Ltd., Electrolux AB, LEEL Electricals Ltd (Lloyd), Johnson Controls-Hitachi Air Conditioning India Ltd, Amber Enterprises India Ltd, Blue Star Ltd, Voltas Ltd, AUX Group, Gree Electric Appliances Inc., Actron Engineering Pty Ltd, WAECO, KLIMA-THERM Group, Autoclima, CPS Products Inc., MDV, KOMFOVENT, CaptiveAire Systems, Greenheck Fan Corporation, Twin City Fan Companies Ltd, Honeywell International Inc., Nortek Air Solutions, Carrier Airconditioning & Refrigeration Limited, Daikool Industries Limited, Temperature Control Company LLC, AAF-McQuay LLC, Arshi Air Conditioning & Refrigeration Co., Airmaster Emirates, Airco, HVAC Distributors.

Asia-Pacific was the largest region in the air-conditioning equipment market in 2025. North America was the second largest region in the global air-conditioning equipment market share. The regions covered in the air-conditioning equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the air-conditioning equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The air-conditioning equipment market consists of sales of window air conditioners, portable air conditioners, wall hung split or multi head split air conditioners, ducted air conditioning. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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