Global Air Conditioners (AC) Market Report and Forecast 2024-2032

Global Air Conditioners Market Outlook

The global air conditioners market size reached a value of nearly USD 149.51 billion in 2023. During the forecast period of 2024–2032, the market is likely to expand at a CAGR of 6.8%.

News and Developments in the Market

In July 2023, Voltas, a Tata Group company, sold about 1.2 million household air conditioners in H1 CY22, achieving an increase of 60% made possible by a summer heat and a wider sales network. The company's strong brand equity, unique line of products, and robust online and offline distribution network were cited as contributing factors to the performance, along with the country's hot summer weather and the rise in demand for cooling items.

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To get an advantage over the competition, the brand is preparing to further extend its retail and distribution network to accommodate its expanding product portfolio.

In April 2023, Realme TechLife introduced a line of convertible air conditioners in India that provide cooling at high temperatures of 55 degrees. The ACs use an inverter compressor technology, which is said to provide faster cooling and longer compressor durability and can adjust cooling capacity dependent on the number of people in a room to save energy.

The ACs also include an automatic cleaning mechanism to shield the appliance from moisture, dust, and mould. The inverter compressor technology used in the new Realme TechLife convertible air conditioners is said to extend the lifespan of the compressor and provide faster, more precise cooling. Thus, the growing product launches are driving the global air conditioners market growth.

In January 2021, Panasonic Corp. revealed the launch its HU series of air conditioners in India. Th e business emphasised how nanoeX technology releases hydroxyl radicals found in water, which have the power to thwart bacteria and viruses, including the 99.99 percent adhered new coronavirus. The company's air conditioners are also well-equipped with artificial intelligence, an Internet of Things (IoT) platform, and advanced sensors called Econavi that can detect energy-related water that is not conscious.

Energy Efficient ACs, Incorporation of Air Filters, and Inflating Disposable Incomes are Responsible for Driving the Market Growth

An indoor environment can be cooled down by removing the heat and moisture already present using an air conditioner (AC). Based on the size of the room, there are three main types of air conditioners: window AC, central AC, and micro split AC.

• Growing consumer awareness of energy-efficient cooling systems, which help reduce electricity costs and are also environmentally sustainable are the key air conditioners market trends.

• Incorporating air filters into air conditioners to improve the air quality by removing pollutants like dust and dirt is another market growth-promoting factor, in addition to energy-efficient ACs.

• Increasing disposable incomes and the availability of air conditioners in a variety of sizes and designs are further fostering the AC market expansion.

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Rising Temperatures, Technological Advancements, and Residential and Commercial Sectors to Provide Significant Growth Opportunities in the Market

Rising Temperatures

Due to the rising temperatures brought on by global warming, ACs are quickly transitioning from a luxury to a necessity, which is a significant element anticipated to favourably impact the global air conditioners (AC) market value.

Technological Advancements

It is also anticipated that the introduction of technologically advanced air conditioners (AC), such as air conditioners with air purification technologies and inverter technology, is expected to have a favourable effect on the market in the forecast period.

Growing Residential and Commercial Sectors

Construction of residential units, shopping centres, hospitals, hotels, multiplexes, and auditoriums has increased over time, especially in developing regions. This has boosted the need for air conditioning systems for cooling and sustaining indoor air quality, driving the air conditioner industry.

High Costs of Installation and Strict Government Regulations to Impede the Air Conditioners (AC) Market Growth

High Costs of Installation

The high initial costs of system and installation, along with the higher maintenance costs, are restraining the growth of the global air conditioners (AC) market.

Strict Government Regulations

Over the course of the forecast period, severe government regulations on energy usage, global warming, and pollution are also anticipated to restrain the growth of the global air conditioners (AC) market.

The fluorocarbons that the AC use as refrigerants depletes the ozone layer and contribute to global warming. Thus, governments in various countries are bringing norms to regulate the energy usage which is limiting the use of air conditioners.

Air Conditioners (AC) Market Analysis

The various types of AC in the market are mini split AC, window AC, and central AC, among others. The market is split into four categories according on size: < 12K BTU, 12K–36K BTU, 36K–60K BTU, and 60K+ BTU. The end-uses of the market are commercial and residential. The several distribution channels in the market are hypermarket, electronic stores, and online, among others.

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The regional markets for air conditioners (AC) can be divided into North America, Europe, the Asia Pacific, Latin America, the Middle East and Africa. The comprehensive EMR study offers a detailed analysis of the market based on a SWOT analysis and Porter's five forces model. The following key players in the global air conditioners (AC) market are examined in depth in the study, along with their competitive landscape and most recent developments, such as mergers, acquisitions, investments, and expansion plans.

• LG Electronics

• AB Electrolux

• Fujitsu General Limited

• Nortek

• Johnson Controls

• DAIKIN INDUSTRIES, Ltd.,

• Others

Types Include Mini Split AC, Window AC, and Central AC, Among Others

As per air conditioners (AC) market report, the most basic type of air conditioning system is a window AC, which is mounted on walls or windows. All the parts are contained in a casing that is assembled into a single unit. Window air conditioners are not only an inexpensive cooling solution, but they are also extremely energy efficient. These units can be found easily in a wide range of BTUs to meet rooms of various sizes and fit right inside the window.

Cool air is circulated by central air conditioners (AC) via a network of supply and return ducts. The most common kind of cooling system in the United States is central air conditioning. According to the most recent information from the United States Energy Information Administration, central air is used by more than 75% of homes with a cooling system.

With the help of mini split air conditioners, people can control the temperature in specific rooms or sections. The two main components of a mini-split system are an outdoor compressor and an indoor air-handling unit or units (evaporator).

<12K BTU, 12K-36K BTU, 36K-60K BTU, and 60K+ BTU are Different Sizes of the Product

The majority of window air conditioners have cooling capacity between 5,000 and 12,000 BTU. A floor area of between 450 and 550 square feet can be cooled by an air conditioner with 12,000 BTU.

End-Uses Include Commercial and Residential

Due to rapid urbanisation and increasing demand for commercial spaces, it is predicted that the commercial segment would experience significant growth during the projection period, thereby aiding the air conditioners (AC) market share.

Commercial AC units take up a lot of room and are typically installed on the rooftops of structures like malls, hotels, large restaurants, theatres, and business offices, where energy consumption is at its highest. Therefore, it is anticipated that increasing the use of AC across the commercial segment will result from retrofitting and replacing these units to reduce energy usage.

A number of market vendors will continue to rely heavily on the residential segment. Recent years have seen an increase in temperature in several nations due to climate change. AC systems are now more of a necessity than a luxury due to rising temperatures.

As a result, consumers all over the world are installing air conditioning systems in their homes, and this trend is anticipated to continue as global temperatures continue to climb. Thus, during the forecast period, residential air conditioners are anticipated to have healthy growth as a result of the changing climatic conditions.

Hypermarket, Electronic Stores, and Online, Among Others are the Several Distribution Channels in Air Conditioners (AC) the Market Research Report

Due to the large number of organised retail outlets around the world, hypermarkets and electronic stores are anticipated to be the two largest segments.

Online distribution channels are expanding quickly because market participants are using alternative sales channels to broaden their customer base and increase their brand's awareness. High internet usage and an increase in smart device use for online shopping as a result of the increased comfort and flexibility that customers enjoy while shopping are anticipated to have an impact on the segment's growth over the forecast period.

Asia Pacific and North America to Have a Strong Hold on the Global Air Conditioners (AC) Market

Due to its rapid infrastructural development and growing population preference for lifestyle goods, the Asia Pacific region is anticipated to dominate the market. The market in the region is expanding as a result of a growing middle class, rising temperatures brought on by climate change, and increased consumer spending power. The market is also anticipated to be driven by rising commercial and residential development activity in various Asia Pacific countries, particularly in India and China, along with the consumer preferences for lifestyle items.

North American is expected to witness significant growth in the global air conditioners (AC) market primarily powered by replacement sales. The regional market is anticipated to rise as a result of ongoing technical advancements and increasing government promotional efforts to boost the adoption of energy-efficient air conditioning systems. A rise in use of smart thermostats and inverter air conditioners has contributed to the increased demand for air conditioning systems from both commercial and residential applications.

Competitive Landscape

Nortek has designed and produced dependable heating and cooling solutions for more than a century. The company's primary goal is to provide real value to its clients through a distinctive blend of innovation, product excellence, and attentive customer service. In addition to others, Nortek Global HVAC and its affiliates manufacture and market HVAC systems under the Maytag®, Frigidaire®, Gibson®, and Reznor® brands.

AB Electrolux is a leading global appliance manufacturer. The company sells floor-care products as well as home and office appliances such air conditioners, microwaves, refrigerators, washing machines, freezers, stoves, dryers, and dishwashers.

LG Electronics is a key part of the South Korean conglomerate LG group. The business produces display devices, household appliances, air conditioners (AC), multimedia products, electronic parts, and creates software.

DAIKIN INDUSTRIES, Ltd., is the largest air conditioning company and has global revenues of over USD 15 billion. In more than 150 countries, from the home air conditioning industry to the commercial air conditioning market, it is widely disseminated and marketed for its cutting-edge air conditioning products and services employing eco-friendly technologies. Thus, various technological advancements are increasing the air conditioners (AC) market demand.

Fujitsu General Limited produces information-communications technology and air conditioners. The corporation operates two businesses in these sectors: the information, communication, and electric device segment and the air-conditioning equipment segment. Air conditioners, electronics, information and communication systems, home appliances, and purifiers are among the products offered by the company.

Johnson Controls is a multinational corporation with Irish identity and a base in Cork, Ireland that makes fire, HVAC, and security equipment for buildings. The business's building efficiency division is responsible for manufacturing, marketing, and installing integrated HVAC systems, controls, security, building management systems, and mechanical equipment.

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Air Conditioners (AC) Market Report Snapshots

Air Conditioners (AC) Market Size

Air Conditioners (AC) Market Analysis

Air Conditioners (AC) Companies

Air Conditioners (AC) Market Regional Analysis