Asia Pacific Air Conditioner Market Size, Share, Forecast: By Type: Window AC, Central AC, Mini Split AC, Others; By Size: <12K BTU, 12K-36K BTU, 36K-60K BTU, 60K+ BTU; By End Use: Commercial, Residential; By Distribution Channel: Hypermarkets/Supermarkets, Specialty Stores, Others; Regional Analysis; Competitive Landscape; 2024-2032

Asia Pacific Air Conditioner Market Size

The Asia Pacific air conditioner market is projected to grow at a CAGR of 6.04% between 2024 and 2032.

Asia Pacific Air Conditioner Market Outlook

• By 2047 India, China and Japan will become top economies globally driven by high-income individuals, thus, fuelling demand for air conditioners.

• Asian Development Bank forecast the regional growth of 4.8% for FY24 with a majority growth coming from India, China, and ASEAN nations.

• Global temperatures are going to surge significantly in the upcoming years, fuelled by heat-trapping greenhouse gases and a naturally occurring El Niño weather pattern.

Asia Pacific Air Conditioner Growth

The Asia Pacific air conditioner market growth is being propelled by the rising net disposable income of individuals in this region. There is a rapid shift in the lifestyle of people in this region. The growth in this region is driven by China, India, and Japan, which together account for more than one-third of the world’s population.

In the business sector, many companies have started opening their headquarters in this region due to better taxation policy, and the availability of labourers which make them install air conditioning in the workplace, thereby boosting air conditioner sales in commercial space in upcoming years.

Policies in the Asia Pacific region, such as the Production Linked Incentive (PLI) Scheme by the Government of India, which allocated about $855 million for the promotion of domestic manufacturing of air conditioners in India, provide a major boost to the adoption of air conditioners sales. This enables companies to offer products at competitive prices.

Key Trends and Developments

The Asia Pacific air conditioner market development is fuelled by technological innovations and advancements, government initiatives, environment management and safety measures.

April 2024

Voltas crossed 2-million-unit sales in India and recorded a growth rate of 35% YOY in India. There has been a significant demand of ACs across Asia Pacific.

February 2024

Panasonic introduced 60 new models across its complete range of AC. They coupled Panasonic’s nanoeX and nanoeTMG technologies, to ensure a healthy indoor AQI by eliminating PM 2.5 particulate matter, bacteria, and viruses.

January 2024

Electrolux Group announced a target to reduce greenhouse gas emissions in products and operations in support of the Paris Climate Agreement. The company targets to reduce direct and indirect emissions by 85%.

November 2023

Voltas Limited announced ten new brand stores in various cities across India as part of the company’s strategy to penetrate newer markets and cater to the rising demands of its customers with its extensive line-up of high-quality appliances.

Technological innovations and advancements

The Asia Pacific air conditioner market is undergoing a rapid transformation by eliminating the growth of bacteria, viruses, and mold. Features like AI and ML enable adjustment of temperature and humidity.

Government initiatives

Many countries in the Asia Pacific have implemented lower tax slabs to ensure that the cost of air conditioners does not become burdensome for individuals and industries.

Environment Management

Some countries across the Asia Pacific started the National Green Cooling Action Plan (GCAP) to improve the cooling efficiency of devices and transition them to green refrigerants.

Safety measures

International agencies are setting up standards for manufacturing air-conditioner components to eradicate accidents generating trust among consumers and bolstering the Asia Pacific air conditioner market growth.

Asia Pacific Air Conditioner Market Trends

As per the reports from IEA and other sources, there is a strong demand for air conditioners in both residential and commercial space, this growth will continue to thrive as there is a significant increase in per capita income across Asia Pacific nations.

Air conditioners offer a better lifestyle and provide health benefits like eliminating particulate matter from the air. Continued changes in climatic conditions and rising global warming conditions, it will continue fuelling demand for air conditioners across the Asia Pacific.

Moreover, the increasing population and a notable rise in disposable income among individuals in these countries will further boost the demand for air conditioners.

Asia Pacific Air Conditioner Market Segmentation

Asia Pacific Air Conditioner Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Window AC

• Central AC

• Mini Split AC

• Others

Market Breakup by Size

• <12K BTU

• 12K-36K BTU

• 36K-60K BTU

• 60K+ BTU

Market Breakup by End Use

• Commercial

• Residential

Market Breakup by Distribution Channel

• Hypermarkets/Supermarkets

• Specialty Stores

• Online Channels

• Others

Market breakup by Country

• China 

• Japan

• India 

• ASEAN

• Australia 

• Others

Asia Pacific Air Conditioner Market Share

The window AC and split AC are driving the Asia Pacific air conditioner market growth by providing cost-effective, agile, and readily deployable HVAC solutions across residential and commercial space.

Window ACs find their application in rooms with proper window space and good air circulation, making them suitable for smaller rooms. They require less maintenance compared to other types and are generally manufactured to target the price-sensitive market. They have a maximum capacity of 2 tons.

Split ACs find their application where energy efficiency is an important factor. There is no capacity limitation for split ACs, but their maintenance cost is high. They are less noisy compared to window ACs since the compressor component is not in a single unit. They are known for their durability and cooling efficiency.

Centralized ACs are used by large organizations such as workplaces and complexes, finding their application where energy efficiency is crucial and serving a very large area. They have filters to improve the quality of air by removing allergens. They are placed where aesthetics is a factor in selecting ACs.

Based on end use, the Asia Pacific air conditioner market share is led by the residential and commercial spaces.

As the net disposable income of households is increasing across Asia Pacific there is a significant rise in demand for air conditioners. Many companies started setting up their headquarters and offices across this region which is contributing to the growth of the air conditioners market in Asia Pacific.

Based on distribution channels, Asia Pacific air conditioner market share dynamics are changing rapidly across different sales channels. After digitalization and better internet connectivity options, there is a change in the trend of sales across different channel

Online distribution channels are boosting the growth of the air conditioner market by allowing people to understand products better and providing them more flexibility to compare products.

Companies also started to open their exclusive stores as Asia Pacific is still evolving in the digital economy and offline retail channels hold a good percentage of market share.

Leading manufacturers in the Asia Pacific Air Conditioner Market

Market players are driving air conditioner market growth by offering air-conditioning devices at competitive pricing and offering additional health benefits to their consumers.

Carrier Global Corporation is a global MNC providing HVAC Corporation founded in 1915 for introducing and distributing HVAC services. It is now serving 60 countries across 6 continents. It was acquired by United Technologies but again declared as an independent company in 2020.

Alpha Appliances Limited was established in 1974 to provide marketing and distribution services for electrical appliances including air conditioners by General and Fuji. Currently, they are the leading brand in Hong Kong.

LG Corporation formerly Lucky –Goldstar is a South Korean multinational company formed by the merger of 2 companies Lucky and Goldstar in 1983. They offered a wide range of products ranging from mobile to air conditioners.

AB Electrolux is a Swedish multinational company that started selling its products in the year 1919 and it is the second largest appliance seller after Whirlpool in the world.

Haier Group Corp founded in the year 1984 is a Chinese MNC having its headquarters in Qingdao, Shandong. They offer a wide variety of appliances ranging from air conditioners to televisions.

Other Asia Pacific air conditioner market key players are Daikin Industries, Ltd, Samsung Electronics Co. Ltd, Panasonic Holdings Corporation, Johnson Controls International Plc, and Mitsubishi Electric Corp, among others.

Asia Pacific Air Conditioner Market Analysis by Region

With rising income in countries like China and India, there is a significant change in the lifestyle of their population a large chunk of the population is moving out of poverty providing a good boost to sales of air conditioners.

According to the Asian Development Bank 2050 Asia per capita income could rise sixfold in purchasing power parity (PPP) terms to reach Europe’s levels today and this growth will led by China, Japan, India, ASEAN, and Australia. This will create a massive opportunity for Air Conditioner manufacturers to capture these markets.

As per the Asia Pacific air conditioner market report, Asia Pacific boasts a growing air conditioner industry, particularly in China and India, along with investments and schemes by governments. This dynamic ecosystem encourages ongoing innovation and competition. The region's expansive landscapes and diverse population needs will drive demand for air conditioners.

Key Highlights of the Report

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.