Australia Air Conditioner Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)

Australia Air Conditioner Market Outlook

The Australia air conditioner market size was valued at USD 2.24 billion in 2023. The market is further projected to grow at a CAGR of 5.60% between 2024 and 2032, reaching a value of USD 3.67 billion by 2032.

Key Takeaways

• As per energy.gov.au, cooling can account for 20–50% of energy consumption in Australian homes and 68% of households utilise air conditioning.

• Among the states, Western Australia has the highest reliance, with over three-quarters of households having air conditioning. In contrast, New South Wales and Queensland are the least reliant, with 63% and 62% of households owning an air conditioner, respectively.

• In 2022, Australians ran their air conditioners for 5 hours per day during warmer months, down from 6 hours in the previous year.

The increasing urbanisation and rising disposable incomes in the country have fuelled the demand for air conditioners across residential, commercial, and industrial sectors. The soaring temperatures in Australia, coupled with a growing awareness of the need for reliable cooling solutions due to the country's hot climate, have significantly boosted Australia air conditioner market growth. Additionally, the adoption of energy-efficient technologies and eco-friendly options has further propelled the demand for air conditioners, making them essential commodities in Australia.

Smart air conditioners are gaining popularity in Australia, offering remote control via smartphone apps, voice commands, and integration with smart home devices like Amazon Alexa or Google Home. This trend provides users with convenience and the ability to monitor energy usage, aligning with the growing demand for energy-efficient appliances.

Moreover, there is a growing emphasis on energy-efficient air conditioning systems in Australia, driven by the adoption of inverter technology for better energy efficiency and precise temperature control. This trend aligns with consumer preferences for eco-friendly options, cleaner indoor air quality through air purification features, and the government's push for more energy-efficient appliances to reduce greenhouse gas emissions.

Different types of air conditioners play a crucial role in shaping the Australia air conditioner market development. Room air conditioners, such as split AC are in high demand by residential sector due to rising disposable incomes and the need for reliable cooling solutions in Australia's hot climate. On the other hand, the centralised conditioners dominates the market share as they have energy-efficient cooling systems like variable refrigerant flow (VRF), ductable split, chillers, single packaged systems, among others. Ducted air conditioners, on the other hand, are commonly used in both residential and commercial settings, providing centralised cooling solutions with efficient temperature control and distribution.

Market Segmentation

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

Market Breakup by Type

• Room AC 
  • Spilt AC
  • Window AC

• Ductless AC
  • Ceiling Suspended
  • Cassette
  • Floor Standing

• Ducted AC
  • Rooftop Packaged
  • Ceiling Concealed

• Centralised AC
  • VRF
  • Chillers
  • Condensing Unit
  • AHU/FCV
  • Others

Market Breakup by Technology

• Automatic

• Manual

Market Breakup by Size

• <12K BTU

• 12K-36K BTU

• 36K-60K BTU

• 60K+ BTU

Market Breakup by End Use

• Residential

• Commercial

Market Breakup by Distribution Channel

• Mult-Brand Stores

• Electronic Stores

• Online 

• Others

Market Breakup by Region

• South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Competitive Landscape

Market players are introducing energy-efficient air conditioners to comply with regulations and to stay ahead in the competition.

• LG Electronics Australia Pty Limited

• Fisher & Paykel Australia Pty Limited 

• Daikin Australia Pty Limited

• AHIC (Australia) Pty Ltd

• Panasonic Australia Pty Limited

• Others

Key Highlights of the Report