South Korea Air Conditioner Market Report and Forecast 2024-2032

South Korea Air Conditioner Market Size

The South Korea air conditioner market is projected to grow at a CAGR of 3.8% between 2024 and 2032.

South Korea Air Conditioner Market Outlook

• As per the data provided by the Korean Statistical Information Service  (KOSIS), a total of 38,729 houses completed construction in February 2024.

• As per KOSIS, the maximum air temperature recorded in the year 2022 was around 37.9 degrees Celsius in Pohang.

• A total of 2.6 million units of household appliances were sold in January in 2024, as per the data provided by KOSIS.

South Korea Air Conditioner Market Growth

South Korea air conditioner market growth may come from a steady increase in the number of houses constructed in the domestic region, including single houses, multiplex houses, and apartment buildings among others.

Rising temperatures across the country also raise concerns among the citizens as more and more invest in air conditioning  to combat extreme heat waves and weather conditions coupled with concerns about sustainability.

BUILDINGS CONSTRUCTION COMPLETION IN SOUTH KOREA, SEPTEMBER 2023 - FEBRUARY 2024

As per the data provided by the Korean Statistical Information Service (KOSIS), the buildings that completed construction in February 2024 stood at 38,729 up from the numbers of January 2024 which stood at 36,762. Higher construction rates are likely to provide higher growth rates for the South Korea air conditioner market.

Key Trends and Developments

South Korea air conditioner market growth is primarily fuelled by an increased budget allocation for air conditioning in schools, rising concerns due to high temperatures, companies seeking sustainable solutions, and advancements in technology aiding scalability.

March 2024

Samsung Electronics competed to buy Johnson Controls’ HVAC division, which was estimated to be worth around $8 trillion, in a bid to scale the markets.

February 2024

Leading consumer durables manufacturer LG Electronics Inc. introduced an artificial intelligence technology for early detection of anomalies in its commercial air conditioning systems.

October 2023

Korean Startup AirDeep, founded in the year 2020, made waves for its ground-breaking technology solution to optimize air-conditioner efficiency and air quality.

June 2023

Amid rising electricity prices South Korea’s top tech giants Samsung Electronics Co. and LG Electronics Inc. focused on innovative power-saving technology.

Raised air conditioning budget for schools

In a move to combat heat waves, South Korea’s ruling People Power Party (PPP) Agreed to increase the budget for air conditioning in schools.

High temperatures raise concerns

High temperatures in the domestic regions prompted the South Korean government to urge the public to opt for more sustainable air conditioning measures.

Health and air quality concerns

Consumers are concerned about pollutants, and microbes present in indoor air, more so in urban areas, driving sales for air conditioners equipped with advanced filtration systems

Integration of smart technology

South Korea air conditioner market growth is likely to come from features like Wi-Fi connectivity, smartphone controls, and integration with home automation systems which are gaining popularity.

South Korea Air Conditioner Market Trends

According to the South Korean air conditioner market analysis, escalating temperatures and heat waves are spurring consumer demand for cooling solutions, fuelled by heightened awareness of climate issues.

The influx of foreign firms is tapping into South Korea's growing need for cutting-edge cooling technology. Concurrently, mergers among domestic players are bolstering their position and fostering innovation, leading to more localized production.

Advancements in sustainability and efficiency are empowering both consumers and businesses to confront climate challenges effectively. Particularly during heatwaves, there is a notable surge in commercial usage, highlighting the indispensable role of air conditioning in South Korea.

South Korea Air Conditioner Industry Segmentation

South Korea 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

South Korea Air Conditioner Market Share

Distribution channels play a significant role in shaping the South Korea air conditioner market, with hypermarkets and supermarkets as they cater to both individual customers and businesses.

Hypermarkets and supermarkets serve as convenient hubs for consumers in South Korea, offering a diverse selection of air conditioning products under one roof to meet their immediate cooling requirements.

Meanwhile, online channels like eBay and Amazon provide accessibility and convenience to consumers, enabling them to browse and purchase air conditioners from any location at their convenience.

The South Korea air conditioner market growth is led by central air conditioners primarily for commercial usage and window and mini split air conditioners for residential usage.

Central air conditioners are engineered to uniformly cool entire buildings, ensuring consistent temperatures throughout multiple rooms or floors. They are frequently employed in expansive commercial structures.

In contrast, window air conditioners are tailored to cool individual rooms or smaller areas by being directly mounted onto windows. They are favoured by residential users seeking rapid and effective cooling solutions.

The South Korea air conditioner market growth is driven by commercial as the region is expected to witness an increase in air conditioning usage as a strategy to mitigate escalating temperatures.

Commercial air conditioning in South Korea serves businesses, hotels, and public areas, driven by the necessity for climate regulation to guarantee comfort for employees, guests, and customers.

Residential air conditioning meets the cooling requirements of homes and apartments, offering residents relief from extreme temperatures while enhancing indoor comfort.

Leading manufacturers in the South Korea Air Conditioner Market

Key players are propelling the South Korea air conditioner market by specializing in crafting air conditioners tailored for specific markets.

Carrier Global Corporation is an American multinational company in the heating, ventilation, and air conditioning industry. It was founded in the year 1915, by Willis Carrier and operates out of Connecticut, USA.

Fujitsu General Ltd. Is a Japanese multinational corporation. It was established on January 15, 1936. Fujitsu is in the Development, manufacture, sales, and service of products and components in the air conditioners and telecommunications businesses.

Sharp Corporation is a Japanese company founded in the year 1912 by Tokuji Hayakawa. It is headquartered in Osaka, Japan. Sharp designs and manufactures consumer electronics and consumer durable products.

Mitsubishi Electric Corp. was launched in the year 1921 as part of the larger Mitsubishi group which was founded in 1870 by Yataro Iwasaki as a shipping firm. They specialise in manufacturing electronics and electrical equipment.

Other South Korea Air conditioner market key players are LG Corporation, Samsung Electronics Co. Ltd., Panasonic Holdings Corporation, Daikin Industries, Ltd., Haier Group Corp., and Johnson Controls International Plc among others.

Key Highlights of the Report