Air Conditioner Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Market Is Segmented By Product Type (Window, Split and Multi Split, Packaged Air Conditioner, Variable Refrigerant Flow (VRF) and Others (Chillers and Portables) ), By Distribution Channel (Multi-Brand Stores, Exclusive Stores, Online, and Other Distribution Channels),By End User (Residential and Commercial), and By Geography (North America, South America, Europe, Asia-Pacific, and Middle-East And Africa). The report provides the market sizes and forecasts in terms of value in USD billion.

Air Conditioner Market Size

Air Conditioner Market Summary
Study Period: 2019-2028
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 5.5 %

Major Players

Air Conditioner Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Air Conditioner Market Analysis

The global air conditioner market is estimated at USD 177.5 billion in the current year and is poised to register a CAGR of around 5.5% during the forecast period. The air conditioning (AC) industry is expected to witness huge growth due to the soaring temperature and humidity levels across the world, along with the rising acceptance of air conditioners as utility products rather than luxury products. The emergence of technologically advanced air conditioners, such as air conditioners with inverters and air purification technologies, is further anticipated to positively influence the air conditioner market through the forecast period.

The spread of COVID-19 disrupted the market demand and global supply chain in 2020. China is one of the largest consumers and producers of air conditioner products, but it also caters to a wide range of countries by exporting several input supplies that are essentially used to produce finished goods. The shutdown of production in China has forced other air conditioner manufacturers based in the United States and Europe to temporarily hold the production of finished goods. This led to an increase in the supply and demand gap in the market.

Numerous segments within the air conditioner industry may increase in market size in the coming years, especially the market for smart air conditioners. The rising popularity of smart gadgets that can convert conventional remote-controlled air conditioners into smart devices is likely to be the primary growth driver, leading the smart air conditioner market. Improvement in housing standards is fueling the demand for room air conditioners, while packaged air conditioners are estimated to grow at a moderate rate with rising permit rates for the construction of malls, offices, and industries.

Government regulations on refrigerants are forcing manufacturers to develop energy-efficient and eco-friendly products. There have been many technological developments observed in the market due to the phasing out of key refrigerants. Once the most preferred refrigerants, CFCs, are likely to be completely replaced by other refrigerants in the next few years.

Air Conditioner Industry Segmentation

An air conditioner is a system or a machine that treats air in a defined, usually enclosed area via a refrigeration cycle in which warm air is removed and replaced with cooler air. A complete background analysis of the air conditioner market, including the assessment of the economy and contribution of the sectors in the economy, market overview, market size estimation for key segments and emerging trends in the market segments, market dynamics and insights, along with key health statistics, is covered in the report. The Market Is Segmented By Product Type (Window, Split and Multi Split, Packaged Air Conditioner, Variable Refrigerant Flow (VRF), and Others (Chillers and Portables), End User (Residential and Commercial), By Distribution Channel (Multi-Brand Stores, Exclusive Stores, Online, and Other Distribution Channels), and Geography (North America, South America, Europe, Asia-Pacific, and Middle-East And Africa). The report provides the market sizes and forecasts in terms of value in USD billion.

By Product Type
Window
Split and Multi Split
Packaged Air Conditioner (PAC)
Variable Refrigerant Flow (VRF)
Others (Chillers and Portables)
By End User
Residential
Commercial
By Distribution Channel
Multi-brand Stores
Exclusive Stores
Online
Other Channels
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa

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Air Conditioner Market Trends

This section covers the major market trends shaping the Air Conditioner Market according to our research experts:

The Growing Demand for Air Conditioners Globally is Surging the Market

The planet's average temperature in July 2019 was about 1°C above the 20th-century average, according to NOAA, the United States (US) National Oceanic and Atmospheric Administration. This makes it the warmest month on record. The last five years have been the five warmest. The largest market was China, the world’s single-largest producer of room air conditioners (RAC), and the greatest demand in terms of the number of ACs, with 44.63 million units. The second-largest market was Asia, excluding Japan and China, with a market demand of 17.82 million units. The third-largest market was Japan, whose demand reached 10.52 million units. North America got a market demand of 15.59 million units, followed by Europe with 6.91 million units and Latin America with 6.83 million units.

Air Conditioner demand

The Asia-Pacific Region is Anticipated to Grow at the Fastest Rate

The major demand for air conditioners is from Asia-Pacific due to rapid infrastructure development and the rising inclination of people toward lifestyle products across the region.

In the Asia-Pacific region, compared to other types of air conditioners, PAC (packaged air conditioners) and room air conditioners (RAC) dominate the market. China is the largest market for air conditioner systems in the world. In China, room air conditioners dominate the market. Japan and India are other important air conditioning markets for global air conditioning manufacturers.

Air Conditioner Market - Growth Rate by Region (2021-2027)

Air Conditioner Industry Overview

The competitive landscape analysis provides a detailed strategic analysis of the company’s business and performance, such as financial information, revenue breakup by segment and by geography, risk analysis, key facts, company overview, business strategy, key product offerings, marketing and distribution strategies, new product development, and recent news. A few major players include Haier Group Corporation, Daikin Industries Ltd, Hitachi-Johnson Controls Air Conditioning Inc., LG Electronics Inc., and United Technologies Corporation.

Air Conditioner Market Leaders

  1. Haier Group Corporation

  2. Daikin Industries Ltd

  3. Hitachi-Johnson Controls Air Conditioning Inc.

  4. LG Electronics Inc.

  5. United Technologies Corporation

*Disclaimer: Major Players sorted in no particular order

Air Conditioner Market Concentration

Air Conditioner Market News

  • In January 2022, LG Electronics USA showcased its new robust 2022 lineup of residential, light commercial, and commercial HVAC solutions at the 2022 AHR Expo conducted in Las Vegas.
  • In January 2021, Panasonic aimed to double its AC business in the next three years to invest in domestic manufacturing in India. The company, which introduced the HU series of ACs with the recently-announced nanoeX technology, is eyeing about 35% sales growth in the segment this year on the back of pent-up demand. According to the company, nanoeX technology releases hydroxyl radicals contained in water, which are also known as "nature's detergent" that are capable of inhibiting bacteria and viruses, including 99.99% of adhered novel coronavirus.

Air Conditioner Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters Five Forces Analysis

    5. 4.5 Value Chain Analysis

    6. 4.6 Technological Innovations and Recent Trends in the Global Air Conditioner Market ​

    7. 4.7 Impact of COVID- 19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Window

      2. 5.1.2 Split and Multi Split

      3. 5.1.3 Packaged Air Conditioner (PAC)

      4. 5.1.4 Variable Refrigerant Flow (VRF)

      5. 5.1.5 Others (Chillers and Portables)

    2. 5.2 By End User

      1. 5.2.1 Residential

      2. 5.2.2 Commercial

    3. 5.3 By Distribution Channel

      1. 5.3.1 Multi-brand Stores

      2. 5.3.2 Exclusive Stores

      3. 5.3.3 Online

      4. 5.3.4 Other Channels

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 South America

      5. 5.4.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Daikin Industries Ltd

      2. 6.2.2 Gree Electrical Appliances Inc.

      3. 6.2.3 Emerson Electric Company

      4. 6.2.4 Midea Group Co. Ltd

      5. 6.2.5 Hitachi-Johnson Controls Air Conditioning Inc.

      6. 6.2.6 Carrier​

      7. 6.2.7 LG Electronics Inc.

      8. 6.2.8 Panasonic Corporation

      9. 6.2.9 Toshiba Corporation

      10. 6.2.10 Haier Group Corporation

      11. 6.2.11 Electrolux

      12. 6.2.12 Whirlpool

      13. 6.2.13 Robert Bosch*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER

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Air Conditioner Market Research FAQs

The Global Air Conditioner Market is studied from 2019 - 2028.

The Global Air Conditioner Market is growing at a CAGR of 5.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2022.

Haier Group Corporation, Daikin Industries Ltd, Hitachi-Johnson Controls Air Conditioning Inc., LG Electronics Inc., United Technologies Corporation are the major companies operating in Global Air Conditioner Market.

Global Air Conditioner Industry Report

Statistics for the 2023 Global Air Conditioner market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Air Conditioner analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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