Air Conditioning Equipment Market Trends

Market Trends of Air Conditioning Equipment Industry

Split System is Expected to Register Significant Growth

• A split air conditioner consists of an outdoor unit and an indoor unit. In single-split systems, an interior and outdoor unit are connected by copper pipe. In multi-split systems, up to five indoor units of customer choice can be connected to one outside unit. The multi-split is appropriate for many rooms or large rooms and various climatic zones. The outdoor unit's small footprint and easy installation are major benefits.
• The firms are collaborating to provide energy-efficient and climatic-friendly split air conditioners. For instance, in its 2024 product lineup, LG Electronics introduced a series of air conditioners tailored for the Indian market. These units boast advanced technology, prioritizing energy efficiency and user comfort. LG's 2024 AC range has the Energy Manager, a technology that optimizes energy usage and guarantees top-notch cooling.
• Furthermore, introducing Midea's All Easy Series R290 units is a tipping point. Midea's portable R290 air conditioners have been available in Europe for some time. The most often used appliances for cooling spaces globally are split air conditioners mounted on an exterior wall. The R290 split air conditioners from Midea are expected to disrupt the European market and spark a change that will lower the continent's energy use and greenhouse gas emissions.
• Furthermore, in April 2024, Samsung Electronics Singapore unveiled its newest WindFree Air Conditioner series today. This launch marks an expansion of Samsung's lineup of home appliances aimed at enhancing homeowners' lifestyles. The series boasts features like comfort cooling, energy-saving capabilities, and a focus on connected living.
• In addition, according to LG Electronics, in 2023, it produced approximately 12.03 million air conditioners. These units were manufactured across facilities in South Korea, India, China, and Thailand.

North America is Expected to Hold Significant Market Share

• The air conditioning equipment market in North America is a robust and dynamic industry driven by factors such as rapid urbanization, technological advancements, climate change, and extreme weather.
• The rise in temperature in American cities and the sunbelt regions of Southwestern and southern America, caused by global warming and climate change, has led to greater use of different air conditioning systems in these areas. The necessity of cool air in specific US regions, like the humid South and the desert Southwest, has been a longstanding reality.
• The IEA has noted a rise in heat alerts in the Southwestern United States, underscoring the difficult conditions for human well-being. Additionally, the use of air conditioning is more common in the southern and central regions of the United States because of the higher levels of humidity found in those areas. Conversely, the Midwest encounters a mixed-humid climate with an annual rainfall exceeding 20 inches. These factors are expected to propel the demand for air conditioners in the country.
• Furthermore, according to the Department of Energy (DOE), a substantial 75% of US households own air conditioning units. These units consume roughly 6% of the nation's total electricity production, leading to an annual cost of approximately USD 29 billion for homeowners.
• As a result, approximately 117 million metric tons of carbon dioxide are emitted into the atmosphere annually. The growing initiatives to shift towards more energy-efficient air conditioners and implement other strategies to maintain comfortable indoor temperatures, as well as the goal of reducing energy usage for cooling purposes, are expected to enhance the market's potential.