We have an updated report [Version - 2024] available. Kindly sign up to get the sample of the report.
all report title image
  • Published On : Oct 2021
  • Code : CMI4687
  • Pages :170
  • Formats :
      Excel and PDF
  • Industry : Consumer Electronics

Air conditioning is a system used to cool down space by removing heat and moving it to some outside area. The cool air can be thereafter moved throughout a building through ventilation. Air conditioning systems are used in domestic, commercial, and industrial settings. The Industrial air conditioning system is usually centralized cooling systems with a sophisticated ducting system that allows cold air to be distributed. Generally, an industrial air conditioning system requires better accuracy in terms of temperature and humidity control.

The global air conditioning system market is estimated to be valued at US$ 240,763.0 million in 2021 and is expected to exhibit a CAGR of 10.5 % over the forecast period (2021-2028).

Recent Developments:

In August 2021, Johnson Controls-Hitachi Air Conditioning India, a manufacturer of air conditioners is planning to open Hitachi Brand Shop for customers to capture larger market share.

 In August 2021, Daikin Romania, a air condition manufacturer have opened online platform to sell and deliver the air conditioners.

In September 2021, Xiomi announced that it is going to open 100 retail stores to enhance its geographical reach.

Statistics:

Figure 1. Global Air Conditioning Systems Market Value (US$ Mn), by Region, 2020

AIR CONDITIONING SYSTEMS MARKET

To learn more about this report, request a free sample copy

Asia Pacific excluding Japan held dominant position in the global Air Conditioning Systems market in 2020, accounting for 30.9% share in terms of Value, followed by North America and APAC, respectively.

Global Air Conditioning Systems Market- Drivers

Increasing need for energy efficiency is expected to drive growth of the global air conditioning systems market during the forecast period. Increasing consumer awareness regarding energy efficiency has led to an increased demand for air conditioning systems. Energy efficiency has become a major concern in industrial settings as well as domestic, especially in developed regions such as North America and Europe. Since air conditioning systems consume a vast amount of electricity, consumers are seeking energy-efficient models that would consume less energy and reduce the electricity bill. As a result of this, the manufacturers are forced to design efficient systems, to sustain the growth. In addition to this, consumers in Europe and North America are replacing their traditional air conditioning systems, with the models that consume less energy and help them to reduce their electricity bills.

Rising disposable income in emerging economies is expected to propel the global air conditioning systems market growth over the forecast period. Disposable income in emerging economies such as India and China is increasing rapidly. As a result of this, consumers are more inclined towards purchasing electronic and electric products including air conditioning systems to meet the rapidly changing lifestyle. According to Coherent Market Insights’ analysis, by 2025, around 1 billion urban population is expected to enter into global consumer class opting for air conditioners as their first choice. Robust growth is projected for air conditioning systems in countries such as India and China, for the Asia Pacific region.

Global Air Conditioning Systems Market: Opportunities

Untapped markets like the Asia Pacific region and RoW are expected to fuel the demand for air conditioning systems. These regions will have a higher penetration in the future with rising in consumer awareness. The improvements in living standards in these untapped markets will increase the demand of air conditioning systems. Inverter based and solar-based air conditioning systems will be majorly in demand in the regions of Asia Pacific and RoW as these models will gain popularity due to the energy and environment-related advantages associated with them.

Companies are focusing on energy-efficient solutions that help to reduce the emission of CFC, HCFC, and make air conditioning systems energy efficient. Natural refrigerants such as CO2 and ammonia are gaining popularity as they have low Ozone Depletion Potential (ODP) and Global Warming Potential (GWP). Advanced ACs are being introduced with communication technology which lets one to remotely access the AC via the internet or smartphones. The emergence of solar power air conditioners and inverter-based air conditioners is dominant in Japan and expected to fast see global acceptance.

Air Conditioning Systems Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 240,763.0 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 10.5% 2028 Value Projection: US$ 484,312.5 Mn
Geographies covered:
  • North America: U.S., Canada
  • Latin America: Brazil, Argentina, Mexico, Rest of Latin America
  • Western Europe: Germany, U.K., France, Italy, and Rest of Western Europe
  • Eastern Europe: Poland, Russia, and Rest of Eastern Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, Israel,  South Africa, North Africa, Central Africa, Rest of Middle East
Segments covered:
  • By Type: Portables, Windows, Splits, Single Packaged, Chillers, Airside
Companies covered:

Daikin Industries Ltd, Sharp Corporation, Mitsubishi Corporation, Hitachi Ltd., Haier Electronics Group Co., Ltd., Carrier, Samsung Electronics, Panasonic, Electrolux AB, and LG Electronics.

Growth Drivers:
  • Increasing need for energy efficiency 
  • Rising disposable income in emerging economies
Restraints & Challenges:
  • Decrease in profit margins 
  • Rising energy consumption and environmental effects

Market Trends

Stringent energy efficiency standards and use of natural ingredients are expected to boost the demand for technologically advanced air conditioning system models across the region. A vast pool of population is focused on replacing existing air conditioning system with eco-friendly models. Moreover, the other products with more efficient compressors, intelligent cooling, with heat pumps and remote access are expected to gain popularity in Europe.

Growing awareness about energy efficient and environment friendly products in this region will increase the demand of air conditioning systems. However, uncertainties about climatic conditions with warmer summers are one of the major factors playing a crucial role in the growth of air conditioning systems in the Asia Pacific region. The demand for splits air conditioners increased in the last five years due to increase in Japanese Ducted system and VRF’s demand.

Figure 2. Global Air Conditioning Systems Market Share, By Pricing Range, 2020

AIR CONDITIONING SYSTEMS MARKET

To learn more about this report, request a free sample copy

Key Takeaways of the Graph:

  • The Splits segment held dominant position in the market and accounted for 77.4% share in the global Air Conditioning Systems market in 2020. The segment is expected to reach US$ 14,705.6 million in 2028. This is owing to increased per GDP capita income of consumer
  • The Airside segment accounted for the share of 15.0% in the global Air Conditioning Systems market and is expected to reach US$ 72,520.7 million by 2028.

Global Air Condition Systems Market- Restraints

Decrease in profit margins is expected to hamper the global air conditioning systems market growth over the forecast period. The Chinese manufacturers sell their products globally at a very low and competitive price as compared to other manufacturers. The importers in countries, primarily Europe and North America, are forming partnerships with large manufacturers of China. The Chinese companies such as Gree, Midea, and Haier, export their products at cheap price affecting the market growth. As a result of this, profit margins have been dwindled down and investment in R&D is significantly impacted.

Rising energy consumption and environmental effects is expected to restrain growth of the global air conditioning systems market during the forecast period. Energy consumption is a major concern for manufacturers and customers. The commercial, residential, and industrial sectors, consume around one trillion kilowatt-hours of electricity annually. Furthermore, most air conditioning systems use HCFC-22 and HFC as refrigerants, which are the major contributors to ozone depletion.

Competitive Section

Major players involved in the global air conditioning systems market are Daikin Industries Ltd, Sharp Corporation, Mitsubishi Corporation, Hitachi Ltd., Haier Electronics Group Co., Ltd., Carrier, Samsung Electronics, Panasonic, Electrolux AB, and LG Electronics.

Key Developments

  1. For instance, in June 2020, Daikin Air Conditioning India Pvt. Ltd., a subsidiary of Daikin Industries Ltd, introduced split AC GTL28 3
  2. For instance, in September 2020, Sharp Corporation introduced new AC with plasmaculster ion (PCI) technology to deactivate coronavirus

Frequently Asked Questions

The global air conditioning system market is estimated to be valued at US$ 240,763.0 million in 2021 and is expected to exhibit a CAGR of 10.5% over the forecast period (2021-2028).

Increasing need for energy efficiency is expected to drive growth of the market during the forecast period.

Decrease in profit margins is expected to hamper the market growth over the forecast period.

Untapped potential in emerging regions can present lucrative opportunities in the market.

Growing awareness about energy efficient and environment friendly products in this region will increase the demand of air conditioning systems.

Major players involved in the market are Daikin Industries Ltd, Sharp Corporation, Mitsubishi Corporation, Hitachi Ltd., Haier Electronics Group Co., Ltd., Carrier, Samsung Electronics, Panasonic, Electrolux AB, and LG Electronics.

View Our Licence Options

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Customize Now

Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail

Request Discount
Logo

Reliability and Reputation

ESOMAR
DUNS Registered
Clutch
DMCA Protected

9001:2015

Reliability and Reputation

27001:2022

Reliability and Reputation

EXISTING CLIENTELE

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo