Global Solar Air Conditioning Market - Insights
Solar air conditioning refers to air conditioning systems that consumes solar power to offer air conditioning effects. Using passive solar thermal energy, solar air conditioning emits conditioned air through a thermally driven refrigeration process. Solar air conditioning systems are used in residential, commercial, and industrial spaces to reduce electricity cost. Increasing environmental concerns to save electricity among people and organizations has helped the solar air conditioning market to grow at a substantial rate. Moreover, demand for solar air conditioning systems is increasing due to increasing global temperature in the recent past. For instance according to National Oceanic and Atmospheric Agency (NOAA )data, the 2017 average global temperature across land and ocean surface areas was increased by 0.84°C (1.51°F).
Global solar air conditioning market is expected to witness significant growth during the forecast period (2018–2026). The market growth is majorly attributed to changing lifestyle and demand for increasing comfort among people and increasing government initiatives to enhance the share of solar energy in power consumption.
Figure 1. Global Solar Air Conditioning Market Share (%), by Region (2017 & 2026)
Source: Coherent Market Insights, 2018-19
Changing lifestyle and demand for increasing comfort among people is expected to aid in growth of the solar air conditioning market.
The use of air conditioning systems for a comfortable lifestyle is increasing day by day. Moreover, solar air conditioning systems have several benefits over conventional air conditioning systems that operate on electricity such as low operational cost and low maintenance. Increasing impact of greenhouse gases on global warming has also led to high adoption of solar air conditioning systems. Moreover, increasing government initiatives and tax benefits offered in various countries is also expected to boost the market growth. Solar air conditioning systems are also preferred due to their low operational cost over the conventional air conditioning systems. For instance, government of India has started Solar Energy Subsidy Scheme, which offers subsidy from 25 to 50 % for installation of solar panels on the rooftop of their house.
Figure 2. Global Solar Air Conditioning Market Share (%), By End User (2017 & 2026)
Source: Coherent Market Insights, 2018-19
Increasing demand for solar air conditioning systems among small and medium sized enterprises in emerging economies of Asia Pacific is expected to boost the market growth
Asia Pacific held dominant position in the global solar air conditioning market in 2017, and it is projected to retain its dominance throughout the forecast period. This is owing to rapid developing economies and growing disposable income in this region. For instance, according to India Brand Equity Foundation 2017 report, India’s rural per capita disposable income is estimated to increase at a CAGR of 4.4 percent to US$ 631 by 2020. Moreover, increasing demand for solar air conditioning systems among small and medium sized enterprises (SMEs) in emerging economies in the region is expected to boost the commercial end user segment growth. These SMEs include, IT & Telecom, ITES and BPO, Manufacturing, and Retail.
North America is expected to be the fastest growing market throughout the forecast period as early adoption of this technology is seen in the region.
Major players operating in the global solar air conditioning market include, Lennox, Videocon, Harvest Air Conditioner, HotSpot Energy Inc., Aussie Solar World, Solair World International, Icesolair, Gree, Midea Group Onyx Solar ac, and others.
The adoption of solar air conditioning systems is increasing significantly as these systems offer several benefits such as low operational cost and low maintenance over conventional air conditioning systems. Air conditioning in any organization accounts for 30-35% of electricity usage, which has led to increasing preference for solar air conditioning systems in various organizations to reduce electricity cost. Use of Solar air-conditioning is a way to reduce the demand for electricity. Nowadays constructions of many solar air-conditioning systems today are built in such a way that CFC, HCFC or HFC refrigerants are not used to reduce the emissions of carbon, sulphur, and nitrogen dioxide. Therefore will result in increase in demand for solar air conditioning system.
The demand for solar air conditioning systems is increasing due to growing population and disposable income. For instance according to 2017 United Nations report, world’s population is expected to reach 8.6 billion in 2030 from 7.6 billion in 2017. Solar air conditioning system uses renewable energy source and produces very few greenhouse gases, which is expected to reduce harmful carbon emissions. Use of solar energy also reduces demand for electric grids that rely on fossils fuels. These factors are expected to boost growth of the solar air conditioning market over the forecast period. Rise of electricity rates and the need to reduce energy consumption, has indirectly boosted a steady increase in the demand for and use of solar air conditioning system.
However, high initial cost to setup solar air conditioning system, which include installation of high cost batteries and solar panels, serves as a major restraining factor for growth of the market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.