Air conditioning is the process that involves the removal of moisture and heat from an occupied space, in order to comfort occupants. Air conditioning is used in both commercial and industrial settings. Generally, air conditioners use a fan to distribute the conditioned air to a covered space such as a building or a car so as to thermal comfort and indoor quality. Inverter based and solar-based air conditioning systems are expected to witness significant growth in the near future due to its energy-efficient features, which help meet stringent energy regulations.
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).
Growing consumer awareness regarding the environment is expected to propel the global air conditioning systems market growth over the forecast period. Growing environmental awareness has led to increased demand for air conditioning systems. High increase in the level of carbon dioxide due to rise in pollution levels is heavily hampering the environment and this has attracted the attention of consumers towards products that are non-toxic to the environment. Refrigerants used in air conditioning systems, such as CFC, HFC, and HCFC, are highly toxic and contribute to global warming too. Many campaigns by government and non-profit organizations have contributed to consumer awareness related to environmental concerns. These campaigns are increasing the awareness level among consumers to shift them from traditional products to eco-friendly products.
Rapid growth of the construction and infrastructure sector can provide significant business opportunities in the global air conditioning systems market. The building and construction industry, worldwide, is on a rise due to the tremendous demand for new households. Leading real estate players are investing in huge amounts on massive projects for housing and commercial ventures. Rise in building permits for the construction of malls, offices, and industrial facilities is driving the growth of packaged air conditioners in particular. According to the India Brand Equity Foundation (IBEF), India is expected to become the third largest construction market by 2022 and is expected invest US$ 1.4 trillion on infrastructure during 2019-2023. In order to maintain the soothing environment of buildings and houses, it is essential that there should be a proper installation of air conditioning systems. It is expected that the global construction industry will witness growth at a rapid pace, thus driving the market of air conditioning systems.
Global Air Conditioning Systems Market: Recent Developments
In July 2021, Mitsubishi Electric India launched Exquisite & Energy Saving Room Air Conditioners.
In March 2021, Blue Star launches split ACs. he new range comprises 3-star, 4 -star, and 5-star inverter split air conditioners that are available at prices from Rs 25,990 for a 0.80 TR 3-star inverter split AC.
High initial investment is expected to hinder the global air conditioning systems market growth over the forecast period. Air conditioning systems are expensive devices and cost significant investment initially. Moreover, these systems are needed to be serviced and maintained on a timely basis, in order to maintain smooth functioning, which incurs into additional cost.
Global Air Conditioning Systems Market - Impact of Coronavirus (Covid-19) Pandemic
The global air conditioning systems market has witnessed a sharp decline in the recent past, specifically due to the outbreak of COVID-19 pandemic. Following the outbreak in December 2019, many countries preferred to suspend international travels temporarily and adopted nationwide lockdown policies, in order to constrain the spread of the disease. These policies compelled manufacturing organizations to shut down their production activities. Besides, many organizations adopted work-from-home policies, which impacted the commercial sales of air conditioning systems. However, with vaccine rollout and decreasing cases, the market is expected to regain its lost traction.
To know the latest trends and insights prevalent in Global Air Conditioning Systems Market, click the link below:
Growing trend for living a comfortable life has increased the demand for air conditioning systems in both developed regions like Europe and North America, and developing regions like Asia Pacific. The basic necessities of the common man have grown beyond food, clothing, and shelter. Availability of technologically advanced products, rising disposable income, and growing awareness, are contributing primarily to the increasing need for luxury products, such as air conditioning systems.
Key market players are focused on research and development activities, in order to enhance the market presence and strengthen product portfolio. For instance, in May 2012, Samsung Electronics launched its new Jungfrau air conditioners in Jordan. In October 2011, Home Retail Group Plc announced that it has agreed to launch a joint venture company to develop a multi-channel, general merchandise retail business in China with Haier Group.
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.