The global solar air conditioning market
was valued at US $17.41 Billion in 2017, and is expected to increase to US $39.22 Billion by 2026, registering a CAGR of 9.3% over the forecast period from 2018 to 2026, according to Solar Air Conditioning Market Report, by Power Source (Hybrid Solar A/C and 100% Grid off A/C), by Product Type (Split Solar A/C, Window Solar A/C, Cassette Solar A/C, and Floor Standing Solar A/C), by Capacity ( 1 Ton, 1.5 Ton, and 2 Ton and Above), by End User (Residential, Commercial, and Industrial), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) published by
Increasing awareness regarding carbon emission and growing need for energy-efficient air conditioning systems is expected to contribute to growth of the solar air conditioning market. Solar air conditioning is an ecofriendly option as it helps in reducing carbon dioxide emission. Moreover, solar air conditioning also helps end users to reduce electricity usage as it relies on solar energy as opposed to conventional air conditioning system that use electric power grids.
The market in Asia Pacific for solar air conditioning is expected to witness significant growth over the forecast period. The growth is attributed to increasing demand for solar air condition systems in emerging economies such as India and China, due to rapid urbanization and infrastructure development in the countries. Moreover, geographical and environmental conditions in India vary significantly across the country, with some regions under hot and humid conditions and some influenced by cold temperatures. These conditions along with increasing need to reduce carbon footprint are expected to fuel demand for solar air conditioning systems in Asia Pacific, thereby driving the global solar air conditioning market growth.
Furthermore, stringent regulatory norms for electrical appliance manufacturers to manufacture energy efficient products has led to increasing development of hybrid air conditioning systems, which operate both on solar energy and electricity. This in turn is expected to boost the market growth. For instance, Videocon, the consumer electronics and home appliances company, developed a hybrid solar air conditioner in 2018.
However, high initial setup cost of solar air conditioning is the main restraining factor for the market growth.
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Key Trends and Analysis of the Global Solar Air Conditioning Market:
- 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 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.
- North America is expected to be the fastest growing market throughout the forecast period as early adoption of this technology is seen in this region. Moreover, increasing construction of malls, industrial areas, and corporate offices is expected to drive the market growth in the region.
- The market in Europe is also expected to grow at a substantial rate during the forecast period, owing to various initiatives from regulatory bodies to retain energy consumption and need for replacement of existing equipment with energy efficient counterparts. For instance, European Commission are moving towards low carbon economy by starting renewable energy directive, under which they are planning to fulfil at least 20% of its total energy needs with renewables energy by 2020.
- Among power source, the hybrid solar air conditioning segment held dominant position in the market in 2017, and is expected to retain its dominance during the forecast period. This is owing to the ability of hybrid air conditioning systems to change the power source whenever required. Increasing consumption of electricity can lead to fluctuations in grids and power cuts, which further increases demand for hybrid solar air conditioning.
- Some of the 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.