Market Size of Global Air Conditioner Industry
Study Period | 2020 - 2029 |
Market Size (2024) | USD 201.78 Billion |
Market Size (2029) | USD 259.49 Billion |
CAGR (2024 - 2029) | 5.15 % |
Fastest Growing Market | North America |
Largest Market | Asia Pacific |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Air Conditioner Industry Analysis
The Global Air Conditioner Market size is estimated at USD 201.78 billion in 2024, and is expected to reach USD 259.49 billion by 2029, growing at a CAGR of 5.15% during the forecast period (2024-2029).
This industry analysis report indicates that the rising global temperatures and humidity levels and the growing recognition of air conditioners as a utility rather than luxury goods are predicted to drive significant growth in the air conditioning (AC) business. Driven by the introduction of sophisticated air conditioners, including models equipped with air purification systems and inverters, the AC market share is anticipating growth in the forecast period.
The worldwide supply chain and market demand including the market share of air conditioners were affected by the COVID-19 outbreak. China plays a significant role in the air conditioner market. Still, it also exports a variety of input supplies, which are needed to make finished items, to a wide range of nations. Due to the closure of their operations in China, other American and European air conditioning manufacturers have been forced to stop producing final goods temporarily. As a result, the market's imbalance between supply and demand widened.
The primary market growth factor driving the smart air conditioner market is the growing adoption of smart devices that can transform traditional remote-controlled air conditioners into smart devices. While packaged air conditioners are expected to expand at a moderate rate due to rising permit rates for the development of malls, offices, and industries, the demand for room air conditioners is being driven by improvements in housing standards.
Air Conditioner Industry Segmentation
An air conditioning unit is a device or system designed for the purpose of regulating temperature, humidity, and air quality in an open area, usually such as a room or building. It is capable of cooling the indoor air to a comfortable level by removing the heat from the air in the room and transferring it outside. As detailed in the report PDF, the air conditioner market is segmented by type, technology, end-user, distribution channel, and geography. By type, the market is segmented into window AC, split and multi-split AC, packaged air conditioners, variable refrigerant flow (VRF), central AC, and others (chillers and portables). By technology, the market is segmented into inverter and non-inverter. By end user, the market is segmented into residential and commercial. By distribution channel, the market is segmented into multi-brand stores, exclusive stores, and online stores. By geography, the market is segmented into North America, Latin America, Europe, Asia-Pacific, and Middle East and Africa, where price trend within each segment was analyzed to help businesses to adapt to changing market conditions. The market size and forecasts for the air conditioner market in value (USD) for all the above segments, including analysis of the target market, are offered in the report PDF
By Type | |
Window AC | |
Split and Multi-Split AC | |
Packaged AC | |
Variable Refrigerant Flow (VRF) | |
Central AC | |
Others |
By Technology | |
Inverter | |
Non-Inverter |
By End-User | |
Residential | |
Commercial |
By Distribution Channel | |
Multi-Brand stores | |
Exclusive Stores | |
Online Stores |
By Geography | |||||||||
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Global Air Conditioner Market Size Summary
The global air conditioner market is poised for substantial growth, driven by increasing global temperatures and the evolving perception of air conditioning as a necessary utility rather than a luxury. The market is expected to expand significantly over the forecast period, supported by advancements in technology such as air purification systems and inverter models. The COVID-19 pandemic disrupted supply chains, particularly affecting manufacturers in China, which plays a crucial role in the market. This disruption highlighted the imbalance between supply and demand, but the market is recovering as demand for smart air conditioners rises, fueled by the integration of smart devices that enhance traditional systems. The demand for room air conditioners is also on the rise, driven by improvements in housing standards and the growing need for comfort solutions in urbanized areas.
The Asia-Pacific region emerges as a major market due to rapid urbanization, rising temperatures, and increasing disposable incomes. Countries like China, India, and Japan are experiencing heightened demand for air conditioning systems across residential, commercial, and educational sectors. Technological advancements, such as inverter technology and energy-efficient designs, are further propelling market growth, with companies like Daikin, Mitsubishi Electric, and Panasonic leading the way. Government initiatives in the region, including energy efficiency standards and labeling programs, are encouraging the adoption of energy-efficient models. The competitive landscape is marked by both multinational corporations and regional players, all striving to differentiate their offerings through innovation and strategic pricing.
Global Air Conditioner Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Temperatures and Climate Change
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1.2.2 Technological Innovations such as Inverter Technology, Smart and Connected Features
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1.3 Market Restraints
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1.3.1 High Energy Consumption
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1.3.2 High Initial and Maintenance Costs
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1.4 Market Opportunities
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1.4.1 Demand for Energy-Efficient Air Conditioning Systems
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1.4.2 Integration of Air Conditioning Systems with loT
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1.5 Value Chain Analysis
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1.6 Industry Attractiveness: Porter's Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Insights into Technological Advancements in the Industry
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Window AC
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2.1.2 Split and Multi-Split AC
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2.1.3 Packaged AC
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2.1.4 Variable Refrigerant Flow (VRF)
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2.1.5 Central AC
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2.1.6 Others
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2.2 By Technology
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2.2.1 Inverter
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2.2.2 Non-Inverter
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2.3 By End-User
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2.3.1 Residential
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2.3.2 Commercial
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2.4 By Distribution Channel
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2.4.1 Multi-Brand stores
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2.4.2 Exclusive Stores
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2.4.3 Online Stores
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2.5 By Geography
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2.5.1 North America
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2.5.1.1 United States
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2.5.1.2 Canada
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2.5.1.3 Mexico
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2.5.1.4 Rest of North America
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2.5.2 Europe
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2.5.2.1 United Kingdom
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2.5.2.2 Germany
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2.5.2.3 France
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2.5.2.4 Russia
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2.5.2.5 Italy
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2.5.2.6 Spain
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2.5.2.7 Rest of Europe
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2.5.3 Asia-Pacific
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2.5.3.1 India
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2.5.3.2 China
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2.5.3.3 Japan
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2.5.3.4 Australia
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2.5.3.5 Rest of Asia-Pacific
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2.5.4 South America
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2.5.4.1 Brazil
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2.5.4.2 Argentina
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2.5.4.3 Rest of South America
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2.5.5 Middle-East and Africa
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2.5.5.1 United Arab Emirates
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2.5.5.2 South Africa
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2.5.5.3 Rest of Middle-East and Africa
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Global Air Conditioner Market Size FAQs
How big is the Global Air Conditioner Market?
The Global Air Conditioner Market size is expected to reach USD 201.78 billion in 2024 and grow at a CAGR of 5.15% to reach USD 259.49 billion by 2029.
What is the current Global Air Conditioner Market size?
In 2024, the Global Air Conditioner Market size is expected to reach USD 201.78 billion.