The Global Air Conditioning System Market Is Estimated At USD 123 Billion In 2023 And Is Forecast To Surpass USD 198 Billion By 2031, Growing At A CAGR Of 4.8% During 2023-2031.

Air Conditioning System Market Overview:

Because people spent less money, the spread of the COVID-19 pandemic hurt the demand for air conditioners in 2021. But the market is expected to come back in 2022 and grow steadily, thanks to changes in the weather and a growing need for commercial construction. Also, people are becoming more interested in convenience and comfort, which is expected to keep the demand for air conditioners high over the next few years.

Air conditioning systems can be found everywhere, from homes to shopping malls to office buildings to entertainment centers. In developing countries, AC is still a popular product. However, it's still hard to find affordable products that are good for the environment. Air conditioning systems have changed the indoor environment in a big way, especially in hot and dry places. They are now an important part of the infrastructure that makes modern spaces work. Also, as economic growth in emerging markets keeps going up, people are likely to buy more air conditioning in the next few years.

The market is also likely to be driven by things like the construction and tourism industries, which are both expected to grow. People's rising disposable incomes around the world are also expected to make them more likely to buy a variety of air conditioning systems over the next few years. The market for air conditioning systems is also expected to grow because consumers are becoming more interested in systems that use less energy and portable systems are becoming more popular.

Market Dynamics:

Drivers:

During the next few years, the global market for air conditioning systems is likely to grow because people want to use less energy. More people want air conditioning systems because they are becoming more aware of how to save energy. Energy efficiency has become a big deal both in industry and at home, especially in places like North America and Europe that are already developed. Air conditioners use a lot of electricity, so people are looking for energy-efficient models that use less electricity and lower the electricity bill. Because of this, manufacturers have to come up with efficient systems to keep the growth going. Also, people in Europe and North America are getting rid of their old air conditioning systems and replacing them with ones that use less energy and help them save money on their electric bills.

Over the next few years, the global market for air conditioning systems is expected to grow because people in emerging economies will have more money to spend. In fast-growing economies like India and China, people have more money to spend. 

Opportunities:

The demand for air conditioning systems is likely to grow in places like the Asia-Pacific region and Rest of the World (RoW). As consumer awareness grows, these areas will have a bigger market share in the future. As living conditions get better in these untapped markets, there will be more demand for air conditioning systems. Air conditioning systems that use inverters or solar power will be in high demand in Asia, the Pacific, and the Rest of the World (RoW). This is because these models will become more popular because they save energy and are better for the environment.

Companies are focusing on energy-efficient solutions that help reduce CFC and HCFC emissions and make air conditioning systems more energy efficient. Natural refrigerants like CO2 and ammonia are becoming more popular because they don't damage the ozone layer or cause global warming (GWP). New, more advanced ACs are coming out with communication technology that lets you control the AC from afar using the internet or your phone. Solar-powered and inverter-based air conditioners are popular in Japan and are likely to spread quickly to the rest of the world.

Trends:

Across the region, strict energy efficiency standards and the use of natural ingredients are likely to increase the demand for technologically advanced air conditioning system models. Many people want to replace their air conditioning systems with ones that are better for the environment. Also, other products with better compressors, smarter cooling, heat pumps, and remote access are likely to become more popular in Europe.

More people in this area will want air conditioning systems as they learn about how to buy products that use less energy and are better for the environment. But the fact that summers are getting hotter and we don't know what the weather will be like in the future is one of the main things that is driving the growth of air conditioning systems in the Asia-Pacific region. In the last five years, the demand for split air conditioners has gone up because more people want Japanese ducted systems and VRF.

Restraints:

Over the next few years, the growth of the global air conditioning systems market is likely to be slowed by a drop in profit margins. Chinese companies sell their goods all over the world at prices that are very low and competitive compared to those of other companies. Large Chinese manufacturers are teaming up with importers from countries, mostly in Europe and North America. Chinese companies like Gree, Midea, and Haier sell their goods abroad at low prices, which slows the growth of the market. Because of this, profit margins have shrunk and R&D investments have been hurt in a big way.

During the forecast period, the growth of the global market for air conditioning systems is expected to be slowed by rising energy use and negative effects on the environment. Energy use is a very important issue for both manufacturers and customers. Around one trillion kilowatt-hours of electricity are used each year in the commercial, residential, and industrial sectors. Also, most air conditioners use HCFC-22 and HFC as refrigerants, which are two of the main things that are destroying the ozone layer.

Segmentation Analysis:

By Type Analysis:

In 2021, unitary air conditioners brought in the most money, 39.3%, and they are also expected to grow the most over the next few years. Most people use unitary air conditioners in their homes. So, it's likely that the demand for unitary air conditioning systems will stay high because the residential market is growing. Also, a unitary AC is easy to pair with warm furnaces in the same ductwork in both commercial and residential buildings. This is expected to help the growth of the segment.

In the type segment, there are also Packaged Terminal Air Conditioners (PTAC) and rooftop air conditioners. From 2021 to 2028, the PTAC segment is expected to grow at a healthy rate of 5.1% per year. The growth of package terminal air conditioners is due to the fact that more and more hotels and homes are using them. PTACs are also becoming more popular because of technological advances like the use of inverter technology, systems that use less energy, and wireless connectivity.

By Technology Analysis:

From 2021 to 2028, the market for inverters is expected to grow at a CAGR of 7.7%. This growth is due to the fact that inverter AC can control the speed of the compressor motor, which helps keep the temperature steady. With the help of a variable speed compressor, it also helps save energy and power. Inverter technology is also expected to gain popularity because it doesn't change the temperature, lasts longer, cools faster, and makes less noise than non-inverter air conditioners.

Compared to the other segment, the non-inverter segment is expected to grow at a slower rate. This is because of things like how much energy they use, how their frequencies change, and how long they last. But the low price of these air conditioning systems could help this market segment gain more market share.

By End-use Analysis:

Over the next five years, the commercial segment is expected to grow at a CAGR of 5%. This is because cities are growing quickly and the demand for commercial space is going up. Commercial air conditioners take up a lot of space and are usually on the roofs of buildings like shopping malls, hotels, big restaurants, movie theatres, and commercial offices. This is where they use the least amount of energy. Because of this, retrofitting and replacing these units to use less energy is likely to increase the use of AC in the commercial sector.

With a CAGR of 8.5% over the next seven years, the residential segment will continue to be the most important market segment for many vendors. In recent years, the temperature has gone up in many places because of climate change. Air conditioning is becoming more of a necessity than a luxury as temperatures rise. So, people all over the world are putting air conditioners in their homes. This trend is expected to continue as the earth's temperature continues to rise. Because the weather is changing, residential air conditioners are expected to grow at a healthy rate over the next few years.

Regional Insights:

In 2020, North America made up more than 20% of the total revenue share of the market. Most of the growth in the North American market and other developed markets around the world is expected to come from replacement sales. The growth of the regional market is also expected to be fueled by the government's efforts to get more people to use energy-efficient air conditioning systems so that they use less energy. Even though the COVID-19 pandemic caused the market as a whole to fall, North America and Europe grew at the same rate as the rest of the world in 2020 and were not as badly affected as the rest of the world. This is because both regions will have a lot of demand in the last three months of 2020.

The COVID-9 pandemic caused the most damage in the Middle East and Africa, where demand for air conditioning systems dropped by more than 10% in 2020. The drop in sales was caused by restrictions on travel put in place by several countries, which hurt the economies of Middle Eastern countries. Major global events like the Qatar FIFA World Cup 2022, which will be held in the region, should help the area get back on its feet soon. The Asia-Pacific region also saw a big drop in demand for air conditioners as economies got worse, businesses shut down, and imports and exports from China were affected by restrictions on travel and transportation.

Scope Analysis

Recent Development:

• In June 2020, Daikin Air Conditioning India Pvt. Ltd., a subsidiary of Daikin Industries Ltd., introduced the split AC GTL28 3.
• In September 2020, Sharp Corporation launched a new AC with Plasma Culster Ion (PCI) technology to inactivate the coronavirus.

Market Segmentation

By Type:

• Unitary
• Rooftop
• PTAC
• Others

By Technology:

• Inverter
• Non-Inverter
• Others

By End-use:

• Residential
• Commercial
• Industrial
• Others

By Companies:

• DAIKIN INDUSTRIES Ltd.
• Johnson Controls International Plc
• Carrier Global Corp.
• Trane Technologies Plc
• Melrose Industries Plc
• Watsco, Inc.
• Alfa Laval AB
• Lennox International, Inc.
• Generac Holdings, Inc.
• NIBE Industrier AB
• Rinnai Corp.
• Takasago Thermal Engineering Co., Ltd.
• Fujitsu General Ltd.
• Ariston Holding NV
• Beijer Ref AB
• Infore Environment Technology Group Co., Ltd.
• Taikisha Ltd.
• Noritz Corp.
• Zhejiang Dunan Artificial Environment Co., Ltd.
• Uponor Oyj
• Arbonia AG
• SPX Technologies, Inc.
• Lindab International AB
• Voltas Ltd.
• Systemair AB
• Purmo Group Plc
• Totech Corp.
• Moon Environment Technology Co., Ltd.
• Zehnder Group AG
• Sanyo Denki Co., Ltd.
• Blue Star Ltd.
• FUKUSHIMA GALILEI CO., LTD.
• Munters AB
• Runner (Xiamen) Corp.
• Shuangliang Eco-Energy Systems Co., Ltd.
• LU-VE SpA
• Amber Enterprises India Ltd.
• AAON, Inc.
• National Central Cooling Co. PJSC
• Carel Industries SpALANXEO
• Shin-Etsu Chemical Co., Ltd.
• Xinjiang Zhongtai Chemical Co., Ltd
• Lanxess AG
• Kaneka Corp.
• Trinseo Plc
• Avient Corp.
• Daicel Corp.
• Elkem ASA
• Synthomer Plc
• Inner
• Others