The Global Air Conditioning Systems Market size is expected to reach $154 billion by 2027, rising at a market growth of 6.2% CAGR during the forecast period.
Air conditioning is a method which enables heating, cooling, and ventilation of the indoor atmosphere. However, the air conditioning systems are majorly related to the cooling process of the indoor environment. The major functions of air conditioning systems are humidity control and air cleaning. In addition, air-conditioning involves distributing and conditioning air to the required space. Further, air conditioners (ACs) help in monitoring and controlling humidity, temperature, and air movement in a certain area. The growth of the air conditioning systems market is attributed to the factors like growing urbanization, better economic conditions in emerging nations, and increasing per capita income.
The Unitary market dominated the Global Air Conditioning Systems Market by Type 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $64,801.6 million by 2027. The PTAC market is expected to witness a CAGR of 6.8% during (2021 - 2027).
The Residential market dominated the Global Air Conditioning Systems Market by End Use 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $55,177.5 million by 2027. The Commercial market is expected to witness a CAGR of 6.4% during (2021 - 2027).
Moreover, the growth of the air conditioning systems market would be driven due to the fluctuation in the global temperatures, pollution, smog, and vehicle fumes. Such conditions are prevalent in many countries across the globe, which would fuel the demand for air conditioning systems in the coming years.
The outbreak of the COVID-19 pandemic has disrupted the global demand and supply chain. The imposition of complete or partial lockdown across various developing nations in the world, especially China has negatively impacted the growth of various consumer electronics. It is due to the fact that China is among the biggest consumers and producers of air conditioner systems, and it also exports a broad range of ACs to numerous nations.
Further, the reduced consumer spending on various luxurious products due to the pandemic would also hamper the growth of the air conditioning systems market. Although, it is estimated that the market would get back to normal in the coming years, which would contribute to the stable growth of the market due to the changing climate conditions and growing commercial construction activities. In addition, the shifting inclination of the consumers toward comfort and convenience is anticipated to surge the demand for the air conditioners systems market during the forecast period.
The constantly changing environmental conditions due to various human activities like pollutions is one of the major reasons contributing to the rising demand for air conditioning systems. It is because of the greenhouse effects that increase the overall temperature of the earth and thus, people demand ACs to cope up with the rising temperature.
The increasing air pollution due to the emission of harmful gases from manufacturing units, factories, and vehicles has increased the temperature of the earth, and hence, several regions face extreme weather conditions. Such changes in the climatic conditions would accelerate the growth of the air conditioning systems market over the forecast period.
Several market players are increasingly investing in upgrading the technologies of their products to fulfill the emerging needs of the customers. The increasing prices of electricity in various nations are motivating consumers to opt for appliances that reduce their electricity bills and save energy.
On the other hand, the reducing level of fuel and energy is encouraging consumers to go with energy-efficient and energy-saving appliances, which would augment the demand for air conditioning systems across the world.
The prices of air conditioning systems are quite high than other electronic items, which restrict many consumers to opt for these AC systems, thereby hindering the growth of the air conditioning systems market.
Moreover, the high technical support and advanced technologies used in the manufacturing of these appliances would lead to the high cost of AC systems, which may impede market growth. Along with that, factor like fluctuating prices of AC systems is also estimated to hamper the growth of the air conditioning systems market during the forecast period.
On the basis of type, the air conditioning systems market is classified into Unitary, Rooftop, and PTAC. Among these, the Unitary AC segment garnered the highest revenue share in the market in 2020 and is estimated to exhibit the highest growth rate during the forecast period. These unitary air conditioners are majorly utilized in households.
Based on technology, the air conditioning systems market is bifurcated into inverter and non-inverter. Among these, the inverter segment is estimated to showcase a promising growth rate during the forecast period. It is due to the fact that inverter AC can manage the speed of the compressor motor that assists in constant regulation of temperature. Further, it also aids in saving power and energy by using a variable speed compressor.
Based on end-use, the air conditioning systems market is fragmented into residential, commercial, and industrial. The commercial segment is estimated to showcase a substantial growth rate during the forecast period. Factors like swift urbanization and the growing demand for commercial space are responsible for the growth of this segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 105.4 Billion |
| Market size forecast in 2027 | USD 154 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 6.2% from 2021 to 2027 |
| Number of Pages | 217 |
| Number of Tables | 344 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Technology, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
|
| Restraints |
|
Region-wise, the air conditioning systems market is analyzed across North America, Europe, Asia Pacific, and LAMEA. North America emerged as one of the leading regions in the air conditioning systems market in 2020. This growth is attributed to the increasing promotional initiatives by the governments to boost the adoption of energy-efficient air conditioning systems for minimizing the consumption of energy and the increasing replacement sales across this region.
Free Valuable Insights: Global Air Conditioning Systems Market size to reach USD 154 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Hitachi, Ltd. is the major forerunners in the Air Conditioning Systems Market. Companies such as Whirlpool Corporation, Mitsubishi Electric Corporation, Trane Technologies PLC are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Carrier Global Corporation, Hitachi, Ltd., Haier Smart Home Co., Ltd. (Haier Group Corporation), Whirlpool Corporation, Mitsubishi Electric Corporation, Trane Technologies PLC, Daikin Industries, Ltd., BSH Hausgeräte GmbH (Robert Bosch Group), Alfa Laval AB, and Electrolux AB.
By Type
By Technology
By End User
By Geography
The global air conditioning systems market size is expected to reach $154 billion by 2027.
Changing climatic conditions are driving the market in coming years, however, high cost of the AC systems limited the growth of the market.
Carrier Global Corporation, Hitachi, Ltd., Haier Smart Home Co., Ltd. (Haier Group Corporation), Whirlpool Corporation, Mitsubishi Electric Corporation, Trane Technologies PLC, Daikin Industries, Ltd., BSH Hausgeräte GmbH (Robert Bosch Group), Alfa Laval AB, and Electrolux AB.
The expected CAGR of the air conditioning systems market is 6.2% from 2021 to 2027.
The Unitary market dominated the Global Air Conditioning Systems Market by Type 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $64,801.6 million by 2027. The PTAC market is expected to witness a CAGR of 6.8% during (2021 - 2027).
Unique Offerings Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
