Air Conditioning System Market Size - By Type of Air Conditioning Systems, By End-Use, By Cooling Capacity (Low Capacity (Less than 12,000 BTU), Medium Capacity (12,000 - 24,000 BTU), High Capacity (24,000 - 60,000 BTU), Ultra-High Capacity (Over 60,000 BTU)), By Distribution Channel, Global Forecast 2023 – 2032

Air Conditioning System Market Size - By Type of Air Conditioning Systems, By End-Use, By Cooling Capacity (Low Capacity (Less than 12,000 BTU), Medium Capacity (12,000 - 24,000 BTU), High Capacity (24,000 - 60,000 BTU), Ultra-High Capacity (Over 60,000 BTU)), By Distribution Channel, Global Forecast 2023 – 2032

Air Conditioning System Market Size

Air Conditioning System Market size was valued at USD 123 billion in 2022 and is anticipated to register a CAGR of over 6% between 2023 and 2032. Increasing temperatures due to climate change are leading to a greater demand for cooling solutions, especially in regions that historically had milder climates. This drives the adoption of air conditioning systems for both residential and commercial use.

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The progression of green building practices, which prioritize energy efficiency and sustainability, is driving the demand for HVAC systems designed to meet stringent environmental standards. Rapid urbanization and the construction of new commercial and residential buildings in emerging economies are increasing the demand for HVAC systems, particularly in densely populated urban areas. Further, the need for climate control in various industries, such as data centers, manufacturing facilities, and healthcare.
 

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The need for climate control in various industries, such as data centers, manufacturing facilities, and healthcare, is driving the demand for advanced air conditioning solutions. The emphasis on indoor air quality is driving the adoption of air conditioning systems with advanced air filtration and purification technologies, such as HEPA filters and UV-C germicidal lamps thus it will enhance business demand.

COVID-19 Impact

The pandemic disrupted global supply chains, leading to delays in the production and distribution of air conditioning systems. Lockdowns, factory closures, and transportation restrictions affected the availability of components and equipment. Construction projects, including new residential and commercial buildings, were delayed or put on hold due to the economic uncertainty caused by the pandemic. This affected the demand for new HVAC installations. The pandemic raised awareness of the importance of indoor air quality. Many consumers began seeking air conditioning systems with advanced air filtration and purification technologies to improve indoor air quality and reduce the risk of virus transmission.

Air Conditioning System Market Trends

Energy efficiency remains a central trend in the industry. Consumers and businesses are increasingly demanding systems that reduce energy consumption and operational costs. Inverter technology, variable refrigerant flow (VRF) systems, and the use of low-global warming potential (GWP) refrigerants contribute to improved efficiency. Multi-zone air conditioning systems, including ductless mini-splits and VRF technology, are gaining popularity. They allow for more precise zoning, reducing energy waste and improving comfort in various areas of a building.

Air Conditioning System Market Analysis

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Based on type of air conditioning systems, the market is divided into central air conditioning systems, split air conditioning systems, window unit air conditioning system, and ductless mini-split systems. The central air conditioning systems segment held around 56% market share in 2022. Consumers are increasingly concerned about indoor air quality (IAQ). Central air conditioning systems are incorporating advanced air filtration and purification technologies, such as HEPA filters and UV-C germicidal lamps, to improve IAQ.

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Based on end-use, the air conditioning system market is categorized into residential air conditioning, commercial air conditioning, and industrial air conditioning. The commercial air conditioning segment held around 56% market share in 2022. Commercial air conditioning systems are increasingly integrated into building automation and management systems. This allows for centralized control, monitoring, and optimization of HVAC systems for improved energy efficiency. The adoption of smart HVAC controls is growing in the commercial sector. These controls allow for remote monitoring and control of HVAC systems, enabling energy savings and predictive maintenance.

Based on cooling capacity, the air conditioning system market is categorized into Low Capacity (Less than 12,000 BTU), Medium Capacity (12,000 - 24,000 BTU), High Capacity (24,000 - 60,000 BTU), and Ultra-High Capacity (Over 60,000 BTU). Inverter-driven medium-capacity systems have gained popularity due to their energy-efficient operation. These systems can adjust the compressor speed based on cooling demands, providing precise temperature control and reducing energy consumption. The construction and expansion of residential complexes in urban and suburban areas have driven the demand for medium-capacity air conditioning systems in homes and small commercial spaces.

Based on distribution channel, the air conditioning system market is categorized into direct sales and indirect sales. The rise of e-commerce and online marketplaces has transformed indirect sales in the industry. Many customers now research, compare, and purchase air conditioning systems online through third-party vendors. This trend has been accelerated by the COVID-19 pandemic and the preference for online shopping. Indirect sales channels are adopting an omnichannel approach, which integrates both online and offline sales channels. This allows customers to seamlessly transition between various touchpoints, such as online research and in-store purchasing.

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North America dominated the Air Conditioning System market in 2022, accounting for a major share of around 26%. North America, especially the United States, has stringent energy efficiency regulations, which are driving the adoption of energy-efficient air conditioning systems. These regulations often include minimum Seasonal Energy Efficiency Ratio (SEER) requirements. The integration of smart home and building automation systems is increasing. Consumers appreciate the ability to control their air conditioning systems remotely through smartphones and other devices, improving energy efficiency and convenience.

Air Conditioning System Market Share

Major players operating in the Air Conditioning System industry include

• Daikin Industries, Ltd.
• Mitsubishi Electric Corporation
• Carrier Corporation
• Johnson Controls
• LG Electronics

Daikin Industries, Ltd. and Mitsubishi Electric Corporation are dominant players in the industry due to their vast product landscape, geographical presence, and strategic alliances. These players focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.

Air Conditioning System Industry News

• In 2022, Carrier Global Corporation acquired Toshiba Carrier Corporation. This acquisition will give Carrier Global Corporation a stronger presence in the Japanese and Asian markets.

The Air Conditioning System market research report includes in-depth coverage of the industry, with estimates & forecast in terms of volume (Million Units) & revenue (USD Billion) from 2018 to 2032, for the following segments

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By Type of Air Conditioning Systems, 2018 – 2032

• Central Air Conditioning Systems
• Split Air Conditioning Systems
• Window Unit Air Conditioning System
• Ductless Mini-Split Systems

By End-Use, 2018 – 2032

• Residential Air Conditioning
• Commercial Air Conditioning
• Industrial Air Conditioning

By Cooling Capacity, 2018 – 2032

• Low Capacity (Less than 12,000 BTU)
• Medium Capacity (12,000 - 24,000 BTU)
• High Capacity (24,000 - 60,000 BTU)
• Ultra-High Capacity (Over 60,000 BTU)

By Distribution Channel, 2018 – 2032

• Direct Sales
• Indirect Sales

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia