The Air Conditioner Market Report is Segmented by Product Type (Window AC, Split AC, Portable AC, and More), End User (Residential, Commercial, and More), Technology (Inverter, Non-Inverter), Capacity (Up To 2 Tons, Above 2 Tons), Distribution Channel (Multi-Brand & EBOs, Hypermarkets & Supermarkets, and More), and Geography (North America, South America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

Global air conditioning market size was USD 198.75 billion in 2023 and is expected to increase to USD 315.00 billion by 2032, growing at a CAGR of 5.25% between 2024 and 2032.

The Window Air Conditioner Market is estimated to be valued at USD 37.5 billion in 2025 and is projected to reach USD 63.6 billion by 2035, registering a compound annual growth rate (CAGR) of 5.4% over the forecast period.

The global air conditioners market size reached a value of nearly USD 149.51 Billion in 2024. During the forecast period of 2025-2034, the market is likely to expand at a CAGR of 6.80%, reaching a value of USD 288.66 Billion by 2034.

The Portable Air Conditioners Market report segments the industry into By Product Type (Single-Hose Portable Air Conditioners, Double-Hose Portable Air Conditioners, Other Types), By Application (Residential, Commercial), By Distribution Channel (Direct Sales, Multi-brand, Specialty Stores, Online), and By Geography (North America, Asia-Pacific, Europe, South America, Middle East and Africa, Rest of the World).

Air conditioner market size and share are projected to reach USD 245.12 billion, growing at a CAGR of 6.10% during the forecast period

Climate change has had an unrelenting effect on India. In 2019, in the northern regions of the country, temperatures passed the 50 degrees Celsius mark. Temperatures in the Indian summer over the last decade or so have repeatedly broken heat records, and there is no sign of respite from heat waves in the foreseeable future, making air conditioning an increasingly important fixture in Indian homes. Increasing demands and market leaders Increasing demand for home appliances, along with a fairly low penetration rate, has left the Indian air conditioner market with plenty of room to grow and reached ** million units in financial year 2024. The leading manufacturer of air conditioners in India was Voltas. Since October 2020, the Indian government has banned imports of ready-to-install air conditioners, providing a boost to manufactures in India. Energy consumption in India India was expected to become the world’s third-largest energy consumer by 2030, overtaking the European Union, contributed by rising incomes and improving standards of living. However, with increasing public and private investments in the renewable energy sector, the capacity of renewable energy has been on the rise. The capacity of solar energy approaching *** thousand megawatts in 2024. As of 2024, India ranked ****** in installed renewable energy capacity worldwide.

According to Cognitive Market Research, the global Air Conditioner Market size was USD 165142.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 66057.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 49542.78 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 37982.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 8257.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 3302.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The Residential category is the fastest growing segment of the Air Conditioner industry

Market Dynamics of Air Conditioner Market

Key Drivers for Air Conditioner Market

Programs for tax credits and rebates are expected to increase sales.

Sales of air conditioning systems are anticipated to be significantly impacted by the availability of tax credit and rebate schemes as well as other financial incentives. These programs offer financial benefits to both individuals and businesses who choose to invest in energy-efficient air conditioning equipment. Tax credits and rebates are a significant factor in promoting the purchase of air conditioning systems. By providing consumers with financial aid, these incentives make the upfront costs of buying energy-efficient air conditioners more manageable. By covering a portion of the costs incurred during the installation or acquisition of energy-efficient technologies, tax credits and rebates assist in reducing the total amount of investment needed. This increases industry sales by making energy-efficient AC systems more desirable to consumers and businesses. As manufacturers strive to meet and exceed government-mandated energy efficiency standards, tax credit and rebate schemes have an impact that extends beyond the initial boost in sales.

Combining loT with air conditioning systems to Drive Market Growth

The air conditioning industry has seen a significant transformation due to the integration of air conditioning systems with the Internet of Things (IoT), particularly in home and commercial applications. The benefits of IoT-enabled air conditioning systems include improved service delivery, reduced downtime, reduced energy costs, enhanced operational efficiency, extended product lifespan, and simple remote control. The ability to offer an appropriate degree of service, which considerably reduces the possibility of system outages, is one of the main advantages of IoT-enabled AC systems. These systems can monitor parameters like temperature, humidity, and system performance in real time because they include sensors and are connected to the internet. The system can use this information to automatically adjust how it operates to maintain optimal conditions, ensuring a comfortable interior environment at all times.

Restraint Factor for the Air Conditioner Market

Electric energy prices are skyrocketing, which restricts market expansion

Since the growing cost of electricity directly impacts the operating costs associated with these systems, it presents a significant barrier to the expansion of the air conditioning business. With rising electricity costs, concerns about the feasibility and cost-effectiveness of air conditioning systems for both residential and business customers are growing. A reluctance to upgrade or invest in air conditioning systems may result from rising energy costs. Consumers' operating expenses are where the air conditioning industry is most affected by rising energy prices.

Impact of Covid-19 on the Air Conditioner Market

The market for air conditioners was greatly impacted by the COVID-19 outbreak, both positively and negatively. Due to supply chain interruptions, manufacturing closures, and economic uncertainties, global demand declined throughout the first phase. A lot...

The global window air conditioner market is poised for steady expansion, projected to grow from approximately $5.7 billion in 2021 to over $9.6 billion by 2033, driven by a consistent CAGR of 4.448%. This growth is primarily fueled by rising global temperatures, increasing urbanization, and a growing middle-class population in developing economies. North America and Africa currently dominate the market landscape, holding significant revenue shares. The increasing demand for affordable and easy-to-install cooling solutions supports the market's trajectory. Key trends shaping the industry include the integration of smart technologies for remote control and energy management, alongside a growing consumer preference for energy-efficient and eco-friendly models. Manufacturers are focusing on innovation to meet stringent energy regulations and cater to evolving consumer demands.

Key strategic insights from our comprehensive analysis reveal:

North America and Africa collectively represent the largest share of the global market, accounting for over 54% of the market revenue in 2025, underscoring their critical importance for manufacturers.
Emerging economies present significant growth opportunities, with countries like Mexico exhibiting a robust CAGR of 6.247%, well above the global average, driven by rapid urbanization and rising disposable incomes.
The push for energy efficiency and smart connectivity is a dominant trend. Future market leaders will be those who successfully innovate and integrate eco-friendly refrigerants, inverter technology, and IoT features into their product lines to meet both regulatory standards and consumer expectations.

Global Market Overview & Dynamics of Window Air Conditioner Market Analysis

The global window air conditioner market demonstrates resilient growth, valued at $5701.82 million in 2021 and is expected to reach $9612.03 million by 2033. This reflects a steady compound annual growth rate (CAGR) of 4.448%. The market's expansion is underpinned by the essential need for cooling in residential and small commercial spaces, especially in regions experiencing rising temperatures. While mature markets focus on replacement and energy-efficient upgrades, emerging markets are driven by first-time buyers seeking cost-effective cooling solutions. The inherent advantages of window ACs, such as lower initial cost and simple installation compared to split systems, continue to ensure their relevance and demand.

Global Window Air Conditioner Market Drivers

Rising Global Temperatures and Frequent Heatwaves: Climate change is leading to hotter summers and more frequent, intense heatwaves worldwide, making air conditioning a necessity rather than a luxury and directly driving sales.
Growth in Residential Construction and Urbanization: The expanding urban population, particularly in developing nations, coupled with a surge in residential construction, creates a sustained demand for affordable and easy-to-install cooling solutions like window air conditioners.
Increasing Disposable Income in Emerging Economies: As household incomes rise in developing regions across Asia-Pacific, South America, and Africa, more consumers can afford to purchase their first air conditioning unit, with window models often being the entry-level choice.

Global Window Air Conditioner Market Trends

Integration of Smart Technology and IoT: Modern window AC units are increasingly equipped with Wi-Fi connectivity, allowing for remote control via smartphone apps, voice commands, and integration into smart home ecosystems, enhancing user convenience and energy management.
Demand for Higher Energy Efficiency: Growing environmental awareness and a desire to reduce electricity bills are pushing consumers towards models with higher Energy Efficiency Ratios (EER) and Seasonal Energy Efficiency Ratios (SEER), featuring inverter technology and eco-friendly refrigerants.
Focus on Compact and Aesthetically Pleasing Designs: Manufacturers are moving away from bulky, traditional designs towards more compact, sleek, and modern aesthetics that blend better with interior decor, appealing to a wider range of consumers.

Global Window Air Conditioner Market Restraints

Competition from Split and Portable Air Conditioners: Ductless mini-split systems offer quieter operation, better aesthetics, and higher efficiency, while portable ACs provide flexibility, posing significant competition...

GCC Air Conditioner Market was valued at around USD 3.9 billion in 2023 and is estimated to grow at a CAGR of around 5.0% from 2024-2030.

The portable air conditioner market is set to witness substantial growth between 2025 and 2035, driven by increasing urbanization, rising global temperatures, and demand for energy-efficient cooling solutions. The industry is projected to grow from USD 3.3 billion in 2025 to USD 4.5 billion by 2035, reflecting a CAGR of 3.8% over the forecast period.

Country-wise Analysis

Competition Outlook

Air Conditioners Market Size, Share, Forecast, & Trends by Type (Window ACs, Split ACs, VRF, Centralized/Ducted ACs, Portable ACs), Tonnage, Technology (Inverter & Non-Inverter), Rating, End User (Residential, Commercial, Industrial), and Geography - Global Forecast to 2032

The United States Air Conditioning Equipment Market is segmented by type ( Single Splits/Multi-Splits, Variable Refrigerant Flow, Air Handling Units, Chillers, Fan Coils, Indoor Packaged and Roof Tops), by Distribution Channel (Multi brand Stores, Exclusive stores and Online), by End user ( Residential, Commercial, Industrial).

Saudi Arabia Air Conditioner Market size was valued at around USD 3.21 billion in 2024 and is expected to reach USD 4.87 billion in 2030, growing at 7.20% CAGR (2025-30).

Explore key insights into the US Air Conditioners Market. Get detailed analysis on growth drivers, emerging trends, and a market forecast to 2032. Ideal for industry leaders, investors, and researchers.

The Split Air Conditioner Systems Market Report is Segmented by Equipment Type (Mini-Split, Multi-Split, and More), Application (Residential, and Commercial), Cooling Capacity (Up To 12, 000 BTU, 12, 001-24, 000 BTU, 24, 001-36, 000 BTU, and More), Technology (Inverter, and Non-Inverter), Distribution Channel (Direct HVAC Contractors, Multi-Brand Retail, and More), and Geography. Market Forecasts are Provided in Terms of Value (USD).

Air Conditioning Market size was valued at USD 283.41 Billion in 2024 and is projected to reach USD 463.64 Billion by 2032, growing at a CAGR of 7% from 2026 to 2032.Key Market DriversIncreasing Global Temperatures due to Climate Change: Climate change is causing rising temperatures worldwide, increasing demand for air conditioning systems. As heatwaves become more intense, traditional systems are becoming less eco-friendly. Sustainable alternatives like solar-powered air conditioners, evaporative coolers, and smart thermostats are emerging as eco-friendly alternatives, addressing both rising temperatures and environmental conservation.Consumer Preferences and Lifestyle Changes: Modern society's fast-paced lifestyle is shifting focus of consumers towards advanced air conditioning solutions. Manufacturers are developing systems that integrate smart home technology, remote control, and customizable settings. IoT-enabled devices are popular among tech-savvy consumers.

United States Portable Air Conditioners Market was valued at USD 1.97 billion in 2024 and is anticipated to grow USD 2.49 billion by 2030 with a CAGR of 4.03%

Saudi Arabia's Portable Air Conditioner Market is segmented by type (single-hose portable air conditioners, double-hose portable air conditioners, and other types), by end-user (residential and commercial), and by distribution channel (direct sales, multi-brand, specialty stores, and online). The report offers market size and forecasts for Saudi Arabia's portable air conditioner market in value (USD) for all the above segments.

Snapshot img

Air Conditioning (AC) Market Size 2025-2029

The air conditioning (AC) market size is valued to increase by USD 14.12 billion, at a CAGR of 2% from 2024 to 2029. Rise in residential construction activity will drive the air conditioning (AC) market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 52% growth during the forecast period.
By Product - Split segment was valued at USD 98.98 billion in 2023
By Distribution Channel - Offline segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 17.29 billion
Market Future Opportunities: USD 14119.20 billion
CAGR from 2024 to 2029 : 2%

Market Summary

The market is experiencing significant growth, driven by the rising residential construction activity and increasing demand for energy-efficient cooling solutions. One of the key trends shaping the market is the shift towards the use of R32 refrigerant in split AC systems. This refrigerant, which has a lower global warming potential than the previously used R22, is becoming increasingly popular due to its environmental benefits.
However, the market is not without challenges. Operating costs and raw material prices remain volatile, posing significant risks for businesses in the sector. For instance, a leading HVAC manufacturer in the US has implemented supply chain optimization strategies to mitigate the impact of raw material price fluctuations on its bottom line. By closely monitoring market trends, investing in research and development, and adopting sustainable business practices, companies in the AC market can navigate these challenges and continue to deliver innovative cooling solutions to their customers.

What will be the Size of the Air Conditioning (AC) Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Air Conditioning (AC) Market Segmented ?

The air conditioning (AC) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Split
  Chillers
  Airside
  Others


Distribution Channel

  Offline
  Online


End-user

  Residential
  Commercial
  Industrial


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Product Insights

The split segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with a significant shift from traditional window units to energy-efficient split systems. Samsung is among the companies leading this trend, having ceased production of window air conditioners in favor of sleek, modern split models. Inverter-based split air conditioners are gaining popularity due to their improved energy efficiency. The market has seen a decline in demand for ducted standard split air conditioners, as Japanese-style mini-splits become increasingly preferred. Refurbished products are also driving demand, as LEED certifications push for better energy efficiency and customers seek to replace outdated systems. Key technological advancements include the integration of smart thermostats, remote monitoring systems, and refrigerant leak detection.

Air filtration technology and thermal comfort modeling are also essential components of modern HVAC system design. The market is further characterized by the use of energy modeling software, variable refrigerant flow, and chilled water systems. A recent study reveals that energy consumption from HVAC systems accounts for nearly 40% of total energy usage in commercial buildings. This underscores the importance of optimizing air handling units, fan performance curves, and compressor technology for enhanced energy efficiency.

Request Free Sample

The Split segment was valued at USD 98.98 billion in 2019 and showed a gradual increase during the forecast period.

Request Free Sample

Regional Analysis

APAC is estimated to contribute 52% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Air Conditioning (AC) Market Demand is Rising in APAC Request Free Sample

Air conditioning markets continue to evolve, driven by increasing affordability and demand for comfort in countries like India, China, and Vietnam. The residential market, in particular, is experiencing growth as air conditioners expand beyond bedrooms to living spaces. China and Japan dominate the APAC market, accounting for approximately 80% of the total share. India, fueled by urbanization and rising disposable incomes, is poi