The Report Covers Global Air Conditioner Market Share by Brand and is Segmented by Product Type (Window, Split and Multi Split, Packaged Air Conditioner, Variable Refrigerant Flow (VRF), and Others (Chillers and Portables)), Distribution Channel (Multi-Brand Stores, Exclusive Stores, Online, and Other Distribution Channels), End User (Residential and Commercial), and Geography (North America, South America, Europe, Asia-Pacific, and Middle East and Africa). The Report PDF Provides the Market Share, Size and Forecasts in Terms of Value in USD Billion.

India hosts a wide range of climates, but the majority of the country could be regarded as tropical. With the impact of global climate change, extreme heat waves became more and more frequent in the subcontinent. Temperatures passed the 50-degree Celsius mark in the northern regions of India in 2019, with seemingly no respite. The market size of air conditioners in India reached 1.8 billion U.S. dollars in financial year 2020. And with fairly low penetration rate, the air conditioner market was expected to grow with an increasing rate in the future.

India’s energy consumption

India was the world’s third largest energy consumer as of 2020, contributed by rising incomes and improving standards of living. India’s electricity demand was expected to increase more rapidly than its overall energy demand, despite a decrease in financial year 2020 and 2021 due to the coronavirus (COVID-19) pandemic. Even with higher standards and newer technologies, by 2040, the demand for electricity generated by cooling was still projected to increase six-fold.

Voltas - top player in the market

The leading manufacturer of air conditioners in India was Voltas, owned by Tata Group and now a joint venture with Turkey’s household appliances manufacturer Arcelik since 2017. In the early 1990s, when the government lessened restrictions on Foreign Direct Investment, Voltas faced fierce competition from international brands like Carrier, LG, and Samsung. Since October 2020, the Indian government banned imports of ready-to-install air conditioners, providing a boost to OEMs and other leading manufacturers.

The Portable Air Conditioners Market is segmented by product type ( single-hose portable air conditioners, double-hose portable air conditioners, and other types), by application (residential and commercial), by distribution channel (direct sales, multi-brand, specialty stores, and online), and by geography (North America, Asia-Pacific, Europe, South America, Middle-East and Africa and Rest of the World). The report offers market size and forecasts for the Portable Air Conditioners Market in value (USD) for all the above segments.

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 is estimated to reach 9.7 million units in financial year 2023. The leading manufacturer of air conditioners in India was Voltas with 21 percent of the market share. 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 in the rise. The capacity of solar energy reached over 39 thousand megawatts in 2020. As of 2020, India ranked fourth in installed renewable energy capacity worldwide.

The global window air conditioner market is anticipated to be worth US$ 35.49 billion in 2024, expanding at a CAGR of 5.7% between 2024 and 2034. The market is expected to develop even more and be valued at US$ 61.79 billion, offering industry participants a sizable window of opportunity for expansion. Because of growing urbanization, technological improvements, and demand for home cooling solutions, the global window air conditioner market is expanding steadily in the forthcoming decade.

Historical Performance and Future Growth of the Window Air Conditioner Market

Category-wise Insights

Country-wise Insights

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

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 USA & Canada portable air conditioner market is estimated to top nearly USD 261.6 million in 2025 and is projected to reach USD 369.0 million by 2035 at a CAGR of 3.5% from 2025 to 2035.

Semi-Annual Industry Update

As the trend of minimum spaces for reducing the energy consumption rate continues to grow, the Portable Air Conditioner Market is anticipated to hold a global revenue of US$ 1,589.84 million by 2033. As of 2023, the current market value for portable air conditioners is US$ 1,171.6 million and is expected to record a CAGR of 3.1% during the forecast period.

Historical Analysis of the Portable Air Conditioner Market

Category-wise Outlook

Region-wise Outlook

Country-wise Insights

According to Cognitive Market Research, the global packaged air conditioner market size will be USD 1125.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.50% 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 450.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 337.56 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 258.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 56.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.9% 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 22.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
The single-split category is the fastest growing segment of the packaged air conditioner industry

Market Dynamics of Packaged Air Conditioner Market

Key Drivers for Packaged Air Conditioner Market

Increasing Consciousness of Interior Quality of Air to Boost Market Growth

The packaged air conditioner market has experienced growth because of the increased knowledge of the environment and the nutritional advantages of keeping an attractive interior atmosphere. In order to ensure a better atmosphere for both their clients and workers, businesses in the health services, lodging establishments, and retail industries are spending more and more on-air conditioning systems. The need for intelligent packaged air conditioners, which come with cutting-edge capabilities, including robotics, efficiency evaluation, and autonomous operation, is fueled by the development of intelligent structures and residences. All of these elements support the demand for packaged air conditioners strong expansion. For instance, Daikin Industries, Prominent HVAC&R (heating, ventilation, air conditioning, and refrigeration) producer Company has carried out the first-ever "Daikin Global Air Research." In order to examine the variations and similarities between cities, this poll mainly focuses on how individuals in 12 different towns across the world view and utilize air conditioners in their daily activities.

Greater Emphasis on Sustainable Construction Programs to Drive Market Growth

The packaged air conditioner market has witnessed steady growth due to the growing need for environmentally friendly air conditioning units as a result of increased energy prices and stricter government laws meant to cut greenhouse gases. Energy-effective packaged air conditioners are becoming more and more popular among households and companies as a way to cut costs and lessen their effect on the ecosystem from energy consumption. The development industry's explosive expansion, especially in developing nations, is an additional significant source of market expansion. The need for effective and portable conditioning solutions, like packaged air conditioners, is growing as a result of the development and construction of more homes and businesses.

Restraint Factor for the Packaged Air Conditioner Market

High Charges & Upfront Expenses, will Limit Market Growth

The substantial upfront costs involved in installing packaged air conditioning devices are one of the main obstacles. Considering that these systems provide prospective energy savings, startup companies, and households may be put off by the initial outlay, especially in places where prices are tight. Further deterring some prospective customers from choosing these systems is the potentially expensive nature of upkeep and maintenance. Globally, governments are enacting more stringent laws to curtail the usage of coolants and minimize energy usage, compelling businesses to allocate resources toward the creation of environmentally sustainable and harmonious systems. This raises the cost of manufacturing and could lead to increasing end-user expenses.

Impact of Covid-19 on the Packaged Air Conditioner Market

The COVID-19 pandemic has had a significant effect on the packaged air conditioner industry in regard to...

By Application:The India AC market is also segmented by application into Residential, Commercial, and Industrial sectors. The Residential sector holds the dominant market share in this segment due to increasing middle-class incomes, the availability of easy financing options, and a growing focus on home automation. Major players have tailored their marketing strategies to tap into the home improvement and consumer goods markets, increasing residential uptake of AC systems. Meanwhile, the commercial sector is experiencing steady growth driven by the rise of co-working spaces, corporate offices, and retail outlets.

Over the last two observations, the revenue is forecast to significantly increase in all regions. From the selected regions, the ranking by revenue in the 'Air Conditioners' segment of the household appliances market is forecast to be led by Asia with 55.55 billion U.S. dollars. In contrast, the ranking is trailed by the Caribbean with 0.2 billion U.S. dollars, recording a difference of 55.35 billion U.S. dollars to Asia. Find further statistics on other topics such as a comparison of countries or regions regarding the revenue. The Statista Market Insights cover a broad range of additional markets.

The North America Air Conditioning Equipment Market Report is Segmented by Type (Unitary Air Conditioners [Duct Splits, Ductless Mini-Splits, and Indoor Packages and Rooftops], Room Air Conditioners, Packaged Terminal Air Conditioners, and Chillers), End User (Residential, Commercial, and Industrial), Country (United States and Canada), and Efficiency (Low Efficiency [13 SEER] and High Efficiency [>13 SEER]). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

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Air Conditioning Market Size 2025-2029

The air conditioning (AC) market size is forecast to increase by USD 14.12 billion at a CAGR of 2% between 2024 and 2029.

The market is experiencing significant growth due to various trends and challenges. The increasing demand for energy-efficient HVAC systems, particularly in healthcare facilities and residential construction, is driving market growth. Indoor air quality is becoming a major concern, leading to the rise in popularity of air filtration systems. The integration of smart technology in AC systems, such as smartphones and smart homes, is also contributing to market expansion. Online platforms enable consumers to easily research and purchase AC systems, further boosting market growth. However, market trends also include volatility in operating costs and raw material prices, which can impact the affordability of AC systems for consumers. Overall, the market is expected to continue its upward trajectory, with a focus on energy efficiency, indoor air quality, and smart technology.

What will be the Size of the Air Conditioning (AC) Market During the Forecast Period?

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The market encompasses various product offerings, including smart air conditioners, packaged units, and room air conditioners. Market growth is driven by rising urban temperatures and the increasing demand for temperature control in residential and commercial spaces, such as residential buildings, office buildings, retail spaces, healthcare facilities, and more. The market is witnessing significant trends, including the adoption of ecologically conscious goods, urbanization, and the integration of nanoex technology and smart technology in air conditioners. Energy efficiency, indoor air quality, and user comfort are key considerations for consumers, leading to the development of advanced air filtration systems, humidity control, and allergen and pollutant reduction features.
The market is further influenced by the growing use of smartphones and user-friendly interfaces to control air conditioning systems remotely. Both the residential and commercial segments are experiencing growth, with room air conditioners, particularly those with windows and split systems, being popular choices.

How is the Air Conditioning (AC) Industry segmented and which is the largest segment?

The 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

  APAC

    China
    India
    Japan
    South Korea


  Europe

    Germany
    UK
    France


  North America

    Canada
    US


  Middle East and Africa



  South America

By Product Insights

The split segment is estimated to witness significant growth during the forecast period. The market is experiencing growth due to the replacement of outdated window units with energy-efficient split air conditioners. Companies, such as Samsung, have transitioned from manufacturing window AC units to split ACs to meet consumer demand. Inverter technology is gaining popularity in split ACs for its energy efficiency. The market is witnessing a decline in demand for ducted standard split air conditioners compared to non-ducted standard splits. Japanese-style mini-splits are increasingly preferred over ducted splits due to their energy efficiency and flexibility. Refurbished products are driving the demand for split air conditioners as customers seek to upgrade their systems to meet LEED certification requirements for better energy efficiency.
The market encompasses various types of air conditioning systems, including room air conditioners, packaged air conditioners, and central AC systems, among others. Smart technology and air filtration systems are also gaining traction in both residential and commercial segments for improved indoor air quality and user comfort. The market is expected to continue growing as urbanization increases and the need for energy-efficient and ecologically conscious goods becomes more pressing.

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

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. The market is experiencing significant growth due to increasing urbanization and rising disposable incomes in countries like India, China, and Vietnam. Air conditio

As of June 2024, around 40 percent of window air conditioner (AC) units sold on South Korean e-commerce platform Danawa were manufactured by Samsung Electronics. Window ACs were suitable for single households in the country, with some companies offering free installation for additional convenience.

According to Cognitive Market Research, the global cassette air conditioner market size will be USD 18542.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 4.50% 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 7417.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 5562.75 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 4264.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 927.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.9% 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 370.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
The four out wind is the fastest growing segment of the cassette air conditioner industry

Market Dynamics of Cassette Air Conditioner Market

Key Drivers for Cassette Air Conditioner Market

Rising demand for energy-efficient cooling solutions to drive market growth

With the growing global awareness of environmental issues, there is an increased demand for energy-efficient products that help reduce electricity consumption and carbon footprints. Cassette air conditioners, especially those with inverter technology, are becoming popular due to their ability to adjust cooling capacity based on the room’s requirements, thus consuming less power. Energy-efficient models help businesses and homeowners save on utility bills, which is a key selling point for this market. As governments implement stricter energy standards, this trend is expected to intensify, with more consumers opting for energy-efficient systems.

Consumer preference for quiet and aesthetically pleasing designs to boost market growth

Consumers increasingly prioritize comfort, which includes quiet operation and unobtrusive designs. Cassette air conditioners offer a solution, as they are mounted in the ceiling and provide cooling without taking up floor space. Their sleek design is unobtrusive, making them ideal for commercial spaces like offices, retail stores, and restaurants where aesthetics and noise levels are crucial. Moreover, as technology advances, new models continue to improve on noise reduction, enhancing customer experience.

Restraint Factor for the Cassette Air Conditioner Market

Unpredictable climate patterns impacting seasonal demand to limit market growth

Climate variability is a significant restraint for the cassette air conditioner market. The demand for air conditioning systems, including cassette units, tends to follow seasonal patterns, with higher sales occurring during warmer months. However, the unpredictability of weather, including fluctuations in temperature or abnormal seasonal transitions, can disrupt these patterns. For instance, an unexpected cool summer or mild winter can lead to a reduction in demand for air conditioners, making it challenging for manufacturers to forecast sales. This volatility can result in overproduction during off-peak seasons, potentially leading to stock accumulation or lower profit margins. Additionally, in regions where climate change is having a noticeable impact, these unpredictable weather patterns can further complicate long-term market growth.

Impact of Covid-19 on the Cassette Air Conditioner Market

The cassette air conditioner market was significantly impacted by the COVID-19 pandemic, especially during the initial lockdowns. With industries such as hospitality, retail, and offices temporarily shutting down, demand for commercial air conditioning systems declined. The disruption in manufacturing and global supply chains also delayed production and delivery. However, the demand for home comfort systems saw a rise as consumers invested in improving indoor air quality during the pandemic. The trend towards remote work and the emphasis on creating comfortable and healthy home environments contributed to a partial recovery. As the world emerges from the pandemic, the market is likely to rebound, with re...

According to Cognitive Market Research, the global Air Conditioner Market size will be 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...

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 Forecasts to 2031

As of the first half of 2023, the Chinese electronics manufacturer Midea had a market share of 16.5 percent in the air conditioning segment. Besides Chinese brands, several foreign brands also have a significant market share. Among them are Daikin, Toshiba, and Hitachi.

India's government has been actively phasing out hydrochlorofluorocarbons (HCFCs) under the Montreal Protocol. The country is ahead of its targets, showing significant reductions in HCFC emissions, particularly HCFC-22, which is used in air conditioning. As part of the India Cooling Action Plan and Montreal Protocol commitments, the government has implemented stringent controls, promoting ozone-friendly alternatives. This shift supports both environmental protection and market transitions toward sustainable refrigerants and cooling technologies.