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).

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.

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...

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 have become 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 *** billion U.S. dollars in financial year 2024. And with a fairly low penetration rate, the air conditioner market was expected to grow at an increasing rate in the future. India’s energy consumption India was the world’s third-largest energy consumer as of 2024, 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.

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

The Air Conditioning Market size is expected to reach a valuation of USD 272.4 billion in 2034 growing at a CAGR of 7.6%. The Air Conditioning Market research report classifies Market by share, trend, demand, forecast and based on segmentation.

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 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).

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.

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.

As of the first quarter of 2022, Midea was the market leader in the central air conditioning market in China. The company accounted for ** percent of the market, followed by Gree Electric, and Daikin. Central AC can regulate the temperature of a complete building. In contrast, non-central AC systems, which are much more common in Chinese residential housing, are individual units that usually regulate the temperature in a single room.

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

According to Cognitive Market Research, the global packaged air conditioner market size was 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 alt...

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.

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%

Smart Air Conditioner Market was valued at USD 19.78 Billion in 2024 and is expected to grow to USD 42.52 Billion by 2030 with a CAGR of 13.60%.

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.

Global Air Conditioning market size 2021 was recorded $140.096 Billion whereas by the end of 2025 it will reach $180.5 Billion. According to the author, by 2033 Air Conditioning market size will become $299.625. Air Conditioning market will be growing at a CAGR of 6.54% during 2025 to 2033.

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The split air conditioner (ac) share is expected to increase by $ 34.66 billion from 2019 to 2024, and the market’s growth momentum will accelerate at a CAGR of 6%.

This split air conditioner (ac) research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers split air conditioner (ac) segmentations by Product (Ductless, VRF, and Ducted) and Geographic Landscape (APAC, Europe, MEA, North America, and South America). The split air conditioner (ac) report also offers information on several market vendors, including Daikin Industries Ltd., Fujitsu Ltd., Hitachi Ltd., Johnson Controls International Plc, LG Electronics Inc., Midea Group Co. Ltd., Mitsubishi Electric Corp., Panasonic Corp., Samsung Electronics Co. Ltd., and Zhuhai Gree Electric Appliance Co. Ltd. among others.

What will the Split Air Conditioner (AC) Size be During the Forecast Period?

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Split Air Conditioner (AC): Key Drivers and Trends

Based on our research output, there has been a NEGATIVE impact on the market growth during and post COVID-19 era. The preference for split acs is notably driving the split air conditioner (ac) growth, although factors such as challenge may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the split air conditioner (ac) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Split Air Conditioner (AC) Driver

Key Split Air Conditioner (AC) Trend

Key Split Air Conditioner (AC) Challenge

This split air conditioner (ac) analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Who are the Major Split Air Conditioner (AC) Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

Daikin Industries Ltd.
Fujitsu Ltd.
Hitachi Ltd.
Johnson Controls International Plc
LG Electronics Inc.
Midea Group Co. Ltd.
Mitsubishi Electric Corp.
Panasonic Corp.
Samsung Electronics Co. Ltd.
Zhuhai Gree Electric Appliance Co. Ltd.

This statistical study of the split air conditioner (ac) encompasses successful business strategies deployed by the key vendors. The split air conditioner (ac) is fragmented and the vendors are deploying growth strategies such as [mention one vendor strategy] to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The split air conditioner (ac) forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Which are the Key Regions for Split Air Conditioner (AC)?

For more insights on the market share of various regions Request for a FREE sample now!

74% of the market’s growth will originate from APAC during the forecast period. China, Japan, India, and Indonesia are the key markets for split air conditioner (ac) in APAC. Market growth in this region will be faster/slower than the growth of the market in regions.

[growth driver in the region] will facilitate the split air conditioner (ac) growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Product Segments in the Split Air Conditioner (AC)?

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The split air conditioner (ac) share growth by the segments.1 segment will be significant during the forecast period. [mention about segment growth].

Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the split air conditioner (ac) size and actionable market insights on post COVID-19 impact on each segment.

You may be interested in the regional reports:

US Split AC Market - The market share will grow at a CAGR of 7.81 percent over the period 2013-2018.

    Split Air Condi

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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?

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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.

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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.

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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