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 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 heating, ventilation, air conditioning, and refrigeration (HVAC-R) market was valued at $431,534.1 million in 2024 and is projected to grow at a CAGR of 5.05%

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.

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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.

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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

The size of the Air Conditioner Industry market was valued at USD 201.78 Million in 2023 and is projected to reach USD 286.78 Million by 2032, with an expected CAGR of 5.15% during the forecast period. Recent developments include: In February 2023, Godrej Appliances introduced the first leak-proof split air conditioner in India, exhibiting a creative use of anti-leak technology. This deliberate use of anti-leak technology highlights the business's dedication to improving user experience and creating an unmatched value offer in the air conditioning industry., In January 2022, LG Electronics USA launched a broad range of ventilation, heating, and air conditioning solutions for use in light commercial, residential, and industrial applications at the 2022 AHR show in Las Vegas.. Key drivers for this market are: Rising Temperatures and Climate Change, Technological Innovations such as Inverter Technology, Smart and Connected Features. Potential restraints include: High Energy Consumption, High Initial and Maintenance Costs. Notable trends are: Growing Demand for Air Conditioners Globally.

The global air conditioning systems market, valued at $107.83 billion in 2025, is projected to experience robust growth, driven by rising global temperatures, increasing urbanization, and expanding disposable incomes in developing economies. A Compound Annual Growth Rate (CAGR) of 9.1% from 2025 to 2033 suggests a significant market expansion, reaching an estimated value exceeding $250 billion by 2033. Key growth drivers include rising demand for energy-efficient systems, growing adoption of smart home technologies integrating HVAC control, and increasing government regulations promoting environmentally friendly refrigerants. Major players like Gree, Midea, Daikin, and Haier are leading the market, constantly innovating with technologically advanced, eco-conscious solutions. However, challenges remain, including fluctuating raw material prices and concerns regarding the environmental impact of traditional refrigerants. The market segmentation likely includes residential, commercial, and industrial applications, each exhibiting unique growth trajectories based on specific technological advancements and regional variations in climate and economic development. The continued focus on sustainability and energy efficiency will be crucial for future market success, influencing both technological advancements and consumer purchasing decisions. The market's regional distribution is likely diverse, with North America and Europe holding substantial shares due to established infrastructure and high per capita income. However, rapid economic growth in Asia-Pacific and other emerging regions is projected to drive considerable market expansion in these areas over the forecast period. The competitive landscape is characterized by both established global players and regional manufacturers, leading to intense competition based on price, technology, and brand reputation. The strategic focus will continue to be on innovation in energy efficiency, smart features, and environmentally sustainable products, driving both market expansion and a shift towards more sophisticated and technologically advanced air conditioning systems. This will also involve expanding market penetration into underserved regions globally.

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).

Over the past five years, the Heating and Air-Conditioning Equipment Manufacturing industry has experienced gradual expansion, shaped by shifts in both residential and commercial construction. Early in the period, lower interest rates spurred a boom in building and renovations, pushing up demand for HVACR equipment, especially in residential markets. However, when interest rates rose in mid-2022, spending on both new construction and improvements cooled, triggering a decline in demand for large-ticket items like heating and cooling systems. Imports satisfied a growing share of domestic demand as manufacturers sought lower production costs abroad, while tariffs and global supply chain disruptions complicated sourcing and inventories. Revenue has been expanding at a CAGR of 2.6% over the past five years and is expected to reach $62.9 billion in 2025, when revenue will rise by an estimated 1.5%. Industry profit has narrowed during this period, reflecting increased raw material and labor costs as well as regulatory pressures. Stricter energy efficiency and refrigerant standards have led firms to invest more in research, compliance and product redesign, driving up operating costs. Companies have also grappled with skilled labor shortages, further squeezing profitability and causing project backlogs. The volatility extends beyond costs, as supply chain complexity and tariff uncertainty have made inventory control and long-term planning more challenging. While larger manufacturers with broad product portfolios and robust compliance programs are weathering these headwinds better, smaller players are feeling the squeeze, heightening competitive pressures and fueling ongoing market consolidation. Looking ahead, the outlook for 2025 to 2030 is shaped by regulatory evolution, digital transformation and growing sustainability demands. The industry is expected to benefit from stabilized interest rates and steady construction growth, with greater demand for high-efficiency systems, smart controls and low-GWP refrigerants. Major players are ramping up investments in automation, lifecycle management and circular economy practices in response to both compliance mandates and customer expectations. On the supply side, companies will continue to diversify sourcing to manage tariff and geopolitical risks, while workforce development and training remain critical priorities. Over the next five years, revenue is forecast to rise at a CAGR of 2.0%, reaching $69.4 billion in 2030.

Shipments of air conditioners (A/Cs) in the United States started rising again in 2024. That happened after A/C shipments decreased two years in a row in 2022 and 2023. Total shipment figures fluctuated year to year, generally falling between 3.5 and 6 million. However, there have been a few notable exceptions such as 2005 with 6.47 million units sold, and 2021 with 6.28 million units sold. Air conditioner market Having been invented over a century ago, air conditioner products comprise a mature and relatively stable market of the overall household appliance industry. In the United States, the total number of air conditioners exceeds the country’s population, and by 2030, forecasts suggest that China will play host to over a billion A/C appliances. Room air conditioners are by far the most popular type, while all-in-one packaged A/Cs account for a much smaller portion of overall demand. The top brands differ by country. The U.S. heating, ventilation, and air conditioning (HVAC) market is dominated by American and Irish brands like Carrier, Trane, and York, while the South Korean air conditioner market is dominated by its own domestic giants in LG and Samsung. Overall, global demand for air conditioners is on the rise, and as the world becomes increasingly developed, this technology that was once seen as a luxury is now becoming more and more commonplace.

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.

North America Air Conditioners Market by Type (Split, Window, Centralized/Ducted, Others), Tonnage (Up to 2 Tons, 2 Tons to 5 Tons, Others), Technology (Inverter, Non-inverter), End User (Residential, Commercial, Industrial), and Geography - Forecast to 2032

The global air conditioning systems market is booming, projected to reach $250B+ by 2033 with a 9.5% CAGR. Discover key trends, regional insights, leading companies (Gree, Daikin, Midea), and market segmentation in our comprehensive analysis. Learn about the impact of rising temperatures, smart home technology, and sustainable cooling solutions.

Heating and air conditioning wholesalers have enjoyed growth. During the pandemic, the residential market experienced a boom, driven by low interest rates that spurred housing starts and home improvement projects. Wholesalers thrived because of this, with substantial demand for HVAC systems. However, interest rate hikes in 2022 and 2023 cooled this surge, leading to a drop in single-family home construction. Still, low housing stock and rate cuts in 2024 boosted new single-family construction activity. Wholesalers have also benefited from the recovery of the commercial market, particularly in renovations of existing properties and the expansion of warehousing driven by e-commerce and growth in new hotel construction. Industry revenue is expected to increase at a CAGR of 6.1% through 2025, reaching an estimated $106.2 billion, with an additional estimated 5.0% growth in 2025. HVAC wholesalers saw substantial gains amid fluctuating market conditions. The pandemic created an unprecedented demand for residential HVAC systems as people invested in their homes and sought to improve their living conditions. However, the rise in raw material costs like copper and steel elevated production expenses, impacting wholesalers. Despite these challenges, price-based gains were prevalent, with wholesalers passing on increased costs to their downstream customers. Enhanced energy efficiency standards prompted wholesalers to sell more sophisticated and expensive equipment, thereby driving revenue. While the office building construction market lagged because of high vacancy rates, the hotel and warehouse markets provided steady opportunities, contributing to wholesalers' growth. The future is promising for heating and air conditioning wholesalers. Continued interest rate reductions will likely stimulate new residential construction, spurring demand for HVAC systems in single-family and multifamily units. The commercial market is also poised for expansion, with new retail and restaurant developments on the horizon. However, the need for new office spaces will remain minimal because of high vacancy rates. Environmental regulations are another crucial factor, with impending bans on HCFCs prompting consumers to shift toward greener products. Wholesalers will especially benefit from the growing demand for advanced, eco-friendly HVAC solutions. Industry revenue is forecast to climb at a CAGR of 1.8% to total an estimated $115.9 billion through the end of 2030.

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 global market for unitized industrial air conditioners is experiencing robust growth, driven by increasing industrialization, stringent environmental regulations promoting energy-efficient cooling solutions, and the rising demand for climate-controlled environments in manufacturing and processing facilities. Let's assume, for illustrative purposes, a 2025 market size of $15 billion USD, and a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033. This implies significant expansion, reaching an estimated market value exceeding $28 billion by 2033. Key drivers include the expansion of manufacturing sectors in developing economies, the adoption of advanced technologies like Variable Refrigerant Flow (VRF) systems for improved energy efficiency, and growing concerns about workplace productivity linked to optimal thermal comfort. Emerging trends include the integration of smart technologies for remote monitoring and control, along with increasing demand for sustainable and eco-friendly refrigerants. While challenges like fluctuating raw material prices and potential supply chain disruptions exist, the overall outlook for the unitized industrial air conditioner market remains positive, driven by sustained industrial growth and the increasing focus on energy efficiency and environmental sustainability. The competitive landscape is marked by the presence of both established global players and regional manufacturers. Companies such as Daikin, Trane, Johnson Controls, and Mitsubishi Electric are major contenders, leveraging their strong brand reputation, extensive distribution networks, and innovative product portfolios. Regional players are also gaining prominence, particularly in rapidly developing markets, offering cost-competitive solutions tailored to specific regional needs. The market segmentation is expected to evolve, with a continued emphasis on energy-efficient and sustainable solutions, further driving growth and innovation within the industry. Strategic partnerships, technological advancements, and mergers and acquisitions are expected to shape the competitive dynamics in the coming years. This report provides a comprehensive analysis of the global Unitized Industrial Air Conditioner market, projected to reach $15 billion by 2028, exhibiting a CAGR of 6%. This in-depth study delves into market dynamics, competitive landscape, and future growth opportunities. Ideal for industry stakeholders, investors, and researchers seeking a detailed understanding of this critical segment within the HVAC industry.

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 global air conditioning system market size is estimated to reach USD 202.34 billion by 2031, Asia-Pacific dominates the global market.
Report Scope:

Vertical Air Conditioning Market valuation is estimated to reach US$ 29.19 Billion in 2025 and is anticipated grow to US$ 43.89 Billion by 2032 ,CAGR of 6.0%.

Graph and download economic data for Producer Price Index by Industry: Air-Conditioning, Refrigeration, and Forced Air Heating Equipment Manufacturing: Parts and Accessories for Air Conditioning and Heat Transfer Equipment (PCU333415333415D) from Dec 1989 to Sep 2025 about transfers, heating, apparel, parts, equipment, manufacturing, PPI, industry, inflation, price index, indexes, price, and USA.