The Australia air conditioner market size was valued at USD 2.24 Billion in 2024. The market is further projected to grow at a CAGR of 5.60% between 2025 and 2034, reaching a value of USD 3.86 Billion by 2034.

The Australia Air Conditioners Market was valued at USD 2.48 Billion in 2024 and is expected to reach USD 3.67 Billion by 2030 with a CAGR of 6.81%

The Australia Air Conditioner (AC) market is expected to add more than USD 1 Billion from 2023 to 2028.

In Australia Commercial Air Conditioner Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision.

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Air Conditioning (AC) 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 a dynamic and evolving industry that caters to various sectors, including residential, commercial, and industrial applications. One of the notable trends in the market is the rise in residential construction activity, leading to an increased demand for energy-efficient AC systems. In response, manufacturers have started integrating R32 refrigerant in split ACs due to its lower global warming potential and energy efficiency. However, the market dynamics are not without challenges. Operating costs and raw material prices have shown volatility, impacting the profitability of AC manufacturers. The use of R32 refrigerant, while beneficial for the environment, comes with a higher production cost.
Moreover, the increasing focus on energy efficiency and sustainability has led to stringent regulations, adding to the operational expenses for manufacturers. Despite these challenges, the market continues to unfold with new innovations and trends. For instance, the integration of IoT technology in AC systems has enabled remote monitoring and predictive maintenance, improving efficiency and reducing downtime. Additionally, the growing popularity of smart homes and buildings has led to an increase in demand for smart AC systems, offering features like voice control and energy management. The Air Conditioning market is a continuously evolving industry, with trends like the rise in residential construction activity, the shift to R32 refrigerant, and the integration of IoT technology shaping its future.
The market's dynamics are influenced by factors like operating costs, raw material prices, and regulatory requirements, making it a challenging yet exciting space for businesses.

Major Market Trends & Insights

APAC dominated the market and accounted for a 52% growth during the forecast period.
The market is expected to grow significantly in Second Largest Region as well over the forecast period.
By the Product, the Split sub-segment was valued at USD 98.98 billion in 2023
By the Distribution Channel, the Offline sub-segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 0 billion
Future Opportunities: USD 0 billion 
CAGR : 2%
APAC: Largest market in 2023

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

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Air conditioning (AC) systems have become an essential component in various industries and residential applications due to the increasing demand for comfortable and energy-efficient environments. The market for AC technology continues to evolve, driven by advancements in heat pump technology, refrigerant options, and motor efficiency. One significant trend in the AC market is the growing adoption of microchannel evaporators. These evaporators offer increased heat transfer rates and energy efficiency compared to traditional designs. According to recent market data, microchannel evaporator adoption has risen by approximately 15%. This growth demonstrates the industry's commitment to improving cooling efficiency and reducing energy consumption.
Looking ahead, the future of the AC market is promising, with expectations of continued growth. Industry experts predict that the market will experience a boost in demand due to the increasing focus on low global warming potential (GWP) refrigerants. These refrigerants, such as R410a, contribute to reduced carbon footprints and are expected to account for over 40% of the market share by 2026. When comparing the performance of various AC technologies, it's essential to consider factors like BTU rating, coefficient of performance (COP), and insulation thickness. For instance, a high-efficiency AC unit with a BTU rating of 24,000 and a COP of 3.5 would provide more cooling per unit of electricity consumed compared to a less efficient unit.
Additionally, an insulation thickness of 2 inches or more can significantly improve the system's energy efficiency. Another critical aspect of AC systems is motor efficiency. Advanced motor technologies, such as DC inverter technology, can help reduce energy consumption and improve overall system performance. According to market research, AC units with DC inverter technology have seen a market penetration of around 35%, highlighting their growing popularity and the industry's shift towards energy-efficient solutions. In the realm of industrial applications, absorption chillers have gained traction due to their ability to generate cooling using waste heat. These systems are particularly beneficial for industries with large thermal energy outputs, such as power generation and petrochemicals.
Market data indicates that absorption chillers account for app

Discover the latest market trends in the air conditioning industry in Australia, with a focus on self-contained and split-system units. Learn about the projected growth in market volume to 1.1M units and market value to $422M by 2035.

The revenue of the air conditioner market in Australia and Oceania amounted to $X in 2017, going up by X% against the previous year. The total market indicated a pronounced growth from 2007 to 2017: its value increased at an average annual rate of +X% over the last decade. The trend pattern, however, indicated some noticeable fluctuations throughout the analyzed period. Based on 2017 figures, the air conditioner consumption increased by +X% against 2015 indices.

The Heating, Cooling and Ventilation Equipment Manufacturing industry has faced a difficult period as shaky downstream demand and intensifying import competition have constrained performance. The industry was especially hurt by a temporary dip in demand from non-residential building construction industries during the pandemic, along with lower demand from multi-unit apartment and townhouse construction. A growing proportion of Australian businesses are choosing to source purchase imported commercial HVAC equipment, which is increasingly diverting demand from the industry. Overall, industry revenue sunk at an annualised 1.4% over the five years through 2024-25, to an estimated $2.8 billion. This includes an estimated 1.6% hike in 2024-25, resulting from improved downstream demand from construction activity. Environmental issues are central to the performance of HVAC manufacturers in Australia. A growing concern surrounding the carbon intensity of stationary heating and cooling equipment has fuelled higher demand for technologically advanced HVAC systems that use less energy. These trends have offered new business to local manufacturers as many Australian businesses seek to upgrade their HVAC systems to lower their carbon emissions. On the other hand, smaller manufacturers lacking the scale and capacity to develop more sustainable products have struggled to attract customers. Import competition has steadily intensified over the past decade. Some domestic manufacturers have outsourced production to Asia to reduce operating costs and improve profit margins. Others have shifted their focus to customised, high-value products, boosting industrywide profit margins. An improvement in downstream demand will fuel an industrywide recovery over the coming years. Demand from multi-unit apartment and non-residential building construction is poised to expand over the coming years, kickstarting growth in both revenue and profitability. Revenue is on track to pick up at an annualised 1.1% through 2029-30 to an estimated $3.0 billion. Manufacturers that produce climate-friendly products are best positioned to capitalise on this recovery.

Learn about the projected growth of the air conditioning market in Australia over the next decade, driven by increasing demand for air conditioning machines. Market performance is expected to continue on an upward consumption trend, with an anticipated CAGR of +1.9% for the period from 2024 to 2035.

The Computer Room Air Conditioning Market report segments the industry into By Type (Precision Air Conditioners, Comfort Air Conditioners), By End Users (Data Centers, Server Rooms, Network Rooms, Others End Users), By Cooling System (Chilled Water, Direct Expansion), By Organization Size (SMES, Large Enterprises), and By Geography (North America, Europe, Asia, Australia and New Zealand, Latin America, Middle East and Africa).

The Air Conditioning Equipment Market report segments the industry into Type (Split System (Ducted and Ductless), Variable Refrigerant Flow (VRF), Air Handling Units, Chillers, Fan Coils, Indoor Packaged and Roof Tops, Other Types), End-User Industry (Residential, Commercial, Industrial) and Geography (North America, Asia, Australia and New Zealand, Europe, Latin America, Middle East and Africa).

Comprehensive dataset of 99 Air conditioning system suppliers in South Australia, Australia as of July, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

Comprehensive dataset of 161 Air conditioning stores in Queensland, Australia as of August, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

The air conditioning market in Australia is expected to see continued growth over the next decade, driven by increasing demand. Market performance is predicted to expand at a slower rate, with a projected 1.9% CAGR in volume and 3.4% CAGR in value from 2024 to 2035. By the end of 2035, the market volume is expected to reach 1.4 million units, with a market value of $809 million in nominal prices.

Comprehensive dataset of 12 Auto air conditioning services in Tasmania, Australia as of August, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

The Australia Home Appliances Market report segments the industry into Major Appliances (Refrigerators, Freezers, Dishwashing Machines, Washing Machines, Ovens, Air Conditioners, Other Major Appliances), Small Appliances (Coffee/Tea Makers, Food Processors, Grills & Roasters, Vacuum Cleaners, Other Small Appliances), and Distribution Channel (Multi-brand Stores, Exclusive Stores, Online, Other Distribution Channels).

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Energy Efficient HVAC Systems Market Size 2025-2029

The energy efficient hvac systems market size is forecast to increase by USD 25.40 billion at a CAGR of 10.7% between 2024 and 2029.

The market is driven by the increasing demand for energy savings and cost reduction. The global energy consumption for heating and cooling is estimated to account for nearly half of the total energy usage. As energy prices continue to rise and environmental concerns persist, there is a growing emphasis on energy efficiency in HVAC systems. Another key trend in the market is the adoption of R32 refrigerant in air conditioners. R32 is a more energy-efficient alternative to the traditional R22 refrigerant, which is being phased out due to its high global warming potential.
The use of R32 refrigerant is expected to increase significantly in the coming years, particularly in the Asia Pacific region. However, the market also faces challenges. The higher initial cost of energy efficient HVAC systems is a significant barrier to adoption, particularly for small and medium-sized businesses. The upfront investment required for energy efficient HVAC systems can be substantial, which may deter some potential buyers. Additionally, the lack of standardization and interoperability between different HVAC systems can make it difficult for businesses to make informed purchasing decisions and integrate new systems into their existing infrastructure. Despite these challenges, there are opportunities for companies to capitalize on the growing demand for energy efficiency and provide cost-effective, standardized solutions to help businesses reduce their energy consumption and operating costs.

What will be the Size of the Energy Efficient HVAC Systems Market during the forecast period?

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The HVAC systems market continues to evolve, driven by the growing emphasis on energy efficiency and sustainability in various sectors. Commercial HVAC systems are integrating digital controls, IoT integration, and predictive maintenance to optimize energy usage and reduce operational costs. Hospitality HVAC is prioritizing indoor air quality and ventilation rates to enhance guest comfort and satisfaction. Government incentives, demand response programs, and LEED certification are pushing the adoption of energy-efficient technologies, such as heat pumps, VRF systems, and energy recovery, in both commercial and residential applications. Heat exchangers, mini-split systems, and geothermal energy are also gaining popularity due to their high efficiency and low carbon footprint.
HVAC contractors are increasingly offering energy audits and energy management services to help building owners and property managers identify areas for improvement and maximize energy savings. The ongoing integration of renewable energy sources, such as solar thermal and geothermal energy, is further expanding the market's potential. HVAC engineering is leveraging machine learning and artificial intelligence to optimize system performance and improve building performance. Energy codes and sustainability initiatives are driving the adoption of advanced HVAC technologies, such as energy star-rated equipment, variable fan speeds, and smart thermostats. The market's continuous dynamism is fueled by the evolving needs of building owners, tenants, and regulatory bodies, making it an exciting space for innovation and growth.

How is this Energy Efficient HVAC Systems Industry segmented?

The energy efficient hvac systems 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

  Air Conditioning
  Heating
  Ventilation


End-user

  Residential
  Commercial
  Industrial


Technology Specificity

  Inverter Technology
  IoT-Enabled Systems
  Variable Refrigerant Flow


Distribution Channel

  Direct Sales
  Distributors
  Online Retail


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Product Insights

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

Air conditioning systems play a crucial role in maintaining desirable air quality and temperature within residential and commercial buildings. These systems effectively remove particulates and are employed for humidification or dehumidification. Air conditioners, which typically utilize high-power compressors and fans for air distribution, hold a substantial market share in the HVAC sector. Three major energy-efficient air conditioning systems are unitary systems, variable refrigeran

Learn about the expected growth in the Australian non-window air conditioning market over the next decade, with a forecasted increase in market volume and value by 2035.

The Whitegoods Retailing industry has experienced substantial volatility over the past five years. Despite challenges, the industry has demonstrated resilience thanks to the essential products it provides and retailers’ adoption of innovative sales strategies. Bricks-and-mortar retailers struggled at the onset of the COVID-19 pandemic, causing industry revenue to dip in 2019-20. However, companies with robust online platforms managed to protect their market share through omnichannel retail strategies. Growth in household budgets throughout 2020-21 and 2021-22 renewed demand for whitegoods, supported by strong consumer sentiment and a reduction in import prices. However, 2022-23 and 2023-24 brought new challenges to the industry, as a sharp spike in import prices coincided with declining household incomes. This scenario pressured retailers’ profit margins, as they struggled to pass on hiked costs amid weakened demand. Nevertheless, legislative adjustments in 2024-25 have set the stage for a market rebound. Major retailers have posted strong performances, with expectations of revenue growth through the end of 2024-25. Throughout the industry’s recent fluctuations, competition has intensified, with JB Hi-Fi and Harvey Norman retaining a dominant market share. Smaller retail chains have maintained niche market positions, benefiting from technological shifts and enhancements to their online sales platforms. Since online platforms require lower labour costs, they’ve helped support growth in retailers’ profit margins. Overall, industry revenue is expected to have expanded at an annualised 1.3% over the five years through 2024-25, to $9.4 billion, including an anticipated 1.6% expansion in 2024-25. Expectations for the Whitegoods Retailing industry over the next five years are largely optimistic. Easing cost-of-living pressures on households will help strengthen household demand, encouraging robust revenue growth in 2025-26 despite a likely increase in price competition. However, because demand for whitegoods from households is cyclical, industry revenue is poised to drop after 2025-26 as fewer houses look to upgrade existing goods. Despite this, increasing demand from newly formed households and improving consumer sentiment over the long run will partly offset some of the impacts of these challenges. Upstream innovations, the rise of online retailers and green consumer trends will also significantly shape the industry's path towards potential growth over the coming years. Overall, industry revenue is expected to expand at an annualised 1.0% over the five years through 2029-30, to reach $9.8 billion.

The size of the Australia Home Appliances Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of > 2.00% during the forecast period. Home appliances are quite the indispensable devices in making daily work easier and comfortable in a residential dwelling. These can include refrigerators and washing machines and even ovens and air conditioners. The market for home appliances in Australia, therefore forms booming industry driven by various drivers such as rising standards of living, technological improvement, growing demand for convenient products and high effectiveness. The use of home appliances within homes has become an indispensable prerogative in Australian households. Refrigerators preserve food, washing machines clean clothes, ovens prepare meals, and air conditioners do their part in maintaining temperature. All these appliances have greatly changed life and helped Australians to save time and refrain from half-broken exhausting labor. Also, the penetration of technology into home appliances has actually led the innovation of new waves of smart appliances: equipped with the possibility of being controlled remotely, energy-saving, and personalizing settings. As consumers in Australia embrace these new technologies, the home appliances market will still be a very central component of the retail sphere of that nation. Recent developments include: In May 2023, POSCO Holdings Inc. and LG Electronics Inc. announced that they will collaborate to upgrade POSCO's smart factory technology. The initiative will involve the integration of robotics, artificial intelligence (AI) and wireless communication technologies., In November 2022, Whirlpool Corp. has announced that it is taking steps toward making smart appliances work more harmoniously in home ecosystems by announcing support for Matter, the gold standard of smart home connectivity.. Key drivers for this market are: Online Retail is Driving the Market, Increasing Disposable Income is Driving the Market. Potential restraints include: Changing Customer Preferences and Lifestyle, Saturation in the Market with the Technology Used in the Appliances. Notable trends are: Increasing Smart Appliances Penetration is Driving the Market.