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

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

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.

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.

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...

In 2024, Asia ranked first by revenue in the 'Air Conditioners' segment of the household appliances market among the 9 regions presented in the ranking. Asia's revenue amounted to ************* U.S. dollars, while North America and South America, the second and third regions, had records amounting to ************ U.S. dollars and ************ U.S. dollars, respectively.

Air Conditioners Market was valued at USD 108.18 Billion in 2024 and is expected to grow to USD 140.52 Billion by 2030 with a CAGR of 4.46%.

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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 global retail value of the air-conditioners market is anticipated to grow steadily from 2021 to 2024, mostly due to forecasted steady growth in the Asian market with contributing factors such as large population base, low penetration rate and weather conditions. Although there was a slight drop in retail value for air-conditioners in 2020 due to the COVID-19 global pandemic, in 2021 the total value is anticipated to quickly reach previous levels again. In 2024, the retail sales value of air conditioners in Asian markets is forecast to reach **** billion U.S. dollars.

Explore the flourishing Global Air Conditioner Market, set to experience a significant growth rate of 5.98% between 2023 to 2028. Discover how the escalating levels of air pollution and temperatures drive the widespread acceptance of these comforting and essential products.

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

Computer Room Air Conditioner Market Outlook

The global computer room air conditioner market is poised for robust growth, with the market size projected to increase from approximately $3.5 billion in 2023 to an estimated $7.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.5%. This growth is fueled by the escalating demand for enhanced cooling solutions in data centers and IT facilities, driven by the exponential increase in data generation and storage needs. As businesses increasingly rely on digital infrastructure, the necessity for reliable and efficient cooling systems in computer rooms becomes more critical, contributing significantly to market expansion.

One of the primary growth factors for the computer room air conditioner market is the surge in demand for data centers. With the proliferation of cloud computing, big data analytics, and internet-of-things (IoT) applications, there has been a marked increase in the establishment of data centers across the globe. These facilities are power-intensive and generate substantial heat, necessitating advanced cooling solutions to maintain optimal operating conditions. This requirement ensures that the servers and other equipment function efficiently, thus preventing downtime and enhancing performance. Consequently, the demand for specialized air conditioning systems tailored specifically for computer rooms has seen a significant upswing.

Another critical factor driving market growth is the technological advancement in air conditioning systems. Modern computer room air conditioners are equipped with state-of-the-art features such as energy-efficient compressors, advanced control systems, and environment-friendly refrigerants, which not only enhance their cooling efficiency but also reduce energy consumption and operational costs. Furthermore, these systems are designed to integrate seamlessly with the existing facility management systems, providing real-time monitoring and control capabilities. The emphasis on energy efficiency and sustainability is prompting businesses to replace their outdated cooling systems with more modern, efficient ones, thereby boosting market demand.

The increasing awareness regarding the impact of temperature and humidity on sensitive IT equipment is also contributing to market growth. IT equipment is highly susceptible to environmental conditions, and any deviations can lead to equipment failure or reduced lifespan. As organizations become more cognizant of this, there is a growing emphasis on maintaining precise environmental conditions in computer rooms, which is propelling the demand for precision air conditioning solutions. These solutions are capable of maintaining narrow temperature and humidity ranges, thereby safeguarding the IT infrastructure and ensuring business continuity.

The role of an Air Conditioner in maintaining optimal conditions in computer rooms cannot be overstated. These systems are essential in regulating temperature and humidity levels, ensuring that sensitive IT equipment operates within safe parameters. As the demand for data centers continues to rise, the need for efficient air conditioning solutions becomes even more critical. Modern air conditioners, equipped with advanced features such as energy-efficient compressors and smart controls, are designed to meet the rigorous demands of these environments. They not only help in maintaining the ideal climate but also contribute to reducing energy consumption and operational costs, making them a vital component of any IT infrastructure.

Regionally, North America holds a significant share in the computer room air conditioner market, attributed to the presence of numerous data centers and technological firms. The region's well-established IT infrastructure and high adoption rate of advanced technologies fuel the demand for computer room air conditioning systems. In contrast, the Asia Pacific region is projected to exhibit the fastest growth rate, driven by rapid digitalization, increased IT investments, and the burgeoning data center market in countries like China and India. Additionally, the favorable government initiatives to promote the IT sector further bolster market growth in this region. Europe, Latin America, and the Middle East & Africa are also expected to witness substantial growth, albeit at varying rates, due to ongoing technological advancements and infrastructural developments.

Type Analysis

The computer room air conditioner market is segmented based on

Portable Air Conditioner Market size was valued at USD 839.61 Million in 2024 and is projected to reach USD 1140.08 Million by 2031, growing at a CAGR of 4.30% from 2024 to 2031.

Global Portable Air Conditioner Market Drivers

Climate Change and Rising Temperatures: As a result of climate change, there is a growing need for cooling solutions, such as portable air conditioners. Customers look for portable solutions that don't require a lot of installation to cool particular spaces or rooms. Convenience and Flexibility: Portable air conditioners provide ease of use and installation. They are perfect for homeowners or renters who don't want to make the investment in long-term cooling solutions because they are portable and easy to move from one area to another. Technological Developments: More feature-rich and energy-efficient portable air conditioners have been made possible by technological improvements. Better cooling performance, smarter networking features, quieter operation, and more energy economy are some of these developments. Smaller Living Spaces and Urbanization: As a result of urbanization, there are more smaller living spaces, like apartments and condominiums, where installing conventional central air conditioning systems would not be practical. For these kinds of situations, portable air conditioners offer a useful cooling option. Increasing Disposable Income: In order to improve their quality of life, people are prepared to spend more money on comfort-enhancing gadgets like portable air conditioners in various parts of the world.

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 Global Air Conditioner Market is driven by factors including rising temperatures due to climate change, urbanization and increasing disposable incomes.

The global Room Air Conditioners market is poised for robust expansion, projected to reach a significant market size of approximately $55,000 million by 2025, with a compelling Compound Annual Growth Rate (CAGR) of around 6.5% during the forecast period of 2025-2033. This growth is underpinned by a confluence of potent drivers, chief among them being the increasing global demand for enhanced comfort and improved indoor air quality, particularly in residential and commercial spaces. Escalating urbanization, coupled with a rising disposable income in emerging economies, fuels the adoption of air conditioning solutions. Furthermore, technological advancements, leading to more energy-efficient and smart air conditioning units, are playing a pivotal role in stimulating market growth. The integration of IoT capabilities for remote control and optimized energy consumption further bolsters consumer interest. Key market segments, including portable air conditioners and ductless mini-split systems, are experiencing particularly strong demand due to their flexibility and energy-saving features. Despite the positive outlook, certain restraints could temper the market's trajectory. The escalating cost of raw materials, coupled with increasing energy prices, presents a significant challenge for manufacturers and consumers alike. Stringent government regulations concerning energy efficiency and refrigerant usage, while beneficial in the long run, can also lead to higher production costs. However, the relentless pursuit of innovation by leading companies such as LG, Haier, and Midea, focusing on eco-friendly refrigerants, advanced cooling technologies, and smart home integration, is expected to mitigate these challenges. The market is witnessing a surge in demand for inverter technology, which significantly reduces energy consumption, and smart features that allow for remote monitoring and control, aligning with the growing trend of connected living. Geographically, the Asia Pacific region, driven by China and India, is expected to remain the largest and fastest-growing market, owing to rapid industrialization and increasing disposable incomes.

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

Key strategic insights from our comprehensive analysis reveal:

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

Global Market Overview & Dynamics of Window Air Conditioner Market Analysis

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

Global Window Air Conditioner Market Drivers

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

Global Window Air Conditioner Market Trends

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

Global Window Air Conditioner Market Restraints

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

The global commercial air conditioner (AC) market size reached 19.3 Million Units in 2024. Looking forward, IMARC Group expects the market to reach 28.4 Million Units by 2033, exhibiting a growth rate (CAGR) of 4.15% during 2025-2033. The rising installation of advanced and energy-efficient cooling systems in hospitality establishments, elevating temperatures and humidity levels worldwide, and increasing acceptance of ACs as utility products represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the global commercial air conditioner (AC) market, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on type, installation type, and end user.

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