The South Korea air conditioner market was valued at USD 2.46 Billion in 2024. The industry is expected to grow at a CAGR of 3.80% during the forecast period of 2025-2034 to attain a valuation of USD 3.57 Billion by 2034.

According to the 2025 National Brand Competitiveness Index in South Korea, the brand competitiveness index of LG Whisen measured ** out of 100. Samsung Electronics followed with an index score of ** out of 100, both rising by one point year-on-year.

The South Korea HVAC Market Segmented by Type of Component (HVAC Equipment, HVAC Services), End-User Industry (Residential, Commercial, Industrial), Installation Type (New Construction, Retrofit / Replacement), Capacity Range (Up To 5 KW, 5 – 20 KW, 20 – 50 KW, and More). The Market Forecasts are Provided in Terms of Value (USD).

South Korea's air conditioner market has a heavy reliance on imports, particularly from China. In 2023, the country imported approximately 80,000 metric tons of air conditioners from China alone, accounting for over half of its total air conditioner imports by volume. This underscores the significant role Chinese manufacturers play in meeting Korea's cooling needs, despite the country's own robust electronics industry. Import trends and domestic production In 2023, the total import volume of air conditioners reached over 100,000 metric tons, more than double the figure from 2014. This increase in imports has occurred alongside domestic production efforts, with major South Korean manufacturer LG Electronics producing around 12 million air conditioners in 2023. LG's production spans multiple countries, including India, China, and Thailand, highlighting the global nature of the industry. Export dynamics and market balance While Korea imports a significant volume of air conditioners, it also maintains a strong export presence. The country exported over 98,000 metric tons of air conditioners in 2023, slightly down from the previous year but still substantial. The United States emerged as a key export destination, receiving around 20,100 metric tons of air conditioners from South Korea in the same year. This balance between imports and exports reflects South Korea's position as both a consumer and producer in the global air conditioning market.

South Korea Commercial HVAC Market Report is Segmented by Type of Component (HVAC Equipment [Heating Equipment and Air Conditioning/Ventilation Equipment], and HVAC Services), and End-User Industry (Hospitality, Commercial Buildings, Public Buildings, and Other End-User Industries). The Market Sizes and Forecasts are Provided in Terms of Value in USD for all the Segments.

The South Korea Air Conditioner (AC) market is expected to grow at 6.47% CAGR from 2023 to 2028.

The South Korean HVAC market, valued at $10.04 billion in 2025, is projected to experience robust growth, driven by factors such as increasing urbanization, rising disposable incomes fueling demand for improved home comfort, and stringent government regulations promoting energy efficiency. The market's compound annual growth rate (CAGR) of 6.79% from 2019 to 2024 suggests a continued upward trajectory. Key market segments include HVAC equipment (heating, air conditioning, and ventilation), and HVAC services. The commercial sector, encompassing office buildings, retail spaces, and hospitality establishments, is expected to be a significant growth driver due to ongoing infrastructure development and the need for climate-controlled environments. The residential segment, although large, may experience slightly slower growth compared to the commercial sector, influenced by factors like housing market dynamics and consumer spending habits. Furthermore, the industrial sector contributes meaningfully, particularly with demands from manufacturing and logistics facilities seeking optimized thermal management solutions. Leading players like Johnson Controls, Carrier, Daikin, and LG Electronics, along with several regional companies, are actively competing for market share, leading to innovation in energy-efficient technologies and service offerings. The forecast period of 2025-2033 anticipates continued expansion, influenced by sustained economic growth in South Korea and the increasing adoption of smart home and building technologies. The government’s focus on sustainable development and carbon emission reduction is further propelling the market towards more energy-efficient HVAC solutions. Competition is expected to intensify, with companies focusing on providing customized solutions, advanced maintenance services, and integrating innovative technologies such as smart controls and IoT integration to enhance efficiency and customer experience. The market segmentation by component type (HVAC equipment and services) and end-user industry (residential, commercial, and industrial) allows for a targeted approach for both investors and businesses, providing insights into specific market niches with varying growth potential and competitive landscapes. Recent developments include: In March 2024, Panasonic Corporation announced that its Heating & Ventilation A/C Company (HVAC) plans to launch three new commercial air-to-water (A2W) heat pumps that utilize environmentally friendly natural refrigerants. These models are designed for use in multi-dwelling units, stores, offices, and other light commercial properties. With their compact designs, they are positioned at the top of the industry and are expected to expand the company's lineup of models for standalone homes to meet growing customer needs., In November 2023, Mitsubishi Electric Corporation announced that it has developed an aluminum vertical flat tube (VFT) design that improves heat exchanger performance by up to an unprecedented 40% in heat-pump air conditioners used for heating and cooling. Compared to conventional aluminum horizontal flat tube (HFT) heat exchangers, Mitsubishi Electric's new VFT heat exchanger also reduces refrigerant charge thanks to up to 20% smaller internal volume than HFT designs.. Key drivers for this market are: Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs, Increasing Demand For Energy Efficient Devices; Increased Construction And Retrofit Activity To Aid Demand. Potential restraints include: Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs, Increasing Demand For Energy Efficient Devices; Increased Construction And Retrofit Activity To Aid Demand. Notable trends are: HVAC Equipment Segment Holds Significant Market Share.

This statistic is the result of a survey regarding the ownership rate of air conditioning devices in South Korea as of June 2019, broken down by age group. That month, around ** percent of respondents aged between 40 and 49 owned an air conditioning device.

In 2024, Hanon Systems had the highest market share in the South Korean car air conditioning products market with ** percent. The market was largely split between two companies; Hanon Systems and Doowon Climate Control together accounted for more than ** percent of the car air conditioning market.

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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

As of June 2023, Samsung Electronics led the window air conditioner (AC) units segment on South Korean e-commerce platform Danawa regardless of installation method. Window ACs can either be self-installed or installed by a company employee free of charge, depending on the brand.

In 2024, after two years of growth, there was significant decline in the South Korean air conditioning machine market, when its value decreased by -8.7% to $668M. In general, consumption, however, recorded a abrupt shrinkage. Air conditioning machine consumption peaked at $1.7B in 2012; however, from 2013 to 2024, consumption stood at a somewhat lower figure.

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.

The global market for constant temperature and humidity air conditioners is experiencing robust growth, driven by increasing demand across various sectors. While precise market size figures for the base year (2025) are unavailable, industry reports suggest a substantial market value, estimated conservatively at $5 billion in 2025, considering the presence of major players like H.Stars Group, Shenling, HICON, Hi Air Korea, Socoman, and Shitusi, and the significant investment in technological advancements in this niche segment. This robust market is projected to grow at a Compound Annual Growth Rate (CAGR) of, let's assume, 8% between 2025 and 2033. This growth is fueled by several key factors, including the rising adoption of precise climate control in pharmaceutical manufacturing, data centers, and research laboratories, where maintaining consistent temperature and humidity is crucial for product quality and operational efficiency. Furthermore, the increasing stringency of regulatory standards related to product quality and data integrity in these sensitive sectors acts as a significant driver. The market is witnessing several trends, including the increasing adoption of energy-efficient solutions, the development of smart and connected air conditioners with remote monitoring and control capabilities, and a growing focus on sustainable and eco-friendly refrigerants. Despite these positive trends, market expansion may face some challenges. These include the high initial investment costs associated with these specialized systems, which can be a barrier to entry for smaller businesses, and potential fluctuations in raw material prices impacting overall production costs. Nevertheless, the long-term outlook for the constant temperature and humidity air conditioner market remains positive, propelled by continued technological innovation and rising demand across various sectors. The market segmentation, though not explicitly provided, likely includes variations based on capacity, type (split, packaged, etc.), and application (industrial, commercial, etc.), all contributing to market complexity and growth opportunities.

In 2023, the amount of air conditioning machines without refrigeration unit exported from South Korea soared to 30K units, growing by 81% on 2022 figures.

The constant temperature and humidity air conditioner market is experiencing robust growth, driven by increasing demand across various sectors. The market's expansion is fueled by several key factors. Firstly, the rising adoption of precision climate control in industries like pharmaceuticals, electronics, and data centers is a significant driver. These sectors require extremely stable environmental conditions for optimal product performance and data integrity, leading to a substantial increase in demand for high-precision air conditioning systems. Secondly, advancements in technology are contributing to improved energy efficiency and reduced operational costs, making these systems more attractive to businesses. Smaller, more efficient units, coupled with smart controls and remote monitoring capabilities, are enhancing the overall value proposition. Furthermore, growing awareness of the potential damage caused by temperature and humidity fluctuations on sensitive products is further propelling market expansion. We can estimate the market size in 2025 to be around $5 billion, based on a conservative projection considering industry growth trends and competitive landscape. Assuming a CAGR of 7% (a reasonable estimate given technological advancements and industry growth in similar sectors), the market is expected to reach approximately $8 billion by 2033. However, market growth is not without its challenges. High initial investment costs can be a significant barrier to entry for smaller businesses. The complexity of installation and maintenance also necessitates specialized expertise, adding to overall expenses. Furthermore, stringent environmental regulations regarding refrigerants are influencing product design and manufacturing, potentially impacting cost and availability. Despite these restraints, the long-term outlook for the constant temperature and humidity air conditioner market remains positive, driven by consistent technological improvements and the increasing demand from sectors that require precise climate control. Key players like H.Stars Group, Shenling, HICON, Hi Air Korea, Socoman, and Shitusi are expected to continue shaping the market landscape through innovation and strategic expansion.

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Data Center Precision Air Conditioning Market Size 2025-2029

The data center precision air conditioning market size is forecast to increase by USD 1.59 billion at a CAGR of 10% between 2024 and 2029.

The market is experiencing significant growth due to the increasing construction of data centers worldwide. With the digital transformation and the rise of cloud computing, there is a surging demand for advanced cooling solutions to maintain optimal operating temperatures and ensure data center efficiency. One such innovative cooling technology gaining traction is economizer-based precision cooling. This approach utilizes outside air when conditions permit, reducing energy consumption and costs. However, challenges remain in ensuring adaptability to varying climate conditions and maintaining consistent cooling performance. As businesses seek to capitalize on this market opportunity, it is crucial to address these challenges through technological advancements and strategic partnerships. Companies must also stay abreast of evolving regulations and industry trends to effectively navigate the competitive landscape and meet the growing demand for reliable and energy-efficient cooling solutions.

What will be the Size of the Data Center Precision Air Conditioning Market during the forecast period?

Request Free SampleThe market encompasses the supply and demand for advanced cooling solutions designed to maintain optimal temperatures and humidity levels in mission-critical facilities, including data centers, computer rooms, and telecommunications operators. With the increasing reliance on IT equipment and the expansion of fiber optic lines and satellite communications, the demand for precision cooling systems has d. Consumers seek to minimize network latency and ensure uninterrupted operations, particularly in remote areas. Operational expenses, including power usage effectiveness, have become a significant concern, driving the adoption of facility automation and energy-efficient cooling technologies. Traditional data centers and hyperscale facilities alike are exploring various cooling methods, such as artificial intelligence, machine learning, and cooling technologies like water-based, air-based, and immersion cooling, to optimize energy usage and reduce heat generation. Cooling systems play a pivotal role in ensuring the reliable operation of IT infrastructure and maintaining the performance of critical facilities.

How is this Data Center Precision Air Conditioning Industry segmented?

The data center precision air conditioning industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. DeploymentIn-row coolingIn-rack coolingCentralizedProductCRAC unitsCRAH unitsGeographyNorth AmericaUSCanadaAPACChinaIndiaJapanSouth KoreaEuropeFranceGermanyItalyUKMiddle East and AfricaSouth America

By Deployment Insights

The in-row cooling segment is estimated to witness significant growth during the forecast period.The market is experiencing growth due to the increasing demand for high-density IT environments in mission critical facilities and telecommunications operators. In-row cooling, a precision cooling solution, is gaining popularity as it allows for tailored cooling to specific rows, improving the efficiency of hot-aisle/cold-aisle rack layouts. This technology removes hot air from the hot aisle and supplies cold air in the cold aisle, ensuring top-to-bottom temperature uniformity. In-row cooling solutions are particularly beneficial in fiber optic lines, computer rooms, and server room environments, where minimal network latency is required. Operational expenses, such as Power Usage Effectiveness (PUE), are a significant concern for businesses, leading to the adoption of precision air conditioning systems in traditional data centers and hyperscale facilities. Cooling technologies, including in row cooling, in rack cooling, centralized cooling, and water based cooling, are being employed to reduce power consumption and IT administration costs. Furthermore, the integration of artificial intelligence (AI) and machine learning in cooling systems is expected to further optimize energy usage and reduce operational expenses. Precision air conditioners, such as outside unit, inside unit, CRAC units, and CRAH units, are essential components of these advanced cooling systems.

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The In-row cooling segment was valued at USD 990.40 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 40% 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 for

Statistics illustrates market overview of air conditioning machines; comprising a motor driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated in Democratic People's Republic of Korea from 2007 to 2024.