The global air conditioning systems market primarily includes room, unitary, and rooftop air conditioners. Room air conditioning units are freestanding or through-the-wall units designed to cool a single room, while unitary air conditioners are designed to cool an entire building. Rooftop units are packaged, factory-assembled, climate-control systems mounted on the roof of buildings. Air conditioning systems provide thermal comfort and indoor air quality through temperature control, filtration, and moisture management to buildings. Rapid growth in construction activities globally is fueling the demand for air conditioning systems for residential as well as commercial sectors like offices, shopping malls, hotels, and hospitals.
The Global Air Conditioning Systems Market is estimated to be valued at US$ 339.25 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the air conditioning systems market are Jazz Pharmaceuticals, Inc. (Ireland) and Daikin Industries Ltd. (Japan). Jazz Pharmaceuticals is a specialty biopharmaceutical company focused on developing and commercializing innovative products that address unmet medical needs. Daikin Industries is a major manufacturer of air conditioning equipment, refrigerants, and chemicals.
The growing construction of residential buildings across developing nations is also driving demand for air conditioning systems. Rapid urbanization along with rising disposable incomes has boosted residential infrastructure development in these regions. Furthermore, the increase in industrial and commercial construction is also augmenting the sales of air conditioning systems for large spaces such as factories, warehouses, shopping malls, and office buildings.
Technological advancements are also supporting the Air Conditioning Systems Market Size growth. Manufacturers are developing advanced solutions such as variable refrigerant flow (VRF) systems, ductless mini-split systems, and inverter air conditioning units for improved efficiency and performance. The VRF technology enables independent temperature control for multiple indoor units connected to a single outdoor compressor unit and offers flexibility and energy savings.
Market Trends
The rising adoption of green technologies in air conditioning systems is one key trend seen in the market. Manufacturers are focusing on energy-efficient and eco-friendly products to reduce carbon footprint and electrical consumption. They are utilizing technologies like inverter compressors, R-32 refrigerant and features such as auto cleaning functions, self-diagnosis, and sleep modes.
Another trend gaining traction is the increasing integration of IoT and smart home technology with air conditioners. Players are introducing Wi-Fi-enabled connected AC units that can be operated and monitored remotely via mobile apps and voice assistants like Amazon Alexa. This allows remote control of settings, scheduling, automated operations, and diagnosis of errors.
Market Opportunities
Rising infrastructure spending on commercial projects in developing countries provides major opportunities. Governments across Asia Pacific and Latin America are significantly investing in new constructions of malls, IT parks, clinics, hotels, and urban centers, spurring demand for HVAC solutions.
Growing popularity of smart and smart-home IoT devices among consumers also presents opportunities. As consumer preferences shift towards smart and automated household solutions, integrating more advanced technologies into air conditioning units will appeal to buyers. This allows players to command premium prices and gain market share through unique value additions.
Impact of COVID-19 on Air Conditioning Systems Market Growth
The COVID-19 pandemic has significantly impacted the growth of the global air conditioning systems market. During the lockdown periods imposed across various countries to contain the spread of the virus, construction activities came to a halt. This disrupted the supply chain and production of air conditioning systems. The demand from the commercial sector including retail outlets, offices, hotels also nose-dived as these establishments remained shut for most part of 2020 and 2021.
However, as restrictions eased in late 2021 and 2022, the market has started rebounding. With summers arriving, demand for air conditioning picked up in the residential sector. Manufacturers ramped up production to meet this demand. There has also been a growing focus on good indoor ventilation and controls to curb the spread of airborne diseases. This has pushed the adoption of advanced air conditioning systems equipped with better filtration and purification technologies. More construction projects are in the pipeline in 2022 and 2023 indicating a revival in commercial sector demand.
Going forward, manufacturers are expected to focus on development of energy-efficient and sustainable air conditioning solutions. Strict energy efficiency standards being adopted across countries will accelerate this shift. The pandemic has also increased health consciousness which is driving innovations around air quality management and control. Technologies around IoT integration, remote monitoring and automation will see greater investments to enable contactless operation and management of air conditioning systems.
In terms of regions, North America accounted for the largest share of the global air conditioning systems market in terms of value in the pre-COVID era led by countries like the United States. This was attributed to severe summer weather conditions necessitating higher usage of air conditioners. The region is recovering faster than others from the pandemic disruptions led by economic revival.
The Asia Pacific region has emerged as the fastest growing market for air conditioning systems in the recent years with China and India being the major country-level markets. Favorable government policies promoting energy efficiency, rapid urbanization, growing construction activities and rising disposable incomes were driving this growth. The region is poised to return to its healthy growth trajectory in the coming years supported by measures adopted by various governments to stimulate economic activities impacted by COVID-19.
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