Market Overview:
The global air conditioning system market was worth US$ 114 Billion in 2019. An air conditioning (AC) system is a compressor-based refrigerant machine that functions by removing heat and moisture from the air and replacing it with cooler air in an enclosed space. Generally, the system comprises a compressor, evaporator and condenser coils, fan, and chemical refrigerant. The AC system creates a comfortable environment that helps in increasing human efficiency, along with circulating filtered air inside a confined space by restraining the entry of dust particles or smoke. Due to this, these systems are widely installed across the residential, commercial, and industrial spaces.
Over the years, there has been an increase in the construction of residential complexes, shopping malls, hospitals, hotels, multiplexes and auditoriums, particularly in emerging regions like Asia Pacific, the Middle East, North Africa and Latin America. This has further increased the demand for AC systems for cooling and maintaining indoor air quality. Additionally, rising environmental concerns and various governmental regulations for reducing carbon emissions have led to increased consumer inclination toward energy-efficient and green AC systems globally. In addition to this, the launch of various government initiatives for promoting the need for eco-friendly product variants has also augmented the market growth. For instance, the ‘Super-Efficient Air Conditioning Program’ was launched by the Energy Efficiency Services Limited, Government of India, for replacing conventional AC systems with their new and eco-friendly counterparts. Moreover, with the advent of the latest technologies, several manufacturers are introducing R-22 free systems to minimize heat emissions, thereby providing a positive thrust to the market. However, there has been a decline in the sales of AC systems due to the spread of the coronavirus disease (COVID-19) as the exports of AC components from China remain suspended. Looking forward, IMARC Group expects the market value to reach US$ 110 Billion by 2025, growing at a CAGR of 9.80% during the forecast period (2020-2025).
Energy Efficiency Services Limited by the Government of India has launched the Super-Efficient Air Conditioning Program to replace conventional AC systems with newer and eco-friendly variants that help reduce carbon emissions. Moreover, manufacturers have developed smart and connected variants that can be integrated with advanced technologies and operated using voice commands. Other factors, such as inflating income levels, along with growth in the automotive sector, are also providing a positive impact on the market. However, there has been a decline in the sales of AC systems due to the spread of the coronavirus disease (COVID-19) as the exports of AC components from China remain suspended.
With the rising number of housing projects, shopping malls, hospitals, hotels, multiplexes and auditoriums, there has been a significant increase in the demand for AC systems. These systems are also installed across various workspaces to improve the working conditions and enhance the overall productivity of the employees. Besides this, rising environmental concerns have encouraged governments to introduce initiatives that help in promoting the need for green product variants.
Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the global air conditioning system market report, along with forecasts for growth at the global, regional and country level from 2020-2025. Our report has categorized the market based on region, type, service, organization size, and verticle.
Breakup by Product Type:
Based on the product, the market has been segregated into unitary, rooftop, PTAC and others. The Unitary air conditioning (UAC) system currently represents the most popular product type. It consists of the ductless split, ducted split and rooftop ACs, as well as variable refrigerant flow (VRF) systems and self-contained units. With the ever-expanding residential sector, the demand for UAC systems has escalated across the globe.
- Unitary
- Rooftop
- PTAC
- Others
The advantages such as, flexibility, cost-effectiveness and improved indoor air quality are expected to positively strong the growth.
Breakup by Distribution Channel:
On the basis of the distribution channel, the majority of AC systems are distributed through specialty stores. These stores provide higher service quality and expert guidance to customers and maintain considerable depth in the type of product they specialize in selling.
- Specialty Stores
- Supermarkets and Hypermarkets
- Online
- Others
Breakup by Technology:
Nowadays, consumers prefer AC systems with inverter technology over conventional or non-inverter variants due to the rising awareness about the need to adopt energy-efficient AC systems and with inverter technology as they use a variable speed compressor to save energy up to 50% more than the regular or non-inverter AC systems.
- Inverter
- Non-Inverter
- Automotive
The inverter segment held the largest market share and additionally, various benefits such as cost-effectiveness, capability to operate at flexible speeds, adjust tonnage based on heat load are preferring growth prospects of the segment. The non-inverter segment can be attributed factors such as fluctuating frequencies, high energy consumption and less lifecycle.
Breakup by End Use:
At present, there has been an increase in the use of AC systems in the residential sector on account of the growing replacement and refurbishment activities.
- Residential
- Commercial
- Industrial
The benefits of residential air conditioner systems are used in small places such as small restaurants, saloon, stores, and home. The growth of commercial air conditioner system segment is buildings, hotels, hospitals, offices, schools, colleges, education centres, and other.
Breakup by Region:
- North America
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Middle East and Africa
Asia Pacific currently exhibits a clear dominance in the market. This can be attributed to the advancement in technologies and the development of innovative product variants by manufacturers.
Competitive Landscape:
The competitive landscape of the industry has also been examined with some of the air conditioning system companies are being Carrier Corporation, DAIKIN INDUSTRIES, Ltd., Electrolux North America, Inc., Haier Group Corporation, Hitachi-Johnson Controls Air Conditioning Inc., Lennox International Inc., LG Electronics Inc., Midea Group Co., Ltd., Mitsubishi Electric Corporation, Panasonic Corporation, Samsung Electronics Co. Ltd., etc.
Key Questions Answered in This Report:
The global air conditioning system market was worth US$ 114 Billion in 2019.
As per IMARC Group estimates, the market will reach a value of US$ 110 Billion by 2025.
The global air conditioning market is primarily driven by the rising number of housing projects, the introduction of R-22 free air conditioning systems, and increasing consumer inclination toward energy-efficient and green AC system.
Leading air conditioning manufacturers are Carrier Global Corporation, Daikin Industries, Ltd., Electrolux Home Products, Inc., Haier Group, Hitachi-Johnson Controls Air Conditioning, Inc., Lennox International Inc., LG Electronics, Inc., Midea Group, Mitsubishi Electric Corporation, Panasonic Corporation and Samsung Electronics, Co. Ltd.
At present, most AC systems are distributed through specialty stores as they focus on selling a particular product range and associated items and provide better services and expert guidance to consumers.
The air conditioning system market is anticipated to exhibit a CAGR of 9.80% during 2020-2025.
Nowadays, consumers prefer AC systems with inverter technology that utilize a variable speed compressor to save energy and power up to 50%.
On the basis of the end use, there has been increasing use of AC systems in the residential sector due to the improvements in housing standards.
Asia Pacific currently exhibits a clear dominance in the market as the climate across the region is characterized by long hot summers, which has escalated the demand for lifestyle products, like AC systems.
1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 Global Air Conditioning System Market
5.1 Market Overview
5.2 Market Performance
5.3 Market Forecast
6 Market Breakup by Product
6.1 Unitary
6.1.1 Market Trends
6.1.2 Market Forecast
6.2 Rooftop
6.2.1 Market Trends
6.2.2 Market Forecast
6.3 PTAC
6.3.1 Market Trends
6.3.2 Market Forecast
6.4 Others
6.4.1 Market Trends
6.4.2 Market Forecast
7 Market Breakup by Distribution Channel
7.1 Specialty Stores
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Supermarkets and Hypermarkets
7.2.1 Market Trends
7.2.2 Market Forecast
7.3 Online
7.3.1 Market Trends
7.3.2 Market Forecast
7.4 Others
7.4.1 Market Trends
7.4.2 Market Forecast
8 Market Breakup by Technology
8.1 Inverter
8.1.1 Market Trends
8.1.2 Market Forecast
8.2 Non-Inverter
8.2.1 Market Trends
8.2.2 Market Forecast
9 Market Breakup by End Use
9.1 Residential
9.1.1 Market Trends
9.1.2 Market Forecast
9.2 Commercial
9.2.1 Market Trends
9.2.2 Market Forecast
9.3 Industrial
9.3.1 Market Trends
9.3.2 Market Forecast
10 Market Breakup by Region
10.1 North America
10.1.1 United States
10.1.1.1 Market Trends
10.1.1.2 Market Forecast
10.1.2 Canada
10.1.2.1 Market Trends
10.1.2.2 Market Forecast
10.2 Asia Pacific
10.2.1 China
10.2.1.1 Market Trends
10.2.1.2 Market Forecast
10.2.2 Japan
10.2.2.1 Market Trends
10.2.2.2 Market Forecast
10.2.3 India
10.2.3.1 Market Trends
10.2.3.2 Market Forecast
10.2.4 South Korea
10.2.4.1 Market Trends
10.2.4.2 Market Forecast
10.2.5 Australia
10.2.5.1 Market Trends
10.2.5.2 Market Forecast
10.2.6 Indonesia
10.2.6.1 Market Trends
10.2.6.2 Market Forecast
10.2.7 Others
10.2.7.1 Market Trends
10.2.7.2 Market Forecast
10.3 Europe
10.3.1 Germany
10.3.1.1 Market Trends
10.3.1.2 Market Forecast
10.3.2 France
10.3.2.1 Market Trends
10.3.2.2 Market Forecast
10.3.3 United Kingdom
10.3.3.1 Market Trends
10.3.3.2 Market Forecast
10.3.4 Italy
10.3.4.1 Market Trends
10.3.4.2 Market Forecast
10.3.5 Spain
10.3.5.1 Market Trends
10.3.5.2 Market Forecast
10.3.6 Russia
10.3.6.1 Market Trends
10.3.6.2 Market Forecast
10.3.7 Others
10.3.7.1 Market Trends
10.3.7.2 Market Forecast
10.4 Latin America
10.4.1 Brazil
10.4.1.1 Market Trends
10.4.1.2 Market Forecast
10.4.2 Mexico
10.4.2.1 Market Trends
10.4.2.2 Market Forecast
10.4.3 Others
10.4.3.1 Market Trends
10.4.3.2 Market Forecast
10.5 Middle East and Africa
10.5.1 Market Trends
10.5.2 Market Breakup by Country
10.5.3 Market Forecast
11 SWOT Analysis
11.1 Overview
11.2 Strengths
11.3 Weaknesses
11.4 Opportunities
11.5 Threats
12 Value Chain Analysis
12.1 Overview
12.2 Inbound Logistics
12.3 Operations
12.4 Outbound Logistics
12.5 Marketing and Sales
12.6 Service
13 Porters Five Forces Analysis
13.1 Overview
13.2 Bargaining Power of Buyers
13.3 Bargaining Power of Suppliers
13.4 Degree of Competition
13.5 Threat of New Entrants
13.6 Threat of Substitutes
14 Price Analysis
15 Competitive Landscape
15.1 Market Structure
15.2 Key Players
15.3 Profiles of Key Players
15.3.1 Carrier Corporation
15.3.1.1 Company Overview
15.3.1.2 Product Portfolio
15.3.2 DAIKIN INDUSTRIES, Ltd.
15.3.2.1 Company Overview
15.3.2.2 Product Portfolio
15.3.3.3 Financials
15.3.3.4 SWOT Analysis
15.3.3 Electrolux North America, Inc.
15.3.3.1 Company Overview
15.3.3.2 Product Portfolio
15.3.4 Haier Group Corporation
15.3.4.1 Company Overview
15.3.4.2 Product Portfolio
15.3.5 Hitachi-Johnson Controls Air Conditioning Inc.
15.3.5.1 Company Overview
15.3.5.2 Product Portfolio
15.3.6 Lennox International Inc.
15.3.6.1 Company Overview
15.3.6.2 Product Portfolio
15.3.6.3 Financials
15.3.6.4 SWOT Analysis
15.3.7 LG Electronics Inc.
15.3.7.1 Company Overview
15.3.7.2 Product Portfolio
15.3.7.3 Financials
15.3.7.4 SWOT Analysis
15.3.8 Midea Group Co., Ltd.
15.3.8.1 Company Overview
15.3.8.2 Product Portfolio
15.3.8.3 Financials
15.3.9 Mitsubishi Electric Corporation
15.3.9.1 Company Overview
15.3.9.2 Product Portfolio
15.3.9.3 Financials
15.3.9.4 SWOT Analysis
15.3.10 Panasonic Corporation
15.3.10.1 Company Overview
15.3.10.2 Product Portfolio
15.3.10.3 Financials
15.3.10.4 SWOT Analysis
15.3.11 Samsung Electronics Co. Ltd.
15.3.11.1 Company Overview
15.3.11.2 Product Portfolio
15.3.11.3 Financials
15.3.11.4 SWOT Analysis
List of Figures
Figure 1: Global: Air Conditioning System Market: Major Drivers and Challenges
Figure 2: Global: Air Conditioning System Market: Sales Value (in Billion US$), 2014-2019
Figure 3: Global: Air Conditioning System Market: Breakup by Product Type(in %), 2019
Figure 4: Global: Air Conditioning System Market: Breakup by Distribution Channel (in %), 2019
Figure 5: Global: Air Conditioning System Market: Breakup by Technology (in %), 2019
Figure 6: Global: Air Conditioning System Market: Breakup by End Use (in %), 2019
Figure 7: Global: Air Conditioning System Market: Breakup by Region (in %), 2019
Figure 8: Global: Air Conditioning System Market Forecast: Sales Value (in Billion US$), 2020-2025
Figure 9: Global: Air Conditioning System (Unitary) Market: Sales Value (in Million US$), 2014 & 2019
Figure 10: Global: Air Conditioning System (Unitary) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 11: Global: Air Conditioning System (Rooftop) Market: Sales Value (in Million US$), 2014 & 2019
Figure 12: Global: Air Conditioning System (Rooftop) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 13: Global: Air Conditioning System (PTAC) Market: Sales Value (in Million US$), 2014 & 2019
Figure 14: Global: Air Conditioning System (PTAC) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 15: Global: Air Conditioning System (Other Product Types) Market: Sales Value (in Million US$), 2014 & 2019
Figure 16: Global: Air Conditioning System (Other Product Types) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 17: Global: Air Conditioning System (Specialty Stores) Market: Sales Value (in Million US$), 2014 & 2019
Figure 18: Global: Air Conditioning System (Specialty Stores) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 19: Global: Air Conditioning System (Supermarkets and Hypermarkets) Market: Sales Value (in Million US$), 2014 & 2019
Figure 20: Global: Air Conditioning System (Supermarkets and Hypermarkets) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 21: Global: Air Conditioning System (Online) Market: Sales Value (in Million US$), 2014 & 2019
Figure 22: Global: Air Conditioning System (Online) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 23: Global: Air Conditioning System (Other Distribution Channels) Market: Sales Value (in Million US$), 2014 & 2019
Figure 24: Global: Air Conditioning System (Other Distribution Channels) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 25: Global: Air Conditioning System (Inverter) Market: Sales Value (in Million US$), 2014 & 2019
Figure 26: Global: Air Conditioning System (Inverter) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 27: Global: Air Conditioning System (Non-Inverter) Market: Sales Value (in Million US$), 2014 & 2019
Figure 28: Global: Air Conditioning System (Non-Inverter) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 29: Global: Air Conditioning System (Residential) Market: Sales Value (in Million US$), 2014 & 2019
Figure 30: Global: Air Conditioning System (Residential) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 31: Global: Air Conditioning System (Commercial) Market: Sales Value (in Million US$), 2014 & 2019
Figure 32: Global: Air Conditioning System (Commercial) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 33: Global: Air Conditioning System (Industrial) Market: Sales Value (in Million US$), 2014 & 2019
Figure 34: Global: Air Conditioning System (Industrial) Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 35: North America: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 36: North America: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 37: United States: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 38: United States: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 39: Canada: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 40: Canada: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 41: Asia Pacific: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 42: Asia Pacific: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 43: China: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 44: China: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 45: Japan: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 46: Japan: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 47: India: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 48: India: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 49: South Korea: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 50: South Korea: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 51: Australia: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 52: Australia: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 53: Indonesia: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 54: Indonesia: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 55: Others: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 56: Others: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 57: Europe: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 58: Europe: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 59: Germany: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 60: Germany: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 61: France: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 62: France: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 63: United Kingdom: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 64: United Kingdom: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 65: Italy: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 66: Italy: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 67: Spain: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 68: Spain: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 69: Russia: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 70: Russia: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 71: Others: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 72: Others: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 73: Latin America: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 74: Latin America: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 75: Brazil: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 76: Brazil: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 77: Mexico: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 78: Mexico: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 79: Others: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 80: Others: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 81: Middle East and Africa: Air Conditioning System Market: Sales Value (in Million US$), 2014 & 2019
Figure 82: Middle East and Africa: Air Conditioning System Market Forecast: Sales Value (in Million US$), 2020-2025
Figure 83: Global: Air Conditioning System Industry: SWOT Analysis
Figure 84: Global: Air Conditioning System Industry: Value Chain Analysis
Figure 85: Global: Air Conditioning System Industry: Porter’s Five Forces Analysis
List of Tables
Table 1: Global: Air Conditioning System Market: Key Industry Highlights, 2019 and 2025
Table 2: Global: Air Conditioning System Market Forecast: Breakup by Product Type(in Million US$), 2020-2025
Table 3: Global: Air Conditioning System Market Forecast: Breakup by Distribution Channel (in Million US$), 2020-2025
Table 4: Global: Air Conditioning System Market Forecast: Breakup by Technology (in Million US$), 2020-2025
Table 5: Global: Air Conditioning System Market Forecast: Breakup by End Use (in Million US$), 2020-2025
Table 6: Global: Air Conditioning System Market Forecast: Breakup by Region (in Million US$), 2020-2025
Table 7: Global: Air Conditioning System Market: Competitive Structure
Table 8: Global: Air Conditioning System Market: Key Players