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The global air conditioning system market is expected to exhibit moderate growth during 2021-2026. 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 global air conditioning system market to grow at a CAGR of around 5% during the forecast period (2021-2026).
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 2021-2026. Our report has categorized the market based on region, product type, distribution channel, technology and end use.
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.
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.
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.
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.
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:
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.
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.
According to the estimates by IMARC Group, the global air conditioning system market is expected to witness a CAGR of 5% from 2021 to 2026.
Growing number of construction activities pertaining to residential complexes, shopping malls, hospitals, hotels, multiplexes, and auditoriums, is propelling the demand for air conditioning systems across the globe.
Increasing consumer inclination towards energy-efficient and smart air conditioning systems based on the rising environmental concerns and implementation of various governmental regulations for reducing carbon emissions, is one of the major key trends in the global air conditioning system market.
The market experienced a negative growth on account of the sudden outbreak of the COVID-19 pandemic as strict lockdowns across several nations had led to disrupted supply chains and temporary shutdown of various manufacturing units for air conditioning system.
On the basis of the product type, the market has been bifurcated into unitary, rooftop, PTAC and others. Currently, unitary air conditioning (UAC) system holds the majority of the total market share.
On the basis of the distribution channel, the market has been bifurcated into specialty stores, supermarkets and hypermarkets, online and others. Among these, specialty stores represent the largest segment.
Based on the technology, the market has been segmented into inverter and non-inverter. At present, inverter technology exhibits a clear dominance in the market.
Based on the end use, the market has been segmented into residential, commercial, and industrial. Currently, residential sector holds the majority of the total market share.
Region-wise, the market has been classified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America, where Asia Pacific dominates the global market.
The key companies in the global air conditioning system market are 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.
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