Air Conditioning (Ac) Market Size to grow by USD 14.8 billion between 2024-2028
According to a research report “ Air Conditioning (Ac) Market” by Product (Splits, Chillers, Airside, Others) Distribution Channel (Offline, Online) Geography (APAC, Europe, North America, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 14.8 billion, at a CAGR of 2.15% during the forecast period. The global residential real estate market has experienced a notable resurgence, with construction activity significantly increasing due to factors such as low-interest rates, a surge in demand for affordable housing, and government incentives. Direct investment in real estate nearly doubled from USD710 billion in 2014 to USD9.6 trillion in 2019. This trend is anticipated to continue, driving construction projects and infrastructure development. Despite a temporary setback following the housing market collapse in 2008, the residential construction sector is regaining momentum and is now a key growth area within the construction industry.
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By Product, the Splits segment is projected to dominate the market size in 2024
In the Air Conditioning (AC) market, the offline distribution channel represents a significant segment, encompassing traditional brick-and-mortar retail stores, wholesalers, and distributors. These channels provide a tangible shopping experience for customers, enabling them to examine products firsthand before making a purchase. Key components of this distribution network include: 1. Physical stores: This category comprises large chain outlets, such as supermarkets and hypermarkets, independent appliance retailers, and electronics stores. 2. Wholesalers: These entities procure AC units in substantial quantities and sell them to retailers, ensuring a steady supply and competitive pricing. 3. Distributors: Acting as intermediaries, distributors facilitate the connection between manufacturers and retailers, supplying products to retailers and ensuring regional availability. Additionally, specialty retailers and a direct-to-consumer (D2C) format are integral parts of the offline distribution network. Specialty stores cater to niche markets by offering diverse brand selections and product portfolios. D2C channels enable manufacturers to sell their products directly to consumers, bypassing intermediaries and potentially offering more competitive pricing.
By Distribution Channel, Offline segment is expected to hold the largest market size for the year 2024
The Air Conditioning (AC) market is experiencing significant growth, particularly in the segment of split air conditioners. This trend is driven by the replacement of outdated window units with more energy-efficient and aesthetically pleasing split air conditioners. Major vendors, such as Samsung, have ceased production of window AC units and instead focus on split ACs to meet the increasing demand from customers. Inverter-based split air conditioners are increasingly preferred due to their energy efficiency. The market has seen a decline in demand for ducted standard split air conditioners compared to non-ducted standard splits. Japanese-style mini-splits are gaining popularity over ducted splits, particularly in regions like North America, as awareness of their energy efficiency benefits grows. Additionally, the demand for refurbished split air conditioners is expected to rise, as organizations and individuals strive to meet LEED certifications and reduce energy consumption by replacing outdated systems.
APAC is forecasted to hold the largest market size by region in 2024
The Air Conditioning (AC) market represents a significant business opportunity, with increasing demand driven by rising temperatures and growing awareness of indoor air quality. Key players in this sector include Carrier, Daikin, and LG, who are investing in innovation to meet consumer needs for energy efficiency and smart technology integration. The global market size is projected to reach USD223.4 billion by 2027, reflecting a CAGR of 5.5% from 2020 to 2027.
The Air Conditioning (Ac) Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Air Conditioning (AC) market is witnessing significant growth due to increasing urbanization and rising temperatures worldwide. Two major segments of the AC market are Residential and Commercial. In the Residential segment, Split ACs and Room ACs with windows are popular choices. In the Commercial segment, large-scale applications such as Healthcare facilities, Retail spaces, Office buildings, and Urban commercial spaces require packaged air conditioners for maintaining optimal Indoor air quality and User comfort. Humidity levels and pollutants are major concerns in both residential and commercial settings. Air filtration systems and smart technology are becoming essential features in ACs to address these issues. NanoeX technology, for instance, helps eliminate allergens and pollutants while maintaining energy efficiency. The AC business is also becoming more ecologically conscious, with a focus on using recycled materials and smart technology to reduce energy consumption. Developing nations are expected to drive market growth due to urbanization and the need for cooling solutions. Smartphones and IoT integration are also influencing the market, with smart air conditioners allowing users to control their ACs remotely. Global temperatures continue to rise, making air conditioners an essential commodity for maintaining health and productivity in various commercial spaces.
Market Research Overview
The Air Conditioning (AC) market is witnessing significant collaborations and partnerships, mergers and acquisitions, and technological innovations. Key players in the industry are focusing on product launches and integrating automatic technology with manual technology to cater to both industrial and residential segments. The market encompasses various types of AC systems, including chillers, VRF, centralized AC, ductless AC, ducted AC, split AC, room AC windows, and more. The commercial segment, driven by urbanization and changing climate patterns, is a major contributor to the market's growth. Innovations such as energy-efficient solutions, humidity levels control, air filtration systems, and smart technology are enhancing user comfort and indoor air quality. Ecologically conscious goods, like air conditioners using recycled materials and energy-efficient designs, are gaining popularity. Technological advancements like inverter technology, non-inverter technology, and smart technology, such as NanoeX technology, are shaping the future of the AC business. The market's distribution channels include direct sales, retail shops, online retail, and exclusive stores. Energy efficiency standards and energy efficient designs are crucial factors influencing consumer decisions. Air conditioners are essential in various sectors like data centers, healthcare facilities, retail spaces, office buildings, and residential buildings. The market's growth is influenced by urban heat, global temperatures, and the increasing demand for energy-efficient solutions. Key players include Carrier, Daikin, LG, Panasonic, and Samsung, among others. The market's future looks promising with continuous technological advancements and the increasing importance of indoor air quality and user comfort.
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