Australia Air Conditioner Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)

Australia Air Conditioner Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia air conditioner market size reached a value of nearly USD 2.24 billion in 2024. Aided by the growing demand for efficient cooling systems in both residential and commercial applications, the market is projected to grow at a CAGR of 5.60% between 2025 and 2034 to reach a value of around USD 3.87 billion by 2034.

Air conditioning units are essential in Australia, where extreme temperatures, especially during summer, drive the need for reliable cooling solutions. The market is influenced by factors such as climate change, technological advancements, and the rising focus on energy efficiency. Australian consumers are increasingly seeking advanced and energy-efficient air conditioning systems that offer superior performance while minimising energy consumption. This trend, along with the ongoing demand for climate control in urban and suburban areas, is expected to propel the Australia air conditioner market growth in the coming years.

In addition to climate and urbanisation, there is an increasing consumer preference for energy-efficient air conditioning units. This shift is being driven by heightened awareness about environmental sustainability, government regulations on energy use, and the increasing cost of electricity. Energy-efficient air conditioners, particularly those using newer refrigerants and incorporating smart technology, are gaining popularity due to their lower operating costs and reduced environmental impact. These systems not only help users reduce their carbon footprint but also provide long-term savings on electricity bills. This is creating a favourable Australia air conditioner market outlook.

Government incentives aimed at encouraging the use of energy-efficient appliances further boost the market for air conditioners. Australia's government has been actively promoting initiatives to reduce energy consumption in both residential and commercial sectors, encouraging the adoption of more efficient systems. As a result, there is a growing demand for air conditioners that meet energy efficiency standards and eco-friendly certifications, ensuring both environmental sustainability and cost-effectiveness. This is one of the key Australia air conditioner market trends.

Despite the robust growth potential, the market faces several challenges. One of the significant barriers is the high initial cost of advanced air conditioning systems. Although these systems offer long-term energy savings, the upfront investment can be a deterrent for many consumers, especially in a competitive market where low-cost options are also available. This presents a challenge for manufacturers and distributors aiming to expand their customer base.

Another challenge impacting the Australia air conditioner market dynamics is the increasing concern over the environmental impact of refrigerants used in traditional air conditioning systems. Older systems often use hydrofluorocarbons (HFCs) that have high global warming potential (GWP). However, the Australian government has been working to phase out the use of these refrigerants in favour of more sustainable options, such as hydrofluoroolefins (HFOs) and natural refrigerants. This transition requires significant investment in research, development, and production of alternative refrigerants, which may increase the cost of air conditioners.

One of the key Australia air conditioner market trends is the growing shift towards smart air conditioning systems. With the rise of IoT (Internet of Things) technology, many consumers are now opting for air conditioners that can be controlled remotely via smartphones or voice assistants. These smart air conditioners offer enhanced comfort, convenience, and energy management capabilities, allowing users to monitor and control their cooling systems from anywhere. The integration of artificial intelligence (AI) and machine learning (ML) into air conditioning systems further enhances their performance by enabling them to adapt to user preferences and optimise energy usage.

The rise of split systems and ductless air conditioners is another significant trend driving the Australia air conditioner market development. These systems offer flexibility, efficiency, and lower installation costs compared to traditional central air conditioning systems. With split systems, consumers can cool individual rooms or areas of their homes or offices, leading to better energy management and cost savings. This trend is particularly appealing to homeowners who want to avoid the high installation and maintenance costs associated with ducted air conditioning systems.

The Australia air conditioner market revenue is poised for significant growth in the coming years, driven by the increasing demand for energy-efficient, smart cooling solutions across residential, commercial, and industrial sectors. With a strong focus on sustainability, technological innovation, and the growing need for climate control in Australia's diverse environments, the market is expected to continue expanding.

Market Segmentation

The market can be divided based on type, technology, size, end use, distribution channel, and region.

Market Breakup by Type

  • Room AC
o Split AC

o Window AC
  • Ductless AC
o Ceiling Suspended

o Cassette

o Floor Standing
  • Ducted AC
o Rooftop Packaged

o Ceiling Concealed
  • Centralised AC
o VRF

o Chillers

o Condensing Unit

o AHU/FCV

o Others

Market Breakup by Technology
  • Automatic
  • Manual
Market Breakup by Size
  • <12K BTU
  • 12K-36K BTU
  • 36K-60K BTU
  • 60K+ BTU
Market Breakup by End Use
  • Residential
  • Commercial
Market Breakup by Distribution Channel
  • Multi-Brand Stores
  • Electronic Stores
  • Online
  • Others
Market Breakup by Region
  • New South Wales
  • Victoria
  • Queensland
  • Australian Capital Territory
  • Western Australia
  • Others
Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia air conditioner market. Some of the major players explored in the report by Expert Market Research are as follows:
  • LG Electronics Australia Pty Limited
  • Fisher & Paykel Australia Pty Limited
  • Daikin Australia Pty Limited
  • AHIC (Australia) Pty Ltd
  • Panasonic Australia Pty Limited
  • Others
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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.


1 Executive Summary
1.1 Market Size 224-225
1.2 Market Growth 225(F)-234(F)
1.3 Key Demand Drivers
1.4 Key Players and Competitive Structure
1.5 Industry Best Practices
1.6 Recent Trends and Developments
1.7 Industry Outlook
2 Market Overview and Stakeholder Insights
2.1 Market Trends
2.2 Key Verticals
2.3 Key Regions
2.4 Supplier Power
2.5 Buyer Power
2.6 Key Market Opportunities and Risks
2.7 Key Initiatives by Stakeholders
3 Economic Summary
3.1 GDP Outlook
3.2 GDP Per Capita Growth
3.3 Inflation Trends
3.4 Democracy Index
3.5 Gross Public Debt Ratios
3.6 Balance of Payment (BoP) Position
3.7 Population Outlook
3.8 Urbanisation Trends
4 Country Risk Profiles
4.1 Country Risk
4.2 Business Climate
5 Australia Air Conditioner Market Overview
5.1 Key Industry Highlights
5.2 Australia Air Conditioner Historical Market (218-224)
5.3 Australia Air Conditioner Market Forecast (225-234)
6 Australia Air Conditioner Market by Type
6.1 Room AC
6.1.1 Historical Trend (218-224)
6.1.2 Forecast Trend (225-234)
6.1.3 Breakup by Type
6.1.3.1 Spilt AC
6.1.3.2 Window AC
6.2 Ductless AC
6.2.1 Historical Trend (218-224)
6.2.2 Forecast Trend (225-234)
6.2.3 Breakup by Type
6.2.3.1 Ceiling Suspended
6.2.3.2 Cassette
6.2.3.3 Floor Standing
6.3 Ducted AC
6.3.1 Historical Trend (218-224)
6.3.2 Forecast Trend (225-234)
6.3.3 Breakup by Type
6.3.3.1 Rooftop Packaged
6.3.3.2 Ceiling Concealed
6.4 Centralized AC
6.4.1 Historical Trend (218-224)
6.4.2 Forecast Trend (225-234)
6.4.3 Breakup by Type
6.4.3.1 VRF
6.4.3.2 Chillers
6.4.3.3 Condensing Unit
6.4.3.4 AHU/FCV
6.4.3.5 Others
7 Australia Air Conditioner Market by Technology
7.1 Automatic
7.1.1 Historical Trend (218-224)
7.1.2 Forecast Trend (225-234)
7.2 Manual
7.2.1 Historical Trend (218-224)
7.2.2 Forecast Trend (225-234)
8 Australia Air Conditioner Market by Size
8.1 <12K BTU
8.1.1 Historical Trend (218-224)
8.1.2 Forecast Trend (225-234)
8.2 12K-36K BTU
8.2.1 Historical Trend (218-224)
8.2.2 Forecast Trend (225-234)
8.3 36K-6K BTU
8.3.1 Historical Trend (218-224)
8.3.2 Forecast Trend (225-234)
8.4 6K+ BTU
8.4.1 Historical Trend (218-224)
8.4.2 Forecast Trend (225-234)
9 Australia Air Conditioner Market by End Use
9.1 Residential
9.1.1 Historical Trend (218-224)
9.1.2 Forecast Trend (225-234)
9.2 Commercial
9.2.1 Historical Trend (218-224)
9.2.2 Forecast Trend (225-234)
1 Australia Air Conditioner Market by Distribution Channel
1.1 Mult-Brand Stores
1.1.1 Historical Trend (218-2024)
1.1.2 Forecast Trend (225-2034)
1.2 Electronic Stores
1.2.1 Historical Trend (218-2024)
1.2.2 Forecast Trend (225-2034)
1.3 Online
1.3.1 Historical Trend (218-2024)
1.3.2 Forecast Trend (225-2034)
1.4 Others
11 Australia Air Conditioner Market by Region
11.1 New South Wales
11.1.1 Historical Trend (218-224)
11.1.2 Forecast Trend (225-234)
11.2 Victoria
11.2.1 Historical Trend (218-224)
11.2.2 Forecast Trend (225-234)
11.3 Queensland
11.3.1 Historical Trend (218-224)
11.3.2 Forecast Trend (225-234)
11.4 Australian Capital Territory
11.4.1 Historical Trend (218-224)
11.4.2 Forecast Trend (225-234)
11.5 Western Australia
11.5.1 Historical Trend (218-224)
11.5.2 Forecast Trend (225-234)
11.6 Others
12 Market Dynamics
12.1 SWOT Analysis
12.1.1 Strengths
12.1.2 Weaknesses
12.1.3 Opportunities
12.1.4 Threats
12.2 Porter’s Five Forces Analysis
12.2.1 Supplier’s Power
12.2.2 Buyer’s Power
12.2.3 Threat of New Entrants
12.2.4 Degree of Rivalry
12.2.5 Threat of Substitutes
12.3 Key Indicators for Demand
12.4 Key Indicators for Price
13 Value Chain Analysis
14 Trade Data Analysis (HS Code - 841583)
14.1 Major Importing Countries
14.1.1 By Volume
14.1.2 By Value
14.2 Major Exporting Countries
14.2.1 By Volume
14.2.2 By Value
15 Price Analysis
16 Competitive Landscape
16.1 Supplier Selection
16.2 Key Global Players
16.3 Key Regional Players
16.4 Key Player Strategies
16.5 Company Profiles
16.5.1 LG Electronics Australia Pty Limited
16.5.1.1 Company Overview
16.5.1.2 Product Portfolio
16.5.1.3 Demographic Reach and Achievements
16.5.1.4 Certifications
16.5.2 Fisher & Paykel Australia Pty Limited
16.5.2.1 Company Overview
16.5.2.2 Product Portfolio
16.5.2.3 Demographic Reach and Achievements
16.5.2.4 Certifications
16.5.3 Daikin Australia Pty Limited
16.5.3.1 Company Overview
16.5.3.2 Product Portfolio
16.5.3.3 Demographic Reach and Achievements
16.5.3.4 Certifications
16.5.4 AHIC (Australia) Pty Ltd
16.5.4.1 Company Overview
16.5.4.2 Product Portfolio
16.5.4.3 Demographic Reach and Achievements
16.5.4.4 Certifications
16.5.5 Panasonic Australia Pty Limited
16.5.5.1 Company Overview
16.5.5.2 Product Portfolio
16.5.5.3 Demographic Reach and Achievements
16.5.5.4 Certifications
16.5.6 Others

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