US Air Conditioner Market 2022-2028

US Air Conditioner Market 2022-2028

The US air conditioning (AC) market is expected to grow at a CAGR of 3.7% during the forecast period (2022-2028). The US air conditioner market was valued at $25.6 billion in 2021 and is anticipated to reach $xx billion during the forecast period. The AC sales were decreased by 3.4% in 2021 due to the COVID-19 pandemic. The sudden outbreak of the COVID-19 adversely affected the US AC industry due to the shutting down of several component manufacturing facilities across the US. This has consequently led to a significant slowdown in the production and installation of AC equipment. Lockdowns imposed by the US governments concerning the COVID-19 pandemic have not only affected the manufacturing but also pegged back the consumer demand for the air conditioning system. The COVID-19 was emerged in December 2021 and with time, the world has witnessed a colossal upsurge in the number of new cases. As the situation stands in September 2021, the US has overtaken all the countries with cases nearing 44 million and mortalities registered were 715,000. An AC is a highly seasonal sales product, with the March-August period in a calendar year accounting for 70% of the business. And the three-month period during September-November accounts for 50% of the total sales in a calendar year. The surging COVID-19 cases in the peak season had impacted the sales of the AC in the country. For instance, in 2021, Carrier Global Corp. generated a considerable share of 51.5% of its revenue from the US market, however, in 2021, Carrier's second-quarter sales were $4.0 billion, down by 20% as compared to last year. This decline was primarily led by the COVID-19 pandemic across all businesses.

In terms of application, the residential ACs segment held the largest market share in 2021. Residential ACs include split ACs, window ACs, and others. The market for residential ACs is estimated to grow at a CAGR of 3.9% during the forecast period. The demand for ACs in the automotive sector has also increased. The market for automotive ACs is estimated to reach grow at the highest CAGR of 4.0% during the forecast period. The demand for smaller cars has grown with an almost double-digit growth rate and it has resulted in higher demand for automotive ACs. Further, Daikin—the world’s largest air conditioner manufacturer by sales and the leading producer of refrigerant is expected to enter the automotive AC market with its new technology and is anticipating that the supply chain will change dramatically with the shift to EVs. Some of the major players contributing to the growth of the US AC market include Goodman Manufacturing Co. (Daikin Group), Honeywell International Inc., Johnson Controls International PLC, Lennox International Inc., Rheem Manufacturing Co., Whirlpool Corp., Trane Inc., and United Technologies Corp., among others. Furthermore, the market players are adopting various strategies to stay competitive in the market, these strategies include innovations, product launching, investments, and expansion. These companies are embarking on aggressive strategies such as partnerships and product launches in the US AC market to gain the leading position in the country.

Recent Developments-

● In August 2021, Renovate America announced to partner with Nortek Global HVAC. The partnership will enable contractors to offer affordable financing plans for residential home improvement projects with a seamless in-home sales experience for both homeowners and contractors.

● In May 2021, Carrier launched two new flagship products, both with Greenspeed Intelligence – the Carrier Infinity 26 air conditioner and the Carrier Infinity 24 heat pump, which offers both heating and cooling capabilities. These new products offer outstanding energy efficiency for long-term savings on heating and cooling costs plus efficiency-based rebates where available.

● In March 2021, Whirlpool introduced a new range of air conditioners that support voice and Wi-Fi. The new air conditioners come with comprehensive offerings including the revolutionary 3D cool technology, smart Google & Wi-Fi connections, and overall aesthetic appeal connecting consumers to the future of cooling.

● In April 2021, Daikin announced to underwrite around $2 million for a capital increase through third-party allocation by Silicon Valley-based startup Locix, Inc. As part of a key element from its strategic management plan Fusion 20 (ending in 2021), Daikin aims to accelerate its air conditioning solutions business and create new customer value by connecting air conditioning devices to networks and analyzing big data related to air conditioning.

● In February 2021, Honeywell announced the launch of Solstice N15 (R-515B), a new, A1 nonflammable, and low-global-warming potential (LGWP) refrigerant replacement for R-134a for use in chillers and heat pumps. Danfoss has adopted Solstice N15 for its use in its new Turbocor TGS490 compressor, which may be applied in both air and water-cooled chiller applications for air conditioning.