Global Air Conditioning Market 2022-2028

Global Air Conditioning Market 2022-2028

Global Air Conditioner (AC) demand has surged in the past decade (since 2010) in the Asia Pacific region, which has led to the total unit shipment of ACs touching the 100 million mark in 2021. The global demand led by china is expected to be over 147 million (units) by 2028. Rising urbanization in developing nations particularly in China, India, South-East Asian Nations (Thailand, Indonesia, Malaysia and others), Brazil, Mexico, Turkey and South Africa is a major driver. Increasing disposable income in these nations along with tropical weather are the other major factor. Developed nations such the U.S. and Western European nations have witnessed higher installation of HVAC (heating, ventilation and air conditioning), packaged AC and centralised AC systems as compared to other regions which are more inclined towards Split and Window AC. Hence, the demand of ACs is saturated in North America and Europe which is evident from the considerably lower CAGR of 3.1% and 2.1% respectively during the forecast period.

In terms of application residential ACs held the largest market share in 2021. Residential ACs include split ACs, window ACs and others. Residential ACs have considerably high demand in the APAC region.The market for residential ACs is expected to reach $74.3 billion in 2028 with a CAGR of 4%. Demand for ACs in automotive sector has also increased. Automotive sector particularly cars come with a AC installed. Earlier high end and bigger cars came with an AC. However, in recent time smaller cars costing $2,000-$5,000 are coming with ACs installed. Demand for smaller cars has grown with almost double-digit growth rate and it has resulted in higher demand for automotive ACs. Other major market in the application segment is commercial ACs.

In terms of region Asia Pacific region has the highest market share. The CAGR during the forecast period is expected to be 4.5%. China is the largest market in terms of manufacturing, consumption and export.Chinese companies such as Gree, Haier and Media hold a major market share in the AC market. China also has 60% AC penetration with 40% households still out of reach. These household are a major market driver.Overall the APAC market will continue to pick up pace with very high opportunity in markets like India where AC penetration stands at meagre 4%. Also, highly competitive nature of market and aggressive pricing in the region will also drive the market.