According to Stratistics MRC, the Global Split Air Conditioning Systems Market is accounted for $29.35 billion in 2024 and is expected to reach $43.51 billion by 2030 growing at a CAGR of 7.2% during the forecast period. Split air conditioning systems are a type of HVAC system designed to cool or heat indoor spaces. They consist of two main components: an outdoor unit, which houses the compressor and condenser, and an indoor unit, which contains the evaporator and air handler. These units are connected by refrigerant pipes, allowing heat exchange to regulate room temperature. Split systems are popular for their efficient cooling, quiet operation, and flexibility, as they can be installed without ductwork.
According to the Consumer Electronics and Appliances Manufacturers Association, split ACs in Tier-II cities are seen to be higher than in Tier-I.
Market Dynamics:
Driver:
Urbanization and infrastructure development
As cities expand, new construction projects, including residential buildings, offices, shopping malls, and hotels, require efficient air conditioning systems for comfort and air quality. Additionally, urban areas experience higher temperatures due to the heat island effect, further fueling the need for effective cooling. Infrastructure improvements, such as better electricity supply and transportation networks, also support the installation and maintenance of air conditioning systems, boosting overall market growth.
Restraint:
Complex installation
Split air conditioning systems have complex installation due to the need for professional expertise in placing and connecting the indoor and outdoor units, refrigerant piping, electrical wiring, and ensuring proper airflow and drainage. The installation requires precise measurements, tools, and adherence to safety standards. Additionally, the requirement for skilled technicians and the potential for installation errors can limit market growth.
Opportunity:
Growing adoption of smart air conditioning systems
Smart ACs offer features such as remote control via mobile apps, voice control integration with virtual assistants, and advanced energy-saving modes. These systems allow users to optimize energy consumption, resulting in lower utility bills and reduced environmental impact. Additionally, smart features provide better user experiences with personalized settings, real-time diagnostics, and automation. This growing trend not only increases consumer interest but also drives innovation and expansion within the market.
Threat:
High maintenance and repair costs
High maintenance and repair costs in split air conditioning systems arise due to the complexity of components such as compressors, evaporators, and condensers, which require specialized service and parts. Frequent servicing, cleaning, and refrigerant recharging can add to expenses. Additionally, technical failures and the need for skilled technicians can drive up costs. As a result, it hampers market growth by reducing affordability and limiting the adoption of air conditioning systems in both residential and commercial sectors.
Covid-19 Impact
The covid-19 pandemic temporarily slowed the growth of the split air conditioning systems market due to supply chain disruptions, factory shutdowns, and reduced consumer spending. With decreased demand in commercial sectors like hospitality and offices, the residential market saw more significant growth as people focused on home comfort. However, the market rebounded as construction activities resumed, with increasing demand for energy-efficient and eco-friendly systems. The focus on improving indoor air quality further contributed to the market's recovery.
The wall-mounted split air conditioners segment is expected to be the largest during the forecast period
The wall-mounted split air conditioners segment is predicted to secure the largest market share throughout the forecast period. Wall-mounted split air conditioners are a popular type of split AC system, typically installed high on a wall to save space and provide efficient cooling. They consist of an indoor unit with an evaporator and an outdoor unit housing the compressor and condenser. Known for their energy efficiency, quiet operation, and easy installation, these units are ideal for residential and small commercial spaces.
The commercial segment is expected to have the highest CAGR during the forecast period
The commercial segment is anticipated to witness the highest CAGR during the forecast period. In commercial applications, split air conditioning systems are widely used in offices, retail spaces, restaurants, and healthcare facilities due to their energy efficiency, quiet operation, and flexible installation. These systems offer precise temperature control and are ideal for spaces with varying cooling requirements. The demand is driven by the growing emphasis on comfort, energy savings, and improved work environments.
Region with largest share:
Asia Pacific is expected to register the largest market share during the forecast period fuelled by rapid urbanization, increasing temperatures, and growing disposable incomes. Countries like China, India, Japan, and South Korea are key markets, with rising demand for residential and commercial cooling solutions. The region's expanding construction industry, coupled with government initiatives promoting energy-efficient appliances, supports market growth.
Region with highest CAGR:
North America is expected to witness the highest CAGR over the forecast period driven by rising temperatures, increased urbanization, and a strong demand for energy-efficient cooling solutions. The U.S. and Canada are key markets, where both residential and commercial sectors are adopting split AC systems due to their superior energy efficiency and advanced features. Technological innovations like smart thermostats and eco-friendly refrigerants are contributing to market growth.
Key players in the market
Some of the key players profiled in the Split Air Conditioning Systems Market include Daikin Industries Limited, LG Electronics, Mitsubishi Electric Corporation, Panasonic Corporation, Carrier Global Corporation, Samsung Electronics Corporation, Hitachi Limited, Toshiba Corporation, Voltas Limited, Blue Star Limited, Johnson Controls International, Haier Group Corporation, Fujitsu General Limited, Sharp Corporation, Liebherr Group, Gree Electric Appliances Inc., Trane Technologies, Lennox International Inc., Arcelik A.S. and Midea Group.
Key Developments:
In January 2025, Blue Star launched the “Multi-Inverter Split Air Conditioner”, a highly innovative design aimed at enhancing cooling efficiency and energy-saving potential. It addresses modern air conditioning needs by providing greater flexibility and reducing the overall operational cost, which makes it a valuable choice for both residential and commercial spaces.
In April 2024, Voltas has launched its new commercial AC product line-up for commercial spaces at the ACREX India 2024 in Noida. The new Inverter Scroll Chillers have a cooling capacity ranging from 12-72 TR with eco-friendly refrigerants. The product is IoT enabled, BMS compatible, silent in operation and convenient for the user, as it can be operated through a mobile app.
Products Covered:
• Wall-Mounted Split Air Conditioners
• Ceiling-Mounted Split Air Conditioners
• Floor-Mounted Split Air Conditioners
• Ductless Mini-Split Air Conditioners
• Other Products
Compressor Types Covered:
• Rotary Compressor
• Reciprocating Compressor
• Scroll Compressor
• Other Compressor Types
Energy Efficiencies Covered:
• Low Energy Efficiency (1-2 Star)
• Medium Energy Efficiency (3-4 Star)
• High Energy Efficiency (5 Star & Above)
Distribution Channels Covered:
• Online Retailers
• Offline Retailers
• Third-party Distributors
• Other Distribution Channels
Technologies Covered:
• Inverter Split Air Conditioners
• Non-Inverter Split Air Conditioners
End Users Covered:
• Residential
• Commercial
• Industrial
• Automotive
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Product Analysis
- 3.7 Technology Analysis
- 3.8 End User Analysis
- 3.9 Emerging Markets
- 3.10 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Split Air Conditioning Systems Market, By Product
- 5.1 Introduction
- 5.2 Wall-Mounted Split Air Conditioners
- 5.3 Ceiling-Mounted Split Air Conditioners
- 5.4 Floor-Mounted Split Air Conditioners
- 5.5 Ductless Mini-Split Air Conditioners
- 5.6 Other Products
- 6 Global Split Air Conditioning Systems Market, By Compressor Type
- 6.1 Introduction
- 6.2 Rotary Compressor
- 6.3 Reciprocating Compressor
- 6.4 Scroll Compressor
- 6.5 Other Compressor Types
- 7 Global Split Air Conditioning Systems Market, By Energy Efficiency
- 7.1 Introduction
- 7.2 Low Energy Efficiency (1-2 Star)
- 7.3 Medium Energy Efficiency (3-4 Star)
- 7.4 High Energy Efficiency (5 Star & Above)
- 8 Global Split Air Conditioning Systems Market, By Distribution Channel
- 8.1 Introduction
- 8.2 Online Retailers
- 8.3 Offline Retailers
- 8.4 Third-party Distributors
- 8.5 Other Distribution Channels
- 9 Global Split Air Conditioning Systems Market, By Technology
- 9.1 Introduction
- 9.2 Inverter Split Air Conditioners
- 9.3 Non-Inverter Split Air Conditioners
- 10 Global Split Air Conditioning Systems Market, By End User
- 10.1 Introduction
- 10.2 Residential
- 10.3 Commercial
- 10.4 Industrial
- 10.5 Automotive
- 10.6 Other End Users
- 11 Global Split Air Conditioning Systems Market, By Geography
- 11.1 Introduction
- 11.2 North America
- 11.2.1 US
- 11.2.2 Canada
- 11.2.3 Mexico
- 11.3 Europe
- 11.3.1 Germany
- 11.3.2 UK
- 11.3.3 Italy
- 11.3.4 France
- 11.3.5 Spain
- 11.3.6 Rest of Europe
- 11.4 Asia Pacific
- 11.4.1 Japan
- 11.4.2 China
- 11.4.3 India
- 11.4.4 Australia
- 11.4.5 New Zealand
- 11.4.6 South Korea
- 11.4.7 Rest of Asia Pacific
- 11.5 South America
- 11.5.1 Argentina
- 11.5.2 Brazil
- 11.5.3 Chile
- 11.5.4 Rest of South America
- 11.6 Middle East & Africa
- 11.6.1 Saudi Arabia
- 11.6.2 UAE
- 11.6.3 Qatar
- 11.6.4 South Africa
- 11.6.5 Rest of Middle East & Africa
- 12 Key Developments
- 12.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 12.2 Acquisitions & Mergers
- 12.3 New Product Launch
- 12.4 Expansions
- 12.5 Other Key Strategies
- 13 Company Profiling
- 13.1 Daikin Industries Limited
- 13.2 LG Electronics
- 13.3 Mitsubishi Electric Corporation
- 13.4 Panasonic Corporation
- 13.5 Carrier Global Corporation
- 13.6 Samsung Electronics Corporation
- 13.7 Hitachi Limited
- 13.8 Toshiba Corporation
- 13.9 Voltas Limited
- 13.10 Blue Star Limited
- 13.11 Johnson Controls International
- 13.12 Haier Group Corporation
- 13.13 Fujitsu General Limited
- 13.14 Sharp Corporation
- 13.15 Liebherr Group
- 13.16 Gree Electric Appliances Inc.
- 13.17 Trane Technologies
- 13.18 Lennox International Inc.
- 13.19 Arcelik A.S.
- 13.20 Midea Group
- List of Tables
- Table 1 Global Split Air Conditioning Systems Market Outlook, By Region (2022-2030) ($MN)
- Table 2 Global Split Air Conditioning Systems Market Outlook, By Product (2022-2030) ($MN)
- Table 3 Global Split Air Conditioning Systems Market Outlook, By Wall-Mounted Split Air Conditioners (2022-2030) ($MN)
- Table 4 Global Split Air Conditioning Systems Market Outlook, By Ceiling-Mounted Split Air Conditioners (2022-2030) ($MN)
- Table 5 Global Split Air Conditioning Systems Market Outlook, By Floor-Mounted Split Air Conditioners (2022-2030) ($MN)
- Table 6 Global Split Air Conditioning Systems Market Outlook, By Ductless Mini-Split Air Conditioners (2022-2030) ($MN)
- Table 7 Global Split Air Conditioning Systems Market Outlook, By Other Products (2022-2030) ($MN)
- Table 8 Global Split Air Conditioning Systems Market Outlook, By Compressor Type (2022-2030) ($MN)
- Table 9 Global Split Air Conditioning Systems Market Outlook, By Rotary Compressor (2022-2030) ($MN)
- Table 10 Global Split Air Conditioning Systems Market Outlook, By Reciprocating Compressor (2022-2030) ($MN)
- Table 11 Global Split Air Conditioning Systems Market Outlook, By Scroll Compressor (2022-2030) ($MN)
- Table 12 Global Split Air Conditioning Systems Market Outlook, By Other Compressor Types (2022-2030) ($MN)
- Table 13 Global Split Air Conditioning Systems Market Outlook, By Energy Efficiency (2022-2030) ($MN)
- Table 14 Global Split Air Conditioning Systems Market Outlook, By Low Energy Efficiency (1-2 Star) (2022-2030) ($MN)
- Table 15 Global Split Air Conditioning Systems Market Outlook, By Medium Energy Efficiency (3-4 Star) (2022-2030) ($MN)
- Table 16 Global Split Air Conditioning Systems Market Outlook, By High Energy Efficiency (5 Star & Above) (2022-2030) ($MN)
- Table 17 Global Split Air Conditioning Systems Market Outlook, By Distribution Channel (2022-2030) ($MN)
- Table 18 Global Split Air Conditioning Systems Market Outlook, By Online Retailers (2022-2030) ($MN)
- Table 19 Global Split Air Conditioning Systems Market Outlook, By Offline Retailers (2022-2030) ($MN)
- Table 20 Global Split Air Conditioning Systems Market Outlook, By Third-party Distributors (2022-2030) ($MN)
- Table 21 Global Split Air Conditioning Systems Market Outlook, By Other Distribution Channels (2022-2030) ($MN)
- Table 22 Global Split Air Conditioning Systems Market Outlook, By Technology (2022-2030) ($MN)
- Table 23 Global Split Air Conditioning Systems Market Outlook, By Inverter Split Air Conditioners (2022-2030) ($MN)
- Table 24 Global Split Air Conditioning Systems Market Outlook, By Non-Inverter Split Air Conditioners (2022-2030) ($MN)
- Table 25 Global Split Air Conditioning Systems Market Outlook, By End User (2022-2030) ($MN)
- Table 26 Global Split Air Conditioning Systems Market Outlook, By Residential (2022-2030) ($MN)
- Table 27 Global Split Air Conditioning Systems Market Outlook, By Commercial (2022-2030) ($MN)
- Table 28 Global Split Air Conditioning Systems Market Outlook, By Industrial (2022-2030) ($MN)
- Table 29 Global Split Air Conditioning Systems Market Outlook, By Automotive (2022-2030) ($MN)
- Table 30 Global Split Air Conditioning Systems Market Outlook, By Other End Users (2022-2030) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
Research Assistance
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook