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Solar-Powered Air Conditioning Systems Is The New Changing Wind In Air Conditioning Systems Market

The considerable growth of the air conditioning system market can be attributed to the development of inverter air conditioners and smart thermostats. A large demand from the commercial and residential applications for efficient air conditioning systems has given a great push to the global market. The vendors are shifting their imperative focus towards energy efficiency and eco-friendly air conditioning system. The surge in concerns related to contamination of indoor air quality has spurred demand for advanced air-purifying technologies.

Increasing Demand from Commercial and Residential Sector to Drive the Sales of Air Conditioning Systems

Air conditioning systems find application in automotive, commercial, industrial, and residential sectors. By revenue, the commercial segment is leading the global air conditioning systems market due to their increasing usage in areas such as clinics, construction, healthcare, hospitals, and hotel and tourism. The rising global temperature has increased the application of air conditioning systems in the residential sector, making it leading segment in terms of volume. The segment is also expected to register highest CAGR based on revenue from 2016 to 2024.

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The market has been categorized into windows air conditioning systems, portable air conditioning systems, cassette ACs, chillers, splits, single packaged, and airside in terms of equipment type. While split ACs are dominating the global market at present, the portable air conditioning systems segment is anticipated to develop with the highest growth rate by 2024.

Energy-efficient Air Conditioning Systems Gain Prominence

The growth of the air conditioning systems market can be largely attributed to the rapidly expanding construction and housing sector. “Increasing construction permits, especially for commercial infrastructure, means a rising need for equipment such as air conditioning systems,” a TMR analyst explains. The market for air conditioning systems is also driven by stringent government regulations, technological developments, rising consumer expectations, increased demand from the commercial sector, strong demand from Asia Pacific, and climate variations. The surge in awareness regarding the importance of indoor air quality has also generated an increased demand for advanced air-purifying technologies.

In contrast, the air conditioning systems market faces a major roadblock – increased energy consumption. However, TMR finds that this challenge can be easily addressed. “The emergence of ongoing trends such as green technologies, smart homes, and energy-efficient systems are driving manufacturers of air conditioning systems to focus on innovation and come up with equipment that meet the rising energy requirements of consumers and governments alike. Thus, this obstacle also presents market players with several opportunities for growth over the coming years,” the author of the study states.

Split ACs Witness Highest Demand

The global market for air conditioning systems was pegged at a value of US$104.4 bn in 2015, which is projected to rise to US$167 by the end of the forecast period. Assuming these figures hold true, the market is likely to expand at a 5.1% CAGR from 2016 to 2024. The air conditioning systems market is projected to expand at a much faster pace in terms of volume, registering a 6.2% CAGR during the forecast period. Asia Pacific dominates the global air conditioning systems market by volume and value, with the Middle East and Africa witnessing the fastest growth. While split ACs enjoy the lead at present, the portable air conditioning systems segment is likely to expand at the highest CAGR by 2024.



 The vendor landscape of the global air conditioning systems market is speckled with large and established companies such as Gree Electric Appliances, Inc., Daikin Industries Ltd., and Carrier Corporation; emerging players such as Panasonic Corporation, Mitsubishi Corporation, and The Midea Group; and promising vendors such as LG Electronics, Haier Electronics Group Co., Ltd., and Hitachi Ltd. Each of these players have been striving to strengthen their position in the air conditioning systems market and achieve sustainable growth.     

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