The air conditioning system market has witnessed substantial growth in the recent years owing to rising disposable income and rapid urbanization in developing countries. An air conditioning system, commonly referred as AC, is a home appliance that regulates the temperature and moisture level inside an occupied space, to maintain thermal comfort of residents. ACs provide cooling by removing heat from the interior of an occupied space through a refrigeration cycle and releasing the heat outdoors. They help maintain desired temperatures inside homes, offices, hospitals, hotels and other commercial buildings.
The global air conditioning system market is estimated to be valued at US$ 150 billion in 2024 and is expected to exhibit a CAGR of 8% over the forecast period 2024-2030.
Key Takeaways
Key players operating in the air conditioning system market are Carrier Corporation, Daikin Industries Ltd., Johnson Controls International PLC, LG Electronics Inc., Mitsubishi Electric Corporation.
The rising demand for energy-efficient and eco-friendly Air Conditioning System Market Size commercial and residential sectors offers significant opportunities for manufacturers. Furthermore, growing construction industry in emerging economies of Asia Pacific and Middle East & Africa is augmenting the installation of centralized air conditioning systems in large commercial buildings.
Major players are expanding their businesses in developing Asian countries to leverage high growth prospects. For instance, Daikin has expanded its manufacturing footprint in countries such as India, Indonesia and Vietnam to meet the rising demand. Additionally, Carrier Corporation acquired Nigeria-based LG Air Conditioner to strengthen its distribution network across Africa.
Market Drivers
The rising urban population coupled with increasing disposable incomes have been major drivers for the Air Conditioning System Companies As per United Nations estimates, 68% of the global population is expected to live in urban areas by 2050. This rapid urbanization is prompting housing developers to install air conditioning systems across residential projects.
Furthermore, growing awareness about ill-effects of rising temperatures on productivity is propelling the adoption of efficient cooling solutions in commercial workplaces. The rising construction of large industrial facilities, warehouses and data centers has also been fueling the sales of centralized air conditioning units.
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