The Global "Air Conditioners market" is expected to grow at a high CAGR of 5.31% during the forecasting period (2022-2029).
Climate change like humidity and temperature rise worldwide will grow the market for the air conditioner in the forecast period.
Air Conditioners are devices used to remove humidity and temperature from the occupied space or room where it is installed. The cooling is typically achieved through a refrigeration cycle, but sometimes evaporation or free cooling is used. The air conditioner is of two types Room Air Conditioner (RAC) and other packaged air conditioner (PAC). RAC system is used for cooling only one room, and on the other hand, the packaged air conditioner can be used to cool multiple rooms.
The report covers all the major trends and drivers playing a key role in the growth of the Air Conditioners market. The air conditioners market is segmented by Product Type, Technology, End-user, and Region.
The changing climate primarily drives the global Air Conditioners all around the world. The rising temperature and humidity across the globe due to various factors such as global warming and others. Now, air conditioners are no more considered a luxury product but more of a necessity in many parts of the world. Demand for optimum comfort at home and office is driving the market for the forecast period.
For instance, the planet is warming, from the North Pole to the South Pole. Since 1906, the global average surface temperature has increased by more than 1.6 degrees Fahrenheit (0.9 degrees Celsius)—even more in sensitive polar regions. And the impacts of rising temperatures aren’t waiting for some far-flung future–the effects of global warming appear right now.
The growing construction of data center activities worldwide is the other reason for the air conditioner market to have a positive impact. An increase in the computational powers of the system produces more heat, and to have efficiency in the proper functioning of them requires adequate temperature. Hence, the market will grow for air conditioners in the forecast period. The rising power of data in today’s world asks for a greater number of data centers to be built by various companies.
However, due to high costs, higher operation costs, and environmental concerns, some of the factors will hamper the growth of Air Conditioners in the forecast period.
By Product type, the global Air Conditioners market is segmented into Room Air conditioners (RAC) and packaged air conditioners (PAC). Room air conditioners have the dominant position in the Air Conditioners market. They are expected to retain their dominance in the forecasted period due to the increase in population and the rise in living standards of people across the globe. However, packaged air conditioners are also gaining the market due to the increasing demand because of the rise in the construction of commercial buildings, which requires a central package unit for cooling more than one room. It is expected that the room air conditioners (RAC) market will grow at a CAGR of ~XX% during the forecast period.
By End-User, the global Air Conditioners market is segmented into Residential and Commercial. Residential has the dominant position in the Air Conditioners market due to the rapid urbanization and the high demand for air conditioners in homes for maintaining optimum temperature due to the rise of disposable income of people globally. Although with the rise in commercial construction such as workspaces, malls, and others, the Commercial segment's market share grows with higher CAGR in the forecast period.
By geography, the global Air Conditioners market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
APAC holds the largest market share for Air Conditioners due to the rise in the population and disposable income in the region. The major rise in share for Asia-pacific is due to the large sales and production of air conditioners in China. India is also a significant contributor towards the high share of Asia-Pacific for the air conditioner market due to the rise in the economy and growing investment in the construction sector. Due to the rise in the hospitality and tourism industry, the air conditioner market in Asia-pacific is expected to grow exponentially during the forecast period. For instance, as China offers a tremendous opportunity both in terms of the market size and travelers, Oyo Hotels & Homes are on a tear to expand across China and Indonesia. The Gurgaon company has said that it's committing $600 million to grow its business in the Chinese market and another $100 million for further development in Indonesia.
North America is after APAC in terms of the market share of Air Conditioners due to the rise in residential households, infrastructure developments, and the upcoming supermarket and hypermarket construction will be the major drivers for the air conditioner market in the region.
In March 2019, Amazon.com Inc. was planning to open dozens of grocery stores in several major U.S. cities, according to people familiar with the matter, as the retail giant looks to broaden its reach in the food business and touch more aspects of consumers’ lives. The company plans to open its first outlet in Los Angeles as early as the end of the year.
Key players are adopting strategies such as investing in R&D, new product launches, expansion in Technology to stand out as strong competitors in the market. Global Air Conditioners is a competitive market with various global and regional players in the market. The major players Daikin Industries, Mitsubishi Electric Corporation, Midea Group Co Ltd, Samsung Electronics, and Electrolux AB. Other key players in the market include Panasonic Corporation, United Technologies Corp, Hitachi Ltd, Sharp Corporation, and Lennox International Inc.
In March 2019, Blue Star Limited launched 75 new room air conditioners in its Platinum Jubilee year. These superior and stylish models also include energy-efficient inverter ACs capable of delivering 30% extra cooling over and above its rated capacity.
In March 2019, LG Electronics today announces 54 new AC models with 5 & 3-star ratings from the Bureau Energy Efficiency (BEE) in India. These ACs come with a high-temperature cooling score of 5. With this introduction, the brand is all set to bring effective technology available for consumers concerned about the running costs of ACs and energy conservation.
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