Air Conditioners Market Trends and Scope Analysis Report for 2025 to 2032

Air Conditioners Market Overview:

According to Fortune Business Insights, the global air conditioners market is projected to generate revenue of USD 72.36 billion in 2025, with an expected compound annual growth rate (CAGR) of 6.53% from 2025 to 2030. China is anticipated to lead the market with revenue reaching USD 16.42 billion in 2025. On a per-household basis, the average revenue is expected to be USD 35.10. The market volume is estimated to reach 157.29 million units by 2030, with a projected volume growth of 5.08% in 2026. Additionally, the average volume per household is forecasted to be 0.06 units in 2025. With global temperatures rising year after year, the demand for air conditioners continues to grow steadily.

Rising air pollution levels and record-high global temperatures—such as those reported by the National Space Science and Technology Centre (NSSTC) in November 2019—are major factors driving the need for air conditioning products to ensure comfortable living. In fact, the global demand for air conditioners reached 110.97 million units in 2018, and this number is expected to rise steadily as more consumers seek to improve their indoor environments.

Key Market Drivers:

1. Growing Disposable Income and Urbanization

As economies expand and urban development accelerates, more consumers—especially in developing regions—are opting for air conditioners over other luxury goods. Increasing housing construction for residential, commercial, and industrial use is further boosting demand.

2. Technological Advancements

Innovations such as smart air conditioners, automated temperature control, remote diagnostics, and IoT integration are making air conditioning units more user-friendly and energy-efficient. Manufacturers are also embedding features like humidity control and motion sensing to improve performance and comfort.

3. Expanding Spare Parts Supply Chain

The growth of the electronics components industry is making it easier for manufacturers to source the necessary parts for assembling air conditioners. This streamlining of production processes is expected to fuel global supply and cater to rising demand.

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Key Market Restraints:

1. High Maintenance Costs

The long-term maintenance cost of air conditioning systems can be high, especially for centralized and ducted units. This becomes a deterrent in price-sensitive markets where customers prioritize lower ownership costs.

2. Regulatory Limitations

Environmental regulations also pose a challenge. For instance, U.K. legislation has banned the use of R22R refrigerants for servicing air conditioners, requiring manufacturers to redesign their systems around more eco-friendly alternatives. This increases production costs and slows innovation in some regions.

Market Segmentation:

By Type:

• Room AC (Window & Split)
• Ducted AC (Ceiling Concealed, Rooftop Packaged)
• Ductless AC (Cassette, Floor Standing, Ceiling Suspended)
• Centralized AC (VRF, AHU/FCU, Chillers)

Room air conditioners, particularly window units, dominate the market owing to their cost-effectiveness and suitability for single-room cooling. These products are widely preferred in residential settings for their ease of installation and lower power consumption.

By Application:

• Residential
• Commercial Offices & Retail
• Industrial

The residential segment holds the largest market share. According to the International Monetary Fund (IMF), the global housing market was valued at USD 1.1 trillion in 2022, indicating massive potential for air conditioning solutions in newly developed and upgraded homes.

By Technology:

• Manual
• Automatic

Semi-automatic air conditioners are popular in developing countries like India and China due to affordability. In contrast, fully automatic systems dominate in developed regions, as higher-income consumers demand advanced features and convenience.

By Distribution Channel:

• Online Retail
• Retail Shops
• Direct Sales
• Distribution Sales

Retail shops currently lead the distribution landscape due to physical product availability and consumer trust. However, online retail is growing rapidly, supported by the increasing penetration of internet and smartphones. In India, for example, online AC sales accounted for 6–7% of total sales in 2018 and continue to climb.

Regional Analysis:

Asia Pacific:

The Asia Pacific region dominates the global air conditioner market, driven by rapid urbanization, rising temperatures, and the presence of leading manufacturers such as LG, Samsung, Voltas, and Daikin. China and India, in particular, are seeing strong growth due to increasing residential construction and demand for home appliances.

North America:

North America is anticipated to experience substantial growth, fueled by the adoption of energy-efficient and central air conditioning systems. The growing popularity of portable air conditioners adds to market momentum, especially in the U.S. and Mexico, where consumer demand for flexible, mobile solutions is increasing.

Europe, South America, Middle East & Africa:

European growth is influenced by environmental regulations and consumer preference for eco-friendly, energy-saving models. Meanwhile, regions such as South America, the Middle East, and Africa offer untapped potential, particularly in hospitality and retail sectors as tourism and infrastructure projects rise.

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Key Players:

Prominent companies in the global air conditioners market include:

• Daikin
• LG
• Samsung
• Voltas
• Whirlpool
• Haier
• Blue Star
• Hitachi
• Videocon
• O General

These companies are focusing on product innovation, regional expansion, and sustainability-driven manufacturing to meet consumer demand and comply with international regulations.

Recent Developments:

• In April 2016, Thailand-based Saijo Denki, in partnership with the World Bankand Montreal Protocol Multilateral Fund, launched a new air conditioner model that reduces ozone depletion and greenhouse gas emissions while improving energy efficiency.
• Daikin’s FTKP Serieswas introduced with 3D airflow functionality, offering multi-directional cooling for enhanced comfort.