Air Condition Market Size

Air Condition Market Growth Projections and Opportunities

Since its introduction in the early 20th century, the air conditioning (AC) market has experienced promising growth. While there was a period of stagnation in the late 20th century, the market has regained momentum and is currently undergoing significant expansion.
The acceleration in market growth can be attributed to the escalating impact of global warming on weather conditions, leading to an increased demand for AC units. Regulatory bodies such as the Bureau of Energy Efficiency (BEE), the Department of Energy (DOE), and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) are introducing regulations that benefit both the environment and consumers. These regulations focus on enhancing the energy efficiency and eco-friendliness of AC products.

In 2014, split ACs dominated the market with a substantial share of about 84% of the market volume. This segment is anticipated to continue its growth with a 5.13% Compound Annual Growth Rate (CAGR) from 2015 to 2020. Other types of AC, including window and portable units, held the second-largest market share of approximately 14% in 2014. However, current trends suggest a slight decline in market share to around 13.5% by 2020, with a growth rate of 4.38% CAGR from 2015 to 2020.

Rooftop AC is expected to experience a marginal increase in market share, while chillers are likely to maintain stagnant growth. Within ducted AC types, Constant Air Volume (CAV) and Variable Air Volume (VAV) have been compared, revealing that CAVs exhibit higher energy efficiency than VAVs.

Ducted AC systems, constituting 10% of the entire AC market in 2014, are projected to expand their share to approximately 14.5% by 2020. This growth is expected to occur at a CAGR of 11.67% from 2015 to 2020. In 2014, ductless AC systems recorded a shipment of around 100 million units, with an anticipated growth rate of 4.23% CAGR from 2015 to 2020.

Ducted and ductless air conditioning solutions are primarily designed for residential, commercial, industrial, and other applications. The choice between ducted and ductless solutions depends on factors such as user requirements, convenience, installation cost, and energy efficiency. Ductless air conditioners, favored for individual room cooling, demonstrate higher energy efficiency compared to ducted systems. Ductless systems encompass various types, including split, indoor packaged, and portable ACs.

Moreover, ducted AC types, such as split, chillers, rooftop units (RTU), and portable units, utilize ducting for their operations. Ducted ACs find applications across commercial, residential, industrial, institutional, and other sectors, offering centralized air conditioning suitable for large gatherings. The latest AC inverter technology ensures noiseless air conditioning performance.