Market research, 23 October 2024
The AC business encompasses a wide range of products, including Smart air conditioners and both Packaged and Room models. These AC units are increasingly being adopted in various sectors such as Residential buildings, Office buildings, Retail spaces, and Healthcare facilities, due to rising Global temperatures and Urban heat. As the world becomes more ecologically conscious, there is a growing demand for goods that are not only Energy efficient but also made from Recycled materials. Developing nations, in particular, are undergoing Urbanization at an unprecedented rate, leading to a surge in demand for Commercial space cooling solutions. Advancements in technology have led to the emergence of NanoeX technology and Smart technology in AC units. User comfort is a top priority, and these innovations offer features such as Air filtration systems, Humidity levels control, and Allergens and Pollutants removal. With the widespread use of Smartphones, users can now remotely control their AC units for optimal comfort. The market caters to both the Residential and Commercial segments, with offerings ranging from Room AC Windows models to Split AC units.
The rise in residential construction activity is notably driving market growth. The global AC business has experienced remarkable growth in recent years, driven by factors such as low-interest rates, rising demand for affordable housing, and government initiatives. This trend is expected to continue, with direct investment in real estate reaching USD 9.6 trillion in 2019. In response to increasing global temperatures and urban heat, there is a growing need for AC systems in residential and commercial buildings, including offices, retail spaces, healthcare facilities, data centers, and manufacturing plants. Technological advancements, such as smart air conditioners and inverter technology, have led to the development of energy-efficient designs and Energy Efficiency Standards.
Further, the market for AC units, including window AC, split, multi-split, central AC, inverter, and non-inverter technology, is expanding in both developed and developing nations due to urbanization and the changing climate. Multi-brand stores, exclusive stores, and online stores offer a wide range of options for consumers seeking energy-efficient solutions, ecologically conscious goods, and advanced features like nanoeX technology and smart technology. Recycled materials and improved indoor air quality are also becoming important considerations in the market. Allergens and energy efficiency are key concerns for consumers in the market for air conditioners. Thus, the increasing demand for inverter air conditioners to save energy will drive the growth of the market during the forecast period.
An increase in the use of R32 refrigerant in split ACs is an emerging trend in market growth. In the AC business, refrigerants play a crucial role in providing cooling and refrigeration. Smart air conditioners and various types, such as packaged and room models, employ different refrigerants to meet energy efficiency standards and mitigate environmental impact. Global temperatures and urban heat necessitate the use of eco-friendly refrigerants like R32, which reduces electricity consumption and CO2 emissions by up to 10% compared to R-410A and R-22. Residential and office buildings, retail spaces, healthcare facilities, data centers, and manufacturing plants rely on energy-efficient AC systems.
Moreover, inverter technology and energy-efficient designs are integral to modern AC units, including window ACs, split, multi-split, and central ACs. Inverter technology enables energy savings, while non-inverter technology remains an option for budget-conscious consumers. Technological advancements, such as energy efficiency standards, nanoeX technology, and smart technology, contribute to the market's growth. Recycled materials and ecologically conscious goods are increasingly popular in developing nations, driven by urbanization and the need for commercial space. Allergens and indoor air quality concerns further emphasize the importance of energy efficiency and air conditioners in our changing climate. Thus, these factors will boost the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
The market size growth by the splits segment will be significant during the forecast period. The segment is growing as energy-efficient and stylish split air conditioners are replacing window units. To meet the rising demand from customers, suppliers like Samsung have stopped making window air conditioners in favor of split air conditioners. Due to their effectiveness, inverter-based splits are also becoming more popular.
The splits segment was valued at USD 97.60 billion in 2018. Due to their ease of installation, simultaneous heating and cooling effects, accurate temperature control, and energy efficiency, split air conditioners are preferred by most people over traditional window air conditioners. Additionally, split air conditioners are quieter than window air conditioners because the compressor and fan are built into the outdoor unit. While split air conditioners' outdoor units are usually positioned in a shaded, airy area, which facilitates good airflow in the room, window air conditioners are occasionally exposed to direct sunlight. Thus, due to the abovementioned factors, the demand for split ACs is increasing, which in turn will drive the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
