Air Conditioner Market Share, Growth, Trends & Research Report 2030
Author : Nirbhay Prakashan | Published On : 28 Mar 2024
The Global Air Conditioner market was valued at USD 111.61 billion in 2022 and will reach USD 161.12 billion in 2030, generating significant a compound annual growth rate (CAGR) of 4.7% during the forecast period between 2023 and 2030. The factors such as increasingly hot environmental conditions in several countries in the world, uninterrupted and quality power supply, regular product innovation & launch of energy efficient air conditioners and the Gen Z preference for a comfortable indoor environment has boosted the demand for air conditioners globally. Due to the change in humidity levels and global warming, consumers both in developed and developing economies are extensively using air conditioners as a necessary product rather than luxury.
Additionally, better affordability & rising disposable income and global economic growth has boosted the demand for air conditioners during the historical period between 2016 and 2022. Specific to B2B customers, the demand for comfortable standard of living has increased the usage of air conditioners in corporate offices, shopping malls, schools and even in vehicles. Furthermore, the initiatives taken by several governments across the globe encouraging and incentivising air conditioner manufacturers to produce energy efficient products and regular technological advancements in the product specifications has also led to higher demand globally.
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Government Backed Industry
The governments of several nations are aiming for a ‘green’ air conditioner market. For instance, regulatory/governing agencies like BEE (Bureau of Energy Efficiency), ASHRAE (American Society of Heating, Refrigerating, and Air-Conditioning Engineers) and the Department of Energy (DOE) are working towards better energy efficiency, sustainability and eco-friendly air conditioners by periodically releasing stricter environmental and consumer regulations. For instance, on World Environment Day, the Indian Government e-Marketplace (GeM) had created a new product category named Green Room Air Conditioners.
The United Nations Environment Program co-hosted the event (UNEP). Over 44,000 air conditioners worth USD 20.55 million were sold through the GeM platform in 2020 and the sales are rising year on year. The Green Room Air Conditioners' inclusion in the government procurement process is a driving force behind the Air conditioner market’s transition to sustainable cooling. Such measures are being actively taken by the governments of several countries in the world.
Commercial and Residential Sectors Boosted Market Growth
Over the historical period, especially in the developing countries like China, India, Brazil etc. there has been a surge in the construction of homes, shopping centers, hospitals, hotels, multiplexes and auditoriums. The air conditioner market in commercial establishments is being driven by increased demand for air conditioning systems for cooling and maintaining indoor air quality.
Impact of COVID-19 on the Global Air Conditioner Market
The global air conditioner market was severely impacted due to the strict lockdowns implemented worldwide and many production facilities had to be shut during the pandemic surge period in 2020 and 2021. The lockdown and social distancing norms imposed to curb the spread of COVID-19 led to labor shortages, travel restrictions and disruption in international trade.
China is one of the major production hubs supply air conditioners to the global market. The temporary halt of production in China in 2020 and in early 2023 due to surge in COVID-19 cases and lockdown measures had led to a rise in gap between supply and demand. However, by February 2023, post reduction in COVID-19 patients and removal of restrictions, the supply chains are getting restored. The air conditioner market in China is witnessing recovery post opening of the institutions and offices, transport, entertainment locations and restoration of construction in residential and commercial space.
Impact of Russia-Ukraine War on the Global Air Conditioner Market
The price of key components, energy, logistics and technical services continued to rise as result of war in Russia and Ukraine. Due to heavy reliance on imports, particularly those from Russia, which provides 40% of Europe's gas, the price of global crude oil and gas in particular had risen significantly thus increasing inflation and energy prices which hampered the growth of both Global and European air conditioner market.
Report Scope
“Global Air Conditioner Market Overview, 2016-2030F”, is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the market, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
