PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1522736
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1522736
Global split air conditioners market was valued at USD 44.44 billion in 2023, expected to reach USD 78.91 billion in 2031, with a CAGR of 7.44% for the forecast period between 2024 and 2031. Factors such as higher rates of urbanization, increasing temperatures caused by climate change, and a greater need for energy-efficient cooling systems have significantly affected the growth of the market. Both residential and commercial sectors opt for split-type air conditioners due to their efficiency in cooling, simplicity of mounting, and stylish appeal.
Also, advancements in inverter technology, smart connectivity, and eco-friendly refrigerants have helped the market gain positive trends. The market is dominated by Asia-Pacific, with rapid urbanization in countries such as China, India, and Japan leading to the expansion and increasing spending ability of the middle-income segment.
In North America and Europe, customers prioritize saving electricity and promoting sustainability, making them key regions for sales. However, as there are higher initial costs, maintenance charges, and ecological problems caused by refrigerant emissions, companies are emphasizing inventing models that are affordable as compared to current prices, widening consumer coverage through sales outlets.
Ongoing innovation in technology and regulatory policies favoring energy efficient systems are expected to continue driving the growth in sales of split air conditioners globally. The rise can be attributed to the growing demand for people to lead comfy lives, both at their homes and workplaces, amidst increasing global heat levels.
In March 2024, LG Electronics Inc. launched a perfect HVAC solution, DUALCOOL residential air conditioner, that comes with an EU energy efficiency rating of A+++. The DUALCOOL air conditioner's Dual Inverter Heat Pump Compressor and other intelligent energy-saving features assist in reducing the cost of maintaining a comfortable home climate.
Rising Temperatures Drive the Demand
Global warming leads to rising temperatures all over the world, which in turn causes an increase in demand for air conditioners. High average world temperatures, especially in summer, make it necessary for people to use efficient methods of keeping their houses cool while at the same time protecting themselves from diseases such as heatstroke.
Regions that undergo more frequent and intense heatwaves can observe a clear connection between rising sales of air conditioners. From April to May 2024, large parts of Asia, including Palestine, Israel, Syria, and Lebanon in the west and Thailand, Myanmar, the Philippines, and Vietnam in the east, saw temperatures far above 40 degrees Celsius for many days.
Additionally, rising temperatures disturb individual comfort, and personal productivity. High heat events leads to heat-related illnesses and deaths, highlighting the importance of air conditioners in the preserving public health.
In response, air conditioning systems with effective cooling systems, low power usage, and environmentally safe refrigerants are now commonly used by customers and business organizations. To capitalize on the opportunity, in April 2024, Samsung Electronics Singapore launched its latest WindFree Air Conditioner series, with features like Energy-Saving, Comfort Cooling, and Connected Living. The product has 23,000 micro air holes along with an AI Auto Cooling function that helps reduce energy consumption by up to 28%. It can be connected to the Samsung SmartThings app, allowing easy temperature regulation using a voice assistant.
Hassle Free Installation Propels the Market Growth
In the split air conditioner market, one of the reasons for strong demand is the ease when it comes to installation of the appliance. Typically, traditional air conditioners require frequent and numerous duct works as compared to split AC units. Split AC units have simple installation procedures that are less inconvenient to the users. The ease with which it can be installed makes it particularly appealing to homeowners and business owners who want to cool their places quickly and save costs rather than remodeling their homes or offices completely for the purpose of installing it.
The installation process has been simplified which means you can place the split air conditioners anywhere whether your room is big or small. This makes air conditioners easy to install such that any errors that occur are minimal, hence saves labour cost and makes split air conditioners cheaper and a better option in practice. This advantage is very beneficial in cities where people are more and space is less, and also in rented properties where tenants need air conditioners that they can carry with them when they move out. The need for split air conditioners is increasing as more people shift to efficient and effective cooling options with easy installation.
In April 2024, Toshiba Carrier UK launched its latest easy-to-install DAISEIKAI 10 air conditioner, crafted with 43% recycled plastic components. It comes with a motion-tracking technology, a Plasma Ionizer, and an Ultra-Pure Filter. Also, users of DAISEIKAI 10 can select between indirect and direct air flow using the WiFi operated Smart Sensing control function app.
Residential Segment Dominates the Market Share
The residential segment dominates the share of the global split air conditioners market, driven by several compelling factors. A surge in housing development, spurred by rapid urbanization and the middle-class populations' growth in emerging markets, has increased the demand for home air conditioning systems. The trend towards smaller, more energy-efficient living spaces has positioned split air conditioners as units with a compact design and better cooling power that have become particularly attractive to house owners.
Moreover, increased disposable incomes and better living standards have allowed people to purchase more advanced coolants. High affordability of equipment and relatively low replacement cycles in residential cooling systems compared to the non-residential segment drive demand for split air conditioners in particular. For instance, in February 2023, Panasonic Corporation introduced the HZ series, a new line of wall-mounted split system domestic air conditioners with reverse cycles. The company claims that their new nanoeX Generator Mark 2 air filtration technology in the new launch offers stronger and more effective air purification. By producing twice as many hydroxyl radicals per second as its Z Series predecessor, 9.6 trillion/sec against 4.8 trillion/sec, the new range is intended to block pollutants more efficiently.
On the other hand, the residential sector offers growth opportunities in volume sales even as the commercial segment performs strongly on account of expanded office buildings, retail spaces, hospitality venues being put up. The sector's position in the split air conditioners business is cemented by increased needs arising from remote work culture and post-pandemic home-centric ways of life.
Asia-Pacific Holds the Largest Market Share
Asia-Pacific dominates the market for split air conditioners, driven by a combination of factors. Industrialization and rapid urbanization leading to increased construction of residential and commercial buildings are surging the need for air conditioning solutions. moreover, greater disposable incomes have allowed many people from the growing middle class to purchase expensive cooling devices, hence leading to an inflated demand for them. The hot temperatures together with high humidity in the area make it almost impossible to do without efficient cooling appliances, hence air conditioners are essential in the region.
This region is experiencing growth in the market because of ongoing technological advancements in the sector, and high penetration of smart homes in the region. The significant increase in preference for energy saving and green air conditioners among the customers aligns with global trends of sustainability.
Competitive prices being set by local manufacturers in the region have led to a wider range of consumers being able to use the advanced cooling systems. As a consequence of this, the Asia-Pacific market is currently experiencing aggressive competition and innovative strategies from international as well as domestic producers aimed at gaining an edge over the other existing players through increased market penetration. In October 2023, Fujitsu General Australia released wall-mounted split system air conditioning units with anywAiR technology Wi-Fi adaptor II under its Lifestyle Next range. The anywAiR technology Wi-Fi adaptor II makes use of myanywAiR Next app with a compatible voice-assistant feature and other features like climate react and geofencing.
Future Market Scenario (2024 - 2031F)
With stricter regulations all around, manufacturers will produce products which are more energy efficient and friendly to the environment, thus sustainability and environmental concerns will shape the market. Contribution to the market growth by adapting HVAC systems powered by renewable energy sources alongside eco-friendly construction is expected.
Consumers are expected to focus primarily on smart and connected air conditioners in the future, which offer remote control, energy monitoring, as well as integration with other smart home devices. This tendency will be supported by advancements in IoT and AI technologies.
Emerging markets, especially in Asia-Pacific, are expected to experience marked increase in size due to elevating urbanization, rising disposable incomes as well as an expanding middle class. These regions promise vast possibilities for growth of the market and further diversification of products.
Key Players Landscape and Outlook
The global split air conditioners market features a competitive landscape marked by several leading companies with strong R&D capabilities, innovative product offerings, and extensive distribution networks. Key players dominate the market through their advanced energy-efficient solutions, smart technology integration, and robust presence in both residential and commercial sectors. These companies leverage advanced technology and smart features to attract tech-savvy consumers while maintaining historical reputations for reliability and innovation.
Emerging players, particularly from Asia, are gaining market share by offering competitive pricing and expanding their global footprints. The emphasis on eco-friendly and technologically advanced air conditioning systems is becoming increasingly prevalent among established and new entrants.
The market outlook remains positive, driven by increasing urbanization, rising global temperatures, and a growing consumer preference for energy-efficient and smart cooling solutions. Continuous technological advancements and regulatory policies favoring environmentally friendly HVAC systems are expected to propel market growth. This dynamic environment creates numerous opportunities for innovation and expansion, ensuring that the split air conditioners market will continue to evolve and thrive.
In February 2024, as part of a commercial partnership arrangement, Panasonic Corporation purchased a 40% share in INNOVA S.r.l., an Italian manufacturer of heat pumps and air conditioners. Under the agreement, the parties aim to foster a complete partnership for the manufacturing, sales, and technological developments of hydronic systems, including air conditioning, ventilation, and hot water heating and cooling systems for residential use.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.