Market Size of Global Air Conditioner Industry
| Study Period | 2019-2028 |
| Market Size (2023) | USD 188.09 Billion |
| Market Size (2028) | USD 252.69 Billion |
| CAGR (2023 - 2028) | 6.08 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Air Conditioner (AC) Market Analysis
The Air Conditioner Market size is estimated at USD 188.09 billion in 2023, and is expected to reach USD 252.69 billion by 2028, growing at a CAGR of 6.08% during the forecast period (2023-2028).
The air conditioning (AC) industry is expected to witness huge growth due to the soaring temperature and humidity levels across the world, along with the rising acceptance of air conditioners as utility products rather than luxury products. The emergence of technologically advanced air conditioners, such as air conditioners with inverters and air purification technologies, is further anticipated to positively influence the air conditioner market through the forecast period.
The spread of COVID-19 disrupted the market demand and global supply chain in 2020. China is one of the largest consumers and producers of air conditioner products, but it also caters to a wide range of countries by exporting several input supplies that are essentially used to produce finished goods. The shutdown of production in China has forced other air conditioner manufacturers based in the United States and Europe to temporarily hold the production of finished goods. This led to an increase in the supply and demand gap in the market.
Numerous segments within the air conditioner industry may increase in market size in the coming years, especially the market for smart air conditioners. The rising popularity of smart gadgets that can convert conventional remote-controlled air conditioners into smart devices is likely to be the primary growth driver, leading the smart air conditioner market. Improvement in housing standards is fueling the demand for room air conditioners, while packaged air conditioners are estimated to grow at a moderate rate with rising permit rates for the construction of malls, offices, and industries.
Government regulations on refrigerants are forcing manufacturers to develop energy-efficient and eco-friendly products. There have been many technological developments observed in the market due to the phasing out of key refrigerants. Once the most preferred refrigerants, CFCs, are likely to be completely replaced by other refrigerants in the next few years.
