Split Systems Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| CAGR | < 5.80 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Split Systems Market Analysis
The Global Split Systems Market is expected to register a CAGR of less than 5.8% during the forecasted period. The rising spending capacity and increasing middle-class population in developing countries such as India, China, and Brazil have been major contributors to the increasing adoption of split systems during the forecast period. Further, the rise in the temperatures globally coupled with the rising per capita income of the people across the globe has also been promoting the adoption of split systems in the market.
- The Global Split Air Conditioning Market is driven by factors such as an increase in the construction of office and smart homes, rising temperature conditions, and rising adoption of IoT and green technologies. Similarly, with the rising middle-class population and disposable income in developing countries and air conditioners are becoming a necessity rather than a luxury product, this provides a great opportunity for the growth of the market.
- Whereas the unpredictability in raw materials prices and expensive routine maintenance work act as a restraint for the Global Split Systems Market. Unpredictable electricity supply in certain parts of the world emissions leading to greenhouse gases and pose a challenge to the Split Systems Market globally.
- During COVID-19, despite increasing awareness about proper ventilation in residential and commercial spaces, split air conditioning systems are under scrutiny for spreading the COVID-19. In a study published by the CDC (Centres for Disease Control and Prevention), in China, it was found that a pre-symptomatic customer at a restaurant apparently infected other customers due to air swirling by air conditioners. Such findings are influencing the growth of the split air conditioning systems market.
- However, manufacturers are gaining awareness about Seasonal Energy Efficiency Ratio, which is used for measuring how well a split unit would be work given a certain outdoor temperature. Further, modern split air conditioning systems are being made available with energy-saving features that reduce the carbon footprint, are easy to install, and has quiet features as per the changing customer preferences.
- Moreover, several regulations have changed the way manufacturers engineer commercial rooftop air conditioners, heat pumps, and warm-air for low-rise buildings in the commercial and residential sectors to improve RTU efficiency and cut energy usage and waste. For instance, the European Union is focused on the European green Deal, a directive that aims to reduce energy consumption by 9% by 2030. Such instances are favoring the adoption of efficient split systems in the market.
- For instance, in August 2021, the only room air conditioner models to receive Germany's stringent "Blue Angel" ecolabel are small propane (R290) split air conditioners made by Chinese appliance player Midea. The Blue Angel certification is the oldest ecolabel (founded in 1978) in the world and is owned by the German Federal Ministry for the Environment and administered by the Federal Environmental Agency (UBA). The R290 split air conditioners from Midea are expected to disrupt the European market and spark a change that will lower the continent's energy use and greenhouse gas emissions. Such initiatives by the companies coupled with government initiatives are expected to promote the market growth of split systems globally.
Split Systems Market Trends
This section covers the major market trends shaping the Split Systems Market according to our research experts:
Changing Lifestyle And Government Regulations Led Increased Adoption Of Split Systems
- A large share of customers has been opting for technologically advanced and convenient products. Thereby, manufacturers have been focusing on portable designs, more compact designs, energy efficiency of air conditioners, and separate split-air conditioning systems for residential and commercial sectors, as per the changing requirements of its customers.
- Preference for split air conditioning systems has also been rising due to increasing stringent government regulations on the environment and changes in the lifestyle of its customers. Also, the increase in construction of office and smart homes, rising temperature conditions, and rising adoption of IoT and green technologies are some of the driving factors contributing towards the overall growth of the split air conditioning systems market.
- Further, several commercial businesses such as hotels, offices, retail stores, and restaurants, are installing split air conditioning systems with an aim to lower their electricity consumption. Such adoption of split air conditioners in the commercial buildings would be is expected to promote the split air conditioning systems market during the forecast period
- Moreover, the split air conditioner manufacturers are establishing and investing in production bases across various developing countries with increasing disposable income and hot climate. Such expansions of production bases would be further promoting the reduction of cost of split air conditioners, which could in turn provide an opportunity for the split air conditioning systems market.
- Furthermore, with the increase in the disposable income in the developing countries of the Asia-Pacific region, the demand for split systems have increased significantly. As per HRAI, the number of residential air conditioning sold in 2nd Quarter of 2021 reached to 64% as compared to as compared to 10% in 2019. Such increase in the demand for residential air conditioning is expected to fuel the split systems market in the Asia-Pacific region.
Asia-Pacific Segment Is Expected to Hold The Major Market Share
- The split air conditioning systems market in Asia-Pacific is expected to grow, as it is a manufacturing hub for electronics and consumer goods. Coupled with the increasingly hot climate and a rise in residential construction are promoting the demand for split air conditioners across the region.
- With the increasing disposable income and changing lifestyles, consumers are adopting new, innovative, and trendy solutions across various developing countries in the Asia-Pacific region. Similarly, the growing middle-class and urban population in developing nations are expected to contribute to the increasing demand for split air conditioning systems.
- With the changing preferences in the market, the manufacturers are also expanding their product lines to meet the demand for split air conditioning systems. For instance, in April 2022, Realme launched a Split Air Conditioner in India under its TechLife ecosystem line of products. The new split AC product line would be offered with multiple variants as per the customer requirements.
- Moreover, strong product innovation among manufacturers with newer features in split air conditioning systems is expected to boost the Global Split Systems market. For instance, with the rising awareness and adoption of energy-efficient split systems in line with the changing government regulations is also expected to contribute to the market growth of Split systems in the Asia-Pacific region.
Split Systems Industry Overview
The Global Split Systems Market is highly competitive with the presence of diverse firms of different sizes. This market is anticipated to encounter a number of partnerships, mergers, and acquisitions as organizations continue to invest strategically in offsetting the present slowdowns that they are experiencing. The market comprises key solutions and service providers, such as Daikin Industries, Ltd., Mitsubishi Electric Corporation, Hitachi, Ltd., Samsung Electronics Co., Ltd., and Panasonic Corporation.
- August 2021 - Johnson Controls-Hitachi Air Conditioning India, would be expanding its manufacturing facilities in Gujrat, India. The company aims to strengthen its presence in the residential and commercial air conditioning market along with providing its customers with innovative air conditioning solutions for their residential and commercial spaces.
Split Systems Market Leaders
Daikin Industries, Ltd.
Mitsubishi Electric Corporation
Hitachi, Ltd.
Samsung Electronics Co., Ltd.
Panasonic Corporation
*Disclaimer: Major Players sorted in no particular order
Split Systems Market News
- May 2022 - Johnson Controls-Hitachi launched a new Wall Mount indoor mini-split unit as the newest addition to its PRIMAIRY P300 line of high-efficiency, single-zone commercial mini-split systems. The new mini-split system would be an energy-efficient and cost-effective ductless heating and cooling solution designed to meet the unique needs of small to mid-size spaces such as shops, restaurants, and classrooms.
Split Systems Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitutes
5. MARKET DYNAMICS
5.1 Introduction to Market Dynamics
5.2 Market Drivers
5.2.1 Rising disposable income in developing countries is contributing to the gorwth in the demand for Split Systems
5.2.2 Increase in construction of office and smart homes is expected to increase the demand for Split Systems
5.3 Market Challenges
5.3.1 High installation cost and maintenance cost is expected to negatively affect the market
6. MARKET SEGMENTATION
6.1 By Equipment Type
6.1.1 Mini-split
6.1.2 Multi-split
6.1.3 Variable Refrigerant Flow (VRF)
6.1.4 Others
6.2 By Application
6.2.1 Residential
6.2.2 Commercial
6.3 By Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 United Kingdom
6.3.2.2 Germany
6.3.2.3 France
6.3.2.4 Spain
6.3.2.5 Eastern Europe
6.3.2.6 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 China
6.3.3.2 Japan
6.3.3.3 India
6.3.3.4 South Korea
6.3.3.5 Rest of Asia-Pacific
6.3.4 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Daikin Industries, Ltd.
7.1.2 Mitsubishi Electric Corporation
7.1.3 Hitachi, Ltd.
7.1.4 Samsung Electronics Co., Ltd.
7.1.5 Panasonic Corporation
7.1.6 United Technologies Corp.
7.1.7 Electrolux AB
7.1.8 Sharp Corporation
7.1.9 Lennox International Inc.
7.1.10 Midea Group Co., Ltd.
- *List Not Exhaustive
8. VENDOR MARKET SHARE ANALYSIS
9. UNIT SHIPMENTS OF SPLIT SYSTEMS
10. INVESTMENT ANALYSIS
11. FUTURE OUTLOOK AND OPPURTUNITIES OF THE MARKET
Split Systems Industry Segmentation
A split system is an HVAC system that has both indoor and outdoor units that are connected with copper tubing. There are many different types of split systems, which can include either a heat pump or air conditioner installed outside your home, paired with either a gas furnace or a fan coil located inside your home.
The Global Split Systems Market is segmented By Equipment Type (Mini-split, Multi-split, and Variable Refrigerant Flow (VRF)), By Application (Residential and Commercial), and Geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa).
| By Equipment Type | |
| Mini-split | |
| Multi-split | |
| Variable Refrigerant Flow (VRF) | |
| Others |
| By Application | |
| Residential | |
| Commercial |
| By Geography | ||||||||
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| Middle East and Africa |
Split Systems Market Research FAQs
What is the current Global Split Systems Market size?
The Global Split Systems Market is projected to register a CAGR of less than 5.8% during the forecast period (2023-2028).
Who are the key players in Global Split Systems Market?
Daikin Industries, Ltd., Mitsubishi Electric Corporation, Hitachi, Ltd., Samsung Electronics Co., Ltd. and Panasonic Corporation are the major companies operating in the Global Split Systems Market.
Which is the fastest growing region in Global Split Systems Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Global Split Systems Market?
In 2023, the Asia-Pacific accounts for the largest market share in the Global Split Systems Market.
Global Split Systems Industry Report
Statistics for the 2023 Global Split Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Split Systems analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
