The global Air Conditioning market is anticipated to grow at a significant CAGR of 9.7% during the forecast period. One of the major factors driving the growth of the market includes the rapid rise in the global urban population. Ongoing technological advancements to reduce component size and price to increase the affordability of ACs by middle-income individuals is another factor to promote the growth of the air conditioning market, especially in emerging economies across the globe. 

For instance, In June 2020, Voltas Ltd. one of the AC brands from the house the Tata had launched the latest line of ultraviolet light (UVC) that is based on surface disinfectant solutions along with its line of engineered UVC-based air and duct disinfectant solutions that the company is providing its consumer since past years. The launch is considered as a return and response to the ongoing crisis of COVID-19 by the company through continuing its services for the community and spreading a positive impact on society as UVC- based air disinfectant solution is considered to be safe with regards to increasing concerns in customer about the spread of virus due to central Air-Conditioning systems in commercial spaces. However, there are certain factors that are affecting the growth of the market. The increasing electricity cost, differing prices of raw materials, incompatible with environmental protection, and high cost of maintenance are some of the major factors that are hindering the growth of the global air conditioning market.

Impact of COVID-19 Pandemic on Global Air Conditioning Market

The COVID-19 pandemic has had a considerable impact on the Air Conditioning market. The spread of COVID-19 had a detrimental influence on the market due to supply chain disruptions as a result of protracted plant closures around the world. The COVID-19 pandemic has broken out, and the situation is still uncertain. However, there are facts to consider. AC is a highly seasonal sales product and the manufacturers have been adversely impacted by the Covid-19 outbreak along with the lockdown imposed by the government as the sales have come to grinding halt during the peak sales season. During the first wave of the pandemic in March 2020, manufacturers faced were left with high inventory and no sales. 

Segmental Outlook 

The market is segmented based on applications, type and refrigerant type. Based on application, the market is segmented into residential, commercial, industrial, healthcare, institution, automotive, and other (railways and aerospace). Based on the type, the market is segmented into split and window AC, rooftop, indoor position AC, VRF and, chiller, other. Based on the refrigerant type, the market is segmented into 

Global Air Conditioning Market Share by Application, 2019 (%)

In terms of application, residential ACs segment held the largest market share in 2020. Rising commercial establishments is supporting to accelerate the demand for ACs in commercials. VRF AC systems are considered as one of the ideal solutions for applications in hotels, larger offices, retail spaces, and mixed-use buildings. VRF systems are reliable and easy to control as well as they are capable of meeting the complete heating and cooling requirements of larger buildings. 

Regional Outlooks

The global air conditioning market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America, Europe, Asia-Pacific and the Rest of the World. North America held major market share in 2020 in the global air conditioning market. The regional growth is attributed to the government promotional activities regards to increase in adoption of energy-efficient air conditioning in order to reduce the consumption of the energy, large capital investments, and high income capacity of consumers. 

Global Air Conditioning Market by Region, 2020-2027

Asia-Pacific Will Have Considerable Growth in the Global Air Conditioning Market

Asia-Pacific is expected to witness significant growth in the air conditioning market during the forecast period. The growing infrastructural development activities and increasing propensity of people regards to lifestyle products across the region are some key factors to drive the growth of the regional market. Further, the market in Asia-pacific region is driven by the development of metropolitan and tier 2 cities such as China, Vietnam, Malaysia, Singapore, and others. These cities are poised to have a large potential for the market growth. Additionally, Japan and India are important air conditioning markets for manufacturers across the globe.

Market Players Outlook

Moreover, the report covers the analysis of various players operating in the market. Some of the key players covered in the report include Blue Star Ltd., Daikin Industries, Ltd., Haier Electronics Group Co., Ltd., Hitachi, Ltd., LG Electronics., Voltas Ltd. These players adopt different marketing strategies such as mergers and acquisitions, product launches, and geographical expansion to remain competitive in the marketplace. 

Recent Developments

• In January 2021, Panasonic Corp. had launched launched HU series of ACs with the pronouncement recently regarding to its nanoeX technology in India. Further, the company highlighted nanoeX technology release nature's detergent or hydroxyl radicals contained in water which are having the ability to hinder the bacteria along with viruses that also includes the 99.99% of adhered novel coronavirus. Additionally, the company AC’s are well equipped with artificial intelligence, Internet of things (IoT) platform along with intelligent sensors Econavi in order to detect unconscious wate related to energy.
• In February 2021, Hitachi Air Conditioning India Ltd. announced to bring its latest range of new-age room air conditioner for 2021.

Covid-19 Impact on the AC Market

AC is a highly seasonal sales product and the manufacturers have been adversely impacted by the Covid-19 outbreak along with the lockdown imposed by the government as the sales have come to grinding halt during the peak sales season. During the first wave of the pandemic in March 2020, manufacturers faced were left with high inventory and no sales.

The Report Covers

• Market value data analysis of 2019 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global air conditioning market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.