HVAC is a critical component of residential constructions such as apartment buildings, hotels, family houses, and nursing homes. Furthermore, the global expansion of smart homes has increased demand for and integration of smart air conditioners (ACs). As a result, electronic device makers are releasing new smart products. LG Electronics USA, for instance, offered numerous window and portable air conditioners with easy-to-use smart connections in May 2021. With best-in-class cooling and low-decibel operation, these smart air conditioners will diversify the company's offerings in the US market. These WiFi-enabled smart air conditioners from the firm are part of their extensive line of room air solutions. Furthermore, rising demand for smart AC in different industries for its lower energy consumption than traditional AC will boost the global smart AC market in the coming years. The growing popularity of smart gadgets that can replace traditional remote-controlled air conditioners with smart devices will also help the smart AC market throughout the projection period. Due to all of these factors, the global smart air conditioning market is expected to grow at a CAGR of 6.1% throughout the forecast period (2023–2029), according to OMR Research. The market was valued at $13.4 billion in 2021, which will further grow to $20.1 billion in 2028.
Segments of the Market
The global smart AC market is segmented on the basis of type and end-user. Based on type, the market is sub-segmented into split AC, window AC, packaged AC, and central AC. Based on end-user, the market is sub-segmented into residential, commercial, and industrial. Among these, the residential sub-segment held the largest market share of 55.0% in 2021, accounting for $7.4 billion, and is estimated to reach $11.3 billion in 2028.
Recent Developments
Prominent players in the global smart AC market include Mitsubishi Electric, Godrej Appliances Ltd., and Robert Bosch GmbH, Daikin Industries, LG Electronics, Blue Star Ltd., Friedrich, Electrolux, Carrier, and Samsung Electronics, among others. These companies are embarking on aggressive strategies such as partnerships and product launches in the smart AC market to gain a leading position across the globe. Some of the recent developments in the market by market players include:
• In March 2022, Haier launched the Elegante Cool air conditioners in India. This AC unit features Frost Self-Clean Technology, with which a user can get a complete indoor wet wash by pressing a button. The unit also has a high ISEER of 5.40 that makes it more energy-efficient, a 5-in-1 convertible feature, and the triple inverter plus technology that allows up to 65% energy savings.
• In August 2022, Xiaomi launched a new air conditioner in China called the Mijia Air Conditioner Natural Wind 1.5 hp. The wind deflector on the gadget has a large airflow range, opening up to 106 mm (4.2 in), and can be adjusted from 0 to 180°. This enables air circulation rates of up to 700 m3 (24,720 ft3) per hour. The user can utilize Xiao AI voice commands or the Mijia app to control this smart AC and connect it to other IoT gadgets in their house.
• In December 2022, LG Electronics launched the new LG ArtCool Gallery unit. The unit features a 27-inch LCD screen that can display a variety of exclusive static pictures selected via the LG ThinQ app, as well as family photos uploaded to it via a smart smartphone. ArtCool Gallery incorporates the LG AI Dry technology, which can eliminate any moisture that forms within the air conditioner. This new model includes a bottom grill that can be removed for easy cleaning as well as a cover that makes installation much easier.
Conclusion
The advantages of smart AC, such as controllability via smart phones and remote-free operations, will be the primary factors driving market expansion. Smart ACs' characteristics, such as weather control and a lower power consumption rate, along with several technological advancements such as IoT connectivity, air purification technology, 5G spectrum, Wi-Fi, and smart inverters, are other major factors driving market growth. As a consequence, prominent market participants including Samsung, Daikin Industries, LG Electronics, Mitsubishi Electric, and others are focused on incorporating these technologies into their smart AC products to meet expanding global demand. For instance, in January 2020, Samsung released 40 air conditioning units at varying price points. This new line of smart air conditioners includes the Wind-Free AC 2.0, which has Wi-Fi functionality and can go into energy-saving mode if it detects no human presence for one hour. Moreover, the use of smart AC in various sectors such as residential, commercial, and industrial will contribute to the growth of the smart AC market throughout the forecast period.