Air Conditioner (AC) Market Analysis

The global air conditioner market size is projected to reach 199.53billion in 2024,growing to 268.05 billion by 2029 at a CAGR of 6.08% during the forecast period (2024-2029).

Key Growth Drivers:

• Rising global temperatures and humidity levels, coupled with increasing acceptance of ACs as essential utilities rather than luxury items.

• Technologically advanced products, including inverter ACs and models with integrated air purification systems, are expected to positively influence market growth.

Market Disruptions (COVID-19 Impact):

The pandemic disrupted global supply chains in 2020. China, being both the largest consumer and producer of AC units, also supplies critical components for international manufacturers. Production halts in China forced temporary shutdowns among US and European AC manufacturers, creating supply-demand imbalances.

Future Trends:

1. Smart AC Segment Expansion

   • Growing adoption of smart retrofitting devices (converting conventional remote-controlled units into IoT-enabled systems) will drive growth.

2. Sector-Specific Demand

   • Residential: Rising living standards boost room AC demand.

   • Commercial: Increased construction of malls, offices, and industrial facilities supports steady growth in packaged AC systems.

Regulatory & Environmental Shifts:

• Stricter refrigerant regulations are pushing manufacturers to develop energy-efficient and eco-friendly products.

• Phase-out of key refrigerants (e.g., CFCs) is accelerating technological advancements, with alternatives gaining market dominance.