Air Conditioning Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Air Conditioning Equipment Market is Segmented by Type (Split System [Ducted and Ductless], Variable Refrigerant Flow, Air Handling Units, Chillers, Fan Coils, Indoor Packaged and Roof Tops, and Other Types), End-User Industry (Residential, Commercial, and Industrial), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Air Conditioning Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Air Conditioning Equipment Market Size

Air Conditioning Equipment Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 125.71 Billion
Market Size (2030) USD 162.90 Billion
CAGR (2025 - 2030) 5.32 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Low

Major Players

Air Conditioning Equipment Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Air Conditioning Equipment Market Analysis

The Air Conditioning Equipment Market size is estimated at USD 125.71 billion in 2025, and is expected to reach USD 162.90 billion by 2030, at a CAGR of 5.32% during the forecast period (2025-2030).

An air conditioner extracts heat from a space and expells it outside, cooling indoor air. This cooled air is then circulated throughout a building via ventilation. Air conditioners are crucial in maintaining comfortable living temperatures as a pivotal HVAC system component.

Commonly referred to as "split systems," air conditioners consist of an outdoor unit, the condenser, and an indoor unit, the evaporator. Dehumidification occurs as warm indoor air moves over the cold evaporator, causing the air to condense and shed moisture, akin to how condensation forms on chilled glass. While split systems feature distinct indoor and outdoor units, there's also a "packaged" system where elements are integrated into a single outdoor unit.

  • The growing construction sector is expected to boost the demand for AC equipment in the residential, commercial, and industrial sectors. The increasing construction spending and a surge in building permits across residential, commercial, and industrial sectors. Notably, the US construction sector is set for further growth, supported by significant federal investments in infrastructure. This positive trend isn't limited to public projects; private commercial construction is also gaining momentum.
  • Rapid urbanization and economic expansion, especially in developing nations, are fueling a surge in residential and commercial construction, driving the demand for air conditioning systems. With increasing incomes, a growing number of households and businesses can now invest in and deploy air conditioning units.
  • The escalation of global temperatures due to climate change has heightened the frequency and intensity of heatwaves worldwide. Consequently, there has been a surge in the demand for air conditioning systems. This demand is particularly pronounced in regions that historically had lower cooling needs.
  • Air conditioning is significantly more prevalent in American households than in European ones. This trend is largely attributed to the climatic demands of specific US regions.
  • For instance, the humid South and arid Southwest have historically necessitated cooling solutions. Highlighting the severity of the situation, the IEA has noted a rise in heat alerts in the Southwestern United States, underscoring the health risks. Moreover, central and southern US regions, known for their high humidity, exhibit a higher prevalence of air conditioning. Conversely, the Midwest, characterized by a mixed-humid climate and annual precipitation exceeding 20 inches, also sees a notable uptake in air conditioner usage.
  • The air conditioning equipment market faced substantial disruptions due to the Russia-Ukraine conflict and an economic slowdown. Rising inflation and interest rates curbed consumer spending, dampening demand and stalling market growth. Additionally, the trade tensions between the United States and China exacerbated global supply chain disruptions, significantly affecting AC manufacturers in both nations.

Air Conditioning Equipment Industry Overview

The air conditioning equipment landscape is highly competitive, with several local and international players active. International participants operate in the country through partnerships with regional players. With the market expected to broaden and yield more opportunities, more players are expected to enter. The key players in the market studied include Mitsubishi Electric and Johnson Controls, among others. These major players have adopted various growth strategies, such as mergers and acquisitions, new product launches, expansions, joint ventures, partnerships, and others, to strengthen their position in this market.

  • March 2024: Mitsubishi Electric Trane HVAC US LLC (METUS) announced the introduction of Premier Wall-mounted Indoor Units (MSZ-GS/MSY-GS). At the same time, Premier MSZ-GS Indoor Units are compatible with single-zone and multi-zone heat pump outdoor units, including single- and multi-zone Hyper-Heating INVERTER (H2i) units. The MSY-GS is a single-zone, cooling-only air conditioner for climates with unnecessary heating.
  • February 2024: Daikin Industries Ltd enhanced its air conditioners by focusing on critical elements. This includes shifting to HFC-32, an R32 refrigerant with low global warming potential, emphasizing its eco-friendliness and energy efficiency. Additionally, Daikin has bolstered the fundamental performance of its air conditioning units. In a significant move, Daikin is set to launch the VRV 7 multi-air conditioner series for buildings in November 2024. This series boasts the industry's top energy efficiency and is pivotal in lessening environmental footprints and operational burdens.

Air Conditioning Equipment Market Leaders

  1. Daikin Industries, Ltd.

  2. Hitachi Ltd.

  3. Johnson Controls

  4. Electrolux AB Corporation

  5. Mitsubishi Electric Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Air Conditioning Equipment Market Concentration
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Air Conditioning Equipment Market News

  • May 2024: Lennox and Samsung signed an agreement to market ductless ACs and heat pump products across the United States and Canada, including mini-split, multi-split, and VRF systems. This joint endeavor will operate under the Samsung Lennox HVAC North America banner.
  • March 2024: Riello, a Carrier brand, launched a high-end residential range with the new RIELLO ELIXATM series of single-split inverter air conditioners. The RIELLO ELIXA wall-mounted air conditioners achieve energy class A+++ in cooling and heating, offering optimum user comfort and an environment-friendly home environment.

Air Conditioning Equipment Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumption and Market Definition
  • 1.2 Scope of the study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Bargaining Power of Suppliers
    • 4.2.2 Bargaining Power of Buyers
    • 4.2.3 Threat of New Entrants
    • 4.2.4 Threat of Substitutes
    • 4.2.5 Intensity of Competitive Rivalry
  • 4.3 Industry Value Chain Analysis
  • 4.4 Assessment of Macroeconomic Factors on the Market

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Replacement of Existing Equipment With Better Performing Ones
    • 5.1.2 Supportive Government Regulations Including Incentives for Saving Energy Through Tax Credit Programs
  • 5.2 Market Challenges
    • 5.2.1 Dependence on Macro-economic Conditions

6. MARKET SEGMENTATION

  • 6.1 By Type
    • 6.1.1 Split System (Ducted and Ductless)
    • 6.1.2 Variable Refrigerant Flow (VRF)
    • 6.1.3 Air Handling Units
    • 6.1.4 Chillers
    • 6.1.5 Fan Coils
    • 6.1.6 Indoor Packaged and Roof Tops
    • 6.1.7 Other Types
  • 6.2 By End-user Industry
    • 6.2.1 Residential
    • 6.2.2 Commercial
    • 6.2.3 Industrial
  • 6.3 By Geography***
    • 6.3.1 North America
    • 6.3.2 Asia
    • 6.3.3 Australia and New Zealand
    • 6.3.4 Europe
    • 6.3.5 Latin America
    • 6.3.6 Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Daikin Industries Ltd
    • 7.1.2 Hitachi Ltd
    • 7.1.3 Electrolux AB Corporation
    • 7.1.4 Mitsubishi Electric Corporation
    • 7.1.5 Johnson Controls
    • 7.1.6 Haier Group
    • 7.1.7 Carrier Corporate
    • 7.1.8 Panasonic Corporation
    • 7.1.9 Alfa Laval AB
    • 7.1.10 Lennox International Inc.
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. FUTURE OF THE MARKET

**Subject to Availability
*** In the Final report the Asia, Australia, and New Zealand will be studied together as 'Asia Pacific'
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Air Conditioning Equipment Industry Segmentation

Air conditioning equipment is designed to regulate temperatures and provide fresh air in rooms experiencing high temperatures and humidity, ensuring a comfortable indoor environment. The market study analyses the trends and opportunities for different types of air conditioning equipment, such as split systems, variable refrigerant flow, air handling units, chillers, fan coils, indoor packaged, and rooftops used in various end-user industry applications. Further, the study analyzes the impact of macroeconomic factors on the market.

The air conditioning equipment market is segmented by type (split system [ducted and ductless], variable refrigerant flow (VRF), air handling units, chillers, fan coils, indoor packaged and rooftops, and other types), end-user industry (residential, commercial, and industrial), and geography (North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.

By Type Split System (Ducted and Ductless)
Variable Refrigerant Flow (VRF)
Air Handling Units
Chillers
Fan Coils
Indoor Packaged and Roof Tops
Other Types
By End-user Industry Residential
Commercial
Industrial
By Geography*** North America
Asia
Australia and New Zealand
Europe
Latin America
Middle East and Africa
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Air Conditioning Equipment Market Research FAQs

How big is the Air Conditioning Equipment Market?

The Air Conditioning Equipment Market size is expected to reach USD 125.71 billion in 2025 and grow at a CAGR of 5.32% to reach USD 162.90 billion by 2030.

What is the current Air Conditioning Equipment Market size?

In 2025, the Air Conditioning Equipment Market size is expected to reach USD 125.71 billion.

Who are the key players in Air Conditioning Equipment Market?

Daikin Industries, Ltd., Hitachi Ltd., Johnson Controls, Electrolux AB Corporation and Mitsubishi Electric Corporation are the major companies operating in the Air Conditioning Equipment Market.

Which is the fastest growing region in Air Conditioning Equipment Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Air Conditioning Equipment Market?

In 2025, the North America accounts for the largest market share in Air Conditioning Equipment Market.

What years does this Air Conditioning Equipment Market cover, and what was the market size in 2024?

In 2024, the Air Conditioning Equipment Market size was estimated at USD 119.02 billion. The report covers the Air Conditioning Equipment Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Air Conditioning Equipment Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Air Conditioning Equipment Industry Report

Statistics for the 2025 Air Conditioning Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Air Conditioning Equipment analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.