Air Conditioning Equipment Market Size (2024 - 2029)

Air Conditioning Equipment Market Analysis

The Air Conditioning Equipment Market size is estimated at USD 119.36 billion in 2024, and is expected to reach USD 154.65 billion by 2029, growing at a CAGR of 5.32% during the forecast period (2024-2029).

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 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.