The global air conditioning systems market is led by key players such as Daikin Industries Ltd., Gree Electric Appliances, Inc. and Carrier Corporation. Among the other promising players are LG Electronics, Hitachi Ltd., and Haier Electronics Group Co., Ltd. Although these players have a strong market position, their growth is relatively lower than the market leaders. Leading players are currently focusing on integrating products to create a new customer base. As a part of this strategy, companies are engaging in various partnerships and acquisitions, states Transparency Market Research in its new study.
Moreover, companies are continuously investing in R&D to offer powerful, advanced, and ecofriendly products. Companies such as Samsung Electronics Limited are investing at least 9% of their sales revenue into R&D activities each year.
According to the report, the global air conditioning (AC) systems market was valued at US$104.42 bn in 2015 and is projected to rise to US$167.04 bn by 2024, expanding at a 5.1% CAGR from 2016 to 2024. On the basis of equipment, the portable air conditioning systems segment will expand at an 8.7% CAGR between 2016 and 2024. By application, the commercial segment will lead in the coming years, but the residential segment will expand at a high CAGR of 6.1% from 2016 to 2024. On the basis of distribution channel, the company-owned stores segment is expected to continue to lead and will be worth US$124.39 bn by 2024. The segment will also expand at the most significant pace during the period from 2016 to 2024. By geography, the Asia Pacific air conditioning market will remain dominant and is likely to be worth US$97.27 bn by 2024, whereas the Middle East and Africa will exhibit a high CAGR.
Demand for Energy-efficient AC Models to Drive Replacement of Traditional Air Conditioning Systems
The growing consumer concern about the importance of having energy efficient air conditioning systems is driving consumers, especially in the mature markets of North America and Europe, to replace their existing AC systems with energy-efficient models. “The increasing gap between the supply and demand for energy is also leading to stringent regulations by various governments for electrical appliances, making minimal energy ratings mandatory,” says a TMR analyst. This is also forcing manufacturers in the global air conditioning systems market to design energy efficient systems. Other factors driving the demand for air conditioning systems include a rise in disposable incomes, improved standard of living, and increasing population.
Decrease in Profit Margins to Hamper Growth of Market
Local producers of China sell their products across the world at a lower price in comparison to the AC systems sold by global brands, thus offering tough competition. These Chinese manufacturers have had a significant impact on the market, forcing global players to lower their price of air conditioning systems. As a result, profit margins from air conditioning systems are significantly reduced. The impact of this restraint is high and is likely to remain so through 2024, says TMR. However, the development of energy efficient systems in the near future will lead the market towards significant growth. The untapped markets in Asia Pacific, the Middle East and Africa, and Latin America are also expected to hold promise for the growth of the air conditioning systems market in the future. Inverter-based and solar-based air conditioning systems are expected to be in high demand from these regions.
This information is based on the findings of a report published by Transparency Market Research, titled “Air Conditioning Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.”
The global air conditioning systems market is segmented as follows:
Air Conditioning Systems Market Analysis, by Equipment Type
- Portable air conditioning systems
- Windows air conditioning systems
- Cassette ACs
- Single Packaged
Air Conditioning Systems Market Analysis, by Application
Air Conditioning Systems Market Analysis, by Distribution Channel
- Conventional Stores
- DIY Stores
- Furniture stores
- Company Owned/ Authorized Stores
Air Conditioning Systems Market Analysis, by Geography
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- The UAE
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
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