Numerous market players in the global air conditioning systems market have been focusing on expanding their customer base, especially by entering unexplored terrains, through integration of products, finds Transparency Market Research (TMR). Acquisitions and partnerships have been some of the key business strategies adopted by a number of companies. One such instance is that of a collaboration between an India-based company, Carrier Corporation, and China-based Midea Group, aimed at catering to the demand for air conditioning systems in Argentina, Brazil, and Chile.
Some of the key companies operating in the market for air conditioning systems discussed in the report are Hitachi Ltd., LG Electronics, Samsung Electronics, Daikin Industries Ltd., Panasonic Corporation, The Midea Group, Gree Electric Appliances, Inc., Electrolux AB, Mitsubishi Corporation, and Carrier Corporation. Investments in R&D have been observed to be increasingly adopted by these firms.
In 2015, the global market for air conditioning systems was pegged at 104.42 bn.The global air conditioning systems market is projected to expand with a promising CAGR of 5.1%, gaining around US$167 bn by the end of 2024, predicts TMR.
Commercial Sector to Overshadow Other Application Segments
Based on application, the global air conditioning systems market has been segmented into residential, industrial, commercial, and automotive segments. Of these, the residential segment had risen to prominence in 2015, in terms of volume. However, it was the commercial segment that held the leading share in 2015, accounting for over 40% in terms of revenue generation. TMR predicts that this segment will continue to dominate the market over the forecast period owing to the heightened demand for air conditioning systems exhibited by hospitals, clinics, enterprises, hotels, construction sector, and healthcare sector.
Based on geography, the major segments of the global air conditioning systems market are Latin America, North America, the Middle East and Africa, Europe, and Asia Pacific. Asia Pacific is slated to emerge with lucrative opportunities over the next few years. Growth of the automotive industry has led to high demand for automotive air conditioning, particularly in China. Phenomenal growth of the industrial and manufacturing sectors, along with the sprouting of small, medium, and large business organizations in India, Japan, and China are responsible for extensive augmentation of this market.
Presently, the Europe and North America segments lead the market due to regulatory initiatives aimed at reducing energy consumption, and increased replacement needs.
Rising Replacement Requests to Augment Growth
Increasing replacements of older cooling devices in several Asian, European, and North American countries, technological advancements that have led to eco-friendly air conditioning devices, high level of competition between leading companies, growing inclination towards luxurious lifestyle, and increasing disposable incomes of people have been driving the market for air conditioning systems worldwide.
On the contrary, low-cost products offered by Chinese players such as Haier Group, forms one of the major challenges faced by this market. Other market players are forced to decrease their costs because of the presence of these Chinese products and as a result, there has been a substantial reduction in their profit margins. Other than this, alarming levels of energy consumption have also been a major concern. However, the market for air conditioning systems will present considerable opportunities primarily because of the rising awareness about these products, improving standards of living of the people, and introduction of environment-friendly air conditioning systems in the market.
The information presented in this review is based on a Transparency Market Research report, titled, “Air Conditioning Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024”.
The key segments of the Global Air Conditioning Systems market are:
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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