Published: Apr, 2018

The highly dynamic and intensely competitive global split air conditioner systems market features some of the world’s dominant electronics and technology companies. The need to conform to strict government policies and regulations in different countries regarding the emission and control of greenhouse gases and consumption of electricity are the key factors influencing the development of the market. These factors have increased the focus of key players on increasing product power and operating efficiency, observes a recent report by Transparency Market Research. Companies are also looking at prospects of enhancing their businesses through partnerships and optimizing overseas business networks. 

A recent instance is the joint venture of Midea Group with Lihom Cuchen, a renowned appliances manufacturer from South Korea in February 2016 with the aim of pursuing unique benefits in research and development, technology, manufacturing, patent sharing, and expanding its global presence. Some of the key players in the market are Daikin Industries Ltd., Electrolux AB, The Midea Group., Carrier Corporation, Haier Electronics Group Co., Ltd., and Hisense International Co. Ltd. 

global split air conditioning systems market

Mono-split Systems to Comprise Dominant Share in Market Revenue 

Transparency Market Research states that the global split air conditioning systems market was valued at US$91.09 billion in 2017 and will expand at a CAGR of 4.9% from 2017 to 2024, reaching a market size of US$127.27 billion in 2024. In terms of equipment type, the segment of mono-split systems accounted for almost 70% of the market share in terms of revenue in 2017. Based on geography, the Asia-Pacific region emerged as the dominant segment in the split air conditioning systems and the trend is expected to continue over the forecast period as well. 

Rising Demand for Energy-efficient Air Conditioning Systems to be Key to Market Growth 

In mature markets such as North America and Europe, energy efficiency has been a major concern with the use of conventional air conditioning systems. Growing awareness among consumers regarding energy efficient models is, hence, emerging as the key force boosting the growth prospects of the split air conditioning systems market. Additionally, the growth in the commercial and residential segment in Asia-Pacific has resulted in a vast rise in demand for split air conditioning systems in the region. 

Besides this, the concern regarding the emission of greenhouse gases and other harmful gases through conventional air conditioners is also a key driver of the market. This is owing to the strict government regulations imposed to stabilize the greenhouse gas levels in the atmosphere. Initiatives such as government support for LEED (Leadership in Energy & Environmental Design) certified projects and mandatory SEER (Seasonal Energy Efficiency Ratio) ratings (SEER of 13.0 and above in the U.S.) for heating, ventilation, and air-conditioning systems are also helping boost the global consumption of split air conditioners. 

Intense Cost Competition to Have Negative Impact on Market Development 

However, the intense price competition in the market is resulting in decreased profit margins of a number of players. Crunched profit margins have a direct negative impact on investments made for research and other activities, which can have a diminishing effect on the overall growth of the market in the long run. In addition to the presence of a large number of companies in the global split air conditioner systems market, the condition has worsened due to the abundance of domestic manufacturers in China who sell their products at lower costs as compared to the products of global brands. 

Moreover, the rising concerns regarding the vast amount of electricity consumed to power air conditioning systems of all kinds could emerge as a key challenge for the global split air conditioning systems market. The concern regarding the vast electricity bills associated with the use of air conditioners could also compel consumers to look for natural air conditioning solutions. These factors are expected to slow down the growth of air conditioning systems market globally in the next few years. 

The information presented in this review is based on a Transparency Market Research report, titled, “Split Air Conditioning Systems Market (Equipment Type - Mono-split, Multi-split, VRF, Floor Ceiling; Distribution Channel - Conventional Stores (DIY Stores, Furniture and Supermarkets) and Company-owned Stores (Dealers and Installers); Application - Residential and Commercial) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2024.” 

Key Segments of the Global Split Air Conditioning Systems Market 

By Equipment Type

  • Mono-split
  • Multi-split
  • VRF
  • Floor Ceiling 

By Application

  • Residential
  • Commercial
  • Others 

By Distribution Channel

  • Conventional Stores
  • Company Owned Stores 

By Conventional Stores

  • DIY Stores
  • Furniture Stores
  • Supermarkets 

By Company Owned Stores

  • Dealers
  • Installers 

By Geography

  • North America (NA)
  • Europe (EU)
  • Asia Pacific (APAC)
  • Middle East & Africa (MEA)
  • Latin America (LATAM) 

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Transparency Market Research is a next-generation market intelligence provider, offering fact-based solutions to business leaders, consultants, and strategy professionals. 

Our reports are single-point solutions for businesses to grow, evolve, and mature. Our real-time data collection methods along with ability to track more than one million high growth niche products are aligned with your aims. The detailed and proprietary statistical models used by our analysts offer insights for making right decision in the shortest span of time. For organizations that require specific but comprehensive information we offer customized solutions through adhoc reports. These requests are delivered with the perfect combination of right sense of fact-oriented problem solving methodologies and leveraging existing data repositories. 

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