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Increased air pollution and rising level temperature and humidity conditions are influencing the demand for air conditioner products across the globe especially in urban areas. According to the National Space Science and Technology Centre (NSSTC), November 2019 is recorded as the warmest than the average period for many regions globally and is an alarming indicator that necessitates the use of air conditioning products to live a comfortable life. Hence peoples prefer to use air conditioners than other more luxurious products. Multiple functions of air conditioners such as air motion control, humidity and temperature control, moisture control, customized changing options as required, gives rise to the importance of air conditioners towards consumers. According to the industry sources, global demand for air conditioners increased to 110.97 million units as of 2018.
Rapid economic growth helps in increasing the disposable incomes of the population and increasing housing demand for residential and commercial purposes, industrial purposes gives rise to the air conditioner market.
An increasing number of electronic spare parts manufacturing companies also help air conditioners manufacturers to get easy access to the required spare parts for designing and packaging of air conditioners, and this helps to grow the air conditioner market. The introduction of new technology features such as IoT, smart checking and changing system, and other automation technology and marketing efforts of the key players in the industry attracts the consumers to purchase air conditioners and fulfill their requirements.
Key Market Driver -
Increasing income of population creates demand for air conditioning products
Key Market Restraint -
Higher maintenance cost limits the demand for air conditioning product.
The increasing population is a key driver for the global air conditioner market, as it creates demand for air conditioning products for the sense of relaxation and comfort from external ambient environmental conditions. Growing the Omni-channel retail chain of electronic products across the globe acts as a driving factor for the air conditioner market because of the easy availability of air-conditioning products to the peoples. Flourishing tourism, hospitality, hotels, banking, and the financial sector, IT and many other sectors help to the growth of the air conditioner market.
On the other hand, the higher maintenance cost leads to increasing spending of the peoples for air conditions and is one of the factors which creates hindrances in the air conditioning businesses. The introduction of various legislation related to the design of the air conditioner limits the introduction of newer technologies in the design of the air conditioner. For instance, the U.K. law states that the use of R22R refrigerants for service and maintenance of air conditioners is illegal. This creates hindrances for manufacturers to replace existing R22R refrigerant from their designed products to the new refrigerants.
The global air conditioner market includes key players such as O General, Haier, Hitachi, Blue star, Videocon, Whirlpool, LG, Daikin, Samsung, and Voltas.
The air conditioner market can be segmented by type, by application, by technology, by components, by distribution channel, and by geography.
By type, the air conditioner market can be segmented into room AC, ducted AC, ductless AC, centralized AC, and others. Room Ac segment is expected to hold the major share in the global air conditioner market. Windows air conditioner is the most widely used air conditioner for single rooms and is the leading segment for the air conditioner market. Increasing the requirements of the households to install a single room refrigeration system increases the demand for room air conditioners.
Based on application, the global air conditioner market is segmented into residential, commercial offices and retail, industrial and others. Residential segments are expected to account for the largest market for the air conditioner market. According to the International Monetary Fund (IMF), the global housing market is expected to rise to USD 1.1 Trillion as of 2022, this gives demand for the air conditioner market.
By technology, the air conditioner market is segmented based on semi-automatic or manual and automatic. The semi-automatic air conditioning is projected to dominate in developing countries such as India, China, and others because of consumer preference for lower-cost electronic products. On the other hand, the fully automatic air-conditioning is anticipated to hold the major share in the developed countries, because the higher income group of peoples prefer to use fully automatic air conditioners with new technology features embedded into it.
Based on distribution channels, the air conditioner market can be segmented into online retail, retail shops, direct sales, and distribution sales. The retail shops' are expected to be the largest segment owing to a large number of organized retail shops globally. However, the online retail segment is expected to be the fastest-growing owing to the increasing global populations of internet users. For instance, in March 2018, online sales account 6%-7% out of the total sales of the air conditioners in India, and it will rise further with the increasing number of internet users. Companies also sell air-conditioned products by directly targeting the end-user instead of intermediate retail shops and online retail stores.
By geography, the global air conditioner market can be segmented into geographical regions such as North America, South America, Europe, Asia Pacific, Africa, and the Middle East.
Large manufacturing base of air conditioners including LG, Samsumg, Voltas, Daikin etc dominates the Asia Pacific region of air conditioners and hence Asia Pacific is expected to be the leading region for global air conditioner market.
Increasing construction of commercial and residential properties with rising preference for home based products such as air coolers, fans and air conditioners especially in China and India regions further influence demand for the global air conditioner market for the Asia Pacific region.
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North America is projected to witness a significant growth during the forssecast priod 2019-2026 owing to increasing awareness about energy-efficient air conditioners which helps in rising demand for air conditioning products. Rising acceptance of central air conditioners creates Mexico as a promising region for the growth of the air conditioner market. Additionally, the demand for portable air conditioners is to a high peak in this region as most of the consumers are flexible for portable features.
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