"Catapult Your Business to Fore, Gain Competitive Advantage "

Central Air Conditioning Market Size, Share & COVID-19 Impact Analysis, By Type (Split System, Packaged Unit, and Rooftop System), By Application (Residential and Commercial) and Regional Forecast, 2020-2027

Last Updated: May 27, 2024 | Format: PDF | Report ID: FBI102842



Play Audio Listen to Audio Version

The global central air conditioning market size stood at USD 32.94 billion in 2019 and is projected to reach USD 58.79 billion by 2032, exhibiting a CAGR of 4.2% during the forecast period.

The increasing government and private sector investments in new construction & infrastructure projects, including hospitals, hotels, airports, and multiplexes is accountable to the growth of the market. These systems are installed at commercial places to distribute cooled air to and from rooms by one or more fans and ductwork. Central air conditioning systems are inclusive of filters that help improve the quality of air, and thus eliminate dust, pollen and lint from the air. Moreover, several advantages of these systems such as reduced noise, effective circulation, and easy operability is supporting the product demand.


Request a Free sample to learn more about this report.

Rising Implementation of Smart Central Air Conditioning Systems

The IoT enabled smart air conditioning systems are gaining popularity owing to their advantages such as enhanced comfort, smart scheduling, cost-efficiency, and milt-zone support. Companies are developing new systems with these advanced technologies to increase overall product efficiency and enhance the customer satisfaction. For instance, in April 2018, Chinese brand Haier announced the launch of their heat pump magnetic levitation (magnetic) central air-conditioner. The new system is integrated with novel technologies such as the E+ cloud service big data platform and other IoT technologies to analyze user needs and habits, as well as achieve energy conservation, and self-control throughout the product lifecycle.


Increasing Inclination of Consumers Towards Energy-Efficient Systems

Key manufacturers in the market are opting for technological solutions that have less energy consumption with high efficiency. The governments and associations such as Energy Star, Air-Conditioning, Heating and Refrigeration Institute (AHRI), and many more recognize efficient products annually across the market, so as to introduce better products to the regular customers. Several companies are working on minimizing the energy consumption in comparison with the standard air conditioner, owing to the rising need for central air conditioning systems in residential as well as the commercial applications. Energy Star certified products are expected to be the best and energy-efficient product, as the agency testifies the products efficiency, henceforth increases the demand for energy-efficient central AC system and drives the market globally.

High Investments in Developing New Commercial Spaces

Governments of developing countries are initiating and authorizing various new commercial construction plans, due to emerging local, regional and global market players and their commercial operating spaces. Moreover, Daikin’s manufacturing plants can be located in Asian countries namely India and China, with increasing need for commercial place to operate the entire business across the region or country, which in turn will lead to a high product demand in the coming years. Similarly, the Indian government is expected to invest USD 1 trillion in housing sector over the forecast period; this, in return is projected to boost the demand for residential central AC.


Rapid Spread of COVID-19 Hinders the Market Growth Globally

The recent outbreak of COVID-19 is anticipated to hamper the market growth over coming years. Government authorities across the globe are advising people to not use the air conditioning systems, as it help in spreading the virus, restricting the product adoption. Moreover, owing to the increasing spread of COVID-19, governments are imposing stringent lockdowns in counties, which is slowing the overall economic conditions. This has impacted the new purchase decisions of organizations, thus hampering this market.

However, with the eradication of this pandemic disease, government across several countries are expected to implement certain initiatives that can help to overcome their economic downfall. As a result, these countries are anticipated to regain their stability. This can help the central AC manufacturers to enhance their productivity and increase the sales growth over the forecast period.


By Type Analysis

To know how our report can help streamline your business, Speak to Analyst

Split System to Clutch Highest Market Share in the Forecast Period

The global market for this is segmented on the basis of type, which is further sub-segmented into split system, packaged unit, and rooftop system.

Split air conditioning system is projected to account for the highest market growth due to the rising demand for residential and commercial complexes across the globe. Single split systems are preferred in residential usage wherein the multi split systems are used for both residential and commercial applications. The variable refrigerant flow system (VRF) is one of the key multi split air conditioner used in commercial spaces.

Moreover, the rooftop system is expected to witness progressive market growth, as this system is becoming the primary necessity of commercial offices, airports, entertainment places and many more. Rooftop system offers a wide area cooling facility with high energy-efficiency, hence becoming the preferred choice for commercial applications. Furthermore, the packaged unit is anticipated to witness significant market growth with respect to the rooftop systems, as these units are embedded in restaurants, telephone exchange, small halls etc. with limited cooling area feature.

By Application Analysis

Commercial Application to Witness Highest Growth Rate in the Near Future

By application, the market is bifurcated into residential and commercial sector.

The commercial sector is expected to witness exponential market growth owing to the rising government and private organizations investments in commercializing the developing and developed economies. Airports, theaters, commercial buildings are entirely integrated with centralized air conditioning units across the globe, therefore boosting the growth of the market.

Furthermore, the residential application segment witnesses significant market growth owing to the limited usage in residential rooms and small halls. In the current scenario, it is observed that the governments of developing economies are investing in housing plans, thus contributing to market growth of central air conditioners in the residential sector.


Asia Pacific Central Air Conditioning Market Size, 2019 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Geographically, this market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

The increasing number of commercial buildings in several Asia Pacific countries, including India, China, and Japan are expected to aid the central air conditioning market growth over the forecast period. Construction contractors are deploying central systems in building to reduce the electricity consumption and enhance the building energy efficiency, driving the Asia Pacific market. Moreover, the increasing number of manufacturing activities in China and India will elevate the market over the forecast timeline. Several system manufacturing companies are developing their manufacturing plants in these countries owing to low labor and raw material cost.

The increasing consumer disposable income level in North America is expected to propel the regional market growth for central air conditioning. Consumers in the U.S. and Canada are increasingly spending in replacing traditional air conditioner systems with central systems to enhance the air flow efficiency and reduce the total electricity consumption, attributing to market growth. According to the U.S. Department of Energy, ENERGY STAR and Energy Guide labels qualified residential central air conditioner units are about 15% more efficient than standard models, saving significant amount of energy, thus supporting product adoption.

Government authorities in Europe are making large investments in new smart city development projects. The European Union is anticipated to have over 300 smart cities by 2020, increasing the adoption of advanced air conditioning systems. Moreover, the increasing number of residential infrastructure projects, particularly in France, Russia and Germany will augment the market growth over the forecast timeline. However, the recent impact of COVID-19 in major European countries, such as Italy, France, UK, and Russia will hamper this market growth in 2020.

This market in MEA is witnessing a significant growth due to rising urban population and rising increasing private sector investments in developing new commercial buildings. Moreover, the increasing number of skyscrapers in UAE will contribute to this market growth over the forecast timeline. Moreover, the market in Latin America is anticipated to witness steady growth owing to the increasing government spending in developing new airports and railway stations. The Brazilian government is planning to develop about 22 new airports over coming years, supporting the market growth.


Daikin and Lennox are Adopting Advanced Technological Systems to Improvise the Product Quality and Portfolio

Daikin and Lennox are adopting smart and advance technology to offer highly energy-efficient and easy accessible products to their customers globally. These organizations are presenting several technology driven products to cater their huge customer base along-with maintain their market value. Daikin is leveraging its cutting-edge technology for delivering outstanding system solutions and enhance the product portfolio.

  • January 2020: Daikin’s DX18TC series with ComfortNet Control was recognised by the ENERGY STAR agency as an energy-efficient product, that offers high-efficiency for the residential central air conditioners with lifetime operating cost ranging between USD 1,666 to USD 3,418

List of Key Companies Profiled:


  • Lennox International Inc.

  • Carrier

  • Blue Star Limited.

  • Haier Inc.

  • Mitsubishi Electric Corporation


  • Nortek Global HVAC

  • Trane

  • LG Electronics


  • October 2019: Carrier introduced a new WeatherMaker Rooftop unit using i-Vu controls for protecting the historic theatres. This product is manufactured for renovating the historic 1928 Sandusky State Theatre by maintaining the indoor temperature

  • April 2019: Daikin initiated the manufacturing facility of its new air conditioner series in India, aiming for strong sales target. The company planned on manufacturing 15 lakh residential air conditioners, 50,000 VRV units, 20,000 ductable units and 1,000 chillers respectively


The report offers an elaborative analysis of numerous factors affecting the global central air conditioning market. These include opportunities, growth drivers, threats, key industry developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as type and applications. It strategically examines several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players to gain a competitive edge in the market and attract high market revenue in the forecast duration.

An Infographic Representation of Central Air Conditioning Market

To get information on various segments, share your queries with us

Report Scope & Segmentation



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD billion)


By Type

  • Split System

  • Packaged Unit

  • Rooftop System

By Application

  • Residential

  • Commercial

By Region

  • North America (the U.S. and Canada)

  • Europe (U.K., Germany, France, Italy, and the Rest of Europe)

  • Asia Pacific (Japan, China, India, and the Rest of Asia Pacific)

  • Middle East & Africa (South Africa, GCC and the Rest of Middle East & Africa)

  • Latin America (Brazil, Mexico, and the Rest of Latin America)

Frequently Asked Questions

Fortune Business Insights says that the value of the market was USD 32.94 billion in 2019

The market is projected to reach USD 46.62 billion by 2027

The market will grow at the rate of 4.5% CAGR. The increasing government and private sector investments in new construction & infrastructure projects, including hospitals, hotels, airports, and multiplexes is attributing to this market.

Asia Pacific is expected to hold the largest share with a revenue generation of USD 11.65 billion in 2019 increasing numbers of commercial buildings in several Asia Pacific countries

Split system segment is expected to be the leading segment in the market during the forecast period

Increasing inclination of consumers towards energy-efficient systems and emerging investments for developing new commercial spaces boosts the market growth

DAIKIN INDUSTRIES, Ltd., Lennox International Inc., Carrier and Fujitsu General are the top players in the market

Asia Pacific is projected to hold the largest market share, owing to the increasing number of manufacturing activities in China and India

Commercial application segment is expected to lead the market during the forecast period

Rising implementation of smart central air conditioning systems is the current market trends

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2032
    (In Process)
  • 2023
    (In Process)

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.