by Air conditioning systems provide temperature and humidity control for both commercial and residential applications. Air conditioners are essential tools for cooling indoor spaces in hot climates and regulate humidity levels. Air conditioners remove heat from the air in an enclosed space through a refrigeration cycle. The evaporator in the unit cools the air, while the condenser moves the heat outside. Portable air conditioners are self-contained units that can be window-mounted or placed on the floor, while central air conditioners use ductwork to distribute cooled air through vents in multiple rooms of a building. Growing discomfort from rising global temperatures and the increased adoption of digital appliances that generate internal heat have bolstered demand for air conditioning systems.
The global Air Conditioning Systems Market is estimated to be valued at US$ 293977.64 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the air conditioning systems market is the rising demand for energy-efficient and environment-friendly air conditioners. With growing concerns about climate change and rising power costs, consumers are increasingly opting for air conditioners with advanced inverter technology. Inverter ACs can regulate the compressor speed according to the cooling requirements and offer power savings of up to 30% compared to conventional air conditioners. Leading AC manufacturers are focusing on R&D to develop innovative inverter technologies and eco-friendly refrigerants with low global warming potential. The adoption of green ACs is expected to significantly contribute to market revenues over the forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirements for establishing manufacturing facilities pose significant barriers for new entrants in the air conditioning systems market.
Bargaining power of buyers: The market has numerous buyers including residential, commercial and industrial consumers. Buyers have moderate bargaining power due to availability of various product options.
Bargaining power of suppliers: Major components such as compressors, condensers, evaporators require specialized manufacturing processes. This gives suppliers moderate bargaining power.
Threat of new substitutes: Limited product alternatives are available for air conditioning. However, innovations can increase substitutes like fans, ventilation.
Competitive rivalry: The market is dominated by global players. Intense competition exists based on product quality, energy efficiency, pricing and brand image.
Key Takeaways
The Global Air Conditioning Systems Market Size is expected to witness high growth.
Regional analysis: The North America region is projected to grow at a substantial rate during the forecast period. Increasing demand from the commercial sector and favorable governmental regulations regarding energy efficiency will drive the regional market. Growing construction spending for public infrastructure in the U.S will boost HVAC adoption.
Key players operating in the air conditioning systems are Jazz Pharmaceuticals, Inc. (Ireland). Key players operating in the air conditioning systems market are focusing on new product innovations to improve energy efficiency. Manufacturers are incorporating new technologies like IoT, AI and cloud connectivity in smart air conditioners. They are also expanding their operations in emerging countries through partnerships and joint ventures.
