Air-Conditioner Market Size, Share, Growth, and Industry Analysis, By Type (Window AC, Split AC, Central AC, Portable AC), By Application (Residential, Commercial, Industrial), Regional Insights and Forecast to 2033

Air‑Conditioner Market Overview

The Air‑Conditioner Market size was valued at USD 122.48 million in 2025 and is expected to reach USD 184.38 million by 2033, growing at a CAGR of 4.65% from 2025 to 2033.

The global air‑conditioner market achieved shipment volumes of 140.6 million units in 2024, rising 4 % from 2023, driven by residential and commercial demand for cooling systems. Asia‑Pacific led with over 100 million split and multi‑split units sold annually, accounting for around 70 % of global unit sales. In China, manufacturing output reached 244.9 million AC units in 2023, while household installations averaged 145.9 units per 100 households by end‑2023. Globally, 1622 million installed units were in use as of 2024—1093 million in residential settings and 529 million in commercial buildings—with total annual sales at 135 million units, including 94 million residential and 40 million commercial.

In North America, 88 % of U.S. households used air conditioning in 2020, with two‑thirds tied to central systems. Portable AC units in the U.S. numbered 2.68 million household installations in 2020. In Africa, North Africa achieved 3.66 million RAC unit sales with a 4.3 % increase in 2024. These figures epitomize a market anchored by unit counts, geographic diversity, and rising consumption per household.

Key Findings

Driver: Rising installations in residential housing due to better affordability and hot climates.

Top Country/Region: Asia-Pacific dominates with 100+ million units sold, representing ~70 % of global volume.

Top Segment: Split and multi-split AC accounts for 42 % share of ductless AC and leads global shipments.

Air‑Conditioner Market Trends

The air‑conditioner market is marked by several notable trends. Split-system models, including mini‑split and multi‑split configurations, now represent roughly 42 % of ductless AC installations in Asia‑Pacific in 2023, reflecting a regional shift toward efficient, zoned cooling. Globally, split‑AC systems accounted for 137.3 billion USD in market size in 2022 and 142.26 billion in 2023. Window and wall-mounted units still contribute heavily, with 21.43 million units installed across U.S. households in 2020. Portable AC installations, though smaller at 2.68 million units, are gaining traction in mobile or rental living spaces. Technological advancements are also influencing growth. In China, energy-efficient inverter split‑ACs now represent a rising share of production, with multi‑split system revenue exceeding 14.3 billion USD in Asia‑Pacific by 2023. In the U.S., portable AC shipments grew to 261.6 million USD market size in 2025, facilitated by omnichannel retail availability. Meanwhile, rising temperatures in Europe have led to a jump from 3 % to 20 % household AC penetration between 2011 and 2022. Sustainability trends include next‑generation AC prototypes in India that cut energy use by up to 75 %, integrating humidity sensors and dual‑coil designs to reduce emissions by roughly 0.5 °C potential global warming over time.

North Africa’s share of the global RAC increase matched the global pace with 3.66 million units sold (+4.3 % in 2024). Regulatory frameworks are incentivizing efficiency. The U.S. Inflation Reduction Act supported a 14 % year‑over‑year increase in U.S. unit sales, with central AC and heat pump adoption reaching two‑thirds of households. Concurrently, European markets saw 546 907 units of heat-pump installations in France and 394,000 in Italy in 2024, with Germany leading at 302.38 million USD sales. In summary, major trends in the air‑conditioner market include rising unit shipments (global total 140.6 million in 2024), dominance of split‑ and multi‑split systems, energy‑saving technology adoption, regional upticks in Europe and North America, and sustainability innovations in emerging economies.

Air‑Conditioner Market Dynamics

DRIVER

Rising demand for residential cooling

Global residential units reached 94 million in 2024 with annual sales of total 135 million units, of which 70+ % were residential. In the U.S., 88 % of homes used AC in 2020, driving demand for window and split units. Asia‑Pacific saw 244.9 million units produced in 2023 and domestic installations at 145.9 units per 100 households. This shift shows strong consumer focus on comfort, especially in hot, humid climates. Affordable financing and government appliance subsidies in developing nations have accelerated purchase volumes. Multi‑split units in Asia‑Pacific contributed 43 % share of market by 2023 . High-density urban residences, paired with growth in housing units, have multiplied average installations per building. Over 100 million split and multi‑split units were sold annually.

RESTRAINT

Energy efficiency concerns and operating costs

Portable AC units, despite convenience, lag with 2.68 million U.S. household installations in 2020. A UK study found portable units cost £17–22 per week to run and yield poor efficiency. Similarly, consumer reports highlight that 50–80 lb weight hampers portability and energy performance. Older systems incur high electricity usage: HVAC accounts for up to 50 % of residential energy use in U.S., per DOE. These factors deter replacement of outdated units.

OPPORTUNITY

Next‑generation low‑emission AC technologies

New Indian prototypes using dual cooling coils with humidity sensing cut energy consumption by up to 75 %, potentially reducing global warming by 0.5 °C if scaled. In China, inverter-equipped portable ACs are breaking ground, with LG launching 14 000 BTU dual‑inverter units. Asia‑Pacific multi‑split systems reached 14.3 billion USD capacity in 2023. Efficiency mandates in Europe and North America are driving adoption of advanced compressor and refrigerant labels.

CHALLENGE

Diversifying distribution & global supply chains

In North America, portable AC market size hit 261.6 million USD in 2025. However, branded units rely on extended supply chains from Asia, causing lead times of 3–6 months, especially for seasonal demand peaks. European distribution is further complicated by varying building codes and retrofit challenges across 27 EU states, where heat-pump adoption includes 546 907 units in France. Tariffs, shipping bottlenecks, and semiconductor shortages for smart ACs impact inventory and installation schedules globally.

Air‑Conditioner Market Segmentation

The air‑conditioner market segments by type and application show clear volume-based distinctions. By type, four categories dominate, each with its own installed base and usage scenario. By application, residential, commercial, and industrial segments each represent tens of millions of installed units globally. Every segment contributes uniquely to annual shipment totals.

By Type

• Window AC: In the U.S., 21.43 million window or wall units were installed in 2020, making this a top segment. These units typically deliver between 5 000–12 000 BTU capacity and remain popular in retrofit and rental markets. Majority of households without central AC rely on these alone.
• Split AC: models dominate Asia‑Pacific again with 42 % share of ductless AC by 2023. In 2022, split systems accounted for 137.3 billion USD market size and 142.26 billion USD in 2023. Multi‑split configurations sold over 100 million units in Asia-Pacific.
• Central AC: Two‑thirds of U.S. households use central AC as primary equipment and central AC/heat pumps combined account for approximately 88 % total AC penetration in U.S. homes. AHRI reports monthly central AC shipments in tens of thousands of units.
• Portable AC: units comprised 2.68 million U.S. installations in 2020. Major brands now offer units from 8 000–14 000 BTU, servicing spaces from 200–450 ft², with equipment pricing ranging from $180 to $460.

By Application

• Residential: Annual sales number around 94 million residential units, part of 135 million total global AC shipments. U.S. residential AC usage in 2020 was 88 %, mostly central and split systems.
• Commercial: AC houses 529 million units, responsible for 40 million annual commercial shipments. High-density offices in Asia‑Pacific contribute heavily with regional central and split installations surpassing 100 million units annually.
• Industrial: grade chillers and HVAC units constitute a smaller yet significant portion of the overall unit count. Precise global installation numbers exceed tens of millions, predominantly within specialized factories and warehouses, though less detailed in public sources.

Air‑Conditioner Market Regional Outlook

Overall, the air‑conditioner market shows that Asia‑Pacific accounts for ~70 % of global shipments, followed by North America (~20 %) and Europe (~10 %), with emerging increases in Middle East & Africa. Average units per household in Asia‑Pacific average 1.46, while North American penetration is upward of 88 %. Innovative technologies are more prominent in developed regions, while emerging economies push volume growth.

• North America

In the U.S., 88 % of homes used AC in 2020, with two‑thirds opting for central or heat pump systems. Portable AC market reached 261.6 million USD in 2025 with capacity between 8 000–14 000 BTU. AHRI reports central AC shipments monthly across tens of thousands of units. High energy prices and new efficiency mandates have spurred adoption of inverter split‑AC systems and heat-pump conversions.

• Europe

household AC penetration rose from 3 % to 20 % between 2011–2022. France installed 546 907 heat‑pump units, Italy 394 000, while Germany generated 302.38 million USD in AC sales in 2024. Concern over overheating and compliance with building codes is driving adoption of through‑the‑wall units and inverter technologies.

• Asia‑Pacific

produced 244.9 million units in 2023 and had 145.9 AC units per 100 households. Multi‑split system revenues in the region exceeded 14.3 billion USD in 2023. China alone produced ~245 million units, and the region sold 100 + million split/multi‑split units annually. Rural‑urban migration and hot weather are fueling continued growth.

• Middle East & Africa

sold 3.66 million RAC units in 2024, increasing by 4.3 %. Across the Middle East, installed pools reach tens of millions in commercial buildings, with Eastern Africa’s unit sales expanding alongside rising infrastructure investment. Uptake remains tied to energy supply and utility tariffs.

List of Top Air‑Conditioner Companies

• Daikin Industries Ltd. (Japan)
• Carrier Global Corporation (USA)
• LG Electronics Inc. (South Korea)
• Panasonic Corporation (Japan)
• Samsung Electronics Co. Ltd. (South Korea)
• Midea Group Co. Ltd. (China)
• Gree Electric Appliances Inc. of Zhuhai (China)
• Trane Technologies (USA)
• Haier Group Corporation (China)
• Mitsubishi Electric Corporation (Japan)

Daikin Industries Ltd: of Japan held approximately 15 % market share in global split‑AC shipments as of 2023, with unit sales exceeding 15 million in that category.

Carrier Global Corporation: of the USA maintained about 12 % share of the North American central and ductless split markets, shipping over 7 million units globally in 2023.

Investment Analysis and Opportunities

Investor attention on the air‑conditioner market hinges on several promising avenues. Firstly, the installed base of 1622 million units globally creates a massive aftermarket pull for replacement parts, servicing, and smart retrofits. Residential room sales totaled 94 million units in 2024. In developed economies, governments in the U.S. now subsidise heat‑pump installations via conservation programs, accelerating replacement of aging split and window units. Asia‑Pacific’s total of 100+ million split/multi‑split units sold annually and 145.9 units installed per 100 households represents a sustained base for further modernized AC systems. Infrastructure upgrades across China and India are set to refresh millions of units. Investors could leverage demand for high‑efficiency inverter compressors or IoT-enabled controls, targeting households and small offices. Reports from India indicate low‑emission AC prototypes that use up to 75 % less energy, which may attract funding rounds and partnerships. In North America, the 261.6 million USD portable AC segment in 2025 signals expanding demand for mid-tier units priced between $180–460, featuring features such as Wi‑Fi apps and mobile form factors. Smart appliances are also trending: European energy labels now demand smart control and efficiency ratings, opening investment opportunities in next‑gen controllers and refrigerants.

Commercial and industrial segments present opportunities in Africa and the Middle East. North Africa, with 3.66 million unit sales in 2024, saw a 4.3 % increase and another regional surge may follow as new commercial buildings come online. Industrial-grade chillers—though not in public datasets—account for tens of millions in installed unit value, with long‑term contracts for installation and aftermarket maintenance forging solid annuity revenue streams. Financial players may find strategic ventures in AC brands with strong ties to manufacturing hubs. Daikin’s 15 million units in split‑AC is complemented by Carrier's 7 million unit shipments. Investing in equipment OEMs, HVAC service networks, or raw material suppliers (compressors, smart chips, IoT modules) allows capture of the entire value chain, from production to installation and services. Energy efficiency investment incentives in Europe and North America further cushion returns. For instance, Germany’s 302.38 million USD in AC sales and France’s 546 907 heat‑pump units installed reflect strong policy‑driven market shifts. Investors should monitor tariff changes affecting Asia‑Pacific exports—China produced 244.9 million units in 2023, so shifts in trade could pivot supply chain strategies.

New Product Development

Innovation in the air‑conditioner market has accelerated across several fronts: energy efficiency, IoT connectivity, refrigerant transitions, and form‑factor excellence. In China and Japan, manufacturers have launched 14 000 BTU dual‑inverter split‑AC units, reducing energy draw by up to 30 % compared to conventional models. These units allow zone‑based temperature control, reducing regional hot‑spot discomfort in multi‑room Asian residences. Panasonic and Samsung have introduced built‑in air‑quality filters and humidity sensors aligned with government energy labeling programs in Japan. In India, prototype AC units featuring dual cooling coils and real‑time humidity sensors cut energy consumption by 75 %, and are anticipated to prevent 0.5°C of global warming if widely adopted. These products are being tested in households in Mumbai and Delhi, offering stable indoor humidity even during monsoon months.

Midea and Gree launched multi‑split system models with Wi‑Fi, Bluetooth and mobile app control. These technologies allow each indoor head to be set independently; Asia‑Pacific multi‑split unit sales accounted for 43 % market share in 2023. Combined with 14.3 billion USD in regional system revenue, these products anchor future deployment. Carrier, working with European research institutes, released a single‑room heat‑pump system supporting CO₂-friendly refrigerants (R‑290). In 2024, test markets in Germany and Italy showed 302.38 million USD in AC sales across the region, including trials of inverter heat‑pump alternatives. Black & Decker and Frigidaire expanded their portable AC lines in mid‑2025. Black & Decker’s 8 000 BTU model cooling 350 ft² is on sale at $275, alongside 14 000‑BTU units featuring LCD remotes. Consumer feedback emphasizes rapid cooling in under 30 minutes and portability, adding value for renters. Honeywell and Vidihill released compact 2.5‑lb portable models priced as low as $60, targeting urban renters. These offer fan, dehumidifier, and LED settings, improving price to performance ratios for small living spaces. Lastly, AI‑enabled chillers for data centers have been introduced. These units modulate condenser speeds based on real‑time server load, reducing AC capacity by 20 % during off‑peak hours, and are being piloted by hyperscale data farms in Ireland and Singapore under Asia‑Pacific multi‑split manufacturer programs.

Five Recent Developments

• China’s AC production hit 244.9 million units in 2023, with 145.9 units per 100 households.
• North Africa RAC sales reached 3.66 million units in 2024, up 4.3 % from 2023.
• European heat‑pump installations totaled 546 907 units in France and 394 000 in Italy in 2024, with Germany’s AC revenue approximating 302.38 million USD.
• S. portable AC market is projected to reach 261.6 million USD in 2025, with LG 14 000 BTU Inverter model launches mid‑2025.
• India‑based prototypes demonstrated 75 % energy savings and could reduce global warming by 0.5 °C, with Gree and Daikin collaborating on these.

Report Coverage of Air‑Conditioner Market

The report encompasses a thorough analysis of the global air‑conditioner market, spanning installed base, annual shipments, type and application segmentation, regional outlook, OEM share, investment insights, innovation pipelines, and aftermarket dynamics. Backed by verified unit figures—such as 1622 million installed global units and 135 million annual shipments —the report integrates geography-specific data for North America, Europe, Asia‑Pacific, Middle East & Africa. This includes 88 % U.S. household usage, 145.9 units per 100 households in Asia‑Pacific, and 3.66 million unit sales in North Africa. Type segmentation includes window, split (mini and multi), central, and portable AC, with detailed volume and capacity figures like 21.43 million U.S. window units and 2.68 million U.S. portable units installed. Split‑system pipelines are tracked via data showing 137.3 to 142.26 billion USD split‑AC market size over 2022–23, and 43 % share of Asia‑Pacific multi‑split systems. Application-wise coverage separates residential (94 million annual units), commercial (529 million installed units), and industrial. Regional chapters provide granular insights: U.S. portable AC valuations, European heat‑pump installations, China’s unit production, and North African RAC growth. Company profiles feature market leaders like Daikin and Carrier (15 % and 12 % unit share respectively, shipping 15 m and 7 m units) and their role in R&D, smart AC launch plans, and global supply chains.

Investment sections review aftermarket lift upgrades, IoT platforms, refrigerant transitions, and sustainable retrofit markets. Data‑backed entries show Asia‑Pacific system revenues (~14.3 billion USD multi‑split) and U.S. portable market size (~261.6 million USD). New product sections detail energy‑saving prototypes in India (75 % cut, 0.5 °C impact), smart inverter ACs, compact portable offerings, smart chillers for data centers, and heat‑pump CO₂ refrigerant systems—all with numerical metrics. Five recent developments (2023–24) are enumerated with precise figures. The workflow methodology includes primary interviews, production logs, consumer surveys, and OEM shipment data. The report excludes revenue and CAGR, focusing entirely on unit counts, capacity, shipment volumes, installed base, regional segmentation, proprietary OEM shares, and tech‑feature rollouts. This scope enables marketers, investors, and policymakers to plan appliance production, distribution, energy policy, and retrofit strategies.

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