Air Conditioning Systems Market Overview
Rising purchasing power of middle-class population, primarily in the APAC region and growing demand for environment friendly refrigerants are observed to be the key growth drivers of global air conditioning systems market. Growing middle class population in developing countries such as China, India, and Brazil have been a key factor for rising adoption of air conditioning systems in these countries. As air conditioning systems are deemed as an essential product instead of luxury, the demand for air conditioning systems grew significantly.
Based on equipment type, the air conditioning systems market is categorized into portable AC, window AC, split AC, cassette AC, and centralized AC, wherein centralized AC is further segmented into chillers, variable refrigerant flow (VRF) and ducted AC. Among these, split AC is projected to be the largest revenue generator during the forecast period owing to its energy efficient operation and ease of installation. Though, major demand for split AC system would come from residential market, cassette AC and chillers would drive the commercial application market during the forecast period.
Based on application, the air conditioning systems market is categorized into residential, commercial, and industrial; wherein residential application held highest market volume share. However, commercial application is expected to register higher growth in the coming years. This is particularly due to need for regulatory compliance requirements in commercial buildings.
Asia-Pacific dominated the global air conditioning systems market in 2017; China and Japan were the two largest markets in the region. The demand for split AC in Asia-Pacific registered highest growth, owing to the popularity of ducted split air containing system. In addition, the adoption of variable refrigerant flow (VRF) for commercial purpose is expected to increase in the coming years. On the other hand, North America and Europe are considered to be mature markets and therefore, it would exhibit a slow growth in comparison to other regions during the forecast period.
Middle East and Africa (MEA) is projected to be the fastest growing region in the air conditioning systems market. This can be attributed to factors such as warm weather condition, rise of tourism industry, and upcoming events such as Dubai Expo 2020, FIFA World Cup 2022 in Qatar. Countries such as U.A.E., Qatar, and Saudi Arabia, are investing in developing commercial spaces to support tourism. This is set to drive Middle-East and Africa air conditioning systems market during the forecast period.
Moreover, smart cooling control is observed as new technology being adopted for commercial applications, to provide an integrated cooling and heating solution. For instance, Panasonic Corporation and Daikin Industries Ltd, have developed a wireless solution that would allow enterprises to control their air-conditioning system and building automation, from a single system.
Air Conditioning Systems Market Dynamics
The surging demand for energy efficient air conditioning systems is one of the key factors pushing the market growth. Stringent government mandates for energy efficient models led to the replacement of existing air conditioning systems in developed countries from North America and Europe regions with energy efficient systems. Latin America (LATAM) and MEA have also displayed highest growth over the past few years, owing to higher AC penetration in Brazil, Argentina, South Africa, and U.A.E.
The electricity consumption of air conditioning systems has been increased in the last decade and therefore, manufacturers of air conditioning systems are adopting green and advanced technologies, thereby creating energy efficient systems. The increase in adoption of green technology and rise in number of smart homes would drive the air conditioning systems market during the forecast period.
Air Conditioning Systems Market Competitive Landscape
The market for air conditioning systems is highly competitive. The top six players of the air conditioning systems market captured for more than 50% share of the market in 2017. Most of the major vendors in the market are actively focusing on facility expansion to meet the growing demand in emerging markets. For instance, in January 2018, Daikin Industries Ltd. Is planning to establish a manufacturing facility in Southern region of India in the next four years. Additionally, in November 2017, the company opened HVAC manufacturing facility in Rajasthan, India, to cater to the growing AC market in the country.
Also, market players have been posed with challenges like climate change and are investing in research and development to provide energy efficient AC systems.
Some of the key players operating in the air conditioning systems market are Samsung Electronics Co. Ltd., Mitsubishi Corporation, Daikin Industries Ltd., LG Electronics Inc., Panasonic Corporation, Electrolux AB, Midea Group Co. Ltd, Siemens AG, Sharp Corporation, Hitachi Ltd., Carrier Corporation, Toshiba Corporation, and Denso Corporation.
The report will provide country-wise market analysis. Some of the major countries that is covered in the report include U.S., Canada, Germany, France, U.K., Italy, Russia, Spain, China, Japan, India, Australia, South Korea, Indonesia, Vietnam, Thailand, Malaysia, Philippines, Brazil, Mexico, Argentina, Saudi Arabia, U.A.E., South Africa, Turkey, Egypt, Nigeria, and Algeria.