Industry Analysis of Air Conditioner Market

Air Conditioner Market

Air Conditioner Market

Air conditioning removes the heat in both domestic and commercial environments. The upward trend of sophisticated technology that can shift push button-controller air conditioners into voguish devices can possibly be the primary growth factor, of the global smart air conditioner market. Development in housing parameters is developing the need for room air conditioners whereas packaged air conditioners are forecasted to grow at an average pace. Government rules on refrigerants are forcing the industrialist to manufacture eco-friendly and energy-efficient products. The most important feature of using the Air conditioner is that it protects from skin dryness. One of the most preferred refrigerant CFCs will be totally rooted out in the years to come.

As far as end-user is concerned, the market is segmented into residential and commercial areas whereas, in the distribution channel, the global air conditioner industry is characterized into an online and offline market. On the global level with the increase in demand for VRF systems resulted in a Japanese AC manufacturing conglomerate, Mitsubishi Electric Corp. to shift its manufacturing hub of VRF indoor units from Japan to Thailand in 2014. In 2017, in Western Europe, with a populace of 450 million, and an urban populace rate of 78.0%, the penetration of air conditioners was 10.0%

The blue star is the first company that inverted the split air conditioner and has launched 16 models in 5star and 13 models in 3star. The company has a good understanding of the climatic conditions by providing a better quality of air room moisture. The company always goes for innovative and new product development and invested 30 crores in the research and design process in FY 2017 to enhance brand positioning to become the best in the world.

Market Dynamics

Rising factors:

  • Improves air quality
  • Decreases food spoilage in grocery stores and restaurants
  • Improves work performances in a climate-controlled environment.

By using the air condition improves the indoor air quality according to the climatic changes. This is done by removing the pollen, dust, and other particles present in the environment. By reducing humidity air conditioners can check the growth of mildew and mold.


  • By using Air Conditioner the electricity consumption increases which leads to generated greenhouses gases and other pollutants in the cities.


  • Increasing investment in the development of infrastructure will raise the demand of AC
  • Modernization will boost Air conditioner market in future

North America is anticipated to dominate the global AC market during the forecast period. North America is an increasing need for energy efficiency and industrialization in the region. Increasing investment for infrastructure development, especially in the USA and Canada for commercial and housing facilities, is a major factor driving the growth of the target market in the North American region. In addition, increasing demand for equipment that is energy efficient is another factor anticipated to propel the growth of the variable frequency drive market in this region in the near future.


The air conditioner market will witness a positive growth trajectory due to factors such as massive investment in developing infrastructure of the emerging economies, warmer temperature, and increasing disposable income of the people but government intervention to manufacture eco-friendly and energy-efficient products will cause some problem if we develop the long-term perception many companies will adopt this as a strategy. Technological advancements such as inverter in AC and air purifier will also cause disruption in the industry. Many companies are shifting towards renewable energy like Australian company Chromasun, geothermal energy.

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