The vendor landscape of the global air conditioning systems market is speckled with large and established companies such as Gree Electric Appliances, Inc., Daikin Industries Ltd., and Carrier Corporation; emerging players such as Panasonic Corporation, Mitsubishi Corporation, and The Midea Group; and promising vendors such as LG Electronics, Haier Electronics Group Co., Ltd., and Hitachi Ltd. Each of these players have been striving to strengthen their position in the air conditioning systems market and achieve sustainable growth.
Transparency Market Research finds that in order to achieve these goals, companies are presently focused on integrating products so as to expand their customer base and reach out to newer audiences. Strategic partnerships and acquisitions have also been a core strategy for a number of players. A case in point would be Carrier, who, in 2011, joined hands with the Midea Group of China to manufacture as well as distribute HVAC systems in Brazil, Argentina, and Chile. “This joint venture not only helped Carrier form a strong distribution network in these promising countries but also established a strong foothold for the company at a global level,” the lead analyst of the TMR study states.
Energy-efficient Air Conditioning Systems Gain Prominence
The growth of the air conditioning systems market can be largely attributed to the rapidly expanding construction and housing sector. “Increasing construction permits, especially for commercial infrastructure, means a rising need for equipment such as air conditioning systems,” a TMR analyst explains. The market for air conditioning systems is also driven by stringent government regulations, technological developments, rising consumer expectations, increased demand from the commercial sector, strong demand from Asia Pacific, and climate variations. The surge in awareness regarding the importance of indoor air quality has also generated an increased demand for advanced air-purifying technologies.
However, the air conditioning systems market faces a major roadblock – increased energy consumption. However, TMR finds that this challenge can be easily addressed. “The emergence of ongoing trends such as green technologies, smart homes, and energy-efficient systems are driving manufacturers of air conditioning systems to focus on innovation and come up with equipment that meet the rising energy requirements of consumers and governments alike. Thus, this obstacle also presents market players with several opportunities for growth over the coming years,” the author of the study states.
Split ACs Witness Highest Demand
The global market for air conditioning systems was pegged at a value of $104.4B in 2015, which is projected to rise to $167B by the end of the forecast period (2016 – 2024). Assuming these figures hold true, the market is likely to expand at a 5.1% CAGR. The air conditioning systems market is projected to expand at a much faster pace in terms of volume, registering a 6.2% CAGR during the forecast period. Asia Pacific dominates the global air conditioning systems market by volume and value, with the Middle East and Africa witnessing the fastest growth. While split ACs enjoy the lead at present, the portable air conditioning systems segment is likely to expand at the highest CAGR by 2024.