Air Conditioning Market Size, Share, Trends, Industry Analysis, and Forecast (2025 – 2031)

Air Conditioning Market Size

The global air conditioningmarket size was valued at $162.70 billion in 2025 and is projected to reach $265.44 billion by 2031, growing at a CAGR of 8.5% during the forecast period.

Air Conditioning Market Overview

Air conditioning plays a vital role in modern comfort and climate control, providing essential cooling solutions for both residential and commercial spaces. Companies in this sector can significantly benefit from the growing demand for air conditioning units, particularly in regions experiencing extreme heat and rising temperatures due to climate change. For instance, Daikin Industries, the world's largest air conditioning manufacturer, is expanding its operations in India, anticipating that the market will triple by 2030, with sales expected to double by 2025 from 2021 levels.

Similarly, Amber Enterprises has reported a remarkable 55% increase in sales during the last financial quarter, driven by a surge in consumer demand for room air conditioners. This trend is further supported by government initiatives promoting energy-efficient appliances, which not only enhance company profitability but also align with sustainability goals. As more consumers recognize the value of air conditioning for health and comfort, companies are positioned to capitalize on this growth through innovative product offerings and strategic market expansions, ultimately leading to increased revenues and market share.

Air Conditioning Market Dynamics

The air conditioningmarket is expected to witness significant growth in the future due to the rising global temperatures, growing urban populations, and technological advancements. However, the high initial costs, maintenance costs, and environmental regulations are restraining the growth of the market.

Furthermore, emerging markets, energy-efficient products, and integration of IoT technology are the key trends propelling the air conditioningmarket.

Rising global temperatures is Driving the Air Conditioning Market

The Rising global temperatures are significantly impacting the air conditioningmarket, consumers and businesses seek effective cooling solutions to combat heat.

• For instance, in June 2021, Carrier announced the acquisition of a controlling stake in Guangdong Giwee Group to enhance its geographic footprint and meet increasing demand for air conditioning solutions amid record-breaking heat waves in the U.S. In North America.
• In India, the launch of the Green Room Air Conditioners on the Government e-Marketplace (GeM) on June 5, 2023, reflects a commitment to sustainable cooling solutions amidst rising temperatures, facilitating government agencies' procurement of energy-efficient models.
• Furthermore, Panasonic's introduction of India's first matter-enabled room air conditioners in March 2023 showcases innovation aimed at meeting the growing demand for smart and efficient cooling technologies.

These examples illustrate how rising temperatures are propelling advancements and investments within the air conditioning market globally.

By Technology, the Automatic Segment is projected to be the Largest Segment in the Air Conditioning Market

Automatic is the largest segment in the air conditioningmarket, driven by the increasing demand for efficient and scalable content distribution solutions.

• Companies such as PR Newswire and Cision are leading the way with their automated press release distribution platforms, which allow organizations to disseminate news quickly and effectively.
• For instance, in March 2022, PR Newswire launched enhancements to its automated distribution services, enabling clients to target specific media outlets and track engagement metrics more effectively, thereby improving their overall communication strategies.

This growth is fueled by rising broadband penetration and the increasing use of mobile devices, which facilitate easier access to news content across various platforms.

• Furthermore, in February 2023, Cision introduced new automation features that streamline content syndication processes, allowing businesses to manage their public relations efforts more efficiently.

These advancements highlight how automation is transforming the news syndicates market, making it an essential component for companies looking to enhance their visibility and engagement in a competitive landscape.

By Geography, North America Holds the Largest Share in the Market Revenue

North America holds the largest share of the air conditioningmarket, driven by rising temperatures, urbanization, and government initiatives promoting energy efficiency. As global warming leads to more frequent and intense heat waves, particularly in the U.S., consumers increasingly view air conditioning as a necessity rather than a luxury.

• Companies like Carrier Corporation and Lennox International are responding to this demand by launching new energy-efficient products, such as inverter-based systems that reduce energy consumption.

Furthermore, government programs like New Jersey's COOLAdvantage offer tax credits for energy-efficient air conditioning systems, encouraging consumers to upgrade their units. In Canada, federal incentives are also driving homeowners to adopt more efficient technologies. These factors collectively illustrate a strong market trajectory for air conditioning systems in North America as consumers prioritize climate control solutions in an increasingly warm environment.

Key Target Audience:

• Air Conditioning
• Distributors and Retailers
• Consumers
• Commercial Entities
• Government Agencies

List of the Key Players Profiled in the Report Includes:

• Daikin Industries Ltd.
• Gree Electric Appliances Inc.
• LG Electronics Inc.
• Mitsubishi Electric Corporation
• Fujitsu General Ltd.
• Panasonic Corporation
• Midea Group Co. Ltd.
• Samsung Electronics Co. Ltd.
• Johnson Controls International Plc.
• Carrier Corporation
• Haier Group Corporation
• Toshiba Carrier Corporation

Recent Developments:

• In June 2025, Midea Air-Conditioning presented at Intersolar Europe, introducing its MHELIOS smart energy management system, which integrates breezeless AC, solar heaters, and smart appliances to optimize grid-reactive home energy usage.
• In February 2025, Daikin Applied unveiled the Pro-C CRAH air-handling unit for data centers at Data Centre World London, offering 30–210 kW precision cooling with heat-recovery features tailored to AI and cloud infrastructure environments.

Market Segmentation:

The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Type:

• Room AC-Windows
• split; Ducted AC- Ceiling Concealed
• Rooftop Packaged; Ductless AC- cassette
• Floor Standing
• Ceiling Suspended; Centralized AC- Condensing Unit
• Variable Refrigerant Flow (VRF)
• Air Handling Unit (AHU)/ Fan Coil Unit (FCV)
• Chillers
• Other Types

Market by, Distribution Channel:

• Online Retail
• Retail Shops
• Direct Sales
• Distribution Sales

Market by, Technology:

• Manual
• Automatic

Market by, Application:

• Residential
• Commercial Offices and Retail
• Industrial

Market by, Geography:

The air conditioningmarket report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:

• North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
• Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
• Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
• South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
• Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

The report offers insights into the following aspects:

• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
• Analysis of the market structure by identifying various segments and sub-segments of the market.
• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
• Understand major player profiles in the market and analyze their business strategies.
• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.