Mini Split Air Conditioning System

Global Mini Split Air Conditioning System Market to Reach US$9.3 Billion by 2030

The global market for Mini Split Air Conditioning System estimated at US$7.3 Billion in the year 2024, is expected to reach US$9.3 Billion by 2030, growing at a CAGR of 4.1% over the analysis period 2024-2030. Single Zone MiniSplits, one of the segments analyzed in the report, is expected to record a 4.8% CAGR and reach US$6.7 Billion by the end of the analysis period. Growth in the Multi Zone MiniSplits segment is estimated at 2.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.0 Billion While China is Forecast to Grow at 7.6% CAGR

The Mini Split Air Conditioning System market in the U.S. is estimated at US$2.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.9 Billion by the year 2030 trailing a CAGR of 7.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.6% and 3.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.4% CAGR.

Global Mini Split Air Conditioning System Market – Key Trends & Drivers Summarized

What Is a Mini Split Air Conditioning System and Why Is It Growing in Popularity?

A mini split air conditioning system, also known as a ductless split system, is a type of air conditioning unit that consists of two main components: an indoor unit and an outdoor compressor. The indoor unit is installed within the room or space that needs cooling, while the outdoor unit houses the compressor and condenser. These systems are highly efficient in cooling specific rooms or zones, and they do not require ductwork, making them ideal for homes, offices, and buildings that do not have existing duct systems.

Mini split systems are growing in popularity due to their energy efficiency, ease of installation, and flexibility. They allow homeowners and businesses to control the temperature in individual rooms or zones without the need for large-scale ductwork. The compact size, quiet operation, and advanced features, such as remote control operation and smart thermostats, have made them a preferred choice for cooling spaces in both residential and commercial sectors. Additionally, variable refrigerant flow (VRF) technology, which allows the system to adjust the amount of refrigerant flowing to each unit based on the cooling demand, is further enhancing energy efficiency.

The growing demand for energy-efficient solutions, coupled with a focus on improving indoor air quality, is driving the adoption of mini split systems. As awareness about global warming and energy conservation increases, more consumers are opting for green technologies like mini split air conditioning systems, which consume less energy compared to traditional window or central air conditioning units.

How Are Technological Advancements Shaping the Mini Split AC Market?

Technological advancements in mini split systems are improving efficiency, comfort, and ease of use, contributing significantly to the growth of this market. One of the most notable innovations is inverter-driven compressors, which allow mini split systems to operate at varying speeds depending on the cooling load. Inverter technology ensures more precise temperature control, eliminates the need for the system to turn on and off frequently, and leads to significant energy savings. This advancement is helping mini split systems achieve higher energy efficiency ratios (EER) and seasonal energy efficiency ratios (SEER), making them an appealing option for eco-conscious consumers.

Another technological advancement is the integration of smart technology into mini split systems. Many newer models are Wi-Fi-enabled, allowing homeowners to control the system remotely via smartphones or voice assistants like Amazon Alexa and Google Assistant. Smart controls allow for better energy management, scheduling, and the ability to monitor and adjust temperatures based on real-time data. This feature not only enhances user convenience but also helps to optimize energy consumption, further contributing to energy savings.

The use of advanced filtration technologies is another key trend shaping the mini split AC market. Many systems now come with built-in filters that capture dust, pollen, and other allergens, improving indoor air quality. Some models are even equipped with UV light filters that eliminate bacteria and viruses, enhancing the air quality and creating a healthier environment for users. This is particularly important as awareness about airborne diseases, allergies, and respiratory conditions continues to grow, making air quality a priority in both residential and commercial spaces.

Hybrid systems, which combine the benefits of mini split systems with other energy-efficient heating and cooling technologies like heat pumps, are also gaining traction. Heat pumps allow for both cooling and heating, making mini split systems a year-round solution for temperature control and increasing the demand for these units in markets with varying climates.

What Are the Key Challenges Facing the Mini Split AC Market?

Despite their growing popularity, the mini split AC market faces several challenges, including installation costs, consumer awareness, and competition from other air conditioning systems.

One of the most significant challenges is the high upfront cost associated with purchasing and installing a mini split system. While mini splits are known for their energy efficiency and long-term savings, the installation cost can be higher than that of traditional window units or central air systems, especially in areas where ductwork is required for retrofitting. The need for a professional installer for setup, particularly when there is a need for refrigerant piping and electrical work, further contributes to the cost. Although the energy savings over time can offset the initial investment, the upfront cost can still be a barrier to some consumers, especially in price-sensitive markets.

Limited consumer awareness about the benefits of mini split systems compared to traditional air conditioning systems also poses a challenge. Many consumers may not fully understand the advantages of ductless systems, such as zone cooling, energy efficiency, and quieter operation. As a result, there is still a gap in knowledge about these systems, and consumers may be more inclined to choose conventional AC options that they are more familiar with. Manufacturers and industry players will need to invest in education and marketing efforts to raise awareness and inform consumers about the advantages of mini split systems.

The installation complexity of mini split systems can also be a challenge, especially in older buildings that were not originally designed to accommodate modern HVAC systems. Retrofitting existing structures for mini split installation may require significant alterations, increasing both time and cost. Additionally, the availability of skilled technicians to properly install and service mini split systems can vary by region, impacting the overall market penetration of these units.

Finally, competition from other air conditioning technologies, such as window units, central air systems, and portable air conditioners, remains a challenge. While mini splits offer many benefits, traditional systems are still widely used due to their lower initial cost and more familiar installation process. The competition between these systems means that mini splits must continually innovate to differentiate themselves in the market.

What Are the Key Growth Drivers for the Mini Split AC Market?

The growth in the mini split AC market is driven by several factors, including increasing demand for energy-efficient solutions, rising awareness of air quality, growing construction activity, and the shift towards smart homes.

One of the major growth drivers is the growing demand for energy-efficient cooling and heating solutions. As consumers become more aware of their energy consumption and carbon footprints, they are opting for more sustainable air conditioning solutions. Mini split systems, especially those equipped with inverter-driven compressors and smart technologies, offer superior energy savings compared to traditional air conditioners, making them an attractive option for eco-conscious consumers.

The growing demand for residential and commercial construction is another key driver for the mini split market. As new buildings are being constructed and existing buildings undergo renovations, mini split systems are increasingly being chosen due to their flexibility, ease of installation, and ability to provide efficient temperature control for individual rooms or zones. In regions experiencing urbanization and rising real estate development, mini split systems are often seen as the ideal solution for providing targeted cooling without the need for extensive ductwork.

The global rise in awareness about indoor air quality is also contributing to the growth of the mini split market. With increasing concerns about pollution, allergies, and respiratory health, consumers are becoming more inclined to invest in air conditioning systems that improve air quality. Many mini split systems offer features such as advanced filtration, UV light treatment, and humidification, which appeal to health-conscious consumers looking for solutions to enhance the air quality in their homes and workplaces.

The rise of smart home technology is driving the demand for smart mini split systems that can be integrated with home automation systems and controlled via smartphone apps, voice assistants, and smart thermostats. Consumers are increasingly seeking seamless connectivity and convenience in their home appliances, and mini split systems offer the perfect solution by providing advanced features such as remote temperature control, scheduling, and energy usage monitoring.

SCOPE OF STUDY:

The report analyzes the Mini Split Air Conditioning System market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product Type (Single Zone MiniSplits, Multi Zone MiniSplits); Technology (Inverter MiniSplits Technology, Non Inverter MiniSplits Technology); Installation Type (Wall Mounted MiniSplits, Free Standing MiniSplits, Other Installation Types); Vertical (Residential Vertical, Commercial Vertical)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• Carrier Global Corporation
• Comfort-Aire
• Daikin Industries, Ltd.
• Friedrich Air Conditioning
• Fujitsu General Limited
• Goodman Manufacturing Company
• GREE Electric Appliances Inc.
• Haier Group Corporation
• Hisense Group
• Lennox International Inc.
• LG Electronics Inc.
• Midea Group
• Mitsubishi Electric Corporation
• Panasonic Corporation
• Rheem Manufacturing Company
• Samsung Electronics Co., Ltd.
• Senville Inc.
• TCL Technology Group
• Trane Technologies
• York International Corporation

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.