Solar Air Conditioning

Global Solar Air Conditioning Market to Reach US$718.1 Million by 2030

The global market for Solar Air Conditioning estimated at US$588.8 Million in the year 2024, is expected to reach US$718.1 Million by 2030, growing at a CAGR of 3.4% over the analysis period 2024-2030. Split Solar A / C, one of the segments analyzed in the report, is expected to record a 4.2% CAGR and reach US$340.6 Million by the end of the analysis period. Growth in the Window Solar A / C segment is estimated at 2.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$154.8 Million While China is Forecast to Grow at 3.3% CAGR

The Solar Air Conditioning market in the U.S. is estimated at US$154.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$116.0 Million by the year 2030 trailing a CAGR of 3.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.2% and 2.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.7% CAGR.

Global Solar Air Conditioning Market – Key Trends & Drivers Summarized

Can the Sun Cool Your Home? The Rise of Solar-Driven Air Conditioning Systems

Solar air conditioning is transforming the HVAC industry by offering an energy-efficient, eco-friendly alternative to traditional air-cooling methods. Designed to harness solar energy to power cooling systems, these technologies integrate photovoltaic (PV) panels, solar thermal collectors, and hybrid models to offset grid dependency and reduce electricity bills. The surge in adoption is particularly notable in sun-rich regions such as the Middle East, Africa, Southeast Asia, and parts of the U.S., where peak air conditioning demand coincides with maximum solar irradiance. These systems are increasingly favored in residential, commercial, and off-grid installations, especially where energy infrastructure is underdeveloped or unstable.

Modern solar air conditioners come in a variety of configurations—ranging from DC-powered split units connected directly to solar panels to absorption and adsorption-based solar thermal models suited for large-scale cooling. Hybrid systems, which combine solar with conventional electric sources, are becoming increasingly popular for continuous performance even in low sunlight. Manufacturers are also introducing battery-integrated systems for improved reliability and nighttime operation. With governments introducing solar incentive schemes, tax rebates, and renewable energy mandates, these technologies are rapidly moving from niche applications to mainstream cooling solutions across both emerging and developed markets.

Why Is the Global Push for Energy Efficiency Boosting Solar Cooling Demand?

One of the primary drivers behind the rise of solar air conditioning is the growing demand for energy-efficient HVAC systems. Buildings account for nearly 40% of global energy consumption, with air conditioning comprising a substantial portion. As utility costs soar and grids become increasingly stressed during heatwaves, solar air conditioners present a cost-effective way to decouple cooling demand from conventional energy sources. With the growing integration of net-zero building designs, solar air conditioning is becoming a vital component of energy-conscious architecture, often paired with green roofs, passive shading, and thermal mass cooling strategies.

Environmental concerns are also playing a significant role. The shift toward refrigerants with low global warming potential (GWP) is aligning with the adoption of solar-driven systems that drastically reduce carbon footprints. Companies are leveraging this synergy by marketing solar air conditioners with natural refrigerants like ammonia or CO2 in absorption and desiccant cooling configurations. In institutional sectors—such as schools, government offices, and hospitals—where uninterrupted cooling is critical, solar air conditioning helps meet sustainability goals while safeguarding operational continuity during grid outages. Furthermore, smart controllers and IoT integration are enhancing system performance through dynamic load balancing, weather forecasting, and remote diagnostics.

How Are Technological Advances and Business Models Changing the Solar Cooling Landscape?

Rapid technological innovation is pushing the boundaries of solar air conditioning performance, cost-effectiveness, and accessibility. PV panel efficiencies are increasing, while prices continue to decline—making solar-powered appliances more viable for mass adoption. Battery technology, particularly lithium-ion and newer solid-state chemistries, is enabling extended use beyond daylight hours. Compact inverters, modular panel arrays, and plug-and-play configurations are simplifying installation processes, allowing homeowners and small businesses to adopt solar cooling with minimal infrastructure changes. Some companies are introducing DC-based solar AC units that eliminate the need for inverters altogether, thereby reducing system complexity and power losses.

Beyond hardware, innovative business models are emerging to accelerate market penetration. Solar-as-a-service and cooling-as-a-service platforms allow users to adopt these systems with little or no upfront capital investment. Fintech-enabled microleasing options and pay-per-use arrangements are unlocking access in low-income and rural markets. Companies are also bundling solar air conditioning with rooftop solar panel installations and home energy storage systems to offer comprehensive clean energy packages. This bundling strategy is especially effective in urban vertical housing and resort developments where centralized renewable systems can serve multiple units simultaneously. These developments are driving a fundamental shift in how cooling is procured and consumed.

What’s Powering the Expansion of the Solar Air Conditioning Market?

The growth in the solar air conditioning market is driven by several factors converging around sustainability, policy support, and cost optimization. A major catalyst is the growing demand for decentralized, self-sufficient energy systems in regions prone to blackouts or without consistent grid access. As urbanization intensifies and temperatures continue to rise, the need for resilient cooling solutions is becoming a critical issue. Solar-powered air conditioning answers this challenge by providing an independent, scalable, and low-emission alternative that aligns with energy security goals.

Supportive regulatory frameworks—including net metering policies, solar subsidies, and carbon credit schemes—are incentivizing adoption across sectors. Governments in India, Australia, South Africa, and the Middle East are particularly proactive in funding solar cooling initiatives for public infrastructure and rural housing. Consumer awareness is another important factor. Rising electricity bills, coupled with increased education on sustainable living, are prompting homeowners and building managers to invest in solar HVAC systems as both an economic and ecological decision. Lastly, the ongoing integration of digital monitoring, cloud-based controls, and predictive maintenance tools is enabling real-time optimization, making solar air conditioning smarter, more reliable, and more cost-effective than ever before.

SCOPE OF STUDY:

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

Segments:
Product Type (Split Solar A / C, Window Solar A / C, Cassette Solar A / C, Floor Standing Solar A / C); End-User (Residential, Commercial, Industrial)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 48 Featured) -

• Carrier Global Corporation
• Conserval Engineering (SolarWall)
• Daikin Industries, Ltd.
• Deye Inverter Technology Co., Ltd.
• EG4 Electronics (Signature Solar)
• Gree Electric Appliances Inc.
• HotSpot Energy
• iAIRE, LLC
• LG Electronics
• Midea Group
• Mitsubishi Electric Corporation
• Panasonic Corporation
• Qingdao Tongbo New Energy Co., Ltd.
• Rheem Manufacturing Company
• Samsung Electronics
• Sharp Corporation
• Solarker New Energy
• Supergreen Tech Co., Ltd.
• Trane Technologies
• Viessmann Group

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.

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