Asia Pacific Room AC Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Product Type (Split AC, Window AC, and Portable AC), Technology (Inverter Technology and Non-Inverter Technology), and
Description
The Asia Pacific room air conditioning (AC) market is projected to grow significantly, reaching an estimated US$ 52,359.79 million by 2031, up from US$ 33,787.15 million in 2024. This growth represents a compound annual growth rate (CAGR) of 6.6% from 2025 to 2031, driven by increasing demand for energy-efficient cooling solutions in response to rising temperatures and electricity costs.
On March 29, 2024, TECO's Air and Intelligent Life business group hosted its 2024 Asia-Pacific Joint New Product Launch Event, which targeted key markets such as Taiwan, Mainland China, Vietnam, and Indonesia. The event highlighted TECO's commitment to addressing the challenges posed by escalating electricity prices and the growing demand for energy efficiency. The company introduced a new range of smart, energy-saving air conditioners and refrigeration systems suitable for both residential and commercial use. These products are designed to meet or exceed Level 1 Energy Efficiency Grading Labeling (EEL) standards, ensuring compliance with evolving regulatory requirements and enabling customers to qualify for energy-saving subsidies.
Chairman Sophia Chiu emphasized the significant impact of air conditioning and refrigeration on urban electricity consumption. In response, TECO is dedicated to providing high-performance solutions that operate efficiently across a wide temperature range, from -55 degrees Celsius to 120 degrees Celsius. This includes advanced technologies in refrigeration, air conditioning, and heat pumps. By aligning with government-led low-carbon and smart energy initiatives, TECO not only offers efficient products but also provides integrated consulting services to help clients navigate subsidy programs. This proactive approach reinforces TECO's leadership position in the Asia Pacific room AC market, particularly as the demand for sustainable and energy-efficient cooling solutions continues to rise. The company's alignment with environmental policies and customer needs enhances its competitive edge while contributing to regional goals of carbon emission reduction and energy resilience.
The Asia Pacific room AC market can be segmented by product type, technology, and end users. In terms of product type, the market is divided into split ACs, window ACs, and portable ACs, with the split AC segment holding the largest market share in 2024. Regarding technology, the market is bifurcated into inverter and non-inverter technologies, with inverter technology dominating the market in 2024. By end users, the market is categorized into residential and commercial segments, with the residential segment also holding a larger share in 2024.
The demand for effective indoor cooling solutions has surged due to rising temperatures, particularly in densely populated urban areas and regions prone to extreme heat. Prolonged heat waves, increasingly frequent and intense due to climate change, have made air conditioning a necessity rather than a luxury. The rising temperatures are driving both residential and commercial demand for affordable, energy-efficient cooling systems, especially in the Asia Pacific, Middle East, and parts of Africa and Latin America. According to NASA's Goddard Institute for Space Studies (GISS), 2024 marked the warmest global surface temperature since reliable recordkeeping began in 1880, with Earth's average temperature approximately 2.65°F (1.47°C) higher than the preindustrial baseline. The last decade has seen the ten warmest years ever recorded, highlighting a clear trend of global warming.
This climate-induced demand is prompting manufacturers and policymakers to accelerate innovations in room air conditioning technology, including smart air conditioning systems, inverter-based units, and eco-friendly refrigerants. These advancements not only enhance energy efficiency and reduce environmental impact but also create new market segments. The ongoing record-breaking global temperatures serve as both a warning and a catalyst, driving immediate consumer responses and long-term structural shifts in the global room air conditioner market.
In terms of country insights, the Asia Pacific room AC market includes major players from China, Japan, South Korea, India, Australia, and other regions. China held the largest market share in 2024. Notably, Xiaomi has announced plans to commence large-scale production at its first smart home appliance factory by the end of 2025, marking a strategic entry into China's air conditioner market. This facility will focus on mass-producing Xiaomi's self-developed air conditioning units, reflecting the company's ambition to expand in the smart home sector and leverage its technological expertise to offer innovative, connected cooling solutions. As consumer demand in China shifts towards intelligent, energy-efficient appliances, Xiaomi's entry is expected to significantly impact the growth of the room air conditioner market.
Key players in the Asia Pacific room AC market include Blue Star Ltd, Carrier Global Corp, Daikin Industries Ltd, Johnson Controls - Hitachi Air Conditioning Company, LG Electronics Inc, Mitsubishi Electric Corp, Panasonic Holdings Corp, Samsung Electronics Co Ltd, Voltas Ltd, and Whirlpool Corp, among others. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market share and provide innovative products to consumers.
On March 29, 2024, TECO's Air and Intelligent Life business group hosted its 2024 Asia-Pacific Joint New Product Launch Event, which targeted key markets such as Taiwan, Mainland China, Vietnam, and Indonesia. The event highlighted TECO's commitment to addressing the challenges posed by escalating electricity prices and the growing demand for energy efficiency. The company introduced a new range of smart, energy-saving air conditioners and refrigeration systems suitable for both residential and commercial use. These products are designed to meet or exceed Level 1 Energy Efficiency Grading Labeling (EEL) standards, ensuring compliance with evolving regulatory requirements and enabling customers to qualify for energy-saving subsidies.
Chairman Sophia Chiu emphasized the significant impact of air conditioning and refrigeration on urban electricity consumption. In response, TECO is dedicated to providing high-performance solutions that operate efficiently across a wide temperature range, from -55 degrees Celsius to 120 degrees Celsius. This includes advanced technologies in refrigeration, air conditioning, and heat pumps. By aligning with government-led low-carbon and smart energy initiatives, TECO not only offers efficient products but also provides integrated consulting services to help clients navigate subsidy programs. This proactive approach reinforces TECO's leadership position in the Asia Pacific room AC market, particularly as the demand for sustainable and energy-efficient cooling solutions continues to rise. The company's alignment with environmental policies and customer needs enhances its competitive edge while contributing to regional goals of carbon emission reduction and energy resilience.
The Asia Pacific room AC market can be segmented by product type, technology, and end users. In terms of product type, the market is divided into split ACs, window ACs, and portable ACs, with the split AC segment holding the largest market share in 2024. Regarding technology, the market is bifurcated into inverter and non-inverter technologies, with inverter technology dominating the market in 2024. By end users, the market is categorized into residential and commercial segments, with the residential segment also holding a larger share in 2024.
The demand for effective indoor cooling solutions has surged due to rising temperatures, particularly in densely populated urban areas and regions prone to extreme heat. Prolonged heat waves, increasingly frequent and intense due to climate change, have made air conditioning a necessity rather than a luxury. The rising temperatures are driving both residential and commercial demand for affordable, energy-efficient cooling systems, especially in the Asia Pacific, Middle East, and parts of Africa and Latin America. According to NASA's Goddard Institute for Space Studies (GISS), 2024 marked the warmest global surface temperature since reliable recordkeeping began in 1880, with Earth's average temperature approximately 2.65°F (1.47°C) higher than the preindustrial baseline. The last decade has seen the ten warmest years ever recorded, highlighting a clear trend of global warming.
This climate-induced demand is prompting manufacturers and policymakers to accelerate innovations in room air conditioning technology, including smart air conditioning systems, inverter-based units, and eco-friendly refrigerants. These advancements not only enhance energy efficiency and reduce environmental impact but also create new market segments. The ongoing record-breaking global temperatures serve as both a warning and a catalyst, driving immediate consumer responses and long-term structural shifts in the global room air conditioner market.
In terms of country insights, the Asia Pacific room AC market includes major players from China, Japan, South Korea, India, Australia, and other regions. China held the largest market share in 2024. Notably, Xiaomi has announced plans to commence large-scale production at its first smart home appliance factory by the end of 2025, marking a strategic entry into China's air conditioner market. This facility will focus on mass-producing Xiaomi's self-developed air conditioning units, reflecting the company's ambition to expand in the smart home sector and leverage its technological expertise to offer innovative, connected cooling solutions. As consumer demand in China shifts towards intelligent, energy-efficient appliances, Xiaomi's entry is expected to significantly impact the growth of the room air conditioner market.
Key players in the Asia Pacific room AC market include Blue Star Ltd, Carrier Global Corp, Daikin Industries Ltd, Johnson Controls - Hitachi Air Conditioning Company, LG Electronics Inc, Mitsubishi Electric Corp, Panasonic Holdings Corp, Samsung Electronics Co Ltd, Voltas Ltd, and Whirlpool Corp, among others. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market share and provide innovative products to consumers.
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