North America 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 North America room air conditioning (AC) market is projected to grow significantly, reaching approximately US$ 11,901.57 million by 2031, up from US$ 8,506.77 million in 2024. This growth represents a compound annual growth rate (CAGR) of 5.0% from 2025 to 2031.
Executive Summary and Market Analysis
The urbanization trend in North America, particularly in the United States, has reached a notable level of maturity. As of 2023, 83.3% of the American population lives in urban areas, according to World Bank data. This figure is significantly higher than the global urbanization average, highlighting the U.S. as one of the most urbanized countries in the world. North America leads global urbanization trends, with 82% of its population residing in urban settings.
Urban areas typically exhibit higher population densities, advanced infrastructure, and increased energy consumption, all of which contribute to a growing demand for both residential and commercial cooling solutions. As urban living spaces become more compact and energy efficiency becomes a priority, the need for technologically advanced and energy-efficient room air conditioners has surged. In densely populated urban centers, where central air conditioning may not be practical or cost-effective, room air conditioners provide a flexible and economical alternative.
Moreover, urbanization is often associated with rising living standards and increased consumer spending capacity. This, combined with a growing awareness of indoor air quality and thermal comfort, continues to drive the demand for air conditioning solutions. The rise of high-rise residential complexes, commercial buildings, and small office home office (SOHO) setups has further expanded the market for room air conditioners in urban North America. Additionally, the trend towards smart home integration in urban residences is fostering innovation and increasing demand for smart room air conditioning systems that offer features such as remote control, energy monitoring, and automation.
Strategic Insights
Market Segmentation Analysis
The North America room AC market can be segmented based on product type, technology, and end users.
According to the United Nations, the global population reached 8 billion on November 15, 2022, marking significant advancements in healthcare, food security, and economic development. This population is expected to continue growing, potentially peaking at around 10.3 billion by the mid-2080s. By 2050, it is estimated that 68% of the global population will live in urban areas. This accelerating urbanization is reshaping consumption patterns, infrastructure demands, and household energy use, particularly in emerging economies where urban growth is most pronounced.
The increasing urban population and expanding global demographics are crucial drivers of the room air conditioner market. As cities become denser and infrastructure modernizes, the demand for residential and commercial air conditioning systems is on the rise. Urban areas often experience higher temperatures than rural regions due to the urban heat island effect, which intensifies the need for efficient indoor cooling solutions.
This demographic shift is influencing manufacturers and governments in their market development strategies. The growing urban consumer base is demanding more compact, energy-efficient, and smart room air conditioning units that meet the spatial constraints and energy regulations of modern urban housing. Additionally, rising population densities are leading to stricter building codes and climate policies that emphasize sustainable cooling technologies. In response, the industry is witnessing a surge in innovation, including the use of low-global-warming-potential (GWP) refrigerants, solar-powered units, and integrated smart home systems. The intersection of population growth, urbanization, and climate change is not only expanding the room air conditioner market but also reshaping its future direction, creating new opportunities for investment, innovation, and sustainable development.
Country Insights
The North America room AC market includes the U.S., Canada, and Mexico, with the U.S. holding the largest market share in 2024. The U.S. room air conditioner market is undergoing significant changes due to regulatory shifts and innovations in refrigerant technology. The Environmental Protection Agency (EPA) is set to implement new regulations limiting the global warming potential (GWP) of refrigerants used in air conditioning systems to 750. This regulation phases out high-GWP refrigerants like R-410A in favor of more sustainable alternatives such as R-454B and R-32. These environmentally friendly refrigerants are driving technological advancements in HVAC systems, prompting manufacturers to accelerate the rollout of next-generation units that comply with new standards. Consumers are increasingly prioritizing energy efficiency and environmental sustainability, making 2025 a pivotal year for the expansion of eco-friendly room air conditioning solutions.
Company Profiles
Key players in the North America 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. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative products to consumers.
Executive Summary and Market Analysis
The urbanization trend in North America, particularly in the United States, has reached a notable level of maturity. As of 2023, 83.3% of the American population lives in urban areas, according to World Bank data. This figure is significantly higher than the global urbanization average, highlighting the U.S. as one of the most urbanized countries in the world. North America leads global urbanization trends, with 82% of its population residing in urban settings.
Urban areas typically exhibit higher population densities, advanced infrastructure, and increased energy consumption, all of which contribute to a growing demand for both residential and commercial cooling solutions. As urban living spaces become more compact and energy efficiency becomes a priority, the need for technologically advanced and energy-efficient room air conditioners has surged. In densely populated urban centers, where central air conditioning may not be practical or cost-effective, room air conditioners provide a flexible and economical alternative.
Moreover, urbanization is often associated with rising living standards and increased consumer spending capacity. This, combined with a growing awareness of indoor air quality and thermal comfort, continues to drive the demand for air conditioning solutions. The rise of high-rise residential complexes, commercial buildings, and small office home office (SOHO) setups has further expanded the market for room air conditioners in urban North America. Additionally, the trend towards smart home integration in urban residences is fostering innovation and increasing demand for smart room air conditioning systems that offer features such as remote control, energy monitoring, and automation.
Strategic Insights
Market Segmentation Analysis
The North America room AC market can be segmented based on product type, technology, and end users.
- Product Type: The market is divided into split AC, window AC, and portable AC. In 2024, the split AC segment held the largest market share.
- Technology: The market is categorized into inverter technology and non-inverter technology, with inverter technology dominating the market in 2024.
- End Users: The market is further segmented into residential and commercial users, with the residential segment holding a larger share in 2024.
According to the United Nations, the global population reached 8 billion on November 15, 2022, marking significant advancements in healthcare, food security, and economic development. This population is expected to continue growing, potentially peaking at around 10.3 billion by the mid-2080s. By 2050, it is estimated that 68% of the global population will live in urban areas. This accelerating urbanization is reshaping consumption patterns, infrastructure demands, and household energy use, particularly in emerging economies where urban growth is most pronounced.
The increasing urban population and expanding global demographics are crucial drivers of the room air conditioner market. As cities become denser and infrastructure modernizes, the demand for residential and commercial air conditioning systems is on the rise. Urban areas often experience higher temperatures than rural regions due to the urban heat island effect, which intensifies the need for efficient indoor cooling solutions.
This demographic shift is influencing manufacturers and governments in their market development strategies. The growing urban consumer base is demanding more compact, energy-efficient, and smart room air conditioning units that meet the spatial constraints and energy regulations of modern urban housing. Additionally, rising population densities are leading to stricter building codes and climate policies that emphasize sustainable cooling technologies. In response, the industry is witnessing a surge in innovation, including the use of low-global-warming-potential (GWP) refrigerants, solar-powered units, and integrated smart home systems. The intersection of population growth, urbanization, and climate change is not only expanding the room air conditioner market but also reshaping its future direction, creating new opportunities for investment, innovation, and sustainable development.
Country Insights
The North America room AC market includes the U.S., Canada, and Mexico, with the U.S. holding the largest market share in 2024. The U.S. room air conditioner market is undergoing significant changes due to regulatory shifts and innovations in refrigerant technology. The Environmental Protection Agency (EPA) is set to implement new regulations limiting the global warming potential (GWP) of refrigerants used in air conditioning systems to 750. This regulation phases out high-GWP refrigerants like R-410A in favor of more sustainable alternatives such as R-454B and R-32. These environmentally friendly refrigerants are driving technological advancements in HVAC systems, prompting manufacturers to accelerate the rollout of next-generation units that comply with new standards. Consumers are increasingly prioritizing energy efficiency and environmental sustainability, making 2025 a pivotal year for the expansion of eco-friendly room air conditioning solutions.
Company Profiles
Key players in the North America 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. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative products to consumers.
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