Global Split Air Conditioning Systems Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Split Air Conditioning Systems Market is expected to record a CAGR of 5.7% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 24.44 Billion. By 2032, the valuation is anticipated to reach USD 37.9 Billion.

In recent years, the energy efficiency of split air conditioners has significantly improved, thanks to advancements in air conditioning technology. Furthermore, the expanding middle-class population in developing economies like India, China, Brazil, and others, coupled with rising disposable incomes, has emerged as a pivotal driver for the increasing adoption of split air conditioning systems in the global market.

The surging demand for energy conservation plays a significant role in propelling the split air conditioning system market forward. In developed regions like North America and Europe, existing air conditioning systems have been replaced with energy-efficient models due to government directives mandating the use of such systems.

While it’s true that the power consumption of split air conditioning systems has seen an uptick over the years, manufacturers have responded by embracing environmentally friendly and advanced technologies, thereby creating more energy-efficient systems.

This transition is further accelerated by the growing number of smart homes and the adoption of green technology, contributing to the expansion of the split air conditioning market in the forecast period.

As a result of government incentives favoring advanced technology over older counterparts, the investment in existing technology has decreased, spurring increased demand for split air conditioning systems. Nevertheless, it’s worth noting that fluctuations in raw material prices may pose a constraint on the market’s growth.

Split Air Conditioning Systems Market – Significant Growth Factors

The global split air conditioning system market is experiencing robust growth, propelled by a range of favorable factors. One key driver of this expansion is the increasing consumer awareness of the myriad advantages offered by split air conditioning systems compared to traditional alternatives.

Unlike window ACs or central air conditioning systems, split air conditioners don’t necessitate ductwork, instead, they are connected using electrical wires and tubing. This simplicity in installation not only makes these systems more convenient but also leads to significant energy cost savings.

Both compact split air conditioners and multi-split air conditioners are well-suited for installation in residential spaces, catering to the needs of both single and multiple zone interior spaces.

The global market is experiencing growth driven by a confluence of factors, including the swift pace of urbanization, a rising trend in adopting smart interior solutions for homes, a surging demand for luxury household appliances, and an increase in consumer disposable income.

Moreover, technological innovations in split air conditioning systems, particularly in design and specifications, are bolstering the demand for multi-split air conditioning systems, which offer advanced features.

Additionally, the growing popularity of Variable Refrigerant Flow (VRF) air conditioners, known for their high energy efficiency and cost-effectiveness, is gaining traction in niche markets worldwide, further contributing to the overall market expansion.

A noteworthy trend in the global split air conditioning systems market is the integration of cutting-edge technologies, such as advanced inverter and heat pump innovations, which presents substantial business growth prospects for major industry players.

Daikin, for instance, has introduced state-of-the-art inverter and heat pump technologies that offer superior cooling and humidity control at various temperature settings, leading to improved air quality and heightened comfort levels. Notably, these advancements result in enhanced heat pump efficiency, resulting in greater energy savings and quieter operation.

Split Air Conditioning Systems Market – Mergers and Acquisitions

• In August 2021, Johnson Controls-Hitachi Air Conditioning India unveiled plans for an expansion of its manufacturing facilities in Gujarat, India. This expansion is geared towards meeting the needs of residential and commercial air conditioning markets by offering innovative air conditioning solutions for both home and business spaces.

• In January 2021, Panasonic made strategic investments in domestic manufacturing within India, with a vision to double its air conditioning business over the next three years. The company, which introduced the HU series of air conditioners featuring the recently announced nanoeX technology, anticipates a substantial 35% growth in sales within this segment for the current year due to heightened demand. The nanoeX technology, according to Panasonic, harnesses the power of hydroxyl radicals in water, often referred to as “nature’s detergent,” effectively capable of inhibiting 99.99% of bacteria and viruses, including the adhesive coronavirus.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Split Air Conditioning Systems Market – Significant Threats

• Environmental Concerns: Growing awareness of environmental issues has raised concerns about the environmental impact of air conditioning systems. The use of certain refrigerants in split systems can contribute to ozone depletion and global warming, which has led to increased regulatory scrutiny and the need for more eco-friendly alternatives.

• Energy Efficiency Regulations: Many regions have imposed strict energy efficiency regulations and standards for air conditioning systems. Compliance with these regulations can be costly for manufacturers, and failure to meet them can limit market access.

• Raw Material Price Volatility: Fluctuations in the prices of raw materials used in the manufacturing of split air conditioning systems, such as metals and plastics, can impact production costs and profit margins.

• Competition: The market is highly competitive, with numerous established and emerging players. Intense competition can lead to price wars, reduced profitability, and the need for constant innovation to stay competitive.

• Economic Downturns: Economic recessions and downturns can reduce consumer spending and impact the market for luxury or non-essential items like split air conditioning systems.

• Supply Chain Disruptions: Events like the COVID-19 pandemic have highlighted the vulnerabilities in global supply chains. Disruptions in the supply chain can lead to delays in production and delivery, affecting market growth.

• Rising Labor Costs: Increased labor costs in manufacturing countries can impact the overall cost of production, potentially leading to higher prices for consumers.

• Technological Obsolescence: Rapid advancements in technology can render existing models obsolete quickly. Manufacturers must continually invest in research and development to stay relevant.

• Geopolitical Factors: Trade tensions, tariffs, and other geopolitical factors can affect the global supply chain and market dynamics.

• Consumer Preferences: Changing consumer preferences and the demand for alternative cooling solutions, such as smart thermostats and energy-efficient building designs, can impact the market for traditional split air conditioning systems.

Report Scope

Category-Wise Insights

By Application:

In terms of application, the global split air conditioning systems market is categorized into two main segments: commercial and residential. Notably, the residential segment has held a dominant position in the global market.

This segment is experiencing remarkable growth, primarily through dedicated retail channels, driven by the rising demand for air conditioning solutions in residential spaces, including individual rooms and compact halls.

Conversely, the commercial sector is poised for rapid market expansion. This is attributed to escalating investments from both government and private entities in the commercialization of regions in both developing and developed countries. As a result, the commercial segment is anticipated to emerge as a significant growth driver for the market.

By Product:

Categorized by product type, the global split air conditioning systems market comprises four main segments: mini split AC, multi split AC, VRF, and floor-ceiling systems. Notably, the multi-split air conditioning system segment has held a commanding position in the global market. This system variant consists of multiple interior units, facilitating the creation of a uniform air conditioning environment within a room.

Additionally, it offers customers the flexibility to independently control the temperature in various rooms to cater to the preferences of different family members. It also enables users to efficiently conserve energy by turning off cooling in unoccupied areas.

Split Air Conditioning Systems Market – Regional Analysis

North America:

• North America has a mature market with a focus on energy-efficient systems due to environmental concerns.

• The region witnesses a demand for smart and connected air conditioning systems, driven by technological advancements.

Europe:

• Europe emphasizes eco-friendly refrigerants and energy-efficient models due to stringent environmental regulations.

• The adoption of split air conditioning systems is growing, especially in residential applications.

Asia-Pacific:

• Asia-Pacific is a major growth driver with a significant market share.

• Rapid urbanization, increasing disposable income, and a growing middle-class population boost the demand for split air conditioning systems.

Latin America:

• Latin America experiences a steady increase in demand for split air conditioning systems, primarily in residential applications.

• Economic development and rising consumer aspirations drive market growth.

Middle East and Africa:

• The hot climate in this region fuels the demand for air conditioning, making it a prominent market.

• The adoption of energy-efficient systems is gaining traction to address power consumption concerns.

Emerging Markets:

• Emerging markets, such as India and China, play a significant role in the global market’s growth.

• These regions have shown an increasing interest in split air conditioning systems, driven by economic growth and changing consumer preferences.

Developed Markets:

• Developed markets like the United States and Western Europe focus on energy efficiency and smart technology integration.
• Replacement of older systems with environmentally friendly models is a notable trend.

List of the prominent players in the Split Air Conditioning Systems Market:

• Daikin Industries Ltd.
• Mitsubishi Electric Corporation
• Fujitsu General Limited
• LG Electronics Inc.
• Samsung Electronics Co. Ltd.
• Panasonic Corporation
• Carrier Corporation
• Johnson Controls International plc
• Trane Technologies plc
• Haier Group Corporation
• Midea Group Co. Ltd.
• Gree Electric Appliances Inc. of Zhuhai
• Toshiba Corporation
• Hitachi Ltd.
• Rheem Manufacturing Company
• Sharp Corporation
• Hisense Kelon Electrical Holdings Company Limited
• Whirlpool Corporation
• Electrolux AB
• Voltas Limited
• Others

The Split Air Conditioning Systems Market is segmented as follows:

By Product

• Mini Split Ac
• Multi Split AC
• VRF
• Floor Ceiling

By Distribution Channel

• Online
• Offline

By Application

• Commercial
• Residential

By Pricing

• Low
• Medium
• High

By Installation

• Wall Mounted
• Freestanding

By Capacity

• Less than 1 Ton
• 1 Ton to 1.5 Ton
• 1.5 Ton to 2.0 Ton
• More than 2.0 Ton

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America