Split Air Conditioning Systems Market Forecasts to 2030 - Global Analysis By Product, Compressor Type, Energy Efficiency, Distribution Channel, Technology, End User and By Geography

According to Stratistics MRC, the Global Split Air Conditioning Systems Market is accounted for $29.35 billion in 2024 and is expected to reach $43.51 billion by 2030 growing at a CAGR of 7.2% during the forecast period. Split air conditioning systems are a type of HVAC system designed to cool or heat indoor spaces. They consist of two main components: an outdoor unit, which houses the compressor and condenser, and an indoor unit, which contains the evaporator and air handler. These units are connected by refrigerant pipes, allowing heat exchange to regulate room temperature. Split systems are popular for their efficient cooling, quiet operation, and flexibility, as they can be installed without ductwork.

According to the Consumer Electronics and Appliances Manufacturers Association, split ACs in Tier-II cities are seen to be higher than in Tier-I.

Market Dynamics:

Driver:

Urbanization and infrastructure development

As cities expand, new construction projects, including residential buildings, offices, shopping malls, and hotels, require efficient air conditioning systems for comfort and air quality. Additionally, urban areas experience higher temperatures due to the heat island effect, further fueling the need for effective cooling. Infrastructure improvements, such as better electricity supply and transportation networks, also support the installation and maintenance of air conditioning systems, boosting overall market growth.

Restraint:

Complex installation

Split air conditioning systems have complex installation due to the need for professional expertise in placing and connecting the indoor and outdoor units, refrigerant piping, electrical wiring, and ensuring proper airflow and drainage. The installation requires precise measurements, tools, and adherence to safety standards. Additionally, the requirement for skilled technicians and the potential for installation errors can limit market growth.

Opportunity:

Growing adoption of smart air conditioning systems

Smart ACs offer features such as remote control via mobile apps, voice control integration with virtual assistants, and advanced energy-saving modes. These systems allow users to optimize energy consumption, resulting in lower utility bills and reduced environmental impact. Additionally, smart features provide better user experiences with personalized settings, real-time diagnostics, and automation. This growing trend not only increases consumer interest but also drives innovation and expansion within the market.

Threat:

High maintenance and repair costs

High maintenance and repair costs in split air conditioning systems arise due to the complexity of components such as compressors, evaporators, and condensers, which require specialized service and parts. Frequent servicing, cleaning, and refrigerant recharging can add to expenses. Additionally, technical failures and the need for skilled technicians can drive up costs. As a result, it hampers market growth by reducing affordability and limiting the adoption of air conditioning systems in both residential and commercial sectors.

Covid-19 Impact

The covid-19 pandemic temporarily slowed the growth of the split air conditioning systems market due to supply chain disruptions, factory shutdowns, and reduced consumer spending. With decreased demand in commercial sectors like hospitality and offices, the residential market saw more significant growth as people focused on home comfort. However, the market rebounded as construction activities resumed, with increasing demand for energy-efficient and eco-friendly systems. The focus on improving indoor air quality further contributed to the market's recovery.

The wall-mounted split air conditioners segment is expected to be the largest during the forecast period

The wall-mounted split air conditioners segment is predicted to secure the largest market share throughout the forecast period. Wall-mounted split air conditioners are a popular type of split AC system, typically installed high on a wall to save space and provide efficient cooling. They consist of an indoor unit with an evaporator and an outdoor unit housing the compressor and condenser. Known for their energy efficiency, quiet operation, and easy installation, these units are ideal for residential and small commercial spaces.

The commercial segment is expected to have the highest CAGR during the forecast period

The commercial segment is anticipated to witness the highest CAGR during the forecast period. In commercial applications, split air conditioning systems are widely used in offices, retail spaces, restaurants, and healthcare facilities due to their energy efficiency, quiet operation, and flexible installation. These systems offer precise temperature control and are ideal for spaces with varying cooling requirements. The demand is driven by the growing emphasis on comfort, energy savings, and improved work environments.

Region with largest share:

Asia Pacific is expected to register the largest market share during the forecast period fuelled by rapid urbanization, increasing temperatures, and growing disposable incomes. Countries like China, India, Japan, and South Korea are key markets, with rising demand for residential and commercial cooling solutions. The region's expanding construction industry, coupled with government initiatives promoting energy-efficient appliances, supports market growth.

Region with highest CAGR:

North America is expected to witness the highest CAGR over the forecast period driven by rising temperatures, increased urbanization, and a strong demand for energy-efficient cooling solutions. The U.S. and Canada are key markets, where both residential and commercial sectors are adopting split AC systems due to their superior energy efficiency and advanced features. Technological innovations like smart thermostats and eco-friendly refrigerants are contributing to market growth.

Key players in the market

Some of the key players profiled in the Split Air Conditioning Systems Market include Daikin Industries Limited, LG Electronics, Mitsubishi Electric Corporation, Panasonic Corporation, Carrier Global Corporation, Samsung Electronics Corporation, Hitachi Limited, Toshiba Corporation, Voltas Limited, Blue Star Limited, Johnson Controls International, Haier Group Corporation, Fujitsu General Limited, Sharp Corporation, Liebherr Group, Gree Electric Appliances Inc., Trane Technologies, Lennox International Inc., Arcelik A.S. and Midea Group.

Key Developments:

In January 2025, Blue Star launched the "Multi-Inverter Split Air Conditioner", a highly innovative design aimed at enhancing cooling efficiency and energy-saving potential. It addresses modern air conditioning needs by providing greater flexibility and reducing the overall operational cost, which makes it a valuable choice for both residential and commercial spaces.

In April 2024, Voltas has launched its new commercial AC product line-up for commercial spaces at the ACREX India 2024 in Noida. The new Inverter Scroll Chillers have a cooling capacity ranging from 12-72 TR with eco-friendly refrigerants. The product is IoT enabled, BMS compatible, silent in operation and convenient for the user, as it can be operated through a mobile app.

Products Covered:

• Wall-Mounted Split Air Conditioners
• Ceiling-Mounted Split Air Conditioners
• Floor-Mounted Split Air Conditioners
• Ductless Mini-Split Air Conditioners
• Other Products

Compressor Types Covered:

• Rotary Compressor
• Reciprocating Compressor
• Scroll Compressor
• Other Compressor Types

Energy Efficiencies Covered:

• Low Energy Efficiency (1-2 Star)
• Medium Energy Efficiency (3-4 Star)
• High Energy Efficiency (5 Star & Above)

Distribution Channels Covered:

• Online Retailers
• Offline Retailers
• Third-party Distributors
• Other Distribution Channels

Technologies Covered:

• Inverter Split Air Conditioners
• Non-Inverter Split Air Conditioners

End Users Covered:

• Residential
• Commercial
• Industrial
• Automotive
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances