PUBLISHER: The Business Research Company | PRODUCT CODE: 1931828
PUBLISHER: The Business Research Company | PRODUCT CODE: 1931828
Air-conditioning equipment refers to devices designed to create and maintain specific conditions such as fixed temperature, relative humidity, and air purity within indoor spaces.
The main types of air-conditioning equipment include unitary air conditioners, room air conditioners, packaged terminal air conditioners, chillers, and absorption liquid chillers. A chiller is a device that controls temperature by circulating a liquid, often water or another heat medium, as a cooling liquid whose temperature is adjusted through the refrigerant cycle. The essential components of air-conditioning equipment include the refrigerant, compressor, condenser coil, expansion valve, and evaporator coil. These systems find various applications in both residential and commercial settings.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the air-conditioning equipment market by increasing costs of imported compressors, refrigerants, condenser coils, electronic control units, and steel housings used across residential, commercial, and industrial systems. North America and Europe are most affected due to reliance on cross-border component sourcing, while Asia-Pacific faces pricing pressure on export-oriented manufacturing. These tariffs are elevating equipment prices and influencing project budgets for large installations. However, they are also encouraging local component manufacturing, regional assembly operations, and accelerated innovation in energy-efficient and cost-optimized air-conditioning technologies.
The air-conditioning equipment market research report is one of a series of new reports from The Business Research Company that provides air-conditioning equipment market statistics, including air-conditioning equipment industry global market size, regional shares, competitors with an air-conditioning equipment market share, detailed air-conditioning equipment market segments, market trends and opportunities, and any further data you may need to thrive in the air-conditioning equipment industry. This air-conditioning equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The air-conditioning equipment market size has grown steadily in recent years. It will grow from $223.43 billion in 2025 to $232.47 billion in 2026 at a compound annual growth rate (CAGR) of 4.0%. The growth in the historic period can be attributed to increasing urban residential construction, rising penetration of air conditioning in hot climates, expansion of commercial building infrastructure, growing demand for thermal comfort, wider availability of affordable room air conditioners.
The air-conditioning equipment market size is expected to see strong growth in the next few years. It will grow to $287.68 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to increasing adoption of smart and connected hvac systems, rising demand for low-global-warming-potential refrigerants, expansion of energy-efficient building standards, growing focus on decarbonized cooling solutions, increasing replacement of legacy air conditioning units. Major trends in the forecast period include increasing adoption of energy-efficient cooling systems, rising demand for variable refrigerant flow systems, growing integration of smart thermostats and controls, expansion of compact and modular hvac designs, enhanced focus on indoor air quality management.
Rising global temperatures are expected to be a significant driver of growth in the air-conditioning equipment market during the forecast period. Rising global temperatures refer to the increasing average surface temperature of the Earth caused by the greenhouse effect and climate change. Higher temperatures have increased the need for cooling solutions, particularly in regions experiencing frequent and severe heatwaves, as air-conditioning equipment is essential for maintaining comfortable living and working environments while protecting health and productivity. For example, in June 2023, the NOAA (National Oceanic and Atmospheric Administration) National Centers for Environmental Information, a US-based authority on climate and environmental data, reported that global surface temperatures reached 1.00 °C (1.80 °F) above the average, marking the fourth-warmest April in their 174-year record and a notable rise from 0.85 °C (1.53 °F) in April 2022. Consequently, rising global temperatures are expected to drive demand for air-conditioning equipment.
Leading air-conditioning equipment manufacturers are focusing on integrating wind-free technology into their products to enhance consumer offerings. Wind-Free technology is designed to provide a more comfortable cooling experience by minimizing direct airflow, enabling quieter, more energy-efficient, and user-friendly operation. For instance, in February 2023, Samsung Electronics Co. Ltd., a South Korea-based electronics company, launched its latest generation of Wind-Free air conditioners in India. The new models are Wi-Fi-enabled and feature advanced functions such as AI auto-cooling, welcome cooling, motion detection sensors, and voice control. Wind-Free technology in these units can achieve energy savings of up to 77%, while convertible 5-in-1 ACs with digital inverter technology deliver energy savings of up to 41%.
In March 2023, Panasonic Holdings Corporation, a Japan-based electronics firm, acquired the air-conditioning business of Systemair AB for an undisclosed amount. This acquisition allows Panasonic to expand its capabilities in commercial hydronic systems and better address growing environmental regulations. Systemair AB is a Sweden-based manufacturer of air-conditioning equipment.
Major companies operating in the air-conditioning equipment market are Daikin Industries Ltd, Midea Group Co. Ltd, Haier Group, Carrier Global Corporation, Hitachi Ltd, Samsung Electronics, Mitsubishi Electric Corporation, LG Electronics, Fujitsu General Ltd., Electrolux AB, LEEL Electricals Ltd (Lloyd), Johnson Controls-Hitachi Air Conditioning India Ltd, Amber Enterprises India Ltd, Blue Star Ltd, Voltas Ltd, AUX Group, Gree Electric Appliances Inc., Actron Engineering Pty Ltd, WAECO, KLIMA-THERM Group, Autoclima, CPS Products Inc., MDV, KOMFOVENT, CaptiveAire Systems, Greenheck Fan Corporation, Twin City Fan Companies Ltd, Honeywell International Inc., Nortek Air Solutions, Carrier Airconditioning & Refrigeration Limited, Daikool Industries Limited, Temperature Control Company LLC, AAF-McQuay LLC, Arshi Air Conditioning & Refrigeration Co., Airmaster Emirates, Airco, HVAC Distributors
Asia-Pacific was the largest region in the air-conditioning equipment market in 2025. North America was the second largest region in the global air-conditioning equipment market share. The regions covered in the air-conditioning equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the air-conditioning equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The air-conditioning equipment market consists of sales of window air conditioners, portable air conditioners, wall hung split or multi head split air conditioners, ducted air conditioning. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Air-Conditioning Equipment Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses air-conditioning equipment market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for air-conditioning equipment ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The air-conditioning equipment market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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