Growing demand for energy efficient products is expected to be the key driving force for the North America air conditioning systems market over the next six years. The market in this region was valued at USD 28,805.5 million in 2013, and is expected to reach USD 52,560.7 million by 2020, growing at a CAGR of 9.0% from 2014 to 2020. In terms of shipments, the market was estimated to be 34,814.4 thousand units in 2013 and is expected to reach 50,022.7 thousand units by 2020, growing at a CAGR of 5.3% from 2014 to 2020. Stringent regulations in the U.S. regarding energy efficiency and need for energy rating, coupled with increasing consumer awareness is expected to favorably impact the regional market. Technological advancement has resulted in new product development and innovation. Air conditioning systems involve the use of harmful refrigerants which are toxic in nature and contribute significantly to global warming. Therefore, the market is expected to be fuelled by replacement demand of these products. Growth in the construction industry is estimated to drive air conditioning system shipments over the forecast period. However, there exists stiff competition from Chinese manufacturers which sell products at lower prices as compared to global well-established brands. This may pose a restraint to market growth in North American countries of the U.S., Canada and Mexico.
Split air conditioning systems offer numerous benefits including low degree of noise, low initial cost as well as ease of installation. They accounted for over 60% of the overall revenue share in 2013, and are expected to remain the largest product segment over the next six years. They are cost effective and work by effectively splitting the hot and cold sides of the air conditioner. Portable air conditioners provide high efficiency levels and are compact in nature. Additionally, they do not require permanent installation and can be moved from one location to another with relative ease. This segment is expected to grow at the fastest CAGR from 2014 to 2020. Airsides are also expected to witness high growth over the forecast period, and consist of Air Handling Unit (AHU) and fan coils.
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Air conditioning systems employed in residential settings are expected to continue dominating overall market demand over the forecast period; they accounted for over 40% of the overall market share in 2013. Commercial sectors primarily include the construction and tourism industries, as well as locations including health clubs, clinics and hospitals. This segment is expected to grow faster than the overall average, on account of new end-use areas such as the use of air conditioning units in tents. Demand for air conditioning units in the commercial segment is expected to be driven by individuals using portable systems for camping trips and other outdoor activities.
The U.S. is expected to continue being the largest regional market over the forecast period; it accounted for over 83% of the North America market revenue in 2013. Since traditional air conditioning systems consume a large amount of energy, demand for products with low energy consuming compressors is expected to continue increasing over the forecast period. The market in Mexico is expected to grow at the fastest CAGR of 10.3% over the forecast period from 2014 to 2020. Diverse weather conditions as well as growing demand from end-use sectors are expected to drive the regional market over the next six years.
Companies operating in the market include Daikin Industries Ltd., Carrier Corporation, Ingersoll Rand, Hitachi and Mitsubishi among numerous others. Industry participants have adopted strategies including joint ventures, mergers and acquisitions for ensuring market expansion. Additionally, players have been focusing on strengthening their distribution network to establish geographical presence.