Air Coolers Market Size, Share & Trends Analysis Report By Type (Tower, Dessert), By Application (Residential, Commercial), By Region (North America, Europe, APAC, CSA, MEA), And Segment Forecasts, 2019 - 2025

Report Overview

The global air coolers market size was valued at USD 1.2 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 10.8% from 2019 to 2025. The market growth is attributed to affordability and efficient cooling, less power consumption as compared to AC, usage in outdoor space, and product innovation. Moreover, the product is environmentally friendly and acts as a humidifier in dry weather.

Increasing demand for energy-efficient, low power consuming, and eco-friendly cooling products is driving the product demand across the globe. Air coolers operate through the principle of evaporation. It uses a simple air moving technique that pulls fresh air from outside driving through wet cooling pads, which absorb the heat from the surrounding and does not make it dry like ACs. Air cooler does not use any harmful cooling agents such as CFC, HCFC, and other hydrofluorocarbons used in AC to cool the surrounding, making it more eco-friendly. Growing concerns over energy consumption by AC are increasing the inclination of consumers toward air coolers. They lower approximately 80% - 90% of the electricity bill as compared to ACs, thus making them economical and energy-efficient in the longer run.

Consumers are reluctant to opt for air coolers as they take up space and do not go with the aesthetics of the room. Many manufacturers identified this as a concern and they are designing air coolers in smaller, sleek, and stylish designs. With innovation, manufacturers are making it more powerful that would be enough to be used in big rooms, and are easy to move around with the help of the castor wheel. Moreover, easy installation and portability over AC are boosting the demand for air coolers. Air coolers cost 80% - 85% less than AC, thereby making them more affordable and adaptable to the growing middle-class population across the globe.

Air coolers are not efficient to be used in humid and coastal areas, which is acting as a restraint to the market growth. However, product innovation is boosting its demand among developing economies. Technologically advanced products are penetrating the market in both developed and developing economies at a higher rate. Remote control functions for quick access to settings, speed of the fan, and multi-speed settings are finding a place in the market than traditional ones. Innovative cooling pads such as Honeycomb also known as Cellulose cooling pad are decreasing the maintenance cost and increasing the cooling capacity.

Application Insights

By application, the air coolers market is segmented into residential and commercial. Residential accounted for the largest share of 88.0% in 2018 and is estimated to witness the fastest growth over the forecast period. Rising temperature and increasing disposable income of the growing middle-class population are expected to fuel the demand in the residential segment. Rising income among the rural population is increasing the adoption of air coolers as they are more economical and consume less power.

Product demand is also growing in the commercial segment due to its application in open-air functions where ACs cannot be installed. Global warming caused due to usage of ACs that use various refrigerants is also one of the reasons for the adoption of air coolers in the commercial segment. However, air ducts and central air conditioners are preferred for cooling as commercial space has a larger area. Groceries and retailer stores have showcased an interest in the adoption of air coolers owing to the growing temperature and preference for the cooler working environment.

Type Insights

By type, the market is segmented as a tower, dessert, and others. Tower accounted for the largest market share in 2018. It is expected to expand at the fastest CAGR of 11.7% over the forecast period owing to its stylish design and compact nature. Consumers are more inclined towards tower air coolers as they are easily portable and more economical.

Moreover, they are compatible with dry as well as humid air, thereby making them a preferred choice among consumers. They have a small water tank and consume less power, thus making it more economical in nature. Due to the less power consumption, they can also be used with inverter operation without any interruption due to power cuts.

Dessert air coolers and other air coolers such as personal, window, and mini portable air coolers are expected to witness significant growth over the forecast period. Dessert cooler held the second largest market share in 2018 owing to its cooling capacity as it is larger in size. It needs to be kept outside the room to maintain its cooling capacity, if kept inside the room, the cooling capacity is affected. This product type consumes more electricity as compared to tower coolers due to its cooling capacity.

Regional Insights

Asia Pacific emerged as the largest market, accounting for a share of 60.0% in 2018. It is expected to witness significant growth over the forecast period owing to increasing temperature and substantial climate change in the region. Demand is driven by the adoption of air coolers in the residential as well as commercial sectors due to preference for a cooling working environment and economically cheaper cooling products. In Asia Pacific, India held the largest market share in 2018 owing to the large middle-class population. Moreover, India is the fastest-growing market in the region owing to increasing manufacturers and competitive pricing.

Central and South America and the Middle East and Africa are also anticipated to witness high demand for air coolers due to dry and hot climates. In Central and South America, the climate is steppe, whereas the Middle East and Africa record higher temperatures, thus generating higher demand for cooling products. Air coolers are more eco-friendly and economical in nature, hence boosting their demand.

Key Companies & Market Share Insights

Players in the industry strategize to expand globally by entering into niche markets through mergers and acquisitions and joint ventures. For instance, Symphony acquired Munters Keruilai Air Treatment Equipment Co., Ltd. to expand its reach in China. Some of the prominent players in the air coolers market include:

• Symphony Limited

• Bajaj Electricals Limited

• Havels India Limited

• Honeywell International Inc.

• Aolan (Fujian) Industry Co., Ltd.

• Luma Comfort

• AirGroup, Seeley International Pty Ltd.

• Fujian Jinghui Environmental Technology Co., Ltd.

• De’Longhi Appliances S.r.l.

Air Coolers Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global air coolers market report on the basis of type, application, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Tower

  • Dessert

  • Others

• Application Outlook (Revenue, USD Million, 2015 - 2025)

  • Residential

  • Commercial

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • Nigeria