Air Conditioning Systems Market To Reach $182.97 Billion By 2033

Air Conditioning Systems Market Growth & Trends

The global air conditioning systems market size is estimated to reach USD 182.97 billion by 2033, registering a CAGR of 7.2% from 2025 to 2033, according to a new report by Grand View Research, Inc. Factors such as increasing international tourism, growing consumer spending on home improvement, and introduction of energy-efficient systems, coupled with the rising popularity of green cooling concepts, are expected to drive the market growth over the forecast period.

Global events usually pave the way for extensive construction projects, such as the establishment of new buildings and improvement of existing infrastructure. These projects aim at accommodating and catering to the needs of international tourists & visitors or working professionals and providing them enhanced facilities. For instance, the 2020 Summer Olympics event, expected to be held in Tokyo, is expected to drive the construction and development of ample commercial, residential, and lodging spaces in the city before the event commences. Similarly, in Dubai, the government is expected to make significant investments in infrastructure development to accommodate the large number of visitors expected to be attending the Expo 2020, a universal exposition. This, in turn, is creating an increased demand for air conditioners.

The competitive landscape of the market is highly consolidated and characterized by high competition with the presence of key players such as Carrier Corporation, Haier Inc., Electrolux, Ingersoll-Rand plc, and DAIKIN INDUSTRIES, LTD. These players are engaged in mergers and acquisitions to enhance their market presence. For instance, in January 2018, Ingersoll Rand plc and Mitsubishi Electric Corporation signed a contract to create a joint venture to enhance the marketing, sales, and distribution of VRF and ductless heating and air conditioning systems. Under the partnership, the companies will distribute their products under the American Standard and Trane brands using the latter’s corporate logo and the former’s distribution channels.

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Air Conditioning Systems Market Report Highlights

• Based on type, the ductless mini-split systems dominated the market and accounted for 49.4% of revenue share in 2024, due to their flexibility, energy efficiency, and ease of installation.

• Based on technology, the inverter air conditioners segment held the largest revenue share of 68.6% in the market in 2024, owing to their energy efficiency, variable speed operation, and better temperature control.

• Based on end-use, the residential sector dominated the air conditioning market and accounted for a 43.9% share in 2024, due to rising urbanization, growing middle-class income, and increasing demand for home comfort.

• The Asia Pacific air conditioning systems market dominated the global market and accounted for a 57.4% share in 2024, due to rapid urbanization, population growth, and infrastructure development.

Air Conditioning Systems Market Segmentation

Grand View Research has segmented the global air conditioning systems market based on type, technology, end-use, and region:

Air Conditioning Systems Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2021 - 2033)

• Package Air Conditioners

• Split Air Conditioning Systems

• Ductless Mini-split Systems

Air Conditioning Systems End-use Outlook (Volume, Thousand Units; Revenue, USD Billion, 2021 - 2033)

• Residential

• Commercial

• Industrial

Air Conditioning Systems Technology Outlook (Volume, Thousand Units; Revenue, USD Billion, 2021 - 2033)

• Inverter

• Non-inverter

Air Conditioning Systems Regional Outlook (Volume, Thousand Units; Revenue, USD Billion, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • France

  • Germany

  • Italy

  • Spain

  • Türkiye

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • Saudi Arabia

List of Key Players in the Air Conditioning Systems Market 

• DAIKIN INDUSTRIES, Ltd.

• Carrier.

• Haier Group

• Johnson Controls - Hitachi Air Conditioning Company

• Lennox International Inc.

• LG Electronics.

• Midea.

• Mitsubishi Electric India Pvt. Ltd.

• Panasonic Corporation

• Samsung Electronics Co. Ltd.

• ALFA LAVAL

• Electrolux

• Trane Technologies plc

• Whirlpool

• Voltas, Inc.