Air Cooler Market To Reach $3.92 Billion By 2030 | CAGR: 9.1%

January 2025 | Report Format: Electronic (PDF)

Air Cooler Market Growth & Trends

The global air cooler market size is expected to reach USD 3.92 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 9.1% from 2024 to 2030. 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 acts as a humidifier in dry weather and is environment and eco-friendly, thereby driving its demand.

Increasing demand for energy efficient, low power consuming, and eco-friendly cooling products is driving the market demand across the globe. These operate through the principle of evaporation. It uses 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, thereby making it more eco-friendly. Growing concerns over energy consumption by ACs are increasing the inclination of consumers towards air coolers. They lower approximately 80% - 90% of electricity bill as compared to ACs, thus making them economical and energy efficient in the longer run.

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 the demand among developing economies. Technologically advanced products are penetrating the market in both developed and developing economies at a higher rate.

Remote control function for quick access to settings, speed of fan, and multi speed setting are finding it place in the market at higher rate than tradition air coolers. Innovative cooling pads such as Honeycomb also known as Cellulose cooling pad are decreasing the maintenance cost and increasing the cooling capacity.

By type, the air coolers market is segmented as tower, dessert, and others. Tower accounted for the largest market share in 2023. Consumers are more inclined towards these product types as they are easily portable and more economical. Moreover, they are compatible in dry as well as humid air, thereby making it a preferred choice among consumers.

Dessert air cooler 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 share in the market 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.

By application, the market is segmented into residential and commercial. Residential accounted for the largest share in 2023 and is anticipated to witness the fastest growth over the forecast period. Rising temperature and increasing disposable income of growing middle class are expected to fuel the product demand in the residential segment.

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

Asia Pacific was the largest market in 2023, accounting for a share of 63.8%. The region is anticipated to witness significant growth owing to increasing temperature and substantial climate change. Demand is driven by adoption of air coolers in the residential as well as commercial sectors due to preference for cooling working environment and economically cheaper cooling product. In Asia Pacific, India holds the largest market share owing to large middle class population. Moreover, the country is the fastest growing market in the region owing to increasing number of manufacturers and competitive pricing.

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.

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Air Cooler Market Report Highlights

Tower coolers dominated the market with a share of 45.3% in 2023. These coolers, known for their sleek and compact design, have gained significant popularity due to their space-saving nature and aesthetic appeal.
Residential application secured the dominant market share in 2023 and is projected to witness the fastest growth over the forecast period.
The Asia Pacific air coolers market accounted for the dominant market share of 63.8% in 2023 and is projected to retain its dominance over the forecast period.