Air Conditioning System Market size is forecast to register significant growth rate through 2027 impelled by increasing adoption across industrial facilities. There is a high demand for the installation of these systems in production facilities and warehouses. With the flourishing e-commerce industry globally, the warehouse market is witnessing sharp growth, in turn, propelling owners to renovate traditional facilities to ensure employee comfort. The growing manufacturing industry is also propelling the demand for these systems for installation in production facilities. As comfortable working environment is crucial for optimum productivity, facility owners are focusing on establishing high-performance air-conditioning systems. High-quality air purification systems ensure healthier and cleaner working atmosphere.
The ongoing coronavirus pandemic negatively impacted the air conditioning system market in 2020 due to the temporary closure of industries and commercial complexes following the stringent lockdown measures. Corporate organizations urged their employees to work from home, while malls and industries remained temporarily shut in the first quarter of 2020. This hampered the market growth due to significant decline in the demand from the commercial sector. However, as industries have resumed normal operations, while malls have reopened in the second half of 2020, there will be a surge in the demand for air conditioning system in 2021.
Increasing demand for portable units that ensure ease of installation will boost the air conditioning system market growth. Increasing disposable income across developing economies has boosted the demand for air conditioning system from the residential sector. As portable air conditioners are compact in size, small homes and offices with space constraints can easily install them. Moveable units do not need an external condenser unit. They can be connected to a window through a hose and window bracket. They are cheaper compared to fixed units. As these units can be easily moved from one room to the other, they offer a cost-effective alternative to fixed air conditioning systems for installation in small homes or retail stores.
There is a high demand for manual air conditioners that offer users the control over the system. Manual air conditioning systems have dials and knobs that enable the user to determine the amount of airflow the unit will generate. Instead of turning on automatically, the user must turn on the system, then select the desirable amount of airflow. Manual air conditioning in automotive produces a consistent, pleasant temperature throughout the journey. It also ensures comfort as the user can decide the blower speed and the air distribution. High demand for these systems that are user-friendly and attain the desired cabin temperature efficiently and quickly will fuel the manual air conditioning system market growth.
The development of several new commercial complexes globally will boost the air conditioning market growth. For instance, in April 2019, Japanese studio, Nendo completed an inclusive design project for a new commercial complex in Tokyo’s Daikanyama neighborhood for the clothing company Onward. Similarly, in November 2019, Ajman mall upgraded from a community center to a regional shopping center comprising 130 international brands and a large hypermarket in the UAE. Such projects will propel the demand for sophisticated cooling solutions that ensure visitor and staff comfort. This will propel the air conditioning system market growth.
The expanding retail sector in North America will offer growth opportunities to the air conditioning system market. According to Retail Council of Canada 2020, food & beverage store sales grew by 11.5% from May 2019 to May 2020, while general merchandise store sales grew by 10% over the same period. As retailers focus on ensuring customer satisfaction, convenience, and comfort, there will be a high demand for advanced store cooling solutions. Small retailers employ portable coolers that fit in compact spaces while large malls employ central cooling systems that ensure uniform environment throughout the complex.
Players operating in the market include Daikin Industries Ltd., Haier Inc., Mitsubishi Electric Corporation, Hanon Systems, Johnson Controls–Hitachi Air Conditioning, LG Electronics, and MAHLE GmbH. Players are focusing on new product launches to strengthen their market presence. For instance, in February 2020, LG Electronics launched its new line of residential, light commercial, and commercial HVAC solutions to expand its product offerings. Increasing competition among market players to launch innovative solutions will fuel the air conditioning system market growth.
This market research report on the air conditioning system includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
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