Global Split Air Conditioning System Market Overview
The Split Air Conditioning System Market Size was estimated at 44.55 (USD Billion) in 2022. The Split Air Conditioning System Industry is expected to grow from 46.89(USD Billion) in 2023 to 74.4 (USD Billion) by 2032. The Split Air Conditioning System Market CAGR (growth rate) is expected to be around 5.26% during the forecast period (2024 - 2032).
Key Split Air Conditioning System Market Trends Highlighted
Key market drivers for split air conditioning systems include rising temperatures, urbanization, increasing disposable incomes, and government initiatives to promote energy efficiency. Additionally, growing demand for silent and aesthetically pleasing air conditioning solutions is driving market expansion.Opportunities in the split air conditioning system market include the development of IoT-enabled systems, integration with smart home devices, and increasing focus on sustainable and eco-friendly cooling technologies. Additionally, untapped markets in developing countries and the crescent demand for air conditioning systems in commercial spaces offer substantial growth potential.Recent trends in the split air conditioning market include the adoption of inverter technology for energy efficiency, the integration of air purifiers and other health-enhancing features, and the increasing popularity of multi-split systems for customizable cooling solutions. Additionally, there is a growing emphasis on energy-efficient and eco-friendly refrigerants, such as R32 and R410A, to minimize environmental impact.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Split Air Conditioning System Market Drivers
Rising Demand for Energy-Efficient Cooling Solutions
The growing awareness of energy conservation and the increasing adoption of sustainable practices are driving the demand for energy-efficient cooling solutions. Split air conditioning systems offer significant energy savings compared to traditional window units or central air conditioning systems. Their ability to cool specific zones or rooms independently helps reduce energy consumption and lower utility bills. Moreover, government regulations and incentives aimed at promoting energy efficiency further stimulate the adoption of split air conditioning systems.
Increasing Urbanization and Population Growth
Emerging economies experience rapid urbanization and population growth of their residents daily. As a result, there is a growing need for residential and commercial buildings. This implies a recurring demand for air conditioning that requires efficient and cost-effective systems. With flexibility, convenience installation, and budget-friendliness, split air conditioning systems have long been preferred for new constructions or renovations. Since the number of urban habitants is likely to rise, more and more households and businesses will require such AC systems.
Technological Advancements and Innovation
Technological advancements and innovation are constantly enhancing the capabilities and features of split air conditioning systems. The integration of smart technologies, such as Wi-Fi connectivity and remote control, allows users to manage their systems remotely and optimize energy consumption. Additionally, advancements in refrigerant technology and compressor design have improved the efficiency and environmental friendliness of split air conditioning systems, making them a more sustainable option for cooling.
Split Air Conditioning System Market Segment Insights
Split Air Conditioning System Market Capacity Insights
Capacity Insights The split air conditioning system market has been segmented by capacity into different sections, including Below 1.5 Tons, 1.5 – 2 Tons, 2 – 2.5 Tons, and Above 2.5 Tons. In terms of revenue, the 1.5 – 2 Tons segment dominated the market and accounted for the largest revenue share of 35% in 2023. It is expected to continue leading this market over the forecast period, which is mainly associated with the high demand for such capacity among end users. The Below 1.5 Tons segment is anticipated to record the highest CAGR of 5.8% during the same period due to the consumers’ interest in energy-efficient and small-capacity air conditioners.They prefer such products for their small rooms and apartments. The 2 – 2.5 Tons segment is forecast to register a moderate CAGR over the forecast period. The product range in this capacity group has become increasingly popular among end users, and it is widely used in homes as well as commercial and industrial sites. The Above 2.5 Tons segment is likely to acquire a significant revenue share driven by the consumption of large capacity air conditioners in hot and humid regions, in which consumers prefer to use powerful systems for large buildings.Thus, the current level of growth in the Split Air Conditioning System Market can be interpreted by the consumers' interest in energy-efficient, effective, and comfortable cooling of their personal or business premises.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Split Air Conditioning System Market Inverter Technology Insights
Inverter Technology Segment Overview The Inverter technology segment is projected to hold a dominant position in the Split Air Conditioning System Market. Inverter technology offers greater energy efficiency, providing up to 40% energy savings compared to traditional non-inverter models. Its ability to adjust compressor speed based on cooling demand reduces energy consumption and operating costs. The inverter compressor also operates at lower noise levels, making it suitable for noise-sensitive environments. In 2023, the inverter technology segment accounted for approximately 65% of the Split Air Conditioning System Market revenue, and this dominance is expected to continue in the coming years due to rising consumer demand for energy-efficient and environmentally friendly solutions.The rising adoption of inverter technology is driven by government regulations promoting energy efficiency and consumer awareness of the long-term cost savings associated with its use.
Split Air Conditioning System Market Star Rating Insights
The Star Rating segment plays a crucial role in shaping the Split Air Conditioning System Market. Consumers are increasingly becoming conscious of energy efficiency, leading to a surge in demand for higher-rated AC units. The 5-Star segment is projected to dominate the market with a significant share, driven by stringent government regulations and consumer preference for energy-saving appliances. The 3-Star and 4-Star segments are also expected to witness steady growth due to their affordability and balance between energy efficiency and cost.The 2-Star and 1-Star segments are likely to experience a decline in market share as consumers opt for more efficient options. Overall, the Star Rating segmentation provides valuable insights into consumer behavior and the evolving regulatory landscape, helping manufacturers adapt their strategies accordingly.
Split Air Conditioning System Market Application Insights
Application Segment Insights and Overview The split air conditioning system market is segmented into residential, commercial, and industrial applications. The residential segment accounted for the largest market share in 2023 and is projected to continue to dominate the market throughout the forecast period. The growth of the residential segment can be attributed to the increasing demand for comfort cooling in homes and apartments, particularly in developing countries. The commercial segment is expected to experience significant growth over the forecast period due to the rising demand for energy-efficient cooling solutions in offices, retail stores, and other commercial buildings.The industrial segment is expected to grow at a steady pace due to the increasing need for cooling in manufacturing facilities, warehouses, and other industrial settings. Key Facts and Figures The split air conditioning system market is expected to reach a valuation of USD 51.9 billion by 2024, growing at a CAGR of 5.6%. The residential segment is projected to account for over 60% of the market share by 2024. The commercial segment is expected to grow at a CAGR of 6.2% over the forecast period. The industrial segment is expected to reach a market value of USD 9.2 billion by 2024.Insights The growing demand for energy-efficient cooling solutions is driving the growth of the split air conditioning system market. The increasing adoption of smart home technology is expected to further fuel the growth of the residential segment. The rising demand for cooling in commercial and industrial settings is expected to contribute to the growth of these segments.
Split Air Conditioning System Market Split Type Insights
The Split Type segment in the Split Air Conditioning System Market is expected to grow significantly in the coming years, driven by increasing demand for energy-efficient and cost-effective cooling solutions. The Ductless sub-segment is projected to account for a larger market share due to its ease of installation and flexibility in accommodating various room configurations. The ducted sub-segment is also expected to witness steady growth, which is attributed to its ability to provide uniform cooling throughout larger spaces. The Split Air Conditioning System Market revenue for the Split Type segment is estimated to reach USD 32.5 billion by 2024, expanding at a CAGR of 5.6%.The market growth is influenced by factors such as rising disposable income, increasing urbanization, and expanding construction activities worldwide.
Split Air Conditioning System Market Regional Insights
The regional segment of the Split Air Conditioning System Market offers valuable insights into the geographical distribution of market growth and opportunities. North America is projected to hold a significant market share due to rising demand for energy-efficient cooling solutions and increasing disposable income. Europe is expected to witness stable growth driven by government regulations promoting energy conservation and rising urbanization. The APAC region is poised to emerge as the fastest-growing market, attributed to rapid economic development, increasing population, and rising living standards.South America and MEA regions are anticipated to experience moderate growth due to growing infrastructure investments and government initiatives to improve energy efficiency. These regional insights provide essential information for businesses to tailor their strategies and target specific markets for growth and expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Split Air Conditioning System Market Key Players And Competitive Insights
Leading players in the Split Air Conditioning System Market industry are constantly innovating and developing new products to better meet the changing needs of consumers. Top Split Air Conditioning System Market players focus on expanding their product range and strengthening their market position through geographical expansion. The growth of the Split Air Conditioning System Market is driven by increasing disposable income, urbanization, and growing demand for energy-efficient appliances. The Split Air Conditioning System Market Competitive Landscape is quite intense as a large number of established and emerging players are involved in the market.One of the top companies in the Split Air Conditioning System Market is Carrier. Carrier is one of the world’s leading providers of heating, ventilation, air conditioning, and refrigeration solutions. The company’s split air conditioning systems range includes single-zone, multi-zone, and ductless systems. Carrier is known for developing advanced products and technologies and is a leader in the industry. The carrier pays great attention to research and development and is constantly looking for ways to improve its products and services.Trane is one of the leading companies in the Split Air Conditioning System Market as well. Trane is a provider of heating, ventilation, air conditioning and refrigeration solutions. Its split air conditioning systems range includes single-zone, multi-zone, and ductless systems. Trane products are known for their high quality, and the company appreciates its commitment to customers. Trane is a company with a wide range of products and is constantly expanding its product offerings and geographic focus.
Key Companies in the Split Air Conditioning System Market Include
- Sharp Corporation
- Daikin Industries
- Samsung Electronics
- Midea Group
- Fujitsu General
- Carrier
- Trane
- Mitsubishi Electric
- Haier Group
- Gree Electric Appliances
- AUX Group
- LG Electronics
- Toshiba
- Hitachi
Split Air Conditioning System Market Industry Developments
The split air conditioning system market is projected to reach USD 74.4 billion by 2032, exhibiting a CAGR of 5.26% from 2024 to 2032. Rising demand for energy-efficient cooling solutions, increasing urbanization, and growing disposable income in emerging economies are key factors driving market growth. Additionally, government regulations promoting energy efficiency and technological advancements in inverter-based systems and refrigerants contribute to market expansion. Key industry participants are focusing on product innovation, strategic partnerships, and expanding their presence in emerging markets to gain a competitive edge.
Split Air Conditioning System Market Segmentation Insights
Split Air Conditioning System Market Capacity Outlook
- Below 1.5 Tons
- 5 - 2 Tons
- 2 - 2.5 Tons
- Above 2.5 Tons
Split Air Conditioning System Market Inverter Technology Outlook
Split Air Conditioning System Market Star Rating Outlook
- 1 Star
- 2 Star
- 3 Star
- 4 Star
- 5 Star
Split Air Conditioning System Market Application Outlook
- Residential
- Commercial
- Industrial
Split Air Conditioning System Market Split Type Outlook
Split Air Conditioning System Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
44.55(USD Billion) |
| Market Size 2023 |
46.89(USD Billion) |
| Market Size 2032 |
74.4(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.26% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Sharp Corporation, Daikin Industries, Samsung Electronics, Midea Group, Fujitsu General, Carrier, Trane, Mitsubishi Electric, Haier Group, Gree Electric Appliances, AUX Group, LG Electronics, Toshiba, Hitachi |
| Segments Covered |
Capacity, Inverter Technology, Star Rating, Application, Split Type, Regional |
| Key Market Opportunities |
1 Increasing disposable income and urbanization2 Government incentives for energy-efficient appliances3 Rising demand for smart home devices4 Growing popularity of inverter technology5 Expanding construction industry |
| Key Market Dynamics |
1 Increasing demand for energy-efficient appliances2 Growing urbanization and disposable income3 Government regulations for energy conservation4 Technological advancements and innovation5 Expansion of e-commerce and online sales |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
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Frequently Asked Questions (FAQ) :
The split air conditioning system market size was valued at USD 46.89 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 5.26% from 2024 to 2032, reaching USD 74.4 billion by 2032.
The growth of the split air conditioning system market is primarily driven by the increasing demand for energy-efficient cooling solutions, rising disposable income, and rapid urbanization in developing countries. Additionally, government initiatives and regulations promoting energy conservation and environmental sustainability are further contributing to market expansion.
Asia-Pacific is expected to dominate the split air conditioning system market throughout the forecast period due to the presence of a large population base, growing economies, and hot and humid climatic conditions. China and India are the major contributors to the regional market.
Split air conditioning systems are widely used in residential, commercial, and industrial applications. In residential buildings, they are used to provide cooling and heating in individual rooms or zones. In commercial buildings, they are used to maintain comfortable temperatures in offices, retail stores, and restaurants. In industrial settings, they are used to control temperature and humidity in manufacturing facilities and warehouses.
The split air conditioning system market is highly competitive, with a number of established players and emerging regional participants. Some of the key competitors include Daikin Industries, Mitsubishi Electric, Gree Electric Appliances, Haier, LG Electronics, Samsung Electronics, Panasonic, Hitachi, Toshiba, and Carrier.
Key trends in the split air conditioning system market include the rising adoption of inverter technology, increasing demand for smart and connected devices, growing focus on energy efficiency, and the emergence of eco-friendly refrigerants. Manufacturers are also incorporating advanced features such as air purification, odor removal, and voice control to enhance user experience and meet evolving consumer preferences.
The COVID-19 pandemic had a significant impact on the split air conditioning system market in the short term, leading to supply chain disruptions, project delays, and reduced consumer spending. However, the market is expected to recover and resume its growth trajectory in the long run as the economy recovers and construction activities pick up.
The split air conditioning system market faces several challenges, including intense competition, fluctuating raw material prices, and stringent environmental regulations. Additionally, the availability of low-cost substitutes and the need for skilled technicians for installation and maintenance pose further challenges.
The split air conditioning system market is expected to continue growing at a steady pace over the next decade. Rising disposable income, increasing urbanization, and technological advancements are expected to drive market growth. The market is also expected to benefit from government initiatives promoting energy efficiency and environmental sustainability.
Key opportunities in the split air conditioning system market include the expansion of smart and connected devices, growing demand for eco-friendly and energy-efficient solutions, and increasing penetration in emerging markets. Additionally, the development of new technologies and the adoption of innovative business models present further opportunities for market growth.
