Room AC Market Projected to Hit $78.60 Billion by 2031 Amid Rising Temperatures

Rising Trends in the Room Air Conditioner Market



Introduction


The room air conditioner (AC) market is witnessing a remarkable surge, driven primarily by the growing necessity for effective cooling solutions in response to climate change and rising global temperatures. According to a report from The Insight Partners, the market, valued at approximately $52.16 billion in 2024, is projected to reach a staggering $78.60 billion by 2031, boasting a compound annual growth rate (CAGR) of 6.1% from 2025 to 2031. This growth can be attributed to the escalating need for cooling technologies in both residential and commercial sectors, driven by increased urbanization and the adoption of eco-friendly refrigeration technologies.

Global Warming and Its Influence


Rising temperatures are a pressing concern and have a direct impact on the AC market. The year 2024 was noted as the hottest on record according to NASA’s Goddard Institute for Space Studies, with global surface temperatures about 2.65 degrees Fahrenheit (1.47 degrees Celsius) above preindustrial levels. This trend of increasing temperatures indicates that the demand for cooling solutions will only intensify as consumers and businesses seek to create comfortable environments.

Transitioning to Eco-Friendly Refrigerants


One of the most significant advancements in the AC market is the shift towards eco-friendly refrigerants. Traditionally used options like R-410A and R-22, while effective, have a high global warming potential. The adoption of R-32, a low-GWP refrigerant, is becoming more prevalent. R-32 not only offers better thermal capacity but also significantly enhances energy efficiency. The transition to R-32 is projected to yield up to a 19% reduction in CO₂-equivalent emissions over a decade if implemented widely.

This transition aligns with global sustainability goals and addresses increasing regulatory pressures surrounding climate change. Manufacturers are thus encouraged to innovate their products, optimising components such as compressors and heat exchangers to better suit the unique properties of modern refrigerants.

Market Segmentation Insights


The room AC market can be segmented into various categories:
  • - Product Type: The market comprises split AC, window AC, and portable AC models. The split AC segment has dominated the market, indicating consumer preference for efficient and space-saving designs.
  • - Technology: The technology classification divides the market into direct inverter and non-inverter categories, with inverter technology leading thanks to its ability to offer energy savings and steady Temperature control.
  • - End-User: Primarily segmented into residential and commercial segments, the residential sector has shown a robust demand, reflecting the trend towards individual comfort in home environments.

Key Industry Players


As the market expands, competition intensifies. Key players in the room AC market include:
  • - Panasonic Holdings Corp
  • - Carrier Global Corp
  • - Daikin Industries Ltd
  • - LG Electronics Inc
  • - Mitsubishi Electric Corp
  • - Whirlpool Corp
These companies are investing heavily in research and development to enhance their product offerings and attain a larger market share. New product launches, such as Samsung’s 2025 BESPOKE AI WindFree Air conditioners, showcase the industry's push towards energy efficiency and smart technology integration.

Conclusion


The outlook for the room AC market remains bullish, with several socio-economic factors fostering growth. The increasing temperatures, coupled with urbanization and the commitment to mitigating climate change effects through eco-friendly technologies, present considerable opportunities for market participants. As we move further into the 21st century, the room AC market stands poised for significant advancements, catering to the evolving consumer demand for innovation in cooling technologies. The integration of environmentally considerate practices alongside technological improvements will define the market trajectory in the years ahead.

In order to stay competitive, stakeholders must navigate the challenges posed by fluctuating raw material prices and supply chain disruptions. Overall, the insights from The Insight Partners will aid various industry players in adapting and flourishing within this dynamic market landscape.

Topics Consumer Products & Retail)

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