Global Air Conditioner (AC) Market (2025-2031) | Share, Trends, Analysis, Revenue, Companies, Industry, Value, Size, Outlook, Forecast & Growth

Global Air Conditioner (AC) Market Size Growth Rate

As per 6Wresearch, the Global Air Conditioner (AC) Market size was valued exhibited USD 164.1 billion and is projected to reach USD 249.3 billion by 2031, growing at a CAGR of 6.2% from 2025 to 2031, driven by rapid urbanization and increasing disposable incomes.

Global Air Conditioner (AC) Market Highlights

Report Name	Global Air Conditioner (AC) Market
Forecast Period	2025-2031
Market Size	USD 249.3 billion by 2031
CAGR	6.2%
Growing Sector	Consumer Electronics

Topics Covered in the Global Air Conditioner (AC) Market Report

Global Air Conditioner Market report thoroughly covers the market by types, by Applications, and by Regions. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Global Air Conditioner Market Synopsis

The global air conditioner (AC) market has been experiencing gradual growth over the past few years. The market is supported by rising urbanization, increasing global temperatures, and improving living standards across developing regions. The contribution of technological advancements such as energy-efficient inverter-based systems, smart ACs with IoT integration, and environmentally friendly refrigerants are reshaping consumer preferences. Among the countries, China and India are leading country due to rapid infrastructure development and growing middle-class populations. Meanwhile, stringent energy regulations and the push for sustainable cooling solutions are influencing product innovation and market dynamics worldwide.

Global Air conditioner (AC) market is predicted to grow at a significant CAGR of 6.2% during the forecast period 2025-2031. Air Conditioner becomes an essential part of urban lifestyles especially in the hot region. The dependency of air conditioner in summer season has led the market across various sector such as commercial, industrial residential. Due to rapid urbanization and economic growth, the market is expanding particularly in Asia-Pacific. Further, the preferences for energy-efficient and smart air conditioning systems are increasing among consumers that offer advanced features like remote control, automation, and integration with smart home technologies. The government initiatives have also played their role to promote energy conservation and green buildings are further pushing the adoption of eco-friendly and energy-efficient air conditioners.

Despite its growth potential, the Global air conditioner (AC) industry faces several challenges that could hinder the growth in the future. The high expenditure costs and maintenance expenses of advanced AC systems can discourage the low-budget consumers, particularly in developing regions. Moreover, environmental concerns surrounding the use of traditional refrigerants, which contribute to global warming and ozone depletion. Government is prompting regulatory pressures on manufacturers to adopt alternative solutions, as the use of air conditioner is affecting the environment. Another supply chain disruptions and fluctuating raw material prices, alongside global economic uncertainties also arise risks to consistent market growth. Furthermore, the rising energy consumption related with widespread AC use raises concerns about power grid strain and long-term sustainability.

Global Air Conditioner Market Trends

The global air conditioning (AC) market has been experiencing several key trends in recent time. Next, an energy-efficient and eco-friendly cooling system has been put in place. Due to awareness of climate change, and government regulations, the pattern for growth of this market is up. New technologies, minimum energy use, and IoT and AI technologies are being incorporated into smart Air Conditioners or "smart A/C” which is leading to a more popular system for consumers due to their increasing desires to control from anywhere and optimize energy use. Furthermore, manufacturers are focusing on low global warming potential (GWP) refrigerants for the purposes of meeting sustainability goals. The growth in popularity of green buildings and more widespread adoption of HVAC systems in developing regions will also help to drive the air conditioning market growth and innovation.

Investment Opportunities in the Global Air conditioner (AC) market

The global air conditioner (AC) market presents captivating several investment opportunities over the past few years. The market is driven by escalating hot climate challenges, urbanization, and technological advancements. As the market is projected to reach $249.3 billion by 2031, growing at a CAGR of 6.2% from 2025 to 2031. Investors are focusing in the growth of market. Furthermore, the built-in air conditioner segment is gaining traction due to the demand for energy-efficient and space-saving solutions. There are number of companies who are contributing in the development of the Air conditioner (AC) Market Growth like Carrier Global are experiencing strong demand, leading to raised earnings forecasts. As global temperatures rise, the need for cooling solutions is expected to increase. It makes the air conditioning sector a promising avenue for investment

Leading Players in the Global Air Conditioner (AC) Market

The global air conditioner market is thriving in the presence of several key players. These companies especially known for their technological innovation, strong distribution networks, and wide product portfolios. Others leading companies include Daikin Industries, Ltd., LG Electronics Inc., Carrier Global Corporation, Mitsubishi Electric Corporation, and Panasonic Corporation. These companies focus heavily on energy-efficient technologies, smart air conditioning systems, and eco-friendly refrigerants to meet evolving consumer preferences and regulatory standards. Other significant players such as Samsung Electronics, Haier Group, Hitachi Ltd., and Gree Electric Appliances also contribute to the competitive landscape, especially in Asia-Pacific, which remains the largest regional market.

Government Regulations Introduced in the Global Air conditioner (AC) market

The global air conditioner (AC) market is influenced by government regulations like the other businesses. The purpose of imposing regulations on business is to aim at enhancing energy efficiency and reducing environmental impact. In the United States, the Department of Energy has implemented updated energy conservation standards for room air conditioners, effective from March 2023. Its purpose will be improving energy efficiency and reduce greenhouse gas emissions. Furthermore, the American Innovation and Internationally, the Kigali Amendment to the Montreal Protocol, agreed upon by over 170 countries, mandates the gradual reduction of HFCs, with developed nations starting in 2019 and developing countries like India and Pakistan beginning by 2028. These regulations are driving the industry toward adopting low-global warming potential refrigerants and more energy-efficient technologies, influencing product development and market dynamics worldwide.

Future Insights of the Global Air Conditioner (AC) Market

The future of global air conditioner (AC) market is expected to gain the robust growth. The projection indicates an expansion from approximately USD 164.1 billion in 2024 to USD 249.3 billion by 2031, reflecting a CAGR of 6.2%. As the urbanisation increases, the number of commercial and industrial building are increasing, the demand of air conditioner is demanding respectively. Furthermore, the increasing emphasis on sustainable practices is driving the adoption of eco-friendly refrigerants and energy-efficient systems, aligning with global environmental regulations. As the demand for cooling solutions intensifies, especially in regions experiencing extreme heat and humidity. The market is expected to witness significant innovation and investment opportunities in the coming years.

Market Segmentation Analysis

The report offers a comprehensive study of the following market segments and their leading categories.

Room Air Conditioners to Lead the Market – By Type

According to Sachin, Senior research analysts at 6wresearch, room air conditioners are expected to dominate the Global Air Conditioner Market due to their widespread usage in residential and small commercial spaces. Their affordability, ease of installation, and energy-efficient models are driving strong demand.

Residential Segment to Lead the Market – By Application

Among various applications, the residential segment holds the largest share in the Global Air Conditioner (AC) Market Share. This dominance is attributed to increasing demand for comfortable living environments, growing awareness about indoor air quality, and rising adoption of energy-efficient cooling solutions in homes. Healthcare and commercial & retail sectors are also witnessing significant growth, driven by infrastructure development and enhanced regulatory standards for air quality and comfort.

Asia Pacific to Lead the Market – By Region

The Asia Pacific region is projected to lead the Global Air Conditioner Market, supported by rapid economic growth, urbanization, and a hot climate in key countries such as China, India, Japan, and Australia. Additionally, government incentives promoting energy-efficient air conditioning systems, coupled with rising investments in smart and automated cooling technologies, are boosting market expansion in this region.

Key Attractiveness of the Report

• 10 Years of Market Numbers.
• Historical Data Starting from 2021 to 2024
• Base Year 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market
• Major Upcoming Developments and Projects