Air-Conditioning Equipment Market Report 2026

Air-Conditioning Equipment Market Overview

• Air-Conditioning Equipment market size has reached to $223.43 billion in 2025 • Expected to grow to $287.68 billion in 2030 at a compound annual growth rate (CAGR) of 5.5% • Growth Driver: Elevated Global Temperatures Fuel Demand For Air-Conditioning Equipment Market • Market Trend: Innovative Wind-Free Technology Enhances Air-Conditioning Equipment Market • Asia-Pacific was the largest region in 2025 and North America is the fastest growing region.

What Is Covered Under Air-Conditioning Equipment Market?

Air-conditioning equipment refers to a device used to create and maintain fixed temperature, relative humidity, and air purity conditions in indoor spaces. The main product types of air- conditioning equipment are unitary air conditioners, room air conditioners, packaged terminal air conditioners, chillers, and absorption liquid chillers. A chiller refers to a device that controls the temperature by circulating a liquid similar to water or heat medium as a cooling liquid whose temperature is adjusted by the refrigerant cycle. The components are refrigerant, compressor, condenser coil, expansion valve, and evaporator coil. The various applications involved are residential and commercial.

What Is The Air-Conditioning Equipment Market Growth Forecast?

The air-conditioning equipment market size is expected to see strong growth in the next few years. It will grow to $287.68 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to increasing adoption of smart and connected hvac systems, rising demand for low-global-warming-potential refrigerants, expansion of energy-efficient building standards, growing focus on decarbonized cooling solutions, increasing replacement of legacy air conditioning units. Major trends in the forecast period include increasing adoption of energy-efficient cooling systems, rising demand for variable refrigerant flow systems, growing integration of smart thermostats and controls, expansion of compact and modular hvac designs, enhanced focus on indoor air quality management.

Tariff Impact On Air-Conditioning Equipment Market

Tariffs are impacting the air-conditioning equipment market by increasing costs of imported compressors, refrigerants, condenser coils, electronic control units, and steel housings used across residential, commercial, and industrial systems. North America and Europe are most affected due to reliance on cross-border component sourcing, while Asia-Pacific faces pricing pressure on export-oriented manufacturing. These tariffs are elevating equipment prices and influencing project budgets for large installations. However, they are also encouraging local component manufacturing, regional assembly operations, and accelerated innovation in energy-efficient and cost-optimized air-conditioning technologies.

Global Air-Conditioning Equipment Market Segmentation

1) By Product Type: Unitary Air Conditioners, Room Air Conditioners, Packaged Terminal Air Conditioners, Other Product Types 2) By Component: Refrigerant, Compressor, Condenser Coil, Expansion Valve, Evaporator Coil 3) By Application: Residential, Commercial, Industrial Subsegments: 1) By Unitary Air Conditioners: Central Air Conditioning Systems, Ductless Mini-Split Systems, Rooftop Units 2) By Room Air Conditioners: Window Air Conditioners, Portable Air Conditioners, Through-The-Wall Air Conditioners 3) By Packaged Terminal Air Conditioners (PTAC): Self-Contained PTAC Units, Hotel Room Air Conditioners 4) By Other Product Types: Chillers, Variable Refrigerant Flow (VRF) Systems, Evaporative Coolers, Heat Pumps

What Is The Driver Of The Air-Conditioning Equipment Market?

Rising global temperatures are expected to be a key driver of the growth of the air-conditioning equipment market in the forecast period. Rising global temperatures refer to the increasing average surface temperature of the Earth due to the greenhouse effect and climate change. The escalating global temperatures have led to an increased need for cooling solutions, especially in regions prone to more frequent and severe heatwaves, as air conditioning equipment becomes vital for maintaining comfortable and habitable living and working environments while safeguarding health and productivity. For instance, in June 2023, according to a report published by the NOAA (National Oceanic and Atmospheric Administration) National Centers for Environmental Information, a US-based organization that provides authoritative climate, weather and environmental data, global surface temperatures recorded by NOAA reached 1.00 °C (1.80 °F) above the average temperature, making it the fourth-warmest April in their 174-year record, marking a significant increase compared to the temperature of 0.85 °C (1.53 °F) observed in April 2022. Therefore, rising global temperatures will drive demand for air-conditioning equipment going forward.

What Is The Driver Of The Air-Conditioning Equipment Market?

Rising global temperatures are expected to be a key driver of the growth of the air-conditioning equipment market in the forecast period. Rising global temperatures refer to the increasing average surface temperature of the Earth due to the greenhouse effect and climate change. The escalating global temperatures have led to an increased need for cooling solutions, especially in regions prone to more frequent and severe heatwaves, as air conditioning equipment becomes vital for maintaining comfortable and habitable living and working environments while safeguarding health and productivity. For instance, in June 2023, according to a report published by the NOAA (National Oceanic and Atmospheric Administration) National Centers for Environmental Information, a US-based organization that provides authoritative climate, weather and environmental data, global surface temperatures recorded by NOAA reached 1.00 °C (1.80 °F) above the average temperature, making it the fourth-warmest April in their 174-year record, marking a significant increase compared to the temperature of 0.85 °C (1.53 °F) observed in April 2022. Therefore, rising global temperatures will drive demand for air-conditioning equipment going forward.

Global Air-Conditioning Equipment Market Trends and Insights

Major air-conditioning equipment manufacturers are focusing on incorporating wind-free technology into air conditioners to strengthen and enhance their product offerings. Wind-Free technology is an innovative feature in air conditioning systems that aims to provide a more comfortable cooling experience while minimizing direct airflow and enabling market players to provide consumers with a quieter, more comfortable, and more energy-efficient cooling experience. For instance, in February 2023, Samsung Electronics Co. Ltd., a South Korea-based electronics manufacturer specializing in consumer electronics, telecommunications, and home appliances, launched its latest generation of Wind-Free air conditioners in the Indian market. The new lineup includes Wi-Fi-enabled models featuring advanced functionalities, such as AI auto-cooling, welcome cooling, motion detection sensors, and voice control. Notably, the Wind-Free technology incorporated in the air conditioners can deliver energy savings of up to 77%, while the convertible 5-in-1 ACs equipped with digital inverter technology can help achieve energy savings of up to 41%.

What Are Latest Mergers And Acquisitions In The Air-Conditioning Equipment Market?

In March 2023, Panasonic Holdings Corporation, a Japan-based electronics company, acquired the air-conditioning business of Systemair AB for an undisclosed amount. Panasonic's acquisition of Systemair's subsidiaries expands its capabilities in the commercial hydronic systems sector, enabling it to meet increasing environmental regulations. Systemair AB is a Sweden-based air-conditioning equipment manufacturer.

Regional Outlook

Asia-Pacific was the largest region in the air-conditioning equipment market in 2025. North America was the second largest region in the global air-conditioning equipment market share. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Air-Conditioning Equipment Market?

The air-conditioning equipment market consists of sales of window air conditioners, portable air conditioners, wall hung split or multi head split air conditioners, ducted air conditioning. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Air-Conditioning Equipment Market Report 2026?

The air-conditioning equipment market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the air-conditioning equipment industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.