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The room AC market size is expected to reach US$ 78.60 billion by 2031 from US$ 52.16 billion in 2024. The market is anticipated to register a CAGR of 6.1% during 2025–2031. Accelerated manufacturing expansion is likely to bring new trends to the market in the coming years.
Room AC Market Analysis
Modern room air conditioners often include adjustable thermostats, timers, energy-saving modes, air filters for improved air quality, and remote controls for convenience. Room air conditioners are an effective, affordable, and widely used solution to improve indoor comfort by maintaining a cool and pleasant environment during hot or humid conditions.
Growing population, increasing urbanization, and rising global temperatures are driving the room AC market growth. Moreover, the adoption of eco-friendly refrigerants and technological advancements is expected to propel the market growth during the forecast period. The expansion of manufacturing capacity is emerging as a key trend in the room AC market. However, increasing prices of raw materials and growing supply chain issues are expected to hamper the market growth in the coming yearss.
Room AC Market Overview
A room air conditioner (RAC) is a compact, self-contained cooling device designed to regulate the temperature, humidity, and air quality within a single room or small enclosed space. It provides comfort in hot weather by removing heat and moisture by expelling the indoor air. It typically consists of key components such as a compressor, condenser coil, evaporator coil, expansion valve, and a fan system housed within a single unit that can be installed in a window, through a wall, or as a portable device. The RAC operates on the principle of the refrigeration cycle, where the refrigerant absorbs heat from the room air as it evaporates in the evaporator coil and releases it via the condenser coil after being compressed. This process cools the indoor air, which is circulated back into the room by a blower. Additionally, excess moisture condenses on the evaporator coil and drains away, dehumidifying the space.
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Room AC Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Room AC Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Room AC Market Drivers and Opportunities
Rising Global Temperatures
The demand for effective indoor cooling solutions has surged with the rising temperatures, particularly in densely populated urban areas and regions vulnerable to extreme heat. Prolonged heat waves, increasingly frequent and intense due to climate change, are amplifying consumer reliance on air conditioning as a necessity rather than a luxury. Rising temperatures are catalyzing residential and commercial demand for affordable, energy-efficient cooling systems, particularly in Asia Pacific, Middle East, and parts of Africa and Latin America.
According to NASA’s Goddard Institute for Space Studies (GISS), the year 2024 marked the warmest global surface temperature since reliable recordkeeping began in 1880. This assessment is supported by independent analyses from the National Oceanic and Atmospheric Administration (NOAA) and other international climate research organizations. The data reveal that Earth's average temperature in 2024 was ~2.65°F (1.47°C) higher than the preindustrial baseline (during 1850–1900). Notably, the last decade comprises the ten warmest years ever recorded, illustrating a clear and accelerating trend of global warming.
This climate-induced demand is compelling manufacturers and policymakers to accelerate innovations in RAC technology, including smart air conditioning systems, inverter-based units, and eco-friendly refrigerants. These developments are not only improving energy efficiency and reducing environmental impact but are also opening new market segments. In this context, the ongoing record-breaking global temperatures are both a warning signal and a catalyst, prompting immediate consumer response and long-term structural shifts that are reshaping the global room AC market landscape. Thus, the climatic urgency and evolving consumer expectations for comfort and safety in increasingly harsh environments fuel the room AC market growth.
Increasing Adoption of Eco-Friendly Refrigerants
Refrigerants are central to the functioning of indoor climate control systems, enabling the transfer of heat that allows air conditioners to cool or heat indoor spaces. Historically, widely used refrigerants such as R-410A and R-22 have been effective in thermal management but carry a high global warming potential (GWP), contributing significantly to environmental degradation. In response to growing environmental concerns and evolving regulatory standards, the transition to next-generation refrigerants such as R-32 presents a major growth opportunity for the room AC market. R-32 is a low-GWP refrigerant that offers superior thermodynamic performance and energy efficiency. With ~10% higher thermal capacity than R-410A, R-32 enables air conditioning systems to operate more efficiently, reducing both energy consumption and greenhouse gas emissions. The integration of R-32 into new air conditioning systems aligns with India’s commitment to sustainability and global climate goals and also stimulates demand for redesigned and upgraded AC components. Components such as compressors, heat exchangers, and expansion valves must be optimized to handle R-32’s unique properties, creating opportunities for innovation and product development within the domestic manufacturing ecosystem. The transition to R-32 could result in a 19% reduction in CO?-equivalent emissions over 10 years if it replaces high-GWP refrigerants across all installed AC units.
R-32 has zero ozone depletion potential, similar to R-410A, making it an environmentally responsible alternative that also supports long-term regulatory compliance. As the world accelerates its shift toward energy-efficient, inverter-based AC systems, the use of R-32 becomes increasingly critical. The adoption of R-32 refrigerant represents a transformative opportunity for the room AC market. Moreover, according to Haier India, the adoption of R-32 refrigerant marks a pivotal shift toward more environmentally responsible and energy-efficient air conditioning solutions. As a low-GWP refrigerant, R-32 enables the development of cost-effective and high-performance AC units, particularly suited for heat-intensive regions. This transition supports sustainable indoor comfort and drives the demand for advanced compressors, heat exchangers, and system components designed to optimize the performance and compatibility of R-32-based systems. Therefore, the adoption of eco-friendly refrigerants, such as R-32, is expected to present lucrative opportunities to the room AC market in the coming years.
Room AC Market Report Segmentation Analysis
Key segments that contributed to the derivation of the room AC market analysis are product type, technology, and end-user.
- Based on product type, the market is segmented into split AC, window AC, and portable AC. The split AC segment dominated the market in 2024.
- Based on the installation type, the market is bifurcated into inverter technology and non-inverter technology. The inverter technology segment accounts for a larger share of the market in 2024.
- In terms of end user, the market is bifurcated into residential and commercial. The residential segment register a higher CAGR in 2024.
Room AC Market Share Analysis by Geography
The room AC market is segmented into five major regions: North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America. Asia Pacific dominated the market in 2024.
On March 29, 2024, TECO's Air and Intelligent Life business group held its "2024 Asia-Pacific Joint New Product Launch Event," spanning key regional markets including Taiwan, Mainland China, Vietnam, and Indonesia. In response to rising electricity prices and growing energy efficiency demands, TECO unveiled a new lineup of smart, energy-saving air conditioners and refrigeration systems designed for both residential and commercial applications. These products meet or exceed Level 1 Energy Efficiency Grading Labeling (EEL) standards, aligning with evolving regulatory requirements and enabling customers to easily qualify for energy-saving subsidies.
Chairman Sophia Chiu emphasized that air conditioning and refrigeration account for a significant share of urban electricity consumption. In light of this, TECO is committed to delivering high-performance solutions across a wide temperature range (from −55°C to 120°C), including advanced refrigeration, air conditioning, and heat pump technologies. By supporting government-led low-carbon and smart energy initiatives, the company offers highly efficient products and provides integrated, one-stop consulting services to help clients navigate and benefit from subsidy programs.
Room AC Market Report Scope
Room AC Market News and Recent Developments
The Room AC Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Room AC Market are listed below:
- Voltas Limited, from the house of Tatas, has launched new and exclusive brand stores in Faridabad. Voltas, which holds the top position in the Indian AC market, is also a prominent brand in Haryana and Delhi NCR. With this new addition, Voltas now boasts a total of 20 brand stores in Haryana and 38 across Delhi and the Haryana belt.
(Source: Voltas Limited, Press Release, March 2025)
- Samsung Electronics Co., Ltd. announced a partnership with game developers Nexon Korea and Neople to deliver unparalleled 3D experiences in the upcoming game ‘The First Berserker: Khazan.’ The game’s 3D elements are being specially customized and designed during development, utilizing Samsung technology and the advanced capabilities of the Odyssey 3D monitor to create an immersive 3D gaming experience without the need for 3D glasses.
(Source: Samsung Electronics Co., Ltd, Press Release, January 2025)
Room AC Market Report Coverage and Deliverables
The "Room AC Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- Room AC market size and forecast at regional and country levels for all the key market segments covered under the scope
- Room AC market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Room AC market analysis covering key market trends, regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the room AC market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
Panasonic Holdings Corp, Voltas Ltd , Carrier Global Corp, LG Electronics Inc, Blue Star Ltd, Daikin Industries Ltd, Samsung Electronics Co Ltd, Mitsubishi Electric Corp, Whirlpool Corp, and Johnson Controls - Hitachi Air Conditioning Company are key players operating in the market.
The market is expected to register a CAGR of 6.1% during 2025–2031.
growing population and urbanization and rising global temperatures drive the market growth.
Accelerated Manufacturing Expansion is expected to emerge as a future trend in the market during the forecast period.
The List of Companies - Room AC Market
- Voltas Ltd
- Carrier Global Corp
- LG Electronics Inc
- Blue Star Ltd
- Daikin Industries Ltd
- Samsung Electronics Co Ltd
- Mitsubishi Electric Corp
- Whirlpool Corp
- Johnson Controls - Hitachi Air Conditioning Company
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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