Philippines Air Conditioning Market to reach $14.3 Billion by 2030; Rising temperatures and climate change, technological advancements, energy efficiency regulations, health and hygiene awareness, tourism and hospitality sector expansion are driving

The Philippines Air Conditioning Market size is estimated to reach $14.3 Billion by 2030, growing at a CAGR of 4.5% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Philippines Air Conditioning Market– By Connectivity (Smart, Non-Smart), By Category (Inverter Mounted Air Conditioner, Non-Inverter Mounted Air Conditioner), By Technology (Automatic Air Conditioner, Manual Air Conditioner), By Capacity (1 to 3 Tons, 3.1 to 5 Tons, 5.1 to 8 Tons, 8.1 to 10 Tons, Above 10 Tons), By Components (Evaporator, Condenser, Refrigerant, Compressor, Expansion Valve, Blowing Unit and Air Handler, Filters, Drain Pipes, Others), By Power Rating (1-Star, 2-Star, 3-Star, 4-Star, 5-Star), By Sales Channel (Online, Offline), By Type (Window Air Conditioner, Portable Air Conditioner, Split Air Conditioner, Rooftop Air Conditioner, Ceiling Air Conditioner, Floor Mounted Air Conditioner, Others), By Application (Residential, Offices, Retail, Healthcare, Shopping Malls, Automotive, Hospitality, Education, BFSI, Oil & Gas, Others) Opportunity Analysis & Industry Forecast, 2024-2030.”

Consumers want to escape extreme heat, amid rising temperatures and climate change, increasing demand for air conditioning systems. The air conditioners are being developed to be smart and energy efficient, luring in technology enthusiast and cost sensitive buyers as technological advancements are coming up. Also, eco-friendly units which meet the government standards are being encouraged as a result of energy efficiency regulations. Air purifier air conditioners are gaining interest because of growing health and hygiene awareness, which is creating a demand for air conditioners that purify air. Moreover, the development of the tourism and hospitality industry is increasing the demand for cooling systems in hotels and resorts to maintain guest comfort.

Air conditioning market in the Philippines is dominated by hospitality sector, owing to the extensive growth of the country’s travel and tourism industry. The sector grew by a massive 83.6% in 2023, generating approximately $76.81 billion or 17.9% of the total economic output, for the national economy, according to the World Travel and Tourism Council (WTTC), the sector expanded by an impressive 83.6% in 2023, contributing approximately, $76.81 billion to the national economy, or 17.9% of the total economic output. The fact that this is a robust recovery reflects the growing need for accommodations, resorts, and the like. Establishments are keen on guest comfort and air conditioning is essential in providing a comfortable indoor environment in a country with tropical climate, to attract and retain tourists. This sustained demand makes hospitality one of the key drivers in the growth of air conditioning market.

Air conditioner market in the Philippines is driven by energy efficiency regulations. The Department of Energy (DOE) has established strict standards to encourage the use of energy saving technologies, including that air conditioning systems must meet minimum performance criteria. Energy Efficiency Ratio (EER) of at least 8.3 is required for units with cooling capacities below 12,000 kj/h, and minimum EER of 7.8 for larger systems. Furthermore, the Cooling Seasonal Performance Factor (CSPF) standards specify that units with capacities below 3.33 kW must reach at least 3.08, and those between 3.33 kW and 9.99 kW must be 2.81 or above. The CSPF is further translated into an Energy Efficiency Performance Rating (EEPR), represented by a 1-to-5-star scale, which incentivizes manufacturers to produce energy efficient models. To guide innovation in air conditioning technology, these regulations foster sustainable practices adoption, and influence consumer tastes to prefer more effective systems and hence enhance market demand.

The growth of air conditioner market in the Philippines is being driven by rising temperatures and climate change. As the climate has warmed by 1.2°C above pre industrial levels due to human activities, extreme heat events are occurring more frequently. In the Philippines, the likelihood of such events under El Niño conditions is now a 1-in-10-year event versus a 1-in-20-year event overall, the World Weather Attribution states. Climate models and observations show that human‐induced climate change has greatly amplified the intensity and frequency of these heatwaves to a point where they would be virtually impossible without anthropogenic influences. But climate change has intensified these heatwaves by around 1.2°C, and El Niño has made them even worse, adding another 0.2°C. At 2°C above pre industrial temperatures, the likelihood of such heatwaves in the Philippines could increase fivefold and with an additional 0.7°C rise. These are conditions that breed increased dependence on air conditioning; without it, the battle against heat stress and discomfort becomes impossible.

Key companies profiled in the Philippines Air Conditioning Market are Carrier, Daikin Air Conditioning, Panasonic Air Conditioning, LG Air Conditioning Technologies, Mitsubishi Electric, Hitachi Appliances, Samsung Electronics, Fujitsu General, Gree Air Conditioning, Trane Technologies and others.

Refrigerant Market – Refrigerant Market Size is forecast to reach $ 10591.9 Million by 2030, at a CAGR of 6.50% during forecast period 2024-2030. The key factors driving the growth of the refrigerant market include the rising demand for cooling and refrigeration systems in residential, commercial, and industrial applications, increasing adoption of energy-efficient and environmentally friendly refrigerants, and the expansion of the HVAC and automotive industries globally.

Air Conditioning Market – The Air Conditioning Market size is forecast to reach USD 210 Billion by 2030, after growing at a CAGR of 6% during 2024-2030. The key factors driving the growth of the air conditioning market include rising global temperatures, increasing urbanization and disposable incomes, technological advancements such as smart air conditioners, and growing construction activities in residential and commercial sectors.

HVAC Equipment Market - HVAC Equipment Market Size is forecast to reach $ 430 Million by 2030, at a CAGR of 7.60% during forecast period 2024-2030. The growth of the HVAC equipment market is attributed to the increasing adoption of energy-efficient and smart HVAC systems, government regulations promoting sustainable solutions, and the growing demand for HVAC systems in new and retrofitted buildings due to rising awareness of indoor air quality and climate control.