Air Conditioning Condenser Market - By Type , By Component , By Material , By Design , By Technology , By Application , By Sales Channel and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030

Air Conditioning Condenser Market Overview

Air Conditioning Condenser market size is forecast to reach US$44 billion by 2030, after growing at a CAGR of 6.4% during 2024-2030. The air conditioning condenser market is primarily driven by rising global temperatures, and a growing emphasis on energy efficiency and sustainability. Expanding residential and commercial construction activities is fueling the demand for advanced HVAC systems. Regulatory mandates promoting the adoption of eco-friendly refrigerants and energy-efficient technologies are further accelerating market growth. Furthermore, the demand for retrofitting and upgrading aging systems, along with robust after-sales and maintenance services, is contributing to market expansion.A major trend in the air conditioning condenser market is the increasing demand for energy-efficient systems. Consumers are prioritizing solutions that reduce energy consumption and operational costs. According to the U.S. Department of Energy (DoE), HVAC systems use about 35% of a building’s energy on average. An outdated HVAC system will use up more energy and deteriorate, making it work less efficiently. According to the DoE, switching to high-efficiency air conditioners could reduce energy use for air conditioning by 20% to 50%.  Technological innovations such as eco-friendly refrigerants and smart HVAC controls are helping meet these needs. Regulatory pressures and growing environmental concerns are also driving the push for more sustainable and energy-saving air conditioning technologies. Additionally, the proliferation of smart homes and IoT-enabled HVAC solutions is driving innovation, enhancing convenience and operational efficiency.  

Air Conditioning Condenser Market - Report Coverage:

The “Air Conditioning Condenser Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Air Conditioning Condenser Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• COVID-19 led to major disruptions in global supply chains, causing delays in manufacturing and shipping of air conditioning components. Factory shutdowns, labour shortages and strict lockdowns particularly in manufacturing hubs like China resulted in shortages of materials and delayed shipments. Air conditioning component suppliers faced delays in product delivery and higher logistics costs, impacting overall supply. 
• The Russia Ukraine War further compounded these challenges, creating energy price volatility and supply chain disruptions. Rising energy costs and inflation from the conflict affected the production and transportation of materials used in air conditioning condensers. For instance, energy-intensive industries, including manufacturing plants for cooling equipment, saw significant cost increases. Furthermore, transportation bottlenecks and labour shortages in the logistics sector slowed down delivery timelines for AC equipment.

Key Takeaways:

Residential Air Conditioning Dominates the Market

The residential air conditioning segment remains the dominant segment in the global market. With increasing global temperatures, and the demand for residential cooling systems is consistently high. As more households prioritize comfort and energy efficiency, this segment holds a significant market share, driven by advancements in smart HVAC technologies and sustainable solutions. According to the September Edition of the Indian Retailer 2024, Daikin Industries Ltd., announced that it is expanding in India by acquiring land for a new plant to meet growing demand as temperatures rise. With 93% of Indian households lacking air conditioners, Daikin sees huge market potential and aims to double 2021 sales by 2025, tripling residential unit sales to 30 million by 2030. The company also plans to export to 100 countries by 2026.

Air Cooled is the Largest Segment

Air cooled technology holds the largest share in the market owing to its cost-effectiveness, ease of installation and minimal maintenance requirements. Unlike water-cooled condensers, air-cooled systems do not require extensive plumbing or water supply making them ideal for residential and commercial applications. These systems are widely used in regions with water scarcity further driving their adoption. Continuous advancements in air-cooled condenser designs, such as enhanced heat transfer efficiency and noise reduction, have bolstered their popularity. BioMérieux, a French company that does in-vitro diagnostics and microbiological testing, reported monthly energy savings of up to 60% after replacing its previous transcritical CO2 (R744) rack system with two Panasonic CO2 condensing units. The air-cooled Panasonic CO2 condensers provided 60% energy savings in the summer and 44% energy savings in the winter. 

 APAC Dominates the Market

The Asia-Pacific (APAC) region is the dominant geographic segment in the air conditioning condenser market. This growth is primarily driven by rising temperatures and growing residential and commercial construction. With temperatures rising across the region, the demand for air conditioning systems, especially in residential and commercial sectors, is escalating. India's power consumption rose by nearly 9% to 152.38 billion units (BU) in June 2024 compared to June 2023 mainly due to scorching heat which forced excessive use of cooling appliances like air conditioners. As a result, local manufacturers are ramping up production to meet this growing demand, while global players are increasingly investing in the region to strengthen their market presence. For instance, LG Electronics registered 1 million AC sales (order-based to its retail partners) in the first 100 days of 2024 and expects to close the year with over 2 million AC units in India.

Global warming and Rising Temperatures Drive the Market

As the planet experiences higher average temperatures, especially during the summer months, the demand for cooling solutions, including air conditioners surged. This is particularly noticeable in urban areas, where the urban heat island effect exacerbates temperature increases. In regions like the Asia-Pacific, Middle East and parts of North America and Europe, the need for reliable and energy-efficient air conditioning systems is growing rapidly. According to European energy consulting firm, Enerdata, cooling accounts for a large proportion of the residential electricity used in the Middle East and North Africa region- above 60% in Saudi Arabia and the UAE, compared to around 25% in the US. In July 2024, in the UAE the temperatures crossed the 50°C mark. As per the Dubai Astronomy Group, the heat wave of 2024 is more severe than the usual hot weather in the country. While it’s common to experience high temperatures during summer, this particular heat wave is expected to break records in terms of both temperature and duration. As the mercury rises, people turn to effective cooling solutions such as Acs which drives the condenser market as well.

Need for Regular Cleaning & Maintenance to Hamper the Market

In the air conditioning condenser market, the need for regular cleaning and maintenance is a significant constraint. Dirt and debris can accumulate on condenser coils which reduce efficiency and cause system malfunctions. This requires consumers to invest in periodic servicing to maintain optimal performance, especially in regions with high dust or humidity. The maintenance burden including potential costs and inconvenience of accessing hard-to-reach units discourages some consumers from adopting air conditioning systems. Compared to more affordable and low-maintenance alternatives like air coolers, this ongoing upkeep requirement can hamper the growth and adoption of air conditioning units in certain markets.

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Key Market Players

Global Air Conditioning Condenser top 10 companies include:

1. Baltimore Aircoil Company (BAC)
2. Daikin Industries, Ltd.
3. Johnson Controls International plc
4. Danfoss
5. Honeywell International Inc.
6. LG Electronics
7.  BITZER Group
8. Samsung Electronics
9. Copeland LP
10. Emerson Electric Co.

Scope of the Report:

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