AIR CONDITIONING SYSTEMS MARKET ANALYSIS

Air Conditioning Systems Market Size and Trends

Global air conditioning systems market is estimated to be valued at USD 119.77 Bn in 2024 and is expected to reach USD 202.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.8% from 2024 to 2031.

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Growing adoption of smart homes integrated with IoT-enabled HVAC systems can drive the market growth. Manufacturers are focusing on developing cost-effective and eco-friendly air conditioning solutions. However, high installation and maintenance cost may limit the large-scale adoption of air conditioning systems in the developing economies.

Rising temperatures and urbanization

With rising global temperatures due to climate change, there has been increase in need for effective air conditioning solutions. Heat waves and warm summers have become more frequent and intense in many parts of the world. Urban dwellers are particularly susceptible to extreme heat due to the heat island effect, which causes cities to experience significantly higher temperatures compared to surrounding rural areas. The abundance of concrete infrastructure in densely populated urban areas causes these cities to absorb and retain heat, resulting in temperatures that are several degrees higher than the surrounding rural regions. This uncomfortable heat can boost demand for home and commercial air conditioners.

Most urban centers across the world are expanding rapidly as more people migrate to cities for better job opportunities and standard of living. Growing urban population converts green spaces into constructed surfaces, thus, boosting urban heat island effect.

For instance, in September 2021, researchers at Arizona State University discovered that the waste heat released from air conditioning systems had significantly amplified the urban heat island effect by increasing the mean nighttime temperature by 1-1.5°C, thus, intensifying the urban surface temperature.

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Growth in Tourism

Tourism has become one of the fastest growing economic sectors and an important source of foreign exchange. Hotels, resorts, restaurants and other hospitality infrastructure have proliferated worldwide to accommodate the burgeoning tourism industry. International tourist arrivals have been doubled in the last 20 years and is expected increase steadily in the future. While urban growth brings numerous benefits, it also has a negative impact in the form of increased carbon emissions and a larger carbon footprint, primarily due to the rise in tourism-related activities.

The tourism sector relies greatly on-air travel, and this has witnessed growth in passenger traffic. Airplanes, cruise ships, tourist vehicles all contribute significantly to greenhouse gas emissions. The hospitality industry ensures pleasant indoor conditions through efficient cooling systems for guests amid rising heat stresses owing to climate change. A comfortable stay with functional air conditioning facilities is the foremost demand of customer from tourism infrastructure.