NORTH AMERICA AIR CONDITIONING SYSTEMS MARKET ANALYSIS

The North america air conditioning systems market was valued at US$ 33,211.3 Mn in 2022 and is forecast to reach a value of US$ 46,028.1 Mn by 2030 at a CAGR of 4.16 % between 2023 and 2030. 

North America Air Conditioning System Market: Regional Insights

The regional market North America air conditioner is expected to be driven on the account of different end use applications from different sectors and diverse weather circumstances. Demand for air conditioners in North America is estimated at the rate of CAGR of over 4.16% from 2023 to 2030. Traditional air conditioning systems that consume significant energy are expected to be replaced by products that consume less energy.

Figure 1: North America Air Conditioning System Market Share (%), in terms of Value, By Region, 2022

North America Air Conditioning Systems Market - Impact of Coronavirus (Covid-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There has been a decline in the demand for air conditioning system due to spread of coronavirus disease, as export of air conditioning components remain suspended all operations. Most of the private companies have announced work from home till the situation gets under control. Due to in-home isolation worldwide, there is less demand for air conditioning systems in the offices. For instance, in May 2020, Facebook, Twitter, and Shopify Inc. have decided to make partial or full work from home to minimize the spread of COVID-19 across the globe. Thus, in turn, decreases the demand for air conditioning systems market.

North America Air Conditioning Systems Market Trends:

Procurement of raw materials

There are several raw materials required in the manufacturing of air conditioning systems, such as steel, plastic, copper, and aluminum. The increasing price of raw materials may result in profit reduction for the manufacturers. These raw materials are used in the manufacturing of several components such as compressors, evaporators, fan coils, and condensers. The demand for energy-efficient and technologically advanced products has led to the customized demand for raw materials that play a vital role in the value chain of air conditioning systems. Growing demand in the air conditioning systems market is attracting manufacturers towards the raw material and component suppliers in the market.

Marketing and distribution

The finished goods move to the distributors and wholesalers in the supply chain, and these distributors engage in several promotional campaigns and advertisements in order to promote the product by raising awareness among the consumers. Marketing and sales promotions are an important component of the marketing mix to achieve desired sales. Distributors manage the inventory as per the demand, and they also recommend products to consumers. Celebrity endorsements will be an added advantage for the sale of air conditioners, and also add value to the entire chain.

North America Air Conditioning System Market Trends:

Marketing and distribution

The finished goods move to the distributors and wholesalers in the supply chain, and these distributors engage in several promotional campaigns and advertisements in order to promote the product by raising awareness among the consumers. Marketing and sales promotions are an important component of the marketing mix to achieve desired sales. Distributors manage the inventory as per the demand, and they also recommend products to consumers. Celebrity endorsements will be an added advantage for the sale of air conditioners, and also add value to the entire chain.

North America Air Conditioning Systems Market Restraints:

Decrease in profit margins to hamper the North America air conditioning systems market growth over the forecast period

Domestically available products are facing severe competition from Made-in-China product. These Chinese manufacturers such as Gree, Midea, and Haier are offering air conditioners at competitive prices, which is hindering revenue generation of domestic players. As a result, profit margins are crunched and investment in research and other activities will be significantly affected. Hence, these factors are expected to restrain growth of the North America air conditioning systems market during the forecast period.

Rising energy consumption and effect of environment to hinder the North America air conditioning systems market growth over the forecast period

Energy consumption has been the major concern for air conditioners and is slowing down the growth of the air conditioning systems market in North America. The commercial, residential, and industrial sector consumes about one trillion kilowatt-hours of electricity annually. Most of the air conditioners worldwide use HCFC-22 and HFC as a refrigerant, which are prime contributors to ozone depletion. These are major restraining factors associated with air conditioning systems. Therefore, these factors are expected to hinder the market growth in the near future.           

Figure 2: North America Air Conditioning System Market Share (%), in terms of Value, By Segment, 2022

North America Air Conditioning System Market Segmentation:

North America Air Conditioning Market is segmented by Product type and by end user by Product type (Portables, Windows, Splits, Single packaged, Chillers, Airside). By end use:( Residential, Commercial, Tourism and Hotel Industry, Tents: New End Use Segment, Industrial).