The North America Air Conditioning System Market was valued at US$ 33,211.32 Mn in 2022 and is forecast to reach a value of US$ 46,028.18 Mn by 2030 at a CAGR of 4.16% between 2017 and 2030. Air conditioning is the process of removing heat and moisture from the interior, in order to improve the comfort of occupants. Air conditioning can be used in both commercial and domestic environments. Furthermore, air conditioning is also used in cooling and dehumidifying electronic devices such as computer servers, power amplifiers, and other delicate products. Inverter based and solar-based air conditioning systems are expected to witness significant growth in the near future due to its energy-efficient features, which help meet stringent energy regulations.
North America Air Conditioning System Market: Drivers
- Increasing demand for energy-efficient products is expected to drive growth of the North America air conditioning systems market during the forecast period
A vast pool of consumers across North America is replacing its existing air conditioning systems with models that consume less energy and help in reducing the electricity bill. This is typically due to the availability of energy-efficient options in the market. Furthermore, central air conditioning products are expected to face stringent regulatory norms in the U.S. with ‘Energy Star’ being mandatory. Since consumers are increasingly becoming more aware of energy conservation, the demand for energy-efficient air conditioning systems is increasing. For instance, the home air conditioning system in the U.S. accounts for more than 8% of the total electricity produced there. Thus, these factors are expected to drive growth in North America air conditioning systems market during the forecast period.
- High growth of construction industry is expected to propel the North America air conditioning systemsmarket growth over the forecast period
The building and construction industry in North America has witnessed significant growth in the recent past. This is owing to rising demand for new households. As a matter of fact, region has recovered after the economic slowdown in 2008 and 2009. Rising in building permits for construction of offices, malls, and industrial facilities are boosting the demand for air conditioning systems. Moreover, according to Coherent Market Insights’ analysis, commercials buildings are expected to grow at rate of 8% during the forecast period. Hence, these factors expected to drive growth of the market in the near future.
North America Air Conditioning System Market: Opportunities
- Rising demand for replacement in the region can present lucrative growth opportunities
Energy consumption and rising environmental issues are the factors creating the need for replacing the conventional air conditioners in the North American region. North American regions such as Mexico, Canada, and the U.S. are the major replacement markets. The strict government regulations towards greener products will create an opportunity for the manufacturers of air conditioning systems to replace the existing models that use toxic refrigerants such as HCFC-22 and HFC. The newly developed energy-efficient models consume less energy and help consumers to reduce their electricity bills. The models that have ‘Energy Star’ accreditation will consume half of the energy as compared to the conventional models.
- Availability of advanced features can provide major business opportunities
Many manufacturers are providing novel features such as a ubiquitous sensor network for smart cooling humidity control using auto humid control. These features help to provide customized temperature and humidity, balancing the surrounding nature. Market players can capitalize on these opportunities by providing novel products and gain a competitive edge in the market.
North America Air Conditioning System Market: Restraints
- Decrease in profit margins is expected 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 is expected 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.
To know the latest trends and insights prevalent in this market, click the link below:
Key Takeaways:
The North America Air Conditioning System Market was valued at US$ 33,211.32 Mn in 2022 and is forecast to reach a value of US$ 46,028.18 Mn by 2030 at a CAGR of 4.16% between 2017 and 2030.
North America Air Conditioning System 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. Thus, the price of the raw material is likely to decrease, which would in turn help the manufacturer to bring down the production cost.
- 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 the 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: Competitive Landscape
Daikin Industries Ltd., Carrier, Goodman, Lennox, Panasonic, Ingersoll Rand, LG Electronics, Samsung Electronics, Mitsubishi Corporation, and Hitachi Ltd.
