Today we take a look at the market for residential air conditioners. As global temperatures continue to rise, the demand for residential air conditioners is expanding at an unprecedented rate, creating a dynamic and highly competitive global market.

An air conditioner (AC) is an electronic device designed to regulate the air temperature and humidity within an enclosed space by removing heat and moisture to improve occupant comfort. As global temperatures continue to rise, the demand for residential AC units is expanding, creating a dynamic and highly competitive global market.

The fundamental purpose of a residential air conditioner is to provide a comfortable living environment, a need that is becoming more critical in the face of global warming. Rising average temperatures and more frequent heatwaves are turning AC units from a luxury into a necessity for many households worldwide. This escalating demand sets the stage for continued market growth, as consumers across diverse economic regions seek relief from the heat and better air quality in their homes.

DATAportl's latest forecast indicates that more than 1 billion residential air conditioners will ship between 2025 and 2030. This projected shipment volume builds on an estimated installed base of 1.1 billion devices in 2024, reflecting the significant scale of the existing market and the strong continuing demand for new and replacement units.

Geographically, the Asia-Pacific region accounts for approximately 80% of total residential air conditioner shipments, making it the primary driver of market volume. However, growth is also evident across all other regions. This wider global growth is attributed to two main factors: increasing accessibility and affordability of the technology, and a rising need for cooling solutions in regions that have historically been more temperate but are now experiencing more frequent periods of high heat.

The residential AC market is a vibrant ecosystem of specialized and diversified brands. DATAportl has identified 45 brands globally, including both well-known home appliance manufacturers and specialist HVAC (Heating, Ventilation, and Air Conditioning) companies. These brands are headquartered across the world, with particularly high concentrations of innovation and manufacturing in China, Europe, Japan, and the USA, creating a competitive environment that fosters technological advancement and diverse product offerings.

Residential air conditioner market growth is being driven by the realities of climate change and a global consumer base seeking comfort and safety. While the Asia-Pacific region remains the focal point of shipment volume, the universal need for cooling presents opportunities for growth and innovation worldwide.

For brands, the challenge lies in navigating a crowded and diverse competitive landscape by differentiating through technology, energy efficiency, and regional market understanding.

The sheer scale, with a billion units shipping in the next five years, indicates that this market is not just about comfort but is also a significant factor in global energy consumption patterns and consumer spending for the foreseeable future.

If you’re a client, you can view a comprehensive coverage of the market below:

We’ve got some exciting updates that will be released in the coming weeks, including:

More information will be shared in next weeks newsletter!

If you’re interested in transforming your workflow with DATAportl’s easy-to-use platform, you can book a free demo below:

I hope you've been keeping cool.

Your feedback helps shape our content. Is there a specific market you would like to see us cover next? With over 170 markets in our database, we're ready to provide the analysis you're looking for. Please share your ideas with me.