Dublin, July 30, 2025 (GLOBE NEWSWIRE) -- The "Asia Air Conditioner (AC) Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033" report has been added to ResearchAndMarkets.com's offering.
The Asia Air Conditioner (AC) Market was at USD 93.59 billion in 2024 and is expected to reach USD 150.64 billion by 2033, growing at a CAGR of 5.43% during 2025-2033. It is fuelled by increased temperatures, increasing urbanization, and more demand for energy-saving cooling systems in residential, commercial, and industrial applications in nations such as China, India, Japan, and Southeast Asia. 
An air conditioner (AC) is a device that controls indoor temperature, humidity, and air quality by extracting heat and circulating cool air in enclosed areas. It works on a refrigeration cycle and may incorporate air filtration to provide comfort and health. Air conditioners are employed in different environments, such as residential buildings, commercial buildings like offices, malls, and restaurants, and industrial buildings where climate control is essential for equipment and processes.
In Asia, air conditioners have picked up widespread popularity because of the region's largely hot and humid climate. India, China, Japan, and Southeast Asian countries have long summers with peak temperatures, and hence air conditioning became a requirement rather than an extravagance. Growth in disposable incomes, urbanization, and improving lifestyles have also stimulated demand. Moreover, growth in the real estate and hospitality industries has helped to drive higher installations. Governments are also encouraging energy-efficient models, in line with sustainability targets, which continues to drive adoption throughout the region.
Growth Drivers in the Asia Air Conditioner Market
Urbanization and Infrastructure Growth
Asia is witnessing enormous urban growth, especially in nations such as China, India, and Vietnam. The development of new housing complexes, shopping centers, offices, and hotels is heavily propelling demand for air conditioning equipment. City residents are more focused on comfort and indoor air quality, and AC systems become a must-have for them. Infrastructure projects funded by the government and initiatives related to smart cities are also boosting the pace of installations.
Furthermore, rural-to-urban migration is boosting residential occupancy in cities and forming new consumer groups. These trends are not only boosting the number of AC units sold but also promoting the use of energy-efficient and technologically superior models. Jan 2023, cities in Asia are growing rapidly, with nearly 55 percent of the population projected to live in urban areas by 2030. This trend is challenging food security and nutrition, as a report by four United Nations agencies has pointed out.
Growing Middle-Class Sizes and Disposable Incomes
An exploding middle class throughout Asia is boosting consumer expenditure on products that bring convenience to lifestyles, such as air conditioners. With rising incomes within households in emerging markets like India, Indonesia, and the Philippines, customers are more inclined to spend on home comfort appliances. The increasing desire for urban lifestyles, along with the availability of convenient financing facilities like EMIs and buy-now-pay-later options, makes air conditioners more affordable.
This income-driven demand is evident in rising sales of mid-range and premium AC models. It also encourages a shift toward smart and inverter ACs that offer convenience and energy efficiency, further propelling market growth. According to forecasts by Oxford Economics, Asian cities will represent nearly half of the global economic activity within the next two decades, with India projected to lead GDP growth during this period.
Climate Change and Exacerbating Heatwaves
Asia is especially susceptible to the effects of climate change, including more frequent and severe heatwaves. India, Pakistan, and Southeast Asia are countries that experience recurrent extreme summer temperatures, with growing dependence on air conditioning for survival and well-being. Increased global temperatures and shifting weather patterns are extending the duration of hot seasons, thus leading to increased year-round demand for cooling solutions.
This climate-related need is making air conditioning shift from a luxury to a necessity for many areas. Governments and NGOs are also promoting the application of energy-efficient cooling to handle the public health burden of heat stress, fueling additional market growth. Extreme heat hit South and Southeast Asia in April 2024, reaching India, the Philippines, and Bangladesh. These heatwaves strike highly populated regions, with serious implications for health, the economy, and education.
Issues in the Asia Air Conditioner (AC) Market
Excessive Energy Use and Power Infrastructure Burden
Air conditioners are some of the highest energy-using household appliances that greatly contribute to electricity consumption throughout Asia. Extensive usage of inefficient models in developing countries further aggravates the problem, putting added pressure on power grids, particularly during peak summer periods. Nations with lagging or poor energy infrastructure, like Bangladesh and Myanmar, are plagued by power outages and voltage drops, which constrain the adoption of AC.
Second, increasing electricity expenses discourage cost-conscious consumers from extensive usage. Even though energy-saving inverter ACs are an alternative, the increased initial investment is a disincentive. Therefore, optimizing energy use without sacrificing cooling requirements is an urgent challenge facing the region.
Affordability and Accessibility in Rural and Low-Income Areas
Despite increasing demand, affordability continues to be a major hindrance across most of Asia. Low-income and rural consumers simply cannot afford the initial investment of air conditioners, particularly in countries with low per capita income. Limited knowledge about energy-saving technology and no finance options also limit market penetration.
Even where interest is present, infrastructure for installation and maintenance in rural or off-grid areas may be inadequate. Producers are hindered by logistical and distribution barriers from accessing these segments. Without subsidies, low-cost product innovations, or rural electrification enhancements, much of the market is inaccessible.
Key Players Analyzed: Overviews, Key Persons, Recent Developments, Product Portfolio, Revenue
- Daikin Industries
- Carrier
- Electrolux
- Emerson Electric Company
- Hitachi-Johnson Controls Air Conditioning Inc.
- Trane Technologies plc
- Mitsubishi Heavy Industries Ltd
- Ingersoll-Rand plc.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value (USD) in 2024 | $93.59 Billion |
| Forecasted Market Value (USD) by 2033 | $150.64 Billion |
| Compound Annual Growth Rate | 5.4% |
| Regions Covered | Asia Pacific |
Key Topics Covered:
1. Introduction
2. Research & Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. Asia Air Conditioner (AC) Market & Volume
5.1 Market
5.1.1 Commercial Air Conditioners Market
5.1.2 Room Air Conditioners Market
5.2 Volume
5.2.1 Commercial Air Conditioners Volume
5.2.2 Room Air Conditioners Volume
6. Market & Volume Share - Asia Air Conditioner (AC)
6.1 Market Share - Segments
6.2 Market Share - By Country
6.3 Volume Share - By Country
7. Country - Asia Air Conditioner (AC) Market & Volume
7.1 Japan
7.2 China
7.3 India
7.4 Indonesia
7.5 Vietnam
7.6 Thailand
7.7 Taiwan
7.8 Malaysia
7.9 Philippines
7.10 Hong Kong
7.11 Bangladesh
7.12 Myanmar
7.13 Singapore
7.14 Cambodia
7.15 Sri Lanka
7.16 Rest of Asia
8. Types - Asia Air Conditioner (AC) Market
8.1 Split Type (Single)
8.2 Split Type (Multi)
8.3 PAC
8.4 VRF
8.5 Others
9. Porter's Five Forces
9.1 Bargaining Power of Buyer
9.2 Bargaining Power of Supplier
9.3 Threat of New Entrants
9.4 Rivalry among Existing Competitors
9.5 Threat of Substitute Products
10. SWOT Analysis
10.1 Strengths
10.2 Weaknesses
10.3 Opportunities
10.4 Threats
11. Key Plays Analysis
For more information about this report visit https://www.researchandmarkets.com/r/wg7apd
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