Report Overview

Rapid urbanization, rising disposable incomes, changing climatic conditions, and a growing focus on energy efficiency and sustainability as well as adoption of technological advancements and the need for improved indoor air quality also contribute to market growth are propelling the growth of Australia Air Conditioner Market during the forecast period between 2023 and 2029.

Australia Air Conditioner Market – Industry Trends & Forecast Report, 2029

Australia air conditioner market size was estimated at USD 2,220 million in 2022. During the forecast period between 2023 and 2029, the size of Australia air conditioner market is projected to grow at a CAGR of 6.40% reaching a value of USD 3,224 million by 2029.  Major factor driving the growth of Australia air conditioner market is a growing demand for energy-efficient air conditioning systems as consumers seek environmentally friendly options and strive to reduce energy consumption. In line with this, there is an increased adoption of inverter technology, which provides better energy efficiency and precise temperature control. Another trend is the rising popularity of smart air conditioners that can be controlled remotely through mobile devices, offering convenience and energy management capabilities. Also, there is a growing focus on air purification and filtration features, with consumers prioritizing clean and healthy indoor air. Overall, the market is witnessing a shift towards more sustainable refrigerants, such as hydrofluoroolefins (HFOs), as concerns about global warming's potential rise.

Australia Air Conditioner Market - Overview

An air conditioner is a device that cools and dehumidifies the air in an enclosed space. It is commonly used in homes, offices, and other buildings to maintain a comfortable indoor temperature during hot weather. Air conditioners work by extracting heat from the indoor air and transferring it outside, using a refrigeration cycle. They consist of components such as a compressor, condenser, evaporator, and expansion valve, which work together to circulate and cool the air. Air conditioners provide relief from high temperatures, improve indoor air quality, and create a more comfortable environment for occupants by controlling temperature and humidity levels.

Growth Drivers

Rising Demand for Cooling Solutions

In recent years, Australia has witnessed a significant growth driver in its air conditioner market, propelled by the rising demand for cooling solutions. The primary factor contributing to this surge is the country's soaring temperatures and increasing awareness of the importance of indoor comfort. Australia's scorching climate necessitates reliable air conditioning systems to maintain a comfortable living and working environment. Also, the country's growing urbanization, expanding construction activities, and rising disposable incomes have fueled the demand for air conditioners in residential, commercial, and industrial sectors. Further, the adoption of energy-efficient technologies and the availability of eco-friendly options have also boosted market growth, making air conditioners an essential and sought-after commodity in Australia.

Restraints

Supply Chain Restraints

In recent years, the Australia air conditioner market has encountered significant challenges due to supply chain restraints. The surge in global demand for air conditioning units, coupled with disruptions in international trade and logistics, has led to shortages and delays in product availability. Australia heavily relies on imported air conditioners, and the scarcity of key components, such as compressors and refrigerants, has affected the manufacturing and distribution processes. Thus, consumers face longer waiting times and increased prices, while businesses struggle to meet customer demands. This restraint has prompted industry stakeholders to seek alternative sourcing strategies and invest in local manufacturing capabilities to mitigate supply chain vulnerabilities and ensure a steady supply of air conditioning units in the future.

Impact of COVID-19 on Australia Air Conditioner Market

The COVID-19 pandemic significantly impacted on Australia air conditioner market. With the implementation of lockdowns and travel restrictions, the construction and real estate sectors, which are major consumers of air conditioners, experienced a slowdown. This led to a decrease in the demand for new installations and replacements. Also, consumer spending was adversely affected due to economic uncertainties and reduced incomes, resulting in a decline in discretionary purchases such as air conditioning units. However, as restrictions eased and people spent more time at home, there was a surge in demand for residential air conditioners. The market also witnessed a shift towards more energy-efficient and sustainable cooling solutions as environmental concerns gained prominence. Overall, the pandemic had a mixed impact on the Australia air conditioner market, with varying trends across different segments.

Australia Air Conditioner Market

Segmental Coverage

Australia Air Conditioner Market – By Type

On the basis of type, Australia air conditioner market is segmented into Room Air Conditioner, Ducted Air Conditioner, Ductless Air Conditioner, and Centralized Air Conditioner. Room air conditioner is the largest segment in the Australia air conditioner market by type. Room air conditioners are designed to cool or heat individual rooms and are commonly used in residential settings. They provide localized comfort and flexibility, allowing users to control the temperature in specific areas. With the growing demand for efficient cooling solutions in homes and small offices, the Room Air Conditioner segment holds a significant market share in Australia's air conditioner market.

Australia Air Conditioner Market – By End User

Based on end user, Australia air conditioner market is divided into Residential, Healthcare, Commercial & Retail, Transportation & Infrastructure, and Hospitality. Residential sector is the largest segment in the Australia air conditioner market. As one of the major segments, residential air conditioning accounts for a significant portion of the market demand. With a growing population and increasing urbanization, there is a rising need for air conditioning solutions in homes across Australia. Factors such as changing climate patterns, higher disposable incomes, and improving living standards contribute to the increasing demand for residential air conditioners. The residential sector includes individual households and apartments, making it a substantial segment in terms of market size and consumer base. Manufacturers and suppliers focus on providing energy-efficient and cost-effective solutions to meet the growing demand in this segment.

Competitive Landscape

Major players in the Australia air conditioner market include Daikin Australia Pty Limited, LG Electronics Australia Pty Ltd, AHIC (Australia) Pty Ltd (Carrier), Fisher & Paykel Australia Pty Limited (Haier), Samsung Electronics Australia Pty Ltd, Panasonic Australia Pty Ltd, Rinnai Australia Pty Ltd, Mitsubishi Electric Australia Pty Ltd, Electrolux Home Products Pty Limited, and Actron Engineering Pty Ltd. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Type

• Room Air Conditioner

• Ducted Air Conditioner

• Ductless Air Conditioner

• Centralized Air Conditioner

By End User

• Residential

• Healthcare

• Commercial & Retail

• Transportation & Infrastructure

• Hospitality