Report Overview

Globally, the smart air conditioner market is being driven by factors such as rising temperatures, a booming construction industry, energy-saving features of smart air conditioners, the growing popularity of smart homes, and the integration of AI and other technologies

Global Smart Air Conditioner Market – Industry Trends & Forecast Report 2027

Global smart air conditioner market was valued at USD 11.2 billion in 2020 and it is expected to reach USD 23.5 billion by 2027 with a CAGR of 11.8% during the forecast period, i.e., 2021-2027. The impressive growth of the global smart air conditioner market can be attributed to high efficiency of the product, remote access, increasing disposable income of consumers, growing popularity of smart-homes, and changes in standard of living.

Source: BlueWeave Consulting

Global Smart Air Conditioner Market Overview:

Smart air conditioners are also referred to as heating, ventilation, and air conditioning (HVAC) systems. HVACs are known for enhancing indoor air quality and providing thermal comfort.With a smart air conditioner, you can monitor the comfort level of your home by connecting it to other smart appliances. The device looks similar to a standard room air conditioner. A smart air conditioner is generally mounted on windows or walls. It works much like other smart home technology.What’s more, smart air conditioners can also be linked to the cloud, which allows users to control it remotely using smartphones. They can also be controlled with Alexa and Google Assistant.During your absence, the thermostat can also be set to change the temperature, so you don't waste energy cooling your house off while you are away.

Increasing disposable income, coupled with changes in the standard of living of the consumers, are vital factors expected to encourage the growth of the global smart air conditioner market during the forecast period.

Global Smart Air Conditioner MarketForecast and Trend

Growth Drivers

Growing construction sector

The construction market around the world is growing rapidly year after year. India, China, UAE, Saudi Arabia, and Qatar are witnessing substantial growth in the construction sector. The UAE has been awarded more than USD 443 billion worth of construction projects since 2004. As Qatar prepares for FIFA World Cup, 2022, the construction sector in the country is flourishing. During the forecast period, the air conditioners market is likely to grow due to the increase in construction and installation of smart air conditioners to cope with rising weather conditions in countries.

Restraints

Chlorofluorocarbon (CFC) released by ACs

The majority of the air conditioners use Freon and Chlorofluorocarbons (CFCs) as coolants and release them into the air. These CFCs are generally harmless, but when they contact atmospheric ozone, they start a free radical chain reaction and change ozone into free oxygen. This reaction is known as the degradation of “atmospheric ozone.” Ultimately, it destroys the ozone layer covering the earth irreversibly. Various environmental organizations are calling on air conditioner manufacturers to stop using CFCs and Freons. This could hinder the growth of the global smart air conditioners market during the forecast period.

Impact of COVID-19 in the industry

COVID-19 negatively affected the global smart air conditioner market as industries were shut down, construction came to a standstill, offices were empty for the majority of 2020. As European governments announced lockdown at the start of 2020 to control the spread of the virus, it started a domino effect around the world and other countries soon followed. The lockdown affected the demand for smart air conditioners as almost all the commercial activities were shut down or were allowed to operate at reduced capacity. The recovery of the market was further affected by the second wave of the COVID-19 in 2021. Voltas, Daikin, Blue Star, Panasonic, and Haier reported a decline of almost 75% in April 2021 as the second wave of the COVID-19 swept across India. The vaccination drives and reopening of the markets have supported the recovery of the global smart air conditioner market, however, the market may take some time before it is back to pre-COVID levels.

Global Smart Air Conditioner Market: By Type

On the basis of product type, the smart air conditioner market has been segmented into Window AC, Split AC, Packaged AC, and Central AC. Split AC dominates the global smart air conditioner market owing to its ease of use in residential areas. Moreover, the features of split AC such as providing climate control or greater flexibility will boost the zircon market over the forecast period. The window AC market will boost by its demand in the commercial and residential sectors. Moreover, Central AC is expected to register increased demand from big buildings, houses, offices, entire hotels, gyms, movie theaters, factories, etc.

Source: BlueWeave Consulting

Global Smart Air Conditioner Market: Regional insights

Based on regions, the Smart Air Conditioner market is segmented into North America, Europe, the Asia Pacific, Middle East & Africa, and Latin America. The Asia Pacific dominates the global smart air conditioner market over the forecast period due to increased disposable income, urbanization, and global warming factors leading to rising temperatures, especially in this region. A significant contribution from Japan, China, and India is expected to enhance the market’s growth in the forecast period. North America is projected to be the fastest-growing market throughout the forecast period due to the early adaptability of internet-based smart devices in these regions.

Competitive Landscape

The Key Players in the Global Smart Air Conditioner Market are Blue Star Ltd, LG Electronics, Fujitsu General, Daikin Industries, York,Haier, Hitachi, Samsung Electronics, Mitsubishi Electric, Videocon, Voltas, Whirlpool Corp, Friedrich, Electrolux, Carrier, Panasonic, Trane, Gree, Midea, Chunlan, Chigo, AUX, Hisense Kelon, Ingersoll-Rand PLC, Godrej Appliances Ltd., United Technologies Corporation, Robert Bosch GmbH, Toshiba Corp.,and other prominent players. The key market players are entering into collaborations and engaging in mergers & acquisitions to capture a greater market share. Furthermore, the market participants are focused on improving their product quality to attain a competitive edge over other players. 

Recent Developments

• In May 2021, LG Electronics USA launched several window and portable air conditioners with easy-to-operate smart connectivity. These smart ACs will diversify the company’s offerings in the USA market with best-in-class cooling and lo-decibel operation. These smart air conditioners from the company are WiFi-enabled and are part of their comprehensive offering of room air products.

• In February 2021, TCL launched its AI Ultra Inverter Air Conditioner – Vitamin C in the Kerala market. The AI-connected smart AC has silver ion and dust filters to keep in-room air clean and virus-free. The AC is also equipped with a Vitamin C filter for an added layer of protection.

Scope of the Report

By Type

• Windows AC

• Split AC

• Packaged AC

• Central AC

By Application

• Residential Commercial

• Others

By Region

• North America

• Europe

• The Asia-Pacific

• Latin America

• Middle East & Africa