Air Conditioner Market Expected to Reach USD 239.01 Billion by 2031, Says Mordor Intelligence

Mordor Intelligence has published a new report on the air conditioner market, offering a comprehensive analysis of trends, growth drivers, and future projections

Outlook to the Air Conditioner Market

According to Mordor Intelligence, the air conditioner market size is estimated at USD 171.88 billion in 2026 and is projected to reach USD 239.01 billion by 2031, registering a CAGR of 6.42% during the forecast period. The growing dependence on cooling systems in cities, combined with changing consumer preferences for energy-efficient products, continues to support market growth. The market is witnessing steady demand across residential and commercial sectors as rising urban temperatures continue to increase cooling requirements worldwide.

Longer summer seasons, higher indoor cooling needs, and rising disposable income in developing economies are strengthening demand across the global industry. Consumers are increasingly choosing inverter-based systems because they help reduce electricity consumption and offer quieter operation. At the same time, governments in several countries are supporting high-efficiency cooling products through energy rating programs and rebate initiatives. These factors are positively influencing the air conditioner market forecast across multiple regions.

The market share of split systems remains strong due to better cooling performance and lower operating costs. Portable air conditioners are also becoming popular among renters and remote workers looking for compact and flexible cooling solutions. Demand from both first-time buyers and replacement buyers continues to support the expansion of the air conditioner industry.

Report Overview: https://www.mordorintelligence.com/industry-reports/air-conditioner-market?utm_source=openpr

Air Conditioner Market Drivers Driving Industry Demand

Rising Urban Heat Supporting Air Conditioner Market

One of the major amarket trends is the increase in urban temperatures across densely populated cities. Heat retention from buildings and infrastructure has increased cooling usage in homes, offices, retail spaces, and public facilities. Many cities are witnessing longer periods of high temperatures, which has increased the daily usage time of cooling systems. As cooling becomes more important in urban living, consumers are upgrading to energy-saving systems that can handle continuous operation. This trend is contributing to steady air conditioner market growth in both developed and emerging economies.

Growing Preference for Inverter Air Conditioners

The shift toward inverter-based cooling systems continues to influence the air conditioner market share across product categories. Consumers are increasingly selecting inverter air conditioners because they consume less electricity and maintain stable cooling performance. Reduced operational costs and quieter functioning are also supporting demand. Manufacturers in the industry are expanding their inverter product portfolios to meet changing customer expectations. As pricing differences between conventional and inverter systems narrow, more households and businesses are moving toward energy-efficient options.

Rising Middle-Class Spending Across Emerging Economies

Another important factor supporting air conditioner market growth is the increase in disposable income across countries such as India, Indonesia, Vietnam, and the Philippines. More households are now able to purchase cooling appliances as income levels improve and financing options become more accessible. Local manufacturing investments and government-backed production programs are also helping companies reduce costs and improve product availability. This is creating stronger demand within the industry and increasing product adoption among first-time buyers.

Government Support for Energy-Efficient Cooling Systems

Government initiatives focused on reducing electricity consumption are influencing air conditioner market trends globally. Energy labeling systems, efficiency standards, and rebate programs are encouraging consumers to purchase high-rated air conditioners. Countries across Asia-Pacific, North America, and Europe are promoting efficient cooling products through awareness campaigns and policy support. These efforts are helping the industry move toward products with lower power consumption and environmentally friendly refrigerants.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/air-conditioner-market?utm_source=openpr

Air Conditioner Market Segmentation

By Installation Type

Installed or Fixed

Non-Installed or Portable

By Product Type

Window Air Conditioner

Split Air Conditioner

Portable Air Conditioner

Cassette Air Conditioner

Packaged and Rooftop Air Conditioner

By End User

Residential

Commercial

By Technology

Inverter

Non-Inverter

By Capacity

Less Than Three Kilowatt

Three to Seven Kilowatt

Greater Than Seven Kilowatt

By Distribution Channel

Business-to-Business or Direct from Manufacturers

Business-to-Consumer or Retail Consumers

Multi-Brand Stores

Exclusive Brand Stores

Online

Other Distribution Channels

By Geography

North America

United States

Canada

Mexico

South America

Brazil

Peru

Chile

Argentina

Rest of South America

Europe

United Kingdom

Germany

France

Spain

Italy

BENELUX

NORDICS

Rest of Europe

Asia-Pacific

China

India

Japan

South Korea

Australia

South-East Asia

Rest of Asia-Pacific

Middle East and Africa

United Arab Emirates

Saudi Arabia

South Africa

Nigeria

Rest of Middle East and Africa

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Key Players in the Air Conditioner Industry

Haier Group

Daikin Industries

Gree Electric Appliances

Midea Group

Carrier Global

Explore more insights on air conditioner market competitive landscape: https://www.mordorintelligence.com/industry-reports/air-conditioner-market/companies?utm_source=openpr

Conclusion

The air conditioner market is expected to maintain stable expansion as rising temperatures, urban living patterns, and consumer preference for efficient cooling systems continue to support global demand. The increasing use of inverter technology, along with supportive government policies and improving affordability, is creating long-term opportunities for manufacturers and retailers.

The air conditioner market forecast remains positive across residential and commercial applications, particularly in developing economies where first-time product adoption continues to increase. Split systems are expected to remain the preferred product category, while portable air conditioners are gaining attention among consumers seeking flexible cooling options.

As the industry continues to respond to climate conditions and energy efficiency requirements, manufacturers are expected to focus on reliable performance, lower operating costs, and broader product availability. These factors are expected to support continued air conditioner market growth throughout the forecast period.

For more insights on the air conditioner market, please visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/air-conditioner-market?utm_source=openpr

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Major Home Appliances Market

The Major Home Appliances Market was valued at USD 418.85 billion in 2025 and is projected to reach USD 523.44 billion by 2031, growing at a CAGR of 3.78% during the forecast period. Market growth is supported by rising urban housing projects, stricter energy-efficiency standards, and increasing demand for connected home appliances. Asia-Pacific continues to support manufacturing and exports, while emerging economies are witnessing stronger first-time purchases of refrigerators, washing machines, and air conditioners.

Get more insights: https://www.mordorintelligence.com/industry-reports/global-major-home-appliances-market?utm_source=openpr

Smart Air Purifier Market Size

The Smart Air Purifier Market is estimated at USD 3.25 billion in 2026 and is expected to reach USD 6.30 billion by 2031, registering a CAGR of 14.13%. Rising awareness of indoor air quality, stricter particulate matter regulations, and the growing use of connected wellness devices are supporting market demand. Lower sensor costs, IoT integration, and energy-efficient filtration systems are also contributing to market expansion across residential and commercial sectors.

Get more insights: https://www.mordorintelligence.com/industry-reports/smart-air-purifier-market?utm_source=openpr

Small Home Appliances Market Share

The Small Home Appliances Market is projected to grow from USD 154.35 billion in 2026 to USD 206.38 billion by 2031, at a CAGR of 5.98%. Market growth is driven by urbanization, changing consumer lifestyles, and expanding online retail access across major economies. Rising demand for energy-efficient products, replacement purchases, and stronger e-commerce penetration in Asia-Pacific and Europe continue to support the market outlook.

Get more insights: https://www.mordorintelligence.com/industry-reports/small-home-appliances-market?utm_source=openpr

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