Ductless Heating & Cooling Systems Market Size, Share, Trends, Growth 2030

Ductless Heating & Cooling Systems Industry Prospective:

The global ductless heating & cooling systems market size was worth around USD 98.4 Billion in 2022 and is predicted to grow to around USD 205.1 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.5% between 2023 and 2030.

The report analyzes the global ductless heating & cooling systems market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the ductless heating & cooling systems industry.

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Ductless Heating & Cooling Systems Market: Overview

Ductless systems can effectively heat and cool any room where they are installed due to the skill of a variable speed inverter compressor. Heat pumps and small split units, which are efficient ventilation and heating systems, are other names for ductless systems. These devices are robust, cost-effective, and energy-efficient. As reciprocal heat pumps, ductless heating and cooling systems transfer heat from the outside to the inside of a building. A refrigerant is used to expand or compress this air. The split systems use a refrigerant haze compression cycle, which is similar to an all-purpose refrigerator cycle. They use a refrigerant (cooling) cycle to collect heat from the outside air and disperse cooler air inside the area. The heating cycle is an example of this contradiction.

Key Insights

• As per the analysis shared by our research analyst, the global ductless heating & cooling systems market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2023-2030).
• In terms of revenue, the global ductless heating & cooling systems market size was valued at around USD 98.4 billion in 2022 and is projected to reach USD 205.1 billion, by 2030.
• The growing construction industry coupled with the rising disposable income of the population is expected to drive ductless heating & cooling systems market growth.
• Based on the type, the split system segment is expected to dominate the market over the forecast period.
• Based on the application, the residential buildings segment is expected to account for the largest market share during the forecast period.
• Based on region, the Asia Pacific is expected to dominate the growth of the market over the forecast period.

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Ductless Heating & Cooling Systems Market: Growth Drivers

An increasing number of smart homes drives the market growth

The market for ductless heating and cooling systems is anticipated to grow considerably as a result of the rising number of smart homes. By automating processes like temperature control, light on/off, window treatment opening and closing, and weather-based watering adjustments, smart homes offer homeowners more control over their energy usage. These facilities guarantee energy conservation and lower water and power costs. For instance, a survey by the software development firm Oberlo in Lithuania found that in 2022, approximately 57.4 million US households were using smart home devices, a 6.7% increase from 2021 when 53.8 million households were using smart home devices. The market for ductless heating and cooling systems will therefore be driven by the rising number of smart homes.

Ductless Heating & Cooling Systems Market: Restraints

Increasing environmental issue impedes the market growth

More air pollutants will be generated while air conditioners are in use due to increased sales of the appliances. Global warming is brought on by the gases hydrofluorocarbons (HFCs) and hydrochlorofluorocarbons (HCFCs) that are emitted by air conditioners. Due to the growing demand for ductless heating and cooling systems, and freezers, it is essential to create heat-conveying devices that are both energy-efficient and have a minimal environmental impact. R-32 can reduce energy consumption by 10% when compared to air conditioners that use R-22 as the refrigerant. As a result, it is predicted that ductless system prices will rise overall, and the creation of eco-friendly refrigerators will put pressure on ductless system manufacturers.

Ductless Heating & Cooling Systems Market: Opportunities

Technological advancements offer an attractive opportunity

A key trend that is getting traction in the global ductless heating and cooling systems market is technological innovation. To improve their market position, the major players in the ductless heating and cooling systems industry concentrate on offering technologically cutting-edge products. To provide independent humidity and temperature control without using potentially harmful refrigerants, these businesses are integrating next-generation technologies into their products and framework, such as automation, the Internet of Things, sophisticated control algorithms, inverter-driven compressors, intelligent valves, and others. For instance, the US-based home appliance manufacturer Carrier debuted new ductless heating and cooling products in March 2021 that are completely communicative to offer versatility and efficiency. These ductless heating and cooling systems come with a Wi-Fi package, a 24V interface, a wireless remote controller, and an optional cable remote controller.

Ductless Heating & Cooling Systems Market: Challenges

The high cost of installation poses a major challenge

The high expense of installation is one of the main factors limiting the ductless heating and cooling systems market. HVAC systems without ducts typically demand a larger initial investment than conventional systems. This is because extra hardware, such as an indoor air handler and outdoor condensing unit, is required, in addition to expert installation.

Ductless Heating & Cooling Systems Market: Segmentation

The global ductless heating & cooling systems industry is segmented based on the type, application, and region.

Based on the type, the global market is bifurcated into the split system and window air conditioning system. The split system segment is expected to dominate the market over the forecast period. The most popular kind of portable HVAC system is the split system. The split system gives the user operational freedom and cost savings by allowing the operator to regulate the temperature of specific zones as required. These advantages of split systems aid in the expansion of the market for ductless heating and conditioning systems worldwide. The split system's low noise level is its primary benefit. The split design retains the fan and compressor in the outdoor unit to minimize indoor noise.

Based on the application, the market is segmented into residential buildings, commercial buildings, and industrial buildings. The residential buildings segment is expected to account for the largest market share during the forecast period. The adoption of ductless heating and cooling systems in residential buildings is increasing, customer demand for energy-efficient products is growing, and developing countries like APAC and others are becoming more conscious of the need for energy conservation, which all play a role in the growth. As governments invest more money in the development of residential areas, the market for ductless heating and cooling systems for residential uses is also anticipated to grow.

Recent Developments:

• In June 2021, US-based home appliance company Carrier Global acquired Guangdong Giwee Group and all of its affiliates, including Guangdong Chigo Heating & Ventilation Equipment Co. Ltd. With this acquisition, Carrier will gain access to the light commercial and variable refrigerant flow (VRF) sectors, both of which are rapidly expanding. Heating, ventilation, and air conditioning manufacturer Guangdong Giwee Group is located in China.
• In December 2022, two home HVAC companies, Trane home (Trane) and American Standard Heating & Air Conditioning (American Standard), announced the national rollout of Link, a communication system built to make the installation, commissioning, and remote monitoring of variable speed HVAC systems easier. Independent Trane and American Standard dealers can now sell and install Link nationwide following a regional build-out in spring 2022.
• In January 2023, as part of its ongoing acquisitional growth plan, Goettl Air Conditioning & Plumbing, a provider of residential HVAC and plumbing services throughout the Southwest, announced the acquisition of Nevada Heating, Cooling, Plumbing, and Fireplace in Reno, Nevada.
• In January 2022, Sila Services, LLC expanded its quickly growing footprint in the New England region by acquiring Boston Standard Company and New England Ductless. Boston Standard, a Mattapan, Massachusetts-based company, and New England Ductless, a Milton, Massachusetts-based company, are both recognized leaders in the plumbing, cooling, and heating industries. New England Ductless also brings to Sila its unique experience in ductless heat pump applications.

Ductless Heating & Cooling Systems Market: Report Scope

Ductless Heating & Cooling Systems Market: Regional Analysis

The Asia Pacific is expected to grow at the fastest CAGR during the projected period

The Asia Pacific is expected to dominate the global ductless heating & cooling systems market during the forecast period. The growth in the region is attributed to rapid industrialization and the increasing construction industry, especially in the countries like India and China. For instance, According to the India Brand Equity Foundation (IBEF), India plans to spend USD 1.4 trillion in infrastructure over the next five years through its "National Infrastructure Pipeline." Inflows of FDI totaled USD 81.72 billion in FY21, 13% of which came from activities involving infrastructure. As of August 22, 2022, the Pradhan Mantri Awas Yojna plan has sanctioned 122.69 lakh houses, laid the foundation for 103.01 lakh homes, and completed 62.21 lakh homes. Thus, the growing construction industry in the region is expected to drive market growth.

The biggest portion of the revenue came from North America. The region is growing as a result of its highly developed value chain, the rising popularity of energy-efficient buildings, and the expansion of ductless heat pumps over the forecast period. The market demand for ductless heating and cooling systems has increased significantly over the past few years as a result of changing lifestyles, shifting climatic conditions, and the rapid growth of the domestic sector. The U.S. Energy Information Administration estimates that space heating and cooling use up more than half of all home energy usage.

Ductless Heating & Cooling Systems Market: Competitive Analysis

The global ductless heating & cooling systems market is dominated by players like:

• Honeywell International Inc.
• LG Electronics South
• Daikin Industries
• Johnson Controls
• Carrier
• Trane Technologies plc
• Mitsubishi Electric Corporation
• Nortek Air Management
• Samsung Electronics
• FUJITSU
• GREE
• Hitachi
• MiUea
• Panasonic
• Haier Smart Home
• Whirlpool
• Electrolux
• Lennox

The global ductless heating & cooling systems market is segmented as follows:

By Type

• Split System
  • Mini Split System
  • Multi Split System
  • VRF System
• Window Air Conditioning System

By Application

• Residential Buildings
• Commercial Buildings
• Industrial Buildings

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa