Split Air Conditioning Systems Market Size, Share, Analysis, Growth, Forecasts, 2032

Split Air Conditioning Systems Industry Prospective:

The global split air conditioning systems market size was worth around USD 142.26 billion in 2023 and is predicted to grow to around USD 206.01 billion by 2032 with a compound annual growth rate (CAGR) of roughly 4.20% between 2024 and 2032.

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Split Air Conditioning Systems Market: Overview

A split air conditioning (AC) system is made of two components that are an outdoor unit and an indoor unit. An insulated tube connects the two units that each perform specific air conditioning-related tasks. For instance, the indoor unit is designed to absorb heat while the outdoor system assists in cooling and pumping cold air in the indoor unit. The demand for split air conditioning systems has gradually become steady in the last few years influenced by the growing demand for non-split air conditioners.

However, certain industries and consumers continue to create demand for split air conditioners due to the several advantages associated with the systems. For instance, split air conditioning systems are easy and inexpensive to install. Furthermore, they have limited maintenance and additional units can be installed at any time.

According to market research, split air conditioners are not considered ideal for larger rooms since they cannot push air across extensive areas. During the forecast period, the demand for split air conditioners can benefit from the rising disposable income of the general buyers along with changing weather conditions. Additionally, increased product access through online sales channels and increased demand in used AC segments can create new growth possibilities for the industry players.

Key Insights:

• As per the analysis shared by our research analyst, the global split air conditioning systems market is estimated to grow annually at a CAGR of around 4.20% over the forecast period (2024-2032)
• In terms of revenue, the global split air conditioning systems market size was valued at around USD 142.26 billion in 2023 and is projected to reach USD 206.01 billion by 2032.
• The market is projected to grow at a significant rate due to the changing weather conditions with longer months of extreme heat.
• Based on the pricing, the low segment is anticipated to command the largest market share.
• Based on the application, the residential segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on region, North America is projected to dominate the global market during the forecast period.

Split Air Conditioning Systems Market: Growth Drivers

Changing weather conditions with longer months of extreme heat will drive market demand rate

The global split air conditioning systems market is expected to grow due to the changing weather conditions worldwide. The impact of global warming has become more evident in the last decade, especially in the form of prolonged periods of extreme heat. Countries worldwide are registering record temperatures for extensive periods including summer and other seasons.

In 2022, Middle Eastern countries recorded the highest temperatures compared to the world in one day. The temperature across countries such as Oman, Kuwait, and Iraq ranged between 49 and 51-degrees Celsius nearing the limit of human survival. Furthermore, colder regions such as European countries and North American nations also registered relatively higher temperatures during summer time in 2023.

Environmental analysts have predicted that the Earth’s temperature is expected to continue rising steadily unless climate changes can be effectively controlled by reducing the impact of industrialization and commercialization on the ecosystem. The increase in temperature can impact the overall quality of life of living organisms worldwide. The Barcelona Institute for Global Health (ISGlobal) released a report suggesting that nearly 47000 people will die in Europe due to excessive heat in 2023. Such statistics are likely to drive the demand for energy-efficient air conditioning systems including the application of split ACs.

Rising applications in the healthcare industry will generate market revenue in the coming years

Split air conditioners offer excellent cooling in small to medium-sized spaces. They are highly energy efficient and run with minimal noise as compared to their split counterparts. These factors facilitate the adoption of the solutions available in the global split air conditioning systems market across healthcare facilities such as clinics and diagnostic centers. These facilities are required to install systems and equipment that ensure patient comfort and do not disrupt every business operation. The surging investments in the global healthcare industry will help create demand for split ACs.

Split Air Conditioning Systems Market: Restraints

Tough competition from non-split counterparts will limit the industry’s expansion rate

The global industry for split air conditioning systems is projected to be restricted by the tough competition that the sector faces from non-split ACs. Reverse cycle air conditioning systems have become widely common across industries and end-consumers. In addition to this non-split ACs have undergone tremendous changes and upgrades making them highly energy efficient. They are easy to integrate with other smart home systems which further facilitates the adoption of non-split air conditioners.

Split Air Conditioning Systems Market: Opportunities

Ongoing launch of new products in the market with advanced technologies will generate new expansion possibilities

The global split air conditioning systems market is projected to generate growth opportunities due to the increasing introduction of new solutions with improved features. In March 2024, LG Electronics (LG), one of the major global leaders in consumer electronics, announced the launch of the DUALCOOL™ residential air conditioner at Europe’s leading heating, ventilation, and air conditioning (HVAC) exhibitions Mostra Convegno Expocomfort 2024 (MCE). The novel offering is built using LG’s latest AC technologies including Soft Air™ function.

According to company claims, DUALCOOL is equipped to provide a pleasant indoor environment throughout the year. The model is made using a dual outlet structure delivering optimized temperature and indirect airflow ensuring the comfort of the residents.

In July 2024, Samsung Electronics Singapore launched the WindFree Air Conditioner series. With this move, the company has expanded its range of smart home appliances. The series consists of novel offerings in the form of multi-split air conditioners focusing on sleek design, efficiency, and modern functionalities. Market players must continue to focus on delivering energy-efficient air conditioners to meet the current power requirements of the consumers. Additionally, favorable government policies toward high-performance split air conditioners are expected to encourage market players to invest in the research & development of new split ACs.

Split Air Conditioning Systems Market: Challenges

Technical challenges with split air conditioners to challenge market expansion

The global industry for split air conditioning systems is expected to be challenged by the technical complexities associated with the use of two-component air conditioners. For instance, reports suggest that the ACs are inefficient in cooling larger rooms, they also suffer from thermostat-based glitches and recurring mold. On the other hand, leakage of refrigerant may further impact the overall production adoption rate in the long run.

Split Air Conditioning Systems Market: Report Scope

Split Air Conditioning Systems Market: Segmentation

The global split air conditioning systems market is segmented based on product, pricing, installation, application, and region.

Based on the product, the global split air conditioning systems industry is divided into floor ceiling, VRF, multi-split AC, and mini-split AC.

Based on the pricing, the global market is fragmented into high, medium, and low. In 2023, the highest growth rate was listed in the low segment which held control over 48.07% of the final market share. The surge in usage of split air conditioners in emerging economies has fostered more demand for affordable ACs. Additionally, advancements in technology and overall product performance are further expected to help the segment thrive.

Based on installation, the global market divisions are freestanding and wall-mounted.

Based on the application, the global market segments are divided into residential and commercial. In 2023, the highest growth was listed in the residential segment. It accounted for nearly 69.05% of the total revenue driven by increased demand for air conditioners among the general population. Changing weather conditions, increased disposable income, and higher access to products are driving the segmental growth rate.

Split Air Conditioning Systems Market: Regional Analysis

North America to register the highest market share during the forecast period

The global split air conditioning systems market will be led by North America during the forecast period. In 2023, it contributed to around 43.1% of the global revenue. Countries such as Canada and the US have a high demand for split ACs especially in existing homes that are built using legacy infrastructure supporting the installation of split air conditioners.

Additionally, the region has a higher standard of living which facilitates greater adoption of smart home solutions such as split air conditioners. North America is heavily dominated by mini split ACs since they can be used for providing additional heating as most solutions act as heat pumps as well.

In May 2024, Lennox, one of the leading providers of HVAC solutions, announced a strategic partnership with Samsung. The companies have signed an agreement to trade ductless AC and heat pumps through a joint venture. The products that will be available across Canada and the US include mini-split, multi-split, and Variable Refrigerant Flow (VRF). In addition to this, the surging demand for developing energy-efficient electronic items will encourage companies in North America to invest heavily in innovation further driving regional market sales.

Split Air Conditioning Systems Market: Competitive Analysis

The global split air conditioning systems market is led by players like:

• Voltas
• Samsung
• Daikin
• Panasonic
• Carrier
• Goodman
• Mitsubishi Electric
• Fujitsu
• Hitachi
• Rheem
• Lennox
• Toshiba
• American Standard
• LG
• York
• Trane

The global split air conditioning systems market is segmented as follows:

By Product

• Floor Ceiling
• VRF
• Multi-Split AC
• Mini Split AC

By Pricing

• High
• Medium
• Low

By Installation

• Freestanding
• Wall Mounted

By Application

• Residential
• Commercial

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