Air Conditioning Systems Poised for Explosive Growth Owing to Strong Demand from Emerging Nations


Air conditioner sales have exploded in the recent past, as the burgeoning middle class in two of the world’s most populous nations makes purchases that are in tune with the aspiration for a better lifestyle. China, which is on the road to dethrone the US to become the next economic and military superpower, is displaying its characteristic insatiable appetite for consumer goods. According to Vineet Kumar, ICT analyst at Future Market Insights, sales of air conditioners have grown twofold in the last five years in China.

While rising economic prosperity is being welcomed by everyone from the UN to World Bank, another key factor driving air conditioning sales is a cause of concern. Global warming, and the increase in average temperatures, especially in tropical regions, has compelled many households into buying an air conditioner. Although a new ray of hope has emerged from the 2015 United Nations Climate Change Conference, it remains to be seen if what’s agreed on paper is actually put into action.

Although growing sales are expected to augur well for the air conditioning industry, higher CO2 emissions and exponential increase in electricity consumption that governments will need to devise plans to deal with. So, in a way, we are trying to offset the impact of growing temperatures by installing ACs, which in turn, have the potential to cause further environmental degradation.

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Emerging Nations – The Future of the Air Conditioning Market

 It’s no surprise that the air conditioning market has plateaued in the developed world. So, leading companies in the air conditioning market are looking eastward to tap into the rapidly growing market.

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Daikin Industries, Hitachi, Ltd., Panasonic Corporation Mitsubishi Electric Corporation, and Samsung Electronics are bolstering their presence in China, India, Indonesia, Brazil, and South Africa.

In developed regions, demand for air conditioning systems is witnessing a shift from old, energy-guzzling systems to sleek, energy-efficient ACs. “The global AC market is in an interesting phase, with developing countries set for exponential growth. Although sales in developed nations are expected to be sluggish, manufacturers can still capitalise on opportunities where consumers are looking to upgrade”, added Vineet Kumar.

The future pattern in the manufacture of air conditioning systems will rely heavily on the buying patterns of consumers in emerging economies. Owing to concerns about high electricity bills, consumers in developing countries are expected to be more inclined towards those ACs that are highly energy-efficient. However, it can also mean that consumers will have to make a higher one-time investment, which can create a catch-22 situation.

Overall, the exponential rise that the global air conditioning market can be seen as heartening for the air conditioning industry. However, at the same time, all stakeholders involved, whether it is policy makers, industry leaders, and end users, need to play a key role in ensuring that the desire for comfort doesn’t prove detrimental to the environment.

The information presented in this article is based on a new report from New York based research and consulting firm, Future Market Insights (FMI). A free sample of the report is available for download at

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Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.