LONDON — The global split air conditioning market is expected to exceed 104 billion tons by 2020, increasing at a compound annual growth rate (CAGR) of over 6 percent during the forecast period, according to the latest market research study released by Technavio.

This research report, “Global Split Air Conditioning Market 2016-2020,” provides an in-depth analysis of the market in terms of revenue and emerging market trends. It also includes an analysis and forecast for various market segments and geographical regions.

The report segments the market into four broad categories:

• Global ductless standard split a/c market

• Global VRF a/c market

• Global U.S. ducted split a/c market

• Global ducted standard split a/c market


The global ductless standard split air conditioner market is projected to grow from $58 billion in 2015 to over $73 billion in 2020.

According to Anju Ajaykumar, lead research analyst at Technavio, “Energy efficiency and ease of installation are the main reasons for the growth of this segment.”

This type of a/c unit has an established market in the U.S., Europe, and Japan, but is also becoming increasingly popular in other parts of the world such as India, Indonesia, and China. In India, rising disposable income and the growing middle class are responsible for the surge in demand for ductless standard split air conditioners.

According to the U.S. Energy Star program, an Energy Star ductless a/c unit is capable of saving up to 30 percent in heating and cooling costs.


The revenue of the global variable refrigerant flow (VRF) air conditioner market is expected to exceed $20 billion by 2020, growing at a CAGR of almost 12 percent.

According to Technavio, the future of the global VRF market looks promising, especially in the Americas, due to the growing popularity of VRF units over small chillers. At present, the Asia Pacific (APAC) region is the largest consumer of VRF systems, followed by Europe. There is high demand for VRF air conditioners in refurbishment projects as they are suitable for retrofitting older buildings due to their limited space requirements compared to other systems.

In the U.S., VRF units are used more in commercial buildings and offices. VRF units have customizable temperature control for different indoor environments such as commercial, public, and industrial spaces. They are best suited for buildings with multiple rooms which have varying cooling or heating requirements that need to be controlled efficiently.


The global U.S. ducted split air conditioner market is projected to exceed $8 billion by 2020, growing at a CAGR of over 4 percent.

The ducted split a/c market is most popular in the U.S., which accounted for 95 percent of the total sales in 2013. Canada and Kuwait followed the U.S., both accounting for 3.5 percent of the overall market revenue in 2013.

However, Japanese mini-split units are increasingly encroaching on this market. Global vendors of ducted split air conditioners have started to establish manufacturing facilities in Latin American countries such as Argentina, Brazil, and Mexico, with the objective of supplying Japanese mini-split units to the U.S.


The global ducted standard split air conditioner market is anticipated to reach $3 billion in 2020, growing at a CAGR of over 4 percent.

A ducted split A/C system can be used to cool either an entire house or a select number of rooms or zones. The control system has the ability to provide the necessary level of comfort and minimize energy costs.

“This segment has been growing steadily, mainly due to consistent demand in APAC countries such as India, where technologically advanced a/c’s such as VRFs and inverter-based a/c’s are still striving to find a foothold,” said Ajaykumar.

More information is available here.

Publication date: 3/24/2016

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