Split Air Conditioning Systems Market to Expand at CAGR of 5.1% to 2024
The Asia-Pacific region emerged as the dominant segment
ALBANY, N.Y. — The global split air conditioning systems market was valued at $79.72 billion in 2015 and is forecast to expand at a compound annual growth rate (CAGR) of 5.1 percent from 2016 to 2024, reaching a market size of $127.27 billion in 2024, according to a report from Transparency Market Research. In terms of equipment type, the mono-split systems segment accounted for almost 70 percent of the market share in terms of revenue in 2015. Based on geography, the Asia-Pacific region emerged as the dominant segment in the split air conditioning systems and the trend is expected to continue over the forecast period.
In mature markets such as North America and Europe, energy efficiency has been a major concern with the use of conventional air conditioning systems. Growing awareness among consumers regarding energy efficient models is, thus, emerging as a key force boosting the growth prospects of the split air conditioning systems market. Additionally, the growth in the commercial and residential segment in Asia-Pacific has resulted in a substantial rise in demand for split air conditioning systems in the region.
Besides this, the concern regarding the emission of greenhouse gases and other harmful gases is also a key driver of the market. This is owing to the strict government regulations being imposed to stabilize greenhouse gas levels in the atmosphere.
However, the intense price competition in the market is resulting in decreased profit margins for a number of players. Crunched profit margins have a direct negative impact on investments made for research and other activities, which can have a diminishing effect on the overall growth of the market in the long run. In addition to the presence of a large number of companies in the global split air conditioner systems market, the condition has worsened due to the abundance of domestic manufacturers in China who sell their products at lower costs compared to the products of global brands.
Moreover, rising concerns regarding the amount of electricity consumed to power air conditioning systems could emerge as a challenge for the global split air conditioning systems market.
The need to conform to strict government policies and regulations in different countries regarding the emission and control of greenhouse gases and the consumption of electricity are key factors influencing the development of the market. These factors have increased the focus of key players on increasing energy efficiency. Companies are also looking at prospects of enhancing their businesses through partnerships and optimizing overseas business networks.
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Publication date: 11/14/2016