North America Air Conditioning Systems Market Analysis By Product (Portable, Window, Split, Single Packaged, Chillers, Airside), By Application (Residential, Commercial, Industrial) And Segment Forecasts To 2020

Industry Insights

The North America air conditioning systems market was worth USD 28.81 billion in 2013 Rising demand for energy-efficient and power-saving products are expected to be the major driving factors for the market over the forecast period. In terms of volume, the market is projected to reach 50.02 million units by 2020 from 34.81 million units in 2013 at an estimated CAGR of 5.3% from 2014 to 2020.

Canada air conditioning systems market, by product, 2012-2020 (USD Million)

With the advent of technology, the market is anticipated to witness a wide array of new product development and innovation. Inverter-based systems and natural refrigerants are projected to influence demand favorably. Moreover, increasing the need for power saving ratings and strict policies and regulations concerning efficient ways of utilizing energy in the U.S. together with better consumer awareness is projected to fuel demand. Air conditioning systems use refrigerants that are detrimental and toxic in nature thereby contributing substantially to global warming. Replacement products available in the industry are expected to drive growth over the forecast period. Hence, demand for air conditioning systems is projected to reach over USD 52.56 billion by 2020, growing at a CAGR of 9.0%.

The industry is expected to witness growth in shipments on account of growing construction. However, competition between established organizations and Chinese suppliers who market products at reduced prices may challenge growth in North American countries including Canada, the U.S., and Mexico.

Preventive measures from NPOs (non-profit organizations), public forums, media, and government, to spread awareness among end-users relating to environmental issues, are expected to encourage people to adopt eco-friendly equipment. Additionally, stiff competition from Chinese producers such as Haier, Gree, and Midea is anticipated to remain a cause of concern for local manufacturers, subsequently resulting in reduced profits.

Research and development costs to develop new products are expected to accentuate on account of stringent norms regarding energy efficiency. However, continued and undeviating focus of companies on customer service is anticipated to serve as a potential prospects to maintain market share and earn profits.

Product Insights

In 2013, split air conditioning systems constituted nearly 60.0% of the global revenue share and were anticipated to remain the largest segment by product over the next seven years. This can be attributed to the numerous advantages such as easy installation, lower initial costs, and reduced noise levels. Split air conditioning systems work with the mechanism of splitting hot and cold sides of the conditioner that effectively saves power and hence proves to be cost-effective. On the other hand, portable air conditioners are compacted devices and offer improved efficacy. These do not require permanent installation and can be easily moved from one site to another. Airsides that comprise of fan coils and air handling units (AHU) are also anticipated to experience robust growth over the forecast period.

Application Insights

2013年,北美市场主导air conditioning systems used in residential sites accounting for an excess of 400% of the total share. The commercial segment is anticipated to witness above-average growth owing to new end-use applications including air conditioners in tents. The commercial sector largely comprises of the tourism, construction industries, and localities including clinics, hospitals, and health clubs. Growing demand for commercial air conditioning systems can be attributed to increasing need amongst individuals for portable systems at camping trips and outdoor activities.

Regional Insights

The regional market is expected to be driven on account of different end-use applications from different sectors and diverse weather circumstances. Demand for air conditioners in Mexico is estimated to grow at a rapid pace with an estimated CAGR of over 10.3% from 2014 to 2020. Traditional air conditioning systems that consume significant energy are expected to be replaced by products with compressors that consume less power.

In 2013, the U.S contributed to approximately 83.5% of North America’s total share by revenue. It accounted for the largest market in North America and expected to continue the same trend in the next seven years.

Competitive Insights

Key market players include Carrier Corporation, Daikin Industries Ltd., Ingersoll Rand, Mitsubishi, and Hitachi among others. Industry participants strategize to expand globally by entering new markets through mergers and acquisitions and joint ventures. Furthermore, to establish a strong geographical presence, companies focus on having a firm distribution network to meet customer needs.