Room AC Market Size expected to reach US$78.60 billion by 2031 | CAGR of 6.1% | Exclusive Report by The Insight Partners

NEW YORK, July 15, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the room AC market is observing significant growth owing to the rising global temperature and the growing population and urbanization worldwide.

The Room AC Market was valued at US$52.16 billion in 2024 and is projected to reach US$78.60 billion by 2031; it is expected to register a CAGR of 6.1% during 2025-2031. 

The Room AC Market comprises an array of product type, technology, and end users that are expected to register strength in the coming years. The report runs an in-depth analysis of market trends, key players, and future opportunities.

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Overview of Report Findings

Rising Global Temperatures:

According to NASA's Goddard Institute for Space Studies (GISS), the year 2024 marked the warmest global surface temperature since reliable recordkeeping began in 1880. This assessment is supported by independent analyses from the National Oceanic and Atmospheric Administration (NOAA) and other international climate research organizations. The data reveals that Earth's average temperature in 2024 was approximately 2.65 degrees Fahrenheit (1.47 degrees Celsius) higher than the preindustrial baseline (1850–1900). Notably, the last decade comprises the ten warmest years ever recorded, illustrating a clear and accelerating trend of global warming. This persistent rise in temperatures is not only a critical environmental concern but also a significant socioeconomic factor driving the growth of the room air conditioner market.

Eco-Friendly Refrigerants:

Refrigerants are central to the functioning of indoor climate control systems, enabling the transfer of heat that allows air conditioners to cool or heat indoor spaces. Historically, widely used refrigerants such as R-410A and R-22 have been effective in thermal management but carry a high global warming potential (GWP), contributing significantly to environmental degradation. In response to growing environmental concerns and evolving regulatory standards, the transition to next-generation refrigerants such as R-32 presents a major growth opportunity for the room air conditioner market. R-32 is a low-GWP refrigerant that offers superior thermodynamic performance and energy efficiency.

With approximately 10% higher thermal capacity than R-410A, R-32 enables air conditioning systems to operate more efficiently, reducing both energy consumption and greenhouse gas emissions. The integration of R-32 into new air conditioning systems not only aligns with India's commitment to sustainability and global climate goals but also stimulates demand for redesigned and upgraded AC components. Components such as compressors, heat exchangers, and expansion valves must be optimized to handle R-32's unique properties, creating opportunities for innovation and product development within the domestic manufacturing ecosystem. From an environmental perspective, the transition to R-32 could result in a 19% reduction in CO₂-equivalent emissions over 10 years if it replaces high-GWP refrigerants across all installed AC units.

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Market Segmentation

• Based on product type, the market is divided into split AC, window AC, and portable AC. The split AC segment dominated the market in 2024.
• In terms of technology, the market is categorized into direct inverter technology and non-inverter technology. The inverter technology segment dominated the market in 2024.
• By end user, the room AC market is categorized as residential and commercial. The residential segment dominated the market in 2024.

Competitive Strategy and Development

• Key Players: Panasonic Holdings Corp, Voltas Ltd, Carrier Global Corp, LG Electronics Inc, Blue Star Ltd, Daikin Industries Ltd, Samsung Electronics Co Ltd, Mitsubishi Electric Corp, Whirlpool Corp, Johnson Controls - Hitachi Air Conditioning Company are among the major companies operating in the room AC market.
• Trending Topics: Room AC Component market, Air Conditioner Market, and Commercial HVAC Market

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Global Headlines on Electronic Data Interchange

Daikin announced the commencement of mass production of its residential air conditioner in its first full-scale residential AC factory in Indonesia..

Samsung launched its 2025 lineup of BESPOKE AI WindFree Air conditioners, a fusion of cutting-edge AI technology and premium design. With a focus on intelligent cooling, energy efficiency, and connected living, the new range of 19 models caters to the evolving demands of Indian consumers.

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Conclusion

A Room Air Conditioner (RAC) is a compact, self-contained cooling device designed to regulate the temperature, humidity, and air quality within a single room or small enclosed space. It provides comfort in hot weather by removing heat and moisture from the indoor air and expelling it outside. It typically consists of key components such as a compressor, condenser coil, evaporator coil, expansion valve, and a fan system, all housed within a single unit that can be installed in a window, through a wall, or as a portable device. The RAC operates on the principle of the refrigeration cycle, where the refrigerant absorbs heat from the room air as it evaporates in the evaporator coil and releases it outside via the condenser coil after being compressed.

This process cools the indoor air, which is circulated back into the room by a blower. At the same time, excess moisture condenses on the evaporator coil and drains away, thus also dehumidifying the space. Modern room air conditioners often include features such as adjustable thermostats, timers, energy-saving modes, air filters for improved air quality, and remote controls for convenience. Their design makes them highly suitable for localized cooling needs, especially in residential, small office, or commercial settings where central air conditioning systems are not feasible or economical. Overall, room air conditioners are an effective, affordable, and widely used solution to improve indoor comfort by maintaining a cool and pleasant environment during hot or humid conditions.

Factors such as growing population & urbanization, and rising global temperatures are driving the room air conditioner market. The market is expected to grow in the forecasted period owing to the adoption of eco-friendly refrigerants and technological advancement. Accelerated manufacturing expansion is one of the key trends in the market. However, volatile raw material prices and supply chain issues may hamper the market growth.

The report from The Insight Partners, therefore, provides several stakeholders—including solution providers, system integrators, and end users—with valuable insights to successfully navigate this evolving market landscape and unlock new opportunities.

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