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Air Conditioning Systems Are Estimated To Witness High Growth Owing To Rising Construction Sector

Air Conditioning Systems Are Estimated To Witness High Growth Owing To Rising Construction Sector

Air conditioning systems help maintain the desired temperature and humidity inside residential and commercial buildings. They consist of major components such as condenser coil, evaporator coil, compressor, and refrigerant. Air conditioning systems provide thermal comfort and improve indoor air quality, thereby reducing the risk of allergies, infections, asthma, and other respiratory ailments. With rising urbanization and infrastructure development across the globe, there is a growing need for residential and commercial cooling solutions.

The global Air Conditioning Systems Market is estimated to be valued at US$ 293977.64 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity

The construction sector has been witnessing significant growth over the years, especially in developing regions. Rapid urbanization and rising disposable income have boosted residential construction activities globally. Moreover, industrialization and growth of commercial infrastructure like malls, offices, hotels have also increased the demand for air conditioning systems. With the construction industry expected to grow at a healthy pace through 2030, the air conditioning systems market is poised to gain substantial opportunities for growth. Rising construction activities will drive the installation of new air conditioning systems for cooling homes and commercial buildings.

Porter’s Analysis

Threat of new entrants: High capital requirement for infrastructure and R&D acts as a barrier for new players. Bargaining power of buyers: Large buyers have bargaining power due to the availability of substitute products. Bargaining power of suppliers: Suppliers of raw materials have moderate bargaining power due to availability of substitutes. Threat of new substitutes: Threat from other energy-efficient cooling solutions like evaporative coolers. Competitive rivalry: Intense competition exists among existing players to gain market share.

SWOT Analysis

Strengths: Growing demand for energy-efficient cooling solutions. Weaknesses: High installation and maintenance costs. Opportunities: Rising construction of commercial buildings in developing nations. Threats: Energy policies discouraging fossil fuel-based systems.

Key Takeaways

The Global Air Conditioning Systems Market Size is expected to witness high growth.

Regional analysis focuses on Asia Pacific as the fastest growing region owing to increasing disposable incomes and growing construction activities in India, China and Southeast Asian countries.

Key players operating in the air conditioning systems market are Johnson Controls International PLC, Daikin Industries Ltd., Ingersoll Rand PLC, Mitsubishi Electric Corporation, Gree Electric Appliances Inc., and Carrier Global Corporation.

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