Room AC Market to exceed US$ 78.60 Billion by 2031

Published on 04-Jul-2025
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Report : Room AC Market Report: Size, Share and Outlook by 2031

According to our latest study on "Room AC Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Product Type, Technology, and End Users," the room AC market size was valued at US$ 52.16 billion in 2024 and is expected to reach US$ 78.60 billion by 2031; it is estimated to record a CAGR of 6.1% from 2025 to 2031.

The room AC market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. Asia Pacific dominated the market in 2023, followed by North America and Europe, respectively. The Europe Room AC market is segmented into Germany, France, UK, Italy, Russia, and the Rest of Europe. In terms of revenue, Rest of Europe dominated the room AC market share in 2024. Spain, the Netherlands, and Sweden are among the prominent countries contributing to the room AC market in the Rest of Europe. In 2025, the Institute for Energy Diversification and Saving in Spain introduced a 300 (US$ 339.32) grant program to support households in upgrading their air conditioning systems. This initiative is a part of Spain's Air Conditioning Renewal Plan 2025, which aims to reduce national energy consumption and curb greenhouse gas emissions by encouraging the replacement of outdated, inefficient units with modern, energy-efficient alternatives. The program aligns with broader European environmental objectives, promoting sustainability and technological modernization across the region. As a result, this incentive is expected to stimulate growth in the room AC market not only in Spain but also across the rest of Europe, as other countries observe the benefits of such programs and consider implementing similar measures to modernize residential cooling infrastructure and support green energy goals.

EcoFlow is a leading provider of portable power and sustainable energy solutions that unveiled its latest innovation, the WAVE 3 Portable Air Conditioner & Heater, in May 2025. Designed to enhance the comfort and convenience of outdoor living, the WAVE 3 offered significant upgrades over previous models, including improved portability, extended battery life, and advanced smart controls for a user-friendly experience. Tailored for camping, RV travel, and other off-grid activities, this dual-function unit reflects the growing demand in the UK for flexible, eco-conscious climate solutions. As more consumers seek compact and energy-efficient alternatives to traditional HVAC systems, products such as the WAVE 3 are helping to fuel the growth of the room AC market in the UK. The increasing popularity of mobile, versatile cooling and heating devices aligns with broader lifestyle shifts toward sustainability and outdoor recreation, making such innovations an important contributor to market expansion.

Key Findings of Room AC market Study:

The room AC market is segmented into product type, installation type, and end user. In terms of product type, the market is segmented into split AC, window AC, and portable AC. Based on the installation type, the market is divided into inverter technology and non-inverter technology. In terms of end user, the market is bifurcated into residential and commercial. By geography, the room AC market is segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.

In terms of technology, the room AC market is categorized into inverter technology and non-inverter technology. The inverter technology segment held the largest room AC market share. Inverter technology has transformed the room air conditioning business by improving energy efficiency and performance. Unlike typical non-inverter versions, inverter air conditioners use a variable-speed compressor that adjusts its cooling capability dependent on room temperature. This capacity enables continuous operation while drastically reducing energy use, resulting in cheaper electricity expenses. Inverter air conditioners are increasingly becoming popular as the number of environmentally conscious consumers is rising, especially in areas with high energy expenses. Furthermore, inverter versions work more silently than non-inverter ones, making them excellent for household settings, particularly in bedrooms and living areas. Inverter air conditioners may need a greater initial investment, but the long-term energy savings and lower environmental effects make them an enticing option for households. Furthermore, rising awareness of climate change and a push for energy-efficient products have fueled demand for inverter technology in the air conditioning sector.

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, and Johnson Controls - Hitachi Air Conditioning Company are among the key players profiled in the room AC market report. Several other major players were studied and analyzed during the room AC market analysis to get a holistic view of the market and its ecosystem. The room AC market also provides detailed market insights, which help the key players strategize their growth. The report includes growth prospects owing to the current room AC market trends and their foreseeable impact during the forecast period.

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