The rapid growth of industrial and transportation sectors and continuous advancements in compressor technology are some of the key factors driving the market for air conditioning compressors in Germany.
NEWARK, DE / ACCESSWIRE / December 31, 2024 / The global air conditioning compressor market is experiencing robust growth, with total sales projected to reach USD28,600.3 Million in 2024. The industry is expected to show year-on-year growth of 4.2% in 2025, reaching USD 30,030.3 Million, and is forecasted to surge at a compound annual growth rate (CAGR) of 5.0% between 2025 and 2035, ultimately reaching USD 48,916.2 Million.
An essential part of the air conditioner is the compressor, also referred to as the heart of the air conditioner. During the hot weather duration, this gadget maintains a cool and cozy house by generating energy from power and moving the refrigerant required for the heat transfer process. This air conditioner's compressor is located at an exterior unit of AC. They act as an energy source for AC systems.
Growth is directly impacted by the growth of the various end-use sectors like residential, commercial, industrial as well as the transportation sector, which has been expanding steadily in recent years.
It is also estimated that the increase in global warming has skyrocketed the need for cooling systems like air conditioners and the trend is expected to further escalate during the upcoming years.
As the climatic conditions across the world continue to change drastically, demand for energy-efficient systems like air conditioning compressors is likely to rise at a strong pace during the forthcoming years. As per a report published by NASA, the global average temperature is expected to reach or exceed 1.5 degrees C within the next few decades. This will continue to generate growth opportunities for air conditioning compressor manufacturers.
Also, the data center industry is quickly growing on a domestic and worldwide level. A high-efficiency range of cooling solutions is necessary to control the environmental impact of the data center and maximize equipment performance. Due to the increasing demand for cooling solutions in data centers, it is projected that the market for air conditioning compressors would grow rapidly, creating a sizable demand for compressor manufacturers globally.
Key Drivers of Growth in the Air Conditioning Compressor Market
Rising Global Temperatures: The increasing global temperatures, driven by climate change, are a primary factor propelling the demand for air conditioning systems. As temperatures rise, especially in regions with hot climates, the need for efficient cooling solutions like air conditioning compressors grows rapidly.
Urbanization and Growing Infrastructure: The continued urbanization, particularly in emerging markets like India and China, is boosting the demand for air conditioning in both residential and commercial buildings. As more people move to urban centers and disposable incomes rise, air conditioning is becoming a necessity, fueling growth in the compressor market.
Energy-Efficient HVAC Solutions: There is an increasing demand for energy-efficient HVAC systems due to rising energy costs and heightened environmental awareness. Air conditioning compressors that offer energy savings, such as inverter-based models, are in high demand as they reduce energy consumption by dynamically adjusting to real-time cooling requirements.
Technological Advancements: Ongoing innovations in compressor technology, including the shift toward inverter and scroll compressors, are driving market growth. These technologies offer better performance, improved energy efficiency, and lower operating costs, making them attractive choices for both residential and industrial applications.
Regional Insights into the Air Conditioning Compressor Market
Countries |
Value CAGR (2025 to 2035) |
India |
5.6% |
China |
5.2% |
USA |
4.9% |
Germany |
4.8% |
Japan |
4.6% |
Key Takeaways from the Air Conditioning Compressor Market
The market is expected to grow at a CAGR of 5.0% from 2025 to 2035, reaching USD 48,916.2 Million by 2035.
Rising global temperatures, urbanization, and growing demand for energy-efficient HVAC solutions are key growth drivers.
Technological advancements, including the shift to inverter and scroll compressors, are revolutionizing the market.
Stringent environmental regulations are pushing the market towards energy-efficient and eco-friendly compressors.
Data centers and cold storage industries are significantly increasing demand for industrial cooling systems.
The transition to low-GWP refrigerants like R290 is fostering innovations in compressor design.
Strong market growth is anticipated in regions like East Asia and Latin America, with India and China leading in demand.
"Technological innovations, including inverter-based and scroll compressors, are driving market growth by enhancing energy efficiency and cost-effectiveness, while supporting sustainability and meeting stricter environmental regulations." - says Nikhil Kaitwade, Associate Vice President at Future Market Insights (FMI).
What are the Key Trends Driving the Global Market for Air Conditioning Compressors?
Rapid Development of Infrastructure Worldwide to Boost Sales Over the Next Decade
As per FMI, the robust growth of the infrastructure sector across the world will continue to boost the sales of air conditioning compressors. Infrastructure is a significant contributor to the global GDP. The demand for air conditioning compressors is anticipated to surge as a result of expanding residential and commercial sectors across emerging economies.
Consumers' desire to live a healthy and luxurious lifestyle by improving the air quality index in their homes has increased demand for air conditioning systems. People are increasingly installing cooling appliances like air conditioners in residences, offices, hospitals, entertainment venues, transportation, and various other sectors.
In developing countries, many consumers consider air conditioning as a luxury home appliance. The market for air conditioners will expand as a result of factors such as expanding population, decreasing AC prices, increased disposable income, altered consumer lifestyles, and easy availability of products through online shopping platforms. This will further elevate the demand for air conditioning compressors.
Challenges Faced by the Air Conditioning Compressor Market
Rising raw material costs: Fluctuations in the prices of materials like metals and refrigerants impact compressor manufacturing costs.
Stringent environmental regulations: Compliance with increasingly strict environmental standards, such as those related to refrigerants, adds pressure on manufacturers.
High initial investment costs: The upfront cost of advanced, energy-efficient compressors can be a barrier for consumers, especially in emerging markets.
Technological complexity: The development of cutting-edge compressor technologies requires significant investment in research and development, often making innovation costly and time-consuming.
Supply chain disruptions: Global supply chain challenges, including shortages of components and delays in delivery, can hinder manufacturing and distribution.
Energy consumption concerns: Despite advances, some air conditioning systems still face challenges in achieving optimal energy efficiency, especially in older models.
Limited market penetration in developing regions: In emerging markets, the adoption of air conditioning compressors is still low due to factors like affordability and infrastructure limitations.
Environmental impact of legacy refrigerants: The transition from high-GWP refrigerants to eco-friendly alternatives presents technical and financial challenges.
Competition from alternative cooling technologies: Emerging cooling solutions, such as evaporative cooling and natural ventilation, pose a competitive threat to traditional compressor-based systems.
Competitive Landscape of the Air Conditioning Compressor Market
This section offers key insights into current opportunities and trends for companies in both developed and developing nations. It focuses on advancements in manufacturing and identifies emerging market trends.
Major players in the air conditioning compressor industry are enhancing capabilities to meet rising demand across various applications. They are also forming partnerships and joint ventures to co-develop innovative products.
These companies are launching new products to meet the demand for advanced solutions, with geographic expansion being a key strategy. The sector is expected to see the rise of start-ups through 2035, increasing competition.
Recent Developments in the Market
In April 2024, Mitsubishi Electric has fully acquired AIRCALO, a French air-conditioning manufacturer. This acquisition is expected to bolster Mitsubishi's hydronic HVAC systems business by enhancing its product offerings and customization capabilities in the European market.
In March 2024, Robert Bosch announced its acquisition of the global HVAC solutions business, which includes the Johnson Controls and Hitachi Air Conditioning joint venture. This acquisition is part of Bosch's strategy to strengthen its position in the residential and light commercial HVAC markets.
In March 2023, Danfoss has finalized its acquisition of BOCK GmbH, a manufacturer known for CO2 and low-GWP compressors. This acquisition, which was completed on March 1, 2023, aims to enhance Danfoss' portfolio in greener cooling and heating solutions, leveraging BOCK's 90 years of innovation in compressor technology.
Leading Companies in the Air Conditioning Compressor Market
Emerson Electric Co.
Daikin Industries Ltd.
LG Electronics
The Danfoss Group
Tecumseh Products Company LLC
Panasonic Corporation
GEA Group AG
Johnson Controls-Hitachi Air Conditioning
BITZER SE
Midea Group(GMCC)
Access the Full Report Air Conditioning Compressor Market Trends and Projections Now! https://www.futuremarketinsights.com/reports/air-conditioning-compressor-market
Key Segments of Air Conditioning Compressor Industry:
By Cooling Capacity:
In terms of Cooling Capacity, the industry is divided into Less than 5 KW, 5 to 30 KW, 30 to 100 KW, 100 to 300 KW, 300 to 500 KW, 500 to 1,000 KW, Above 1,000 KW.
By Product Type:
In terms of Product Type, the industry is divided into Reciprocating, Screw, Centrifugal, Rotary, and Scroll.
By Refrigerant Type:
In terms of Refrigerant Type, the industry is divided into R410A, R407C, R404A, R134A, R290, R744, Others
By End Use:
In terms of End Use, the industry is divided into Refrigeration, Air Conditioning.
By Application:
In terms of Application the industry is divided into Residential, Commercial, Medical & Healthcare, Industrial, Transportation
By Region:
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA), have been covered in the report.
Author
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
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About Future Market Insights (FMI)
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