Multi-split Air Conditioning Systems Market Analysis

Multi-split Air Conditioning Systems Market Analysis

Based on the product type, the wall-mounted multi-split systems segment was worth around USD 10.1 billion in 2023 and is expected to reach USD 15.6 billion by 2032. Wall-mounted units, known for their compact design and unobtrusive appearance, have gained popularity in both residential and commercial settings. Their appeal lies in addressing the dual concerns of space and aesthetics. Catering to properties with varied temperature requirements, wall-mounted multi-split systems offer focused cooling for designated areas or rooms. As urbanization accelerates and residential construction surges, the demand for these systems continues to rise. Particularly, their design makes them a perfect fit for apartments and homes of modest size, where every inch of space counts.
 

Based on end-use, the residential segment captured around 63% of the market share in 2023 and is expected to reach 64% by 2032. With rising home ownership rates, homeowners are increasingly turning to advanced HVAC systems to boost comfort and energy efficiency. Multi-split systems, known for their capability to independently control multiple zones, are gaining traction in both new constructions and renovations. Renovation projects frequently prioritize HVAC upgrades for enhanced efficiency and comfort. The flexibility and straightforward installation of multi-split systems make them a favored option in these renovations. Furthermore, homeowners aiming to modernize their HVAC setups or introduce air conditioning to previously uncooled areas are fueling the demand for multi-split solutions.
 

Asia Pacific region dominated around 43% share of the multi-split air conditioning systems market in 2023 and will cross USD 14.3 billion by 2032. Rapid urbanization is reshaping the Asia Pacific region, leading to a pronounced transition from rural to urban lifestyles. This urban shift fuels the demand for sophisticated cooling solutions in both residential and commercial sectors. Among these, multi-split systems stand out, especially in urban settings characterized by limited space and dense populations. Given the high-density living conditions in many Asia Pacific urban centers, space is often at a premium. Multi-split systems cater perfectly to these challenges, eliminating the need for extensive ductwork while delivering efficient cooling even in tighter confines.
 

Country-level Analysis

The U.S. dominated the North America multi-split air conditioning systems market with revenue of over USD 4.4 billion in 2023 and is expected to grow at a CAGR of 4.9% during 2024 to 2032. With one of the world's largest and most resilient economies, the U.S. empowers both consumers and businesses to invest in cutting-edge HVAC systems. This economic prowess translates into increased expenditure on multi-split air conditioning systems, celebrated for their efficiency and performance. As commercial properties like office buildings, retail outlets, and hotels expand, the demand for multi-split systems surges. Their capability to cater to diverse cooling requirements across commercial spaces solidifies their preference in both new constructions and renovations.
 

Germany dominated the Europe multi-split air conditioning systems market with market share of around 24% in 2023 and is expected to grow at a CAGR of 5% from 2024 to 2032. Germany's residential construction sector is on the rise, emphasizing the development of modern, energy-efficient homes. New residential buildings are increasingly adopting multi-split systems, celebrated for their efficiency and capability to deliver tailored cooling across multiple rooms. As Germany experiences rising temperatures and more frequent heatwaves, the demand for effective cooling solutions surges. This growing need for reliable cooling during warmer periods bolsters the market for multi-split systems.
 

China dominated the Asia Pacific multi-split air conditioning systems market with revenue of around USD 3 billion in 2023 and is expected to reach around USD 4.8 billion by 2032. China spearheads technological innovation in the HVAC industry. The market is being driven by multi-split air conditioning systems, which boast advanced features like smart controls, energy-efficient compressors, and integrated air purification. Chinese manufacturers are at the helm, both developing and deploying these cutting-edge technologies. As China's residential real estate market expands, so does the demand for multi-split air conditioning systems. Homeowners, in pursuit of energy-efficient and customizable cooling solutions, are increasingly favoring multi-split systems for both new homes and renovations.