Residential Ductless Split AC Market Size - By Type (Single Split AC and Multi Split AC), By Installation (Wall Mounted, and Floor Mounted), By Technology, By Capacity, By Price Range, By Distribution Channel, Forecast 2024 – 2032

Residential Ductless Split AC Market Size

Residential Ductless Split AC Market was valued at USD 19.9 billion in 2023 and is anticipated to grow at a 4.5% CAGR from 2024 to 2032. According to the U.S. Department of Energy, inverter-driven systems can save up to 30% on energy costs compared to traditional air conditioning systems. As global temperatures rise due to climate change, the demand for efficient cooling solutions, including ductless split AC systems, is increasing. This trend is particularly evident in regions experiencing more extreme heat waves.
 

Emerging markets such as Southeast Asia, Latin America, and parts of Africa present significant growth potential. Rising incomes and urbanization in these regions are driving the demand for residential cooling solutions. The International Energy Agency (IEA) projects that the demand for air conditioning in these regions will triple by 2050. Additionally, the trend towards renovating and retrofitting older homes, especially in developed markets, offers an opportunity for ductless split systems as an alternative to installing ductwork.
 

Ductless split AC systems often entail higher initial purchase and installation costs than traditional window or portable units. Although they promise energy efficiency and subsequent long-term savings, the upfront investment may deter budget-conscious consumers. Despite being easier to install than central systems, ductless splits necessitate professional installation, contributing to their overall cost. In areas with a shortage of skilled technicians, this expense is further amplified. Moreover, HVAC manufacturers face a diverse array of regulations and standards, varying by country and region. Navigating this intricate compliance landscape poses challenges, potentially hindering product development and market entry.
 

Residential Ductless Split AC Market Trends

The surge in residential construction, particularly in urban and suburban locales, is paving the way for the adoption of ductless split systems in new homes. According to the U.S. Census Bureau, residential construction spending reached $800 billion in 2023, highlighting the sector's growth. Moreover, the rising inclination towards renovating and modernizing older residences is further fueling the demand for these systems.
 

Adding to this momentum, numerous governments and utility companies are rolling out incentives, rebates, and tax credits to promote energy-efficient home upgrades. For instance, the U.S. Department of Energy offers tax credits for high-efficiency ductless split AC systems, which can cover up to 30% of the installation cost. These financial perks not only offset initial costs but also act as a catalyst for widespread adoption.  
 

Residential Ductless Split AC Market Analysis

Based on type, the single split segment accounts for revenue of around USD 11 billion in 2023 and is expected to reach USD 14.5 billion by 2032. Single split AC systems often feature advanced technologies, notably inverter compressors, enhancing energy efficiency over traditional models. Inverter technology dynamically adjusts compressor speed in response to cooling needs, effectively curbing energy usage and operational expenses. Notably, single split ACs boast a competitive edge with their lower upfront costs compared to multi-zone or central systems, making them an appealing choice for budget-conscious consumers. Beyond the initial savings, their energy efficiency translates to sustained cost benefits for homeowners.
 

Furthermore, modern single split ACs come with smart features like Wi-Fi connectivity, smartphone apps, and seamless integration with home automation systems, empowering users with enhanced control and energy management capabilities.
 

The multi-split AC segment is expected to expand at 5.8% CAGR through 2032. Multi-split AC systems enable individual control of multiple indoor units from a single outdoor unit, resulting in significant energy savings. According to the U.S. Department of Energy, multi-split systems can reduce energy consumption by up to 30% compared to traditional HVAC systems. Although the initial investment for a multi-split system may be higher than for single-split units, the installation costs are often lower. This is because only one outdoor unit is required, simplifying the installation process and reducing associated costs.
 

Based on installation, the wall mounted segment held a significant market share of around 67% in 2023. Wall-mounted split AC systems offer straightforward installation. Typically, this involves mounting the indoor unit on a wall and linking it to the outdoor unit through refrigerant lines. This ease of installation makes them suitable for both new constructions and retrofits. According to the U.S. Department of Energy, ductless mini-split systems can reduce energy consumption by up to 30% compared to traditional HVAC systems. Many of these systems boast advanced air filtration, effectively removing dust, allergens, and pollutants, thereby enhancing indoor air quality.
 

Moreover, these units often feature advanced cooling capabilities with customizable settings. Their rising popularity is not just due to their functionality but also their aesthetic appeal, seamlessly blending with various interior designs. Consequently, the Wall Mounted segment leads the market, embodying the practicality, functionality, and visual allure that consumers desire in ductless split ACs.
 

Asia Pacific: Asia Pacific dominated the residential ductless split AC market with a significant market share of around 42% in 2023 and is predicted to grow over 5.8% CAGR through 2032. Several Asia-Pacific nations, notably India, China, and Southeast Asian countries, grapple with extended periods of hot and humid weather. This climatic challenge fuels a robust demand for air conditioning, particularly ductless split systems. According to the World Bank, China's GDP grew by 8.1% in 2021, while India's GDP increased by 8.7%, reflecting significant economic growth.
 

This economic surge has bolstered the middle class in these countries, amplifying their purchasing power. Consequently, a larger segment of the population can now afford air conditioners, propelling the market for residential ductless split systems. Moreover, as these economies urbanize, with the United Nations projecting that 68% of the global population will live in urban areas by 2050, there's a surge in new residential constructions and the refurbishment of existing homes, further fueling the need for modern, energy-efficient cooling solutions.
 

North America: The residential ductless split AC market in North America was valued at USD 5.1 Billion and is projected to reach USD 6.8 Billion in 2032. Energy efficiency remains a top priority for North American consumers and regulatory bodies, driven by high energy costs and environmental concerns. According to the U.S. Department of Energy, heating and cooling account for nearly 50% of the energy use in a typical U.S. home. Ductless split systems, especially those equipped with inverter technology, offer superior energy efficiency, aligning with these priorities and driving their adoption.
 

Residential Ductless Split AC Market Share

With several key players competing for market share. Companies such as Carrier, Daikin, LG Electronics, Trane, and Johnson were among the prominent players in this market. They are expected to hold a market share of around 30% in 2023 in the global market. There are large number of players operating in the market. However, consumers are more inclined towards branded and high-quality products across the world.
 

Residential Ductless Split AC Market Companies

Major key players profiled in the residential ductless split AC industry include:

• Carrier
• DAIKIN INDUSTRIES, Ltd.
• FUJITSU GENERAL
• GE Appliances
• GREE Comfort
• Hitachi, Ltd.
• Johnson Controls International plc.
• LG Electronics
• Mitsubishi Electric Corporation
• Panasonic Corporation
• Samsung HVAC, LLC.
• Senville
• Toshiba Heat Pumps
• Trane 
   

Residential Ductless Split AC Industry News

• In June 2024, Mitsubishi Electric Trane HVAC US LLC (METUS), a leading supplier of Ductless and Ducted Mini-split and Variable Refrigerant Flow (VRF) heat pump and air-conditioning systems, announces its upcoming launch of a new line of products utilizing a low global warming potential (GWP) refrigerant, marking a significant step forward in environmental sustainability in light commercial and residential heating and air-conditioning solutions. The new products are anticipated to be available in early 2025.
   
• In May 2024, Samsung and Lennox Announce the Establishment of a Joint Venture for Ductless Mini Split, AC, Heat Pump, and Variable Refrigerant Flow HVAC Systems in the United States and Canada. The newly established joint venture will be called Samsung Lennox HVAC North America.
   

This residential ductless split AC market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and Volume (Million Units) from 2018 to 2032, for the following segments:

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Market, By Type

• Single Split AC
• Multi Split AC 

Market, By Installation

• Wall Mounted
• Floor Mounted

Market, By Technology

• Inverter Split AC
• Non-Inverter Split AC 

Market, By Capacity

• Up to 1.5 Ton
• 1.5 Ton to 3 Ton
• Above 3 Ton

Market, By Price Range

• Low or Economy
• Medium
• High

Market, By Distribution Channel

• Company Owned Website
• E- Commerce Website 
• Factory Outlets
• Specialty Stores
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA