Residential Ductless Split AC Market Analysis

Residential Ductless Split AC Market Analysis

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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.