Residential Ductless Split AC Market Size

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.

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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.