U.S. Mini Split Air Conditioning System Market Size - By Type (Single-Zone Mini-Splits, Multi-Zone Mini-Splits), By Installation (Wall Mounted, Celling), By Technology, By Capacity, By Price Range, By End-user, By Distribution Channel & Forecast, 2024 - 2032

U.S. Mini Split Air Conditioning System Market Size

U.S. Mini Split Air Conditioning System Market size was valued at USD 1.3 Billion in 2023 and is estimated to grow at a CAGR of 5.6% between 2024 and 2032. Rapid urbanization in the U.S. is driving the demand for efficient and flexible air conditioning solutions. As more people move into urban areas, the construction of multi-family housing units, apartments, and commercial buildings increases, all of which require effective climate control solutions.
 

Urban environments often face space constraints, making traditional HVAC systems less practical due to their size and need for extensive ductwork. Mini split systems, with their compact and flexible design, are ideally suited to urban living where space is at a premium.

As energy prices continue to rise, both residential and commercial customers are seeking ways to reduce their utility bills. Mini split systems are highly efficient, often boasting high SEER (Seasonal Energy Efficiency Ratio) ratings, which means they consume less electricity compared to traditional HVAC systems. This efficiency translates into lower energy costs over time. There is a growing awareness and concern about the environmental impact of energy consumption. Energy-efficient HVAC systems help reduce carbon footprints and greenhouse gas emissions.
 

Mini split systems, with their efficient operation, contribute to these environmental goals, aligning with government regulations and consumer preferences for greener technologies. Federal, state, and local governments often provide incentives, rebates, and tax credits for installing energy-efficient systems. These financial incentives make mini split systems more affordable and attractive to consumers, further driving market growth.
 

Central air conditioning systems remain a strong competitor to mini split systems, especially in new residential and commercial constructions where ductwork can be easily incorporated. These systems are often preferred for their ability to cool entire buildings uniformly and their integration with existing heating systems. For smaller spaces or temporary solutions, window and portable air conditioners are popular due to their lower initial cost and ease of installation.
 

In some U.S. regions, the market for mini split air conditioning systems has become quite mature. High adoption rates in these areas mean that new sales are primarily driven by replacement cycles rather than new installations, limiting growth opportunities. In a saturated market, consumers become more price-sensitive, often opting for cheaper alternatives or delaying purchases until absolutely necessary. This can put downward pressure on prices and profit margins for manufacturers and retailers.
 

U.S. Mini Split Air Conditioning System Market Trends

The mini split air conditioning system industry in the U.S. is undergoing several notable trends. One prominent trend is increasing market consolidation, with larger players acquiring smaller companies to expand their market share and product portfolios. Additionally, there is a strong focus on enhancing energy efficiency, with manufacturers investing heavily in research and development to improve the SEER and HSPF ratings of their systems, driven by rising energy costs and environmental concerns. Another significant trend is the integration of smart technology features, such as Wi-Fi connectivity, remote control capabilities, and compatibility with smart home systems, allowing users to control and monitor their mini-split units through mobile apps or voice commands.
 

The industry is also witnessing an expansion into commercial Technology beyond residential settings, with manufacturers offering larger-capacity units to cater to the growing demand from offices, restaurants, and retail spaces. Furthermore, there is an emphasis on improving indoor air quality, with advanced air filtration systems and air purification technologies being incorporated into mini-split units. The adoption of inverter-driven compressors, which can adjust their speed based on cooling or heating requirements, is also gaining traction due to their energy-saving capabilities and ability to maintain consistent temperatures.
 

U.S. Mini Split Air Conditioning System Market Analysis

Based on type, the market is divided into single-zone mini-splits and multi-zone mini-splits. In 2023, single-zone mini-splits held the dominant market of USD 900 million and is expected to reach USD 1.5 billion by 2032. Single-zone mini-splits continue to be popular in residential Technologies, especially for additions, renovations, and homes without existing ductwork. There is increasing demand for smart/wifi enabled single-zone units that offer improved control and energy monitoring capabilities.
 

Additionally, single-zone units are expanding into light commercial spaces like small offices and retail stores, while also experiencing growth in the replacement market as older window AC units are phased out. However, multi-zone mini-splits are witnessing rapid adoption in both residential and light commercial Technology, where there is a need to cool/heat multiple rooms or zones. There is a preference for higher capacity multi-zone systems with four or more indoor units in larger homes and commercial spaces. In commercial settings, these systems are being integrated with smart building automation systems.
 

Based on installation, the U.S. mini split air conditioning system market is categorized into wall mounted and ceiling. The wall mounted segment held the dominant market share of 87% in 2023. Wall mounted mini-split units remain the most popular and widely adopted installation type, especially in residential settings. Consumers prefer sleek, low-profile designs that seamlessly blend with their interior decor. There is an increased demand for wall-mounted units with advanced air filtration, purification capabilities, and smart features like Wi-Fi connectivity and voice control for convenient operation.
 

Additionally, these units are expanding into light commercial Technologies such as small offices and retail spaces. Ceiling mounted, or ceiling cassette mini-split units are gaining popularity in both residential and commercial Technologies due to their discreet, unobtrusive design. These units are the preferred choice for larger open spaces, such as great rooms, basements, and commercial venues, as they offer even air distribution and optimized airflow patterns for improved comfort.
 

In the Northeast region of the United States, there's a notable surge in demand for energy-efficient mini split air conditioning systems. Driven by the region's harsh winters and hot summers, consumers seek year-round comfort without compromising on energy consumption. Consequently, there's a preference for mini split systems boasting high SEER ratings and advanced energy-saving features.
 

In the Midwest, where temperatures fluctuate drastically throughout the year, durability and reliability are paramount in the mini split air conditioning system market. Homeowners and businesses require HVAC systems capable of withstanding extreme weather conditions, including heavy snowfall and thunderstorms. Consequently, there's a preference for mini split systems crafted from robust materials and supported by robust warranties.
 

In the Southeast region, characterized by hot and humid climates, the mini split air conditioning system market is defined by a focus on cooling performance and moisture control. Residents prioritize systems that efficiently cool indoor spaces while reducing humidity levels, fostering a comfortable living environment.
 

The arid Southwest region witnesses a surge in demand for mini split air conditioning systems capable of efficiently cooling and dehumidifying indoor spaces while minimizing energy consumption. With scorching temperatures and low humidity levels, residents rely heavily on air conditioning year-round.
 

In the Western region, featuring diverse climates ranging from temperate coastal areas to arid deserts and mountainous regions, flexibility and versatility define the market. Homeowners and businesses seek HVAC solutions adaptable to varying climate conditions and building layouts.
 

U.S. Mini Split Air Conditioning System Market Share

Mini Split Air Conditioning System market seem to be consolidated in nature due to presence of local and global players across the globe. In 2023, the market players such as Carrier Corporation, Daikin Industries, Fujitsu General Ltd., GREE Electric Appliances, Haier Group Corporation, Hitachi, Johnson Controls Plc and LG Electronics collectively held around 10%-15% market share. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broader customer base, and strengthen their market position.
 

U.S. Mini Split Air Conditioning System Market Companies

Major players operating in the U.S. mini split air conditioning system industry are:

• Carrier Corporation
• Daikin Industries
• Fujitsu General Ltd.
• GREE Electric Appliances
• Haier Group Corporation
• Hitachi
• Johnson Controls Plc
• LG Electronics
• Midea Group Co. Ltd.
• Mitsubishi Electric Corporation
• Panasonic Corporation
• Samsung Electronics Co. Ltd.
• Senville
• Toshiba Corporation
• Trane Technologies
   

U.S. Mini Split Air Conditioning System Market Industry News

• In April 2024, Carrier Global Corporation announced that its venture arm, Carrier Ventures, is heading an investment and technology partnership with Strategic Thermal Labs (STL). Through this collaboration, Carrier aims to harness STL's innovative technology to develop a liquid cooling solution for data centers.
   
• In April 2024, Toshiba Carrier UK, a subsidiary of Carrier Global Corporation, introduced its Interactive Intelligence II embedded Building Management Solution (BMS), which is a powerful web-based solution providing centralized control and monitoring of systems and equipment. The updated embedded solution controls and monitors all aspects of an air conditioning system and is installed in a customer’s premises, enabling systems to be optimized for occupant comfort and energy efficiency.
   
• In March 2024, Daikin Europe N.V., the European subsidiary of Daikin Industries, Ltd., announced the acquisition of BKF Klima, a Danish HVAC distributor previously part of Beijer REF. Along with this acquisition, Daikin plans to open two new facilities at its new Brøndby office in Denmark—a Daikin Training Center for installers and a Daikin Experience Center for consumers. This move is part of Daikin's strategy to expand in Scandinavia. The acquisition of BKF Klima enhances Daikin's ability to leverage its R&D expertise in low-carbon HVAC solutions for the region, solidifying its strong position in Europe, the Middle East, and Africa (EMEA), and reinforcing its presence in Denmark.
   
• In January 2024, Daikin Air Conditioning UK Ltd., a subsidiary of Daikin Industries, Ltd., announced the acquisition of Robert Heath Heating Ltd., a British service company based in London. The deal will bolster Daikin's residential heating service network in the UK. This acquisition aligns with Daikin's strategy to become a comprehensive solutions provider in the heating.
   

The U.S. mini split air conditioning system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) (Million Units) from 2021 to 2032, for the following segments:

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Market, By Type

• Single-Zone Mini-Splits
• Multi-Zone Mini-Splits

Market, By Installation

• Wall Mounted
• Celling

Market, By Technology

• Inverter Mini-Splits
• Non-Inverter Mini-Splits

Market, By Capacity

• Less than 1 ton
• 1 to 1.5 ton
• 1.5 to 2 ton
• More than 2 ton

Market, By Price Range

• Low
• Medium
• High

Market, By End-user

• Household
• Commercial

Market, By Distribution Channel

• Online
  • Company Owned Website
  • E- Commerce Website
• Offline
  • Specialty Stores
  • Supermarket & Hypermarkets
  • Factory Outlets
  • Other retail stores

The above information is provided for the following regions:

• Northeast
• The Midwest
• The South East
• The South West
• The West