A Detailed Analysis of the Portable Air Conditioner Market Based on Increasing Temperatures, Rising Consumer Preference for Mobile Cooling Solutions, and Advent of Energy-efficient Technology
Report ID: PMRREP34021
Number of Pages: 173
Format: PPT*, PDF, EXCEL
Industry: Consumer Goods
Published Date: February-2024
The global portable air conditioner market is forecast to expand at a CAGR of 4.5% and thereby increase from a value of US$1.4 Bn in 2023, to US$2 Bn by the end of 2030.
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Attributes |
Key Insights |
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Portable Air Conditioner Market Size (2023E) |
US$1.4 Bn |
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Projected Market Value (2030F) |
US$2.0 Bn |
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Global Market Growth Rate (CAGR 2023 to 2030) |
4.5% |
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Historical Market Growth Rate (CAGR 2018 to 2022) |
4.1% |
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Portable air conditioners are streamlined, manoeuvrable refrigeration apparatuses that are specifically engineered to regulate temperatures in residential, commercial, or industrial environments. In contrast to conventional stationary air conditioning systems, these units possess wheels for portability and are thus readily movable. Using a refrigeration cycle, they draw in warm air, chill it, and then expel the cooled air back into the surrounding environment. Portable air conditioners are favored by individuals who are renting or in search of a temporary, economical cooling solution due to their adaptable nature, which permits them to cool specific areas without requiring permanent installation.
A multitude of factors contribute to the expansion of the worldwide portable air conditioner market. Particularly in regions where temperatures are increasing, the demand for portable cooling solutions has increased due to climate change and rising temperatures. Portable air conditioners that are both energy-efficient and environmentally friendly have been developed in response to the increasing environmental and energy consciousness.
Furthermore, technological progress has led to the development of intelligent and interconnected portable air conditioning systems, which significantly improve the convenience of their users. The market continues to expand due to factors such as the increasing demand for portable air conditioners in both residential and commercial sectors, which is fueled by urbanization trends, a growing global population, and a surge in construction activities.
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An important factor propelling the worldwide portable air conditioner market is the rising need for cooling solutions that are both energy-efficient and environmentally sustainable. In light of the global predicament posed by climate change and the growing concern for environmental sustainability, there is a noticeable trend among businesses and consumers to seek out air conditioning alternatives that reduce carbon emissions and energy usage. An increasing sense of environmental responsibility and regulatory pressures are driving this shift in consumer preferences.
Multiple factors contribute to the current demand for energy-efficient portable air conditioners. Leading the way are rigorous international energy efficiency standards and governmental regulations that require manufacturers to design and manufacture refrigeration systems by environmentally sustainable principles. These regulations frequently incentivize the implementation of cutting-edge technologies and inventive designs that maximize energy efficiency while maintaining optimal cooling capabilities.
The industry participants are thus making substantial investments in research and development to produce portable air conditioners that not only satisfy but surpass these criteria. This is cultivating a market atmosphere in which sustainability serves as a critical differentiating factor. Furthermore, the level of environmental cognizance and consciousness among consumers has a substantial impact on the development of market trends. The increasing consciousness among consumers regarding the ecological consequences of their decisions has led to a surge in the market for products that adhere to sustainable principles.
Ecological Repercussions Linked to the Implementation of Specific Refrigerants
An important factor restraining the expansion of the worldwide portable air conditioning industry is the ecological repercussions linked to the implementation of specific refrigerants. Historically, portable units and other types of air conditioning systems have employed hydrofluorocarbons (HFCs) as refrigerants. HFCs, on the other hand, are highly potent greenhouse gases that contribute to climate change and the depletion of the ozone layer (GWP).
The elimination of HFCs is the objective of international regulations, including the Montreal Protocol and its amendments, which are implemented in response to environmental concerns. As a result of this regulatory pressure, manufacturers have been obligated to adopt alternative refrigerants that possess a reduced ecological footprint. Although this transition is consistent with sustainability objectives, it poses obstacles for the sector.
Escalating Level of Competition, and Industry Saturation
An influential factor confronting the worldwide portable air conditioner market is the escalating level of competition and industry saturation. The market for portable cooling solutions experiences increased competition and pressure on established actors due to the entry of additional manufacturers. Difficulties such as price competition, diminishing profit margins, and the ability to differentiate products in a congested marketplace may result from the proliferation of suppliers.
A saturation of comparable products with minor differentiators frequently ensues from the entry of new competitors, rendering it difficult for consumers to differentiate between brands. Manufacturers encounter the difficulty of formulating distinctive value propositions that distinguish them from the competition, be it via energy efficiency, technological advancements, or supplementary attributes.
Incorporation of Intelligent and Interconnected Technologies
An important opportunistic factor propelling the worldwide portable air conditioner industry is the incorporation of intelligent and interconnected technologies into these cooling apparatuses. Emerging developments in smart home technology, and the proliferation of the Internet of Things (IoT) have generated fresh prospects for innovation in the air conditioning sector. By incorporating intelligent functions, portable air conditioners provide users with increased autonomy, practicality, and ecological consciousness, thus capitalizing on the expanding market for interconnected household appliances.
The integration of intelligent technologies into portable air conditioning units enables users to monitor and control them remotely via voice-activated virtual assistants or smartphone applications. This degree of convenience follows contemporary ways of living, as it grants users the ability to modify temperature configurations, plan operations in advance, and obtain up-to-date information on energy usage from any location. Furthermore, these devices frequently feature sensors and learning algorithms that empower them to adjust to the preferences of users and optimize energy consumption, thereby enhancing overall efficiency and reducing expenses.
The global portable air conditioner market is anticipated to experience significant expansion, propelled by a convergence of elements that highlight the interplay between consumer demand and industry dynamics. A rise in global temperatures and climate variability is a significant factor driving market expansion, as it generates an increased need for adaptable and effective cooling solutions. The increasing global temperatures, particularly in densely populated urban regions, amplify the demand for portable air conditioners. It is anticipated that this trend will stimulate sales in a variety of market sectors, including residential and commercial applications.
The dynamic between manufacturers and consumers is of utmost importance in determining the course of the market. There is a growing trend among manufacturers to prioritize consumer-centric strategies, as they recognize the criticality of environmentally sustainable and energy-efficient cooling solutions. By incorporating intelligent technologies into portable air conditioners, manufacturers can accommodate the changing demands of consumers who prioritize connectivity and convenience. By enabling direct interaction via online platforms and e-commerce channels, businesses can ensure smooth transactions and offer customers a diverse selection of choices, thereby cultivating a more vibrant market atmosphere.
Furthermore, regulatory endeavors that seek to eliminate ozone-depleting substances and decrease carbon emissions significantly influence the market. In response to these regulations, manufacturers are developing products that comply with energy efficiency standards and utilize eco-friendly refrigerants. This transition not only corresponds with worldwide sustainability objectives but also confers a competitive advantage on manufacturers in markets where environmental awareness plays a significant role in consumer buying choices.
Supply-side Dynamics
The global market for portable air conditioners is dominated by several significant companies. LG Electronics, Haier Inc., Gree Electric Appliances Inc., De'Longhi S.p.A., and Honeywell International Inc. are some of the significant market participants. These corporations demonstrate a robust market presence by capitalizing on their extensive distribution networks, technological prowess, and brand awareness. North America, specifically the US, is a prominent region that has been at the forefront of implementing portable air conditioners owing to its substantial urbanization and diverse climatic conditions. Asia Pacific, encompassing nations such as China, Japan, and India, possesses a substantial market share due to factors such as rising disposable incomes and population density.
The potential consequences of the partnership between Hitachi Air Conditioning India Ltd., and Delhivery Ltd. on the worldwide portable air conditioner market are favorable. By engaging in this strategic collaboration, Hitachi can improve its logistical capabilities, thereby optimizing the transportation process that encompasses manufacturing facilities, local distribution centers, and service centers throughout India. The streamlined and well-coordinated supply chain enabled by Delhivery is anticipated to yield enhanced customer satisfaction, increased product availability, and expedited delivery periods. These outcomes will bolster Hitachi's market position and potentially shape more extensive industry benchmarks concerning efficient logistics on a global scale.
What is the Spearheading Segment by Capacity?
The 5,000 to 10,000 BTUs Segment Maintains Dominance
The segment comprising portable air conditioners with capacities between 5,000 and 10,000 BTUs is anticipated to hold the most market share. This is because units falling within this price range are highly suitable for compact and efficient cooling solutions, which appeal to a wide range of consumers including those in bedrooms and offices.
Conversely, the market segment comprising 20,000 BTUs or more is projected to experience the most rapid growth. These units are well-suited for open-concept living spaces or larger rooms due to their increased cooling capacities, thus satisfying the growing market demand for portable air conditioners with greater cooling capabilities. With the increasing demand from consumers for adaptable cooling solutions for expansive spaces, the 20,000 BTUs and above segment is positioned for substantial expansion. This is primarily due to its capacity to furnish portable and efficient climate regulation for more capacious environments.
Which is the Topmost End-use Sector?
Residential HVAC Systems Bestseller While Demand from Commercial Sector Expedites
Residential HVAC systems are anticipated to account for the highest market share of portable air conditioners. The residential sector comprises a considerable number of consumers in search of adaptable and transient cooling solutions for individual rooms or compact living areas. The segment is influenced by various factors that contribute to its demand, including rising temperatures, increased homeownership, and the necessity for affordable and readily installable conditioning alternatives in residential properties.
On the flipside, rapid growth is anticipated in the commercial segment. Portable air conditioners are gaining recognition in the commercial sector, which includes retail establishments, offices, and other buildings, for their ability to provide targeted climate control. These units possess qualities that render them attractive for commercial applications, where temporary or supplementary refrigeration may be necessary, including portability, flexibility, and energy efficiency. With the growing emphasis of businesses on energy-efficient solutions and comfortable working environments, the commercial sector of the portable air conditioner market is positioned to experience substantial expansion.
Which are the Most Profitable Sales Channels?
Online Retail Emerges as the Most Prominent Sales Channel
The segment of portable air conditioners sold through online retailers is anticipated to hold the greatest market share. The increased popularity and ease of access associated with online ordering have resulted in a distinct preference among consumers to acquire portable air conditioners via e-commerce platforms. The online platform offers an extensive selection of products, facilitates product comparisons, and offers doorstep delivery, all of which contribute to its market dominance. Concurrently, the fastest-growing segment is anticipated to be specialty stores.
Specialty stores, which are devoted solely to home appliances or cooling solutions, provide customers in search of particularized features and expertise with a specialized and informed purchasing environment. With the increasing demand for portable air conditioners, specialty stores are anticipated to undergo substantial expansion. This can be attributed to their capacity to offer customized guidance and a meticulously curated assortment of products that address the changing demands of consumers in the cooling solutions industry.
East Asian Markets Present the Maximum Opportunity
East Asia is anticipated to account for the largest proportion of the worldwide portable air conditioner market. Multiple factors contribute to this region's dominance. To begin with, East Asia, encompassing prominent economies such as Japan, China, and South Korea. is characterized by a substantial and highly populated urban populace. The convergence of escalating temperatures and swift urbanization has resulted in a surge in the need for portable air conditioning solutions.
Furthermore, East Asia serves as a center for technological progress, and residents of this area frequently purchase the most recent home appliance innovations. Increased market penetration of portable air conditioners is facilitated by the presence of well-established manufacturing industries, which additionally contribute to their accessibility and affordability. East Asia is anticipated to sustain its status as the foremost market for portable air conditioners due to a confluence of factors including technology, manufacturing capabilities, and robust demand.
Widespread Penetration of Environmentally Sustainable HVAC Solutions to Elevate South Asia, and the Pacific
It is expected that South Asia, and the Pacific will witness the most rapid expansion of the worldwide portable air conditioner market. This projection is a result of several significant factors. To begin with, nations situated in this vicinity, such as Australia, Indonesia, and India, are experiencing exponential economic expansion accompanied by the proliferation of the middle class. More consumers can afford portable air conditioning solutions as disposable incomes increase, propelling market expansion. Additionally, in South Asia, and the Pacific, the growing recognition of climate change and the imperative for environmentally friendly cooling methods corresponds with the market demand for portable air conditioners. The year-round high temperatures that characterize the region's tropical climates increase the need for adaptable and effective cooling alternatives.
The implementation of e-commerce and online retail platforms in these nations facilitates consumer access to and acquisition of portable air conditioners, thereby making a significant contribution to the expansion of the market. In brief, the convergence of economic expansion, climatic circumstances, and technological integration in South Asia, and the Pacific establishes this region as the most favorable setting for the most rapid expansion of the worldwide portable air conditioner industry.
Strategic initiatives are being implemented by the market leaders of portable air conditioners worldwide to attain and sustain their utmost market share. An essential approach is predicated on perpetual innovation and technological progress. Prominent organizations including De'Longhi S.p.A., LG Electronics, Haier Inc., Gree Electric Appliances Inc., and Honeywell International Inc. are making substantial investments in research and development to incorporate innovative attributes and enhancements into their merchandise. This encompasses the incorporation of intelligent technologies, such as Internet of Things (IoT) connectivity, which enables users to remotely operate and oversee their portable air conditioners via vocal commands or mobile applications. By prioritizing innovation, these companies not only appeal to technologically proficient consumers but also establish themselves as frontrunners in a swiftly changing industry.
Energy efficiency is an additional area of utmost importance for market leaders. In response to the worldwide demand for environmental stewardship and sustainability, market leaders are engaged in the development and promotion of portable air conditioners that adhere to rigorous energy efficiency criteria. This not only satisfies regulatory obligations but also appeals to consumers in search of environmentally sustainable alternatives. An important element of this approach is the utilization of environmentally sustainable refrigerants that have a reduced capacity to contribute to global warming. This contributes to adherence to international regulations and fosters increased confidence among consumers. Additionally, dominant actors recognize the criticality of brand recognition and reputation.
New Product
Hitachi Air Conditioning India Ltd. established a significant alliance with Delhivery Ltd. in March 2023. Delhivery assumes the responsibility of supervising the transportation process as part of this collaborative effort. This entails the movement of goods from Hitachi's primary facility to 21 local distribution centers, culminating in the final delivery of products to 1,100 service centers across India.
Market Impact: The potential consequences of the partnership between Hitachi Air Conditioning India Ltd. and Delhivery Ltd. on the worldwide portable air conditioner market are favorable. By engaging in this strategic collaboration, Hitachi can improve its logistical capabilities, thereby optimizing the transportation process that encompasses manufacturing facilities, local distribution centers, and service centers throughout India. The streamlined and well-coordinated supply chain enabled by Delhivery is anticipated to yield enhanced customer satisfaction, increased product availability, and expedited delivery periods. These outcomes will bolster Hitachi's market position and potentially shape more extensive industry benchmarks concerning efficient logistics on a global scale.
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Details |
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Forecast Period |
2023 to 2030 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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The market is anticipated to grow at a CAGR of 4.5% during the projected period.
The portable air conditioner market size was valued at US$1.4 billion in 2023.
The US held the largest market share in 2023.
Some of the prominent players in the market include LG Electronics, Haier Group, Danby Appliances, and Honeywell International.
The specialty stores segment is expected to grow at the fastest CAGR during the forecast period.
