As the trend of minimum spaces for reducing the energy consumption rate continues to grow, the Portable Air Conditioner Market is anticipated to hold a global revenue of USD 1,589.84 million by 2033. As of 2023, the current market value for portable air conditioners is USD 1,171.6 million and is expected to record a CAGR of 3.1% during the forecast period.
| Attributes | Key Statistics |
|---|---|
| Expected Base Year Value (2023) | USD 1,171.6 million |
| Anticipated Forecast Value (2033) | USD 1,589.84 million |
| Estimated Growth (2023 to 2033) | 3.1% CAGR |
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Climate Change and Rising Temperatures to Boost the Sales of Portable Air Conditioners
With average global temperatures rising worldwide due to climate change, there has been a significant surge in the demand for cooling solutions in recent years. A portable air conditioner is a mobile cooling device known for its compact design and the capability to cool a small enclosed area. Many countries situated near the equator experience prolonged heat waves that last up to six months. In this scenario, there is a requirement for affordable, easy-to-move air cooling devices like portable air conditioners.
According to a United Nations survey, more than 40% of the world's population resides on the coast. Due to harsh climatic conditions, this population experiences severe warm air currents and intense humidity. The increased moisture can substantially affect human lives by making mundane indoor activities exhausting and cumbersome. The demand for portable air conditioners is poised to grow as it offers an accessible and affordable solution for this population.
Urbanization Played a Crucial Role in the Growth of the Portable Air Conditioner Market
As compared to rural areas, cities tend to be warmer and more humid as they trap the external heat within their premises. This is primarily due to the presence of densely packed buildings, concrete roads, and asphalt constructions that absorb the solar heat. With limited spaces in the building, individuals have no option but to live in small apartments. In these cases, installing a traditional air conditioner can take up excessive space and be financially unaffordable, which is why individuals turn to portable air conditioners.
Young professionals and students who dwell in the cities temporarily cannot afford a traditional air conditioner. It is expensive and logistically very difficult to move from one place to another. Portable air conditioners have high demand in urban areas as they provide immense flexibility to individuals living in temporary rental apartments. They can also be moved within the apartment to cool down a particular room without having to do it for the entire living space.
Recent years have seen a rise in global revenue growth in the portable air conditioner market. Due to the pandemic and remote working conditions, there was a huge demand for personalized cooling appliances, which has had a positive impact on the market. The overall growth in the period 2017 to 2022 was around 2.9% CAGR.
| Attributes | Key Statistics |
|---|---|
| Expected Base Year Value (2017) | USD 987.55 million |
| Final Value (2022) | USD 1,139.3 million |
| Estimated Growth (2017 to 2022) | 2.9% CAGR |
Environmental Change and Urbanization: As more and more people tend to move to cities, there is a huge demand for inexpensive cooling appliances that can be installed in small areas. Portable air conditioners are a perfect solution to this problem. They are easy to install and require less maintenance, which suits an urban lifestyle.
Lifestyle Changes: Post-pandemic, a trend toward working from home is rising. Working professionals are spending more time at home than in offices. The demand for personalized air conditioners is bound to grow in such scenarios. There is also a rise in the overall income of individuals who can afford portable air conditioning services.
Air Quality Awareness: The growing awareness of people regarding air quality is the leading factor in the increased demand for portable air conditioners. Poor air quality can lead to severe health problems like asthma, allergies, and long-term respiratory issues. As numerous individuals diagnosed with these illnesses continue to grow, portable air conditioners with air filters and dehumidifiers become a necessity for this population.
Improved Design: With further research and technological advancements in the field of cooling appliances, there is an emergence of more energy-efficient, environmentally responsible, and smart portable air conditioners. Features like this make portable air conditioners more appealing to individuals, making them a preferable choice in the cooling appliance market.
Government Support: Some governments offer subsidies and tax rebates to air conditioning brands to encourage them to manufacture smart, energy-efficient appliances. These financial aids from the government reduce the overall production cost per appliance, making them more affordable to customers. Governments have also curated strict guidelines for air-cooling appliances so that very little energy is consumed.
Cyclic Demand: The demand for portable air conditioners is very seasonal. It is generally a preferred choice for cooling in the summer, lasting four to five months. This period decreases even more as we go to places far from the equator. The demand drops significantly during the rest of the period, making it unprofitable for retailers and small-scale manufacturers.
Environmental Challenges: The majority of air cooling appliances on the market consist of refrigerants such as hydrochlorofluorocarbons that have high global warming potential. Many governments across the world have strict regulations regarding these refrigerants, which might affect the overall sales of portable air conditioners.
Other alternatives: Other air conditioning alternatives like window air conditioners, split system air conditioners, and evaporative coolers provide more facilities and cooling options than portable air conditioners. There are even chances of better performance and energy efficiency from these appliances as compared to portable air conditioners.
Noise Concerns: Portable air conditioners, like many other cooling appliances, can be noisy and even produce vibrations, affecting the comfort of people in their vicinity. This is one of the main reasons why people may refrain from buying portable air conditioners. If not maintained properly, the airflow noise can get worse, making it more disruptive and inconvenient.
As the Asia Pacific region is situated closest to the equator, the temperature in this region is relatively higher than in the rest of the world. This makes the requirement of cooling appliances like ACs, fans, and coolers essential in almost every household, office, and recreational space.
| Region | Asia Pacific |
|---|---|
| Value Share in 2023 | 43.6% |
The region is also home to vast deserts in India, China, and Australia, making portable air conditioners a necessary appliance for quick-cooling purposes. The Asia Pacific region holds a 43.6% revenue share of the global portable air conditioner market.
The North American region is home to a substantial population residing in the urban areas. As most of these individuals are homeowners, it is very likely that they also own a portable air conditioner. This region holds a revenue share of 24.3% of the global portable air conditioner market.
| Region | North America |
|---|---|
| Value Share in 2023 | 24.3% |
North America also has some parts that experience hot and dry summer climatic conditions. As air conditioning is essential for basic human functioning, the demand for portable air conditioning in this area is very high.
As the Asia Pacific region is situated closest to the equator, the temperature in this region is relatively higher than in the rest of the world. This makes the requirement of cooling appliances like ACs, fans, and coolers essential in almost every household, office, and recreational space.
| Region | Value Share in 2023 |
|---|---|
| Asia Pacific | 43.6% |
The region is also home to vast deserts in India, China, and Australia, making portable air conditioners a necessary appliance for quick-cooling purposes. The Asia Pacific region holds a 43.6% revenue share of the global portable air conditioner market.
The North American region is home to a substantial population residing in the urban areas. As most of these individuals are homeowners, it is very likely that they also own a portable air conditioner. This region holds a revenue share of 24.3% of the global portable air conditioner market.
| Region | Value Share in 2023 |
|---|---|
| North America | 24.3% |
North America also has some parts that experience hot and dry summer climatic conditions. As air conditioning is essential for basic human functioning, the demand for portable air conditioning in this area is very high.
The below highlights the portable air conditioner market revenue by key countries. China is the leading market due to the surge in disposable incomes and urbanization. The United States is the second-leading market, with an expected growth of 21.7% through 2033, followed by Japan. FMI estimates that these top countries represent an overwhelming regional opportunity from the other countries covered in reports.
| Countries | Value Share in 2023 |
|---|---|
| The United States | 21.7% |
| China | 26.0% |
| Japan | 7.3% |
| India | 6.3% |
Ranking second in the world population, it is evident that the demand for portable cooling solutions is high in China. As a significant part of the Chinese plateau is in the dry region, there is a massive requirement for portable air conditioners in the country. China also faces frequent heatwaves during the summer, with temperatures reaching 50 degrees Celsius.
For instance, XIAMEN Winmore Trade, a manufacturer of portable air coolers, introduced a Spot air conditioner under the ‘Made in China initiative.' This portable AC has a 24,000 BTU capacity with three outlet pipes.
Many companies and organizations switched to remote work setups after the COVID-19 pandemic. This has increased to working professionals working from home, and the demand for personalized cooling appliances has also increased. As employees look for more comfort, they often seek temporary cooling appliances like portable air conditioners, which are financially affordable and logistically easy to move.
Summer fatigue, also known as 'Natsubate,' is a widely spread concept in Japanese culture and hospitality. This includes providing a comfortable living environment for households and guests during the hot summer months. This is why there is a great demand for cooling appliances like portable air conditioners in the Japanese peninsula.
Electrification initiatives by the governments have led to a surge in the demand for home appliances like portable air conditioners in the Indian subcontinent. The expansion of grid electric lines and diverse climatic conditions in the nation, which includes dry regions in the northern parts, have resulted in further requirements for portable air conditioners in recent years.
Rising temperatures in regions with a high-density population are one of the main areas where the demand for portable air conditioners is prominent. As per Future Market Insights, a few global players with international reach across continents exist in the market.
Technological innovations can shape the future of this market, as these key players are constantly introducing new features that save energy and bring more convenience to the overall user experience.
Recent Developments in the Portable Air Conditioner Industry
The global portable air conditioner market reached a valuation of USD 1.1 Billion in 2022.
The global portable air conditioner market grew at a sluggish 2.7% CAGR between 2013 and 2021.
The rise in demand for smart and eco-responsible electronic products is likely to boost portable air conditioner demand, which is the key trend in the market.
Leading players operating in the global portable air conditioner market comprise LG Electronics, De’Longhi S.p.A, Electrolux AB, Haier Group Corporation and Carrier Corporation among others.
The South Asia portable air conditioner market is projected to grow at a ~2.5% CAGR over the forecast period.
Leading players in the global portable air conditioner market are estimated to account for approximately 10%-15% of the total market share.
The Latin America portable air conditioner market is anticipated to expand at a 2.2% CAGR over the forecast period.
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Portable Air Conditioner Market
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