An air conditioning (AC) system is a type of compressor-based refrigerant machine that facilitates the removal of heat and moisture in an enclosed space to alter the overall temperature. Some of the significant components of an AC system are compressor, evaporator, condenser and expansion valve. This system restrains the entry of smoke or dust particles and aids in improving the user's comfort by creating a regulated interior environment. According to IMARC Group, the global air conditioning system market was worth US$ 114 Billion in 2019, exhibiting a CAGR of around 10.6% during 2014-2019.
With the rising number of housing projects, shopping malls, hospitals, hotels, multiplexes and auditoriums, there has been a significant increase in the demand for AC systems. These systems are also installed across various workspaces to improve the working conditions and enhance the overall productivity of the employees. Besides this, rising environmental concerns have encouraged governments to introduce initiatives that help in promoting the need for green product variants. For instance, Energy Efficiency Services Limited by the Government of India has launched the Super-Efficient Air Conditioning Program to replace conventional AC systems with newer and eco-friendly variants that help reduce carbon emissions. Moreover, manufacturers have developed smart and connected variants that can be integrated with advanced technologies and operated using voice commands. Other factors, such as inflating income levels, along with growth in the automotive sector, are also providing a positive impact on the market. However, there has been a decline in the sales of AC systems due to the spread of the coronavirus disease (COVID-19) as the exports of AC components from China remain suspended. Looking forward, the market is projected to witness strong growth during the forecast period (2020-2025).