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Split Systems Market Size (2024 - 2029)

The split systems market is experiencing growth driven by the increasing demand for energy-efficient and environmentally friendly products, alongside the rising adoption of air conditioning in both residential and commercial sectors. This expansion is largely attributed to global industrialization and urbanization, which are fueling the construction of commercial and residential buildings, thereby boosting the need for advanced heating, cooling, and ventilation solutions. Despite challenges such as high initial costs and longer payback periods, the market is benefiting from the heightened demand for energy-efficient systems, particularly in regions affected by rising energy prices.

Market Size of Split Systems Industry

Split Systems Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 4.88 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Medium

Major Players

Split Systems Market Major Players

*Disclaimer: Major Players sorted in no particular order

Split Systems Market Analysis

The Split Systems Market is expected to register a CAGR of 4.88% during the forecast period.

The split systems market was valued at USD 99.06 billion in the previous year and is expected to grow 4.88% during the forecast period, owing to the demand for energy-efficient and environmentally friendly products and the increasing adoption of air conditioning in residential and commercial applications. Adequate heating and cooling are essential to human health and productivity and are becoming more important globally due to urbanization, the growing economy, and the increasing need for cooling due to extreme weather conditions in different regions.

  • The rapid rise in industrialization and urbanization around the world is one of the primary factors driving market growth. The significant increase in the construction of different commercial and residential buildings worldwide is creating considerable demand for split systems such as space heating and cooling systems, ventilation control, humidity control, as well as air filtration. For instance, as per the Oxford Economics report on A Global Forecast for Construction to 2030, the global construction market is expected to grow by USD 4.5 trillion over the decade to 2020 to reach USD 15.2 trillion.
  • According to the CIA - World Fact Book, the global population amounts to around 7 billion people, and more than half of the global population is living in Asia, while one-quarter of the global population resides in Africa. Moreover, three out of five of the most populous countries in the world are located in Asia. Ultimately, the highest population growth rate is also found there. As urban populations continue to grow, the increased demand for ACs has put a strain on global energy systems. AC cooling systems have made cities and built environments more hospitable in otherwise hot and humid climates. According to the International Energy Agency (IEA), the number of AC units in buildings across the world is projected to hit 5.6 billion by 2050. 
  • The residential demand for split systems has also been gaining momentum as there are various benefits like energy efficiency, cost-effectiveness, and quite operations, enclosed with the split systems that make it a suitable alternative for customers in regard to the other air conditioners prevailing in the market. In addition to this, the growing number of manufacturing plants, expansion, and investments have also been paving the way for multiple opportunities to enter the market.
  • The high initial cost of split air conditioners can be challenging for its demand because it may deter some customers from purchasing or upgrading their systems. This is especially true for homeowners or small business owners who may have limited budgets and may not be able to afford the upfront costs of a new system. Secondly, the high cost of split systems can result in longer payback periods for customers. This means that the cost savings that result from the improved energy efficiency of the new system may not offset the initial investment for several years. This is expected to challenge the market's growth.
  • However, rising energy costs directly impact the profit/loss statements of building owners and tenants. Moreover, the invasion of Ukraine affected energy markets around the world, particularly in Europe, which remains the primary market for Russian oil and gas owing to the lack of these energy sources in European countries. However, as a consequence of Russia's invasion of Ukraine, the European Union decided to cut Russian oil imports by two-thirds, resulting in a surge in energy prices. Consequently, the demand for energy-efficient air conditioning systems has recently increased significantly.

Split Systems Industry Segmentation

A split system is an HVAC system that has both indoor and outdoor units that are connected with copper tubing. There are many different types of split systems, which can include either a heat pump or air conditioner installed outside your home, paired with either a gas furnace or a fan coil located inside your home.

The Split Systems Market is segmented by equipment type (mini-split, multi-split, variable refrigerant flow (VRF)), by application (residential, commercial), by geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Spain, Eastern Europe, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and the Rest of Asia-Pacific), and Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.

By Equipment Type
Mini-split
Multi-split
Variable Refrigerant Flow (VRF)
Others
By Application
Residential
Commercial
By Geography***
North America
United States
Canada
Europe
United Kingdom
Germany
France
Spain
Eastern Europe
Asia
China
Japan
India
South Korea
Australia and New Zealand
Latin America
Middle East and Africa
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Split Systems Market Size Summary

The Split Systems Market is poised for steady growth, driven by the increasing demand for energy-efficient and environmentally friendly heating and cooling solutions. This demand is fueled by urbanization, economic growth, and the need for effective climate control in response to extreme weather conditions. The market is witnessing a surge in the construction of residential and commercial buildings worldwide, which in turn is boosting the demand for split systems. These systems offer benefits such as energy efficiency, cost-effectiveness, and quiet operation, making them an attractive alternative to traditional air conditioning solutions. However, the high initial cost of split systems poses a challenge, potentially deterring some customers from making the investment. Despite this, rising energy costs and the need for sustainable solutions are driving the market forward, particularly in regions like Europe, where energy prices have surged due to geopolitical factors.

The market landscape is characterized by the presence of major players such as Daikin Industries, Mitsubishi Electric Corporation, Hitachi, Samsung Electronics, and Panasonic Corporation, who are actively engaging in strategic partnerships and acquisitions to enhance their product offerings and maintain a competitive edge. The demand for split systems is further bolstered by government initiatives and regulations promoting energy efficiency and sustainability, particularly in regions like China, Japan, and Korea. These initiatives are expected to drive the adoption of eco-friendly refrigerants and improve cooling efficiency. Additionally, the growing middle-class population and rising incomes in regions like Southeast Asia and India are contributing to the increasing affordability and demand for split systems. As a result, the market is anticipated to experience significant growth, with opportunities arising from the expanding residential and commercial sectors globally.

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Split Systems Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Rising disposable income in developing countries is contributing to the growth in the demand for Split Systems

      2. 1.1.2 Increase in construction of office and smart homes is expected to increase the demand for Split Systems

    2. 1.2 Market Challenges

      1. 1.2.1 High installation cost and maintenance cost is expected to negatively affect the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Equipment Type

      1. 2.1.1 Mini-split

      2. 2.1.2 Multi-split

      3. 2.1.3 Variable Refrigerant Flow (VRF)

      4. 2.1.4 Others

    2. 2.2 By Application

      1. 2.2.1 Residential

      2. 2.2.2 Commercial

    3. 2.3 By Geography***

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

      2. 2.3.2 Europe

        1. 2.3.2.1 United Kingdom

        2. 2.3.2.2 Germany

        3. 2.3.2.3 France

        4. 2.3.2.4 Spain

        5. 2.3.2.5 Eastern Europe

      3. 2.3.3 Asia

        1. 2.3.3.1 China

        2. 2.3.3.2 Japan

        3. 2.3.3.3 India

        4. 2.3.3.4 South Korea

      4. 2.3.4 Australia and New Zealand

      5. 2.3.5 Latin America

      6. 2.3.6 Middle East and Africa

Split Systems Market Size FAQs

The Global Split Systems Market is projected to register a CAGR of 4.88% during the forecast period (2024-2029)

Daikin Industries, Ltd., Mitsubishi Electric Corporation, Hitachi, Ltd., Samsung Electronics Co., Ltd. and Panasonic Corporation are the major companies operating in the Global Split Systems Market.

Split Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)