Room AC Market Set to Hit $78.6 Billion by 2031
Demand Soars as Summers Get Hotter and Urban Growth Continues
More people are turning to room air conditioners as a reliable way to stay cool during the hottest months.
Rising summer temperatures and growing urban populations are fueling a global surge in demand for room air conditioners. According to a new report from The Insight Partners, the Room Air Conditioner (RAC) market is expected to expand from $52.16 billion in 2024 to $78.60 billion by 2031, with a projected compound annual growth rate (CAGR) of 6.1%.
☀️ Hotter Summers, Higher Demand
Year after year, many regions around the world are reporting longer, hotter summers. In fact, 2024 marked the warmest average global surface temperature on record, according to data from NASA and NOAA. For homeowners, renters, and small business owners, that means one thing: cooling has become essential, not optional. Room AC units offer a cost-effective way to keep living and working spaces comfortable without the expense of whole-house systems.
🏘️ More Cities, More Cooling Needs
With more people moving to cities—and more apartments and smaller homes being built—the need for compact, energy-efficient cooling continues to rise. As of 2024, more than 4.4 billion people worldwide live in urban areas, and that number is only growing. This trend is driving demand for room-specific cooling solutions that are affordable, flexible, and easy to install.
⚙️ Better Tech, Lower Energy Use
Modern room ACs are more efficient than ever. The growing popularity of inverter technology, which adjusts compressor speed based on room temperature, is helping consumers cut energy costs while maintaining comfort.
There’s also a growing move toward low-impact refrigerants like R-32, which perform better and use less energy than older alternatives. With about 10% greater thermal capacity than R-410A, R-32 enables better performance while helping manufacturers and consumers meet evolving environmental regulations. If widely adopted, experts estimate it could lead to a 19% reduction in CO₂-equivalent emissions over the next 10 years.
🔍 Market Insights
Top Products: Split ACs led the market in 2024, followed by window and portable units.
Leading Technologies: Inverter-equipped models are now the most popular, thanks to efficiency and quiet operation.
Primary Buyers: The residential sector remains the largest segment, with strong growth also seen in small commercial spaces.
🧊 What Manufacturers Are Doing
Major brands like LG, Daikin, Samsung, Carrier, and Panasonic are rolling out new models with smart features, mobile app controls, and sleeker designs. In 2025, Samsung introduced its BESPOKE AI WindFree™ series, offering intelligent cooling and ultra-quiet operation, with 19 new models tailored to meet modern needs.
🔮 The Road Ahead
Whether it’s a spare bedroom, a home office, or a small storefront, more people are turning to room air conditioners as a reliable way to stay cool during the hottest months. Backed by innovation and changing consumer preferences, the RAC market is expected to grow steadily through 2031 and beyond.
Room air conditioners are no longer just seasonal appliances—they’ve become a key part of modern indoor comfort and energy efficiency.
