The Air Conditioning Market Report 2025 profiles the current developments in the air conditioning sector, including the use of energy-efficient, eco-friendly refrigerants. The researchers also focus on building air conditioning technologies that dynamically adapt to the current air quality. Further, sustainable and solar-powered air conditioners (AC) are becoming top choices among big companies that require ACs of higher efficiency. Technologies like variable refrigerant flow (VRF) and ultraviolet (UV) sterilization are further upgrading traditional cooling systems.
This data-driven report also covers the investment landscape, workforce dynamics, and startup ecosystem along with emerging trends and their firmographic details.
Executive Summary: Air Conditioning Market Report 2025
- Industry Growth Overview: As per our database the air conditioning sector grew by -1.32%. The sector is continuously developing with 960+ startups working on innovative air conditioning techniques. It is further estimated to grow by a 9.8% compound annual growth rate (CAGR) from 2024 to 2030 and reach USD 313.25 billion.
- Manpower and Employment Growth: The sector’s current employment is 1.2 million. More than 42 600 people joined the workforce last year.
- Global Footprint: The top countries for research activities in the air conditioning sector are the United States, Germany, the United Kingdom, Australia, and India. Additionally, cities like Dubai, Melbourne, Sydney, Singapore, and Brisbane are taking part in developing innovative air conditioning technologies.
- Grants and Patents: The air conditioning domain holds 920+ grants. Further, there are 521 200+ patents filed by 26 000+ applicants.
- Investment Landscape: Our database records 2000+ funding rounds, which raise an average of USD 27.6 million. This funding assists more than 1200 companies working in the air conditioning sector.
- Top Investors: Investors like Nordic Investment Bank, UBS Switzerland, Zurich Cantonal Bank, and more provide funding close to USD 1 billion.
- Startup Environment: The innovations in the sector are represented by startups like iCapotech (AC energy consumption reduction), Ice Energy (thermal energy storage for HVAC), Recoolit (sustainable refrigerant management), XO Materials (energy-less cooling technology), and BenKon (AC system optimization).
What data is used to create this air conditioning market report?
Based on the data provided by our Discovery Platform, we observe that the air conditioning sector ranks among the top 5% in the following categories relative to all 20K topics in our database.
These categories provide a comprehensive overview of the industry’s key metrics and inform the short-term future direction of the industry.
- News Coverage and Publications: Over 12 700 articles are in newspapers and magazines regarding the current market situation and its future innovations.
- Funding Rounds: Our database records 2000+ funding rounds for the domain.
- Manpower: Over 1.2 million people worldwide are employed in the air conditioning sector. It further added 42 600 more positions last year.
- Patents: The sector has more than 521 200 patents.
- Grants: The support from the government is evident in the 920+ grants.
- Yearly Global Search: Air conditioning-related searches increased by 8.55% globally last year, which indicates rising consumer interest in the sector.
Methodology: How We Created This Air Conditioning Report
This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 25 million companies and 20 000 technologies and trends globally, including detailed insights on approximately 5 million startups, scaleups, and tech companies. Leveraging this extensive database, we provide actionable insights on emerging technologies and market trends.
For this report, we focused on the evolution of air conditioning over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:
- Total Companies working on the trend
- News Coverage and Annual Growth
- Market Maturity and Patents
- Global Search Volume & Growth
- Funding Activity and Top Countries
- Subtrends within the air conditioning sector
Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.
Additionally, we reviewed external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the air conditioning market.
Explore the Data-driven Air Conditioning Market Report for 2025
The Air Conditioning Market Report 2025 uses data from the Discovery Platform and encapsulates the key metrics that underline the sector’s dynamic growth and innovation. There are 23 500+ companies and more than 960 startups in the air conditioning sector. The innovative landscape of the domain is evident in the 920+ grants and 521 200+ patents. It further shows an annual growth rate of -1.32% annually.
The global air conditioning market is currently valued at USD 136.7 billion and is set to reach USD 268.91 billion by 2034, growing at a CAGR of 7%.
Credit: Precedence Research
The sector employs 1.2 million people currently and added 42 600 more positions last year. The countries leading the air conditioning sector with research and development are the United States, Germany, the United Kingdom, Australia, and India. The cities involved in creating innovative air conditioning techniques are Dubai, Melbourne, Sydney, Singapore, and Brisbane.
A Snapshot of the Global Air Conditioning Market
The annual growth rate of the sector is -1.32%. Despite this number, there are over 960 startups working towards more innovations in the domain. Further, there are 1200+ startups in merger and acquisition and 160+ more in the early stage.
Apart from the promising number of startups, the sector also has 521 200+ patents filed by 26 000+ applicants. The yearly growth in patent activity is 1.4%. China is the top issuer of patents with 168 600+ patents, followed by the United States with 83 000+ patents.
Explore the Funding Landscape of the Air Conditioning Market
The average funding amount for the air conditioning sector is USD 37.6 million. Strong financial interest in the sector is further demonstrated by the more than 1100 investors who have participated in over 2000 investment rounds. Over 1200 companies have been the focus of these investments.
Who is Investing in the Air Conditioning Sector?
Top investors are providing more than USD 1. billion to the air conditioning sector.
- Nordic Investment Bank invested USD 150 million in at least one company. In 2024, it signed a USD 150 million sustainability loan with the Electrolux Group, a Swedish utility company with global operations.
- UBS Switzerland invested USD 119.9 million in at least one company.
- Zurich Cantonal Bank invested USD 119.9 million in at least one company.
- Credit Suisse invested USD 119.9 million in at least one company.
- United Development Company contributed USD 113.5 million to at least one company.
- Swedish Export Credit Corporation spent USD 100 million on at least one company.
- Mueller Industries distributed USD 92.9 million across two companies.
- Citibank contributed USD 81.6 million to at least one company.
- Samba Financial contributed USD 81.6 million to at least one company.
- Mashreq contributed USD 81.6 million to at least one company.
Access Top Air Conditioning Innovations & Trends with the Discovery Platform
This section offers firmographics insights into the latest air conditioning trends:
- Portable Air Conditioning sector has 560+ companies and is growing at an annual rate of 14.7%. The trend currently employs 41 800+ people and added 1300 more positions last year. The latest innovations in these trends include ductless portable AC, IoT integration, and cooling technologies like inverter compressors, dual-hose design, and more.
- Precision Air Conditioning, with 270+ companies and 3% annual growth is another major trend. Currently, the sector is employing 26 500+ people and added 950+ positions last year. Precision air conditioning is useful for data centers and server rooms processing large amounts of information. It is suitable for telecom facilities, medical and healthcare sectors, laboratories, aerospace, defense, and more.
- Evaporative Air Conditioning stands out as a major trend with over 210 companies and 16 000+ employees working in them. Further, the market added 450+ positions last year and is additionally growing at an annual rate of 0.95%. Advanced materials like ceramic heat exchanges and structured polymer materials are making evaporative air conditioning more efficient.
5 Top Examples from 960+ Innovative Air Conditioning Startups
The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.
iCapotech optimizes AC Energy Consumption
Indian startup iCapotech builds Living Things, a platform for carbon quantification, mitigation, and reporting, using IoT and artificial intelligence. The platform is suitable for utility bill analytics, which lets the user auto-download, extract, and validate the utility data. It also provides automatic reminders for bill due dates and deadlines.
The cooling management feature further reduces air conditioning energy consumption by providing real-time insights and centralized control. The platform provides predictive analytics and suggests temperatures perfect for cost-effectiveness and comfort. It integrates with any existing air conditioning facility. Organizations use the platform to optimize and reduce energy usage, improve operational efficiency, reduce carbon footprints, and support sustainable practices.
Ice Energy provides Thermal Energy Storage for HVAC
US-based startup Ice Energy offers grid-scale thermal energy storage solution Ice Bear for permanent load shifting. Ice Bear makes ice during the off-peak hours and uses that ice to cool spaces during peak hours. It uses a system of copper coils to pump cold refrigerant through the regular tap water and freeze it to ice.
The smart grid technology further monitors and controls the cooling process. The distributed thermal battery integrates with any cooling system. Ice Bear 40 is suitable for commercial uses and Ice Bear 20 is suitable for residential uses.
The behind-the-meter storage solution provides utilities with a way to shift peak HVAC cooling load. Commercial properties and homes use storage solutions to save on cooling costs. The solutions are deployable at mega scales and reduce carbon-intensive peaking generation, improve grid reliability, and decrease greenhouse gas emissions.
Recoolit offers Sustainable Refrigerant Management
Indonesian startup Recoolit builds a platform for procuring and destroying the refrigerant used in air conditioning. The process starts by recovering greenhouse gases and filling them in reusable cylinders. Recoolit processes the cylinders and measures the global warming capacity of the captured greenhouse gases.
The greenhouse gas is then permanently destroyed in compliance with the local waste management regulations and the UN’s technical standards. The platform tracks every step and provides an audit trail of the process. Companies and individuals use the platform to reduce carbon footprints and maintain a transparent digital trail of their contributions.
XO Materials builds Energy-Less Cooling Technology
UK-based startup XO Materials works on a cooling technology that captures and emits heat into deep space. The startup uses passive radiative cooling (PRC) material technology, which entails cooling space without using any energy. The material is emissive and sheds heat in the form of infrared light.
It reflects heat and emits heat energy in a wavelength known as the atmospheric window. It leads to less energy usage, carbon emission, heat generation, and more cost-effectiveness.
BenKon provides AC System Optimization
Vietnamese startup BenKon builds an energy tracker SmartAir for air conditioners. The tracker consists of an infrared (IR) filter, an LED light guide, and a printed circuit board (PCBA). It is compatible with all air conditioners and comes with IR remote control. It also connects to an application on the mobile and enables smart control, scheduling, and tracking.
The tracker provides information about daily energy consumption, AC adjustment time, behavior and usage habits, and air quality among others. It alerts the user in case of overconsumption, provides control solutions, reports malfunction, and maintains an optimal mode setting. The central management feature supports the digital operation and maintenance of ACs, administrative decision-making, and hierarchy decentralization. Retail chains, restaurants, offices, and hotels use the tracker for air conditioning management and optimization.
Gain Comprehensive Insights into Air Conditioning Trends, Startups, or Technologies
The air conditioning market’s current status reveals potential development opportunities. It also covers how the emerging trends of evaporative air conditioning, precision air conditioning, and portable air conditioning are improving the sustainability and usability of air conditioners. Rising global warming and demand for an eco-friendly cooling system are set to drive more developments in this domain.
Get in touch to explore all 960+ startups and scaleups, as well as all industry trends impacting air conditioning companies.
