Enjoy complimentary customisation on priority with our Enterprise License!
The hybrid air conditioner market is forecast to increase by USD 5.45 billion and is estimated to grow at a CAGR of 10.44% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Firstly, product innovation is leading to portfolio extension and premiumization, as manufacturers introduce advanced features and technologies to differentiate their offerings. Secondly, the increasing residential construction activity in both developed and emerging economies is creating a large customer base for these energy-efficient solutions. Lastly, the high efficiency of hybrid air conditioners compared to conventional models is a major selling point, as consumers seek to reduce their carbon footprint and save on energy costs. These factors are expected to fuel the market's expansion in the coming years.
To learn more about this report, Download Report Sample
The market is witnessing significant growth due to the increasing focus on energy efficiency and environmental sustainability. Hybrid air conditioners, which combine conventional energy sources with renewable energy sources like solar panels, offer a cost-effective and eco-friendly solution for cooling needs. The residential construction activity is a major driver of the market, as homeowners seek to reduce their carbon footprints and save on energy bills. The commercial, industrial, agricultural, and transportation sectors are also adopting hybrid air conditioning systems to meet their cooling requirements in a sustainable way. The air conditioning industry is emphasizing energy efficiency and environmental awareness in response to climate change and the growing concerns of environmentally conscious consumers. The use of hybrid air conditioners helps to reduce carbon emissions and promotes the adoption of renewable energy sources. The market is expected to continue its growth trajectory, as more consumers and businesses recognize the benefits of these systems. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The product innovation leading to portfolio extension and product premiumization is notably driving the market growth. Competition in the global hybrid AC market has intensified over the years. In addition, consumer preference for innovative and technologically advanced home appliances (including hybrid air conditioners) is also growing rapidly. This has compelled the companies operating in the market to continually engage in R&D and innovation to sustain themselves in the competitive market environment. Products are innovated in terms of technology, performance, features, and designs. In addition, customers also prefer appliances that are efficient and consume minimal energy resources. To meet such evolving customer needs, companies are continuously widening their product portfolio.
In addition, customers are gradually increasing their spending on consumer electronics (including hybrid air conditioning systems) as purchasing power and disposable income increase. Increased demand for premium hybrid air conditioners is also driving vendor investment in innovative product raw materials and technology. This has propelled the demand for premium hybrid air conditioners, thereby driving the market.
Increased adoption of omnichannel distribution and multichannel marketing is the key trend in the market. The preference for online shopping for household appliances (such as hybrid air conditioners) among residential users witnessed significant growth over the last couple of years. The online channel widens the visibility of the products. This, along with the availability of a wide product portfolio, contributes to the growth of the online retail channel. The success of online retailing can be attributed to customer reach and inventory-management cost-cutting.
Hectic lifestyles also restrict users from shopping for household appliances through offline distribution channels due to a lack of time. This increases the use of online shopping portals for the purchase of hybrid air conditioners. Thus, the omnichannel distribution and marketing strategy positively impacted the growth of the market during the forecast period.
Long product lifecycle is the major challenge impeding the market growth. The hybrid air conditioners on the market are mainly branded products with reliable quality. These products are made of stainless steel or other hard and durable materials and have a longer replacement cycle than older air conditioners made of less durable materials. The vendor conducts intensive research and development of innovative and durable materials to extend the life of his hybrid air conditioners.
The average lifespan of a hybrid air conditioner is about 10 to 15 years. The long lifespan of hybrid air conditioners reduces the frequency of product replacement, which negatively impacts the annual growth of the market. Hybrid air conditioner manufacturers offer product warranties and warranties that extend product life even further. These factors reduce repeat purchases of hybrid air conditioners. Hence, such factors are hindering the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
NingBo Deye Inverter Technology Co. Ltd. - The company offers hybrid air conditioners such as Hybrid AC DC Solar Air Conditioners. The company offers photovoltaic power system solutions, including residential and commercial power plant solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 11 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the hybrid solar air conditioner segment will be significant during the forecast period. Hybrid solar air conditioners work on solar power and electricity. The demand for dual technology (solar and electricity) air conditioners is increasing as they work on both technologies. This is because solar energy is not available on a regular basis, and therefore, it lacks power and requires an alternate source of power to run the air conditioning unit. In hybrid solar air conditioners, the power from the solar panels is supplied directly to the indoor and outdoor fan motor and compressor. When there is a lack of solar power, the air conditioner automatically switches to grid power.
Get a glance at the market contribution of various segments Request a PDF Sample
The hybrid solar air conditioner segment was valued at USD 4.02 billion in 2018 and continue to grow by 2022. Companies are offering various hybrid solar air conditioner products, featuring an energy-saving function that can automatically switch to solar power when available, and it also has a smart function that allows it to be controlled by a smartphone application. Thus, the hybrid solar air conditioners segment is also growing and is expected to contribute to the growth of the market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The hybrid air conditioner (AC) market in North America contributed to the second-highest share in the market. The key markets in North America are the US and Mexico. The major factors contributing to the market in North America are the increased demand for indoor cooling equipment, increased awareness among consumers regarding the use of clean energy (or renewable energy such as solar energy), and government initiatives to promote solar energy and related products. In addition, the growing need for an air conditioning system in a household is a major factor driving the demand for air conditioners. Therefore, all these factors are expected to fuel the growth of the regional market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
You may also interested in below market reports:
The Future of Sustainable Cooling Solutions in Residential and Commercial Spaces Hybrid air conditioners, a fusion of conventional and solar air conditioning systems, are gaining popularity in the Air conditioning industry. These systems use renewable energy sources, primarily solar panels, to power cooling units during sunny weather, reducing reliance on conventional energy sources and carbon emissions. The residential construction activity and environmental awareness among homeowners are major drivers for the market. Environmentally conscious consumers are increasingly focusing on reducing their carbon footprints and adopting energy-efficient solutions. Commercial establishments and industries are also following suit, recognizing the benefits of energy independence and cost savings.
The market is expected to grow significantly due to the increasing adoption of renewable energy sources, solar potential, and incentives. However, inconsistent government policies and price-sensitive consumers pose challenges. Smart home technology and energy management systems are essential components of hybrid air conditioners, optimizing energy usage based on weather conditions and sunlight intensity. The market landscape depends on conventional air conditioners, Hybrid electric air conditioner, Hybrid solar air conditioner manufacturers, Traditional air conditioning technology, Renewable energy adoption, Rising cost of electricity, Solar panel efficiency, Hybrid systems, Renewable energy incentives, Split Hybrid AC DC, Window Hybrid AC DC, Portable Hybrid AC DC Solar, Wall-mounted Hybrid AC DC Solar. Contractors play a crucial role in the market's growth by promoting and installing these systems. The market caters to various sectors, including residential, industrial, agricultural, and transportation, offering cost-effective solutions for cooling needs while contributing to sustainability and climate change mitigation efforts.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.44% |
Market growth 2024-2028 |
USD 5.45 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.64 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 37% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arka Technologies, Carrier Global Corp., Changzhou SuperEn New Energy Technology Co. Ltd., Evapoler Eco Cooling Solutions, Event Horizon Solar and Wind Inc., Glosun Electronic Pvt. Ltd., Harvest Eco Solutions Ltd., HotSpot Energy Inc., Ice Solair, Lennox International Inc., NingBo Deye Inverter Technology Co. Ltd., and Solair World |
Market dynamics |
Parent market analysis, market trends, market growth analysis, market research and growth, Market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.