Smart AC Controller Market : Global Size, Share, Trends, Growth and Forecast Year ( 2022 – 2032 )
Global smart AC controller market witnessed market registering a compound annual growth rate (CAGR) of 12% between 2022 and 2032. Energy savings and convenience are key to the adoption of a smart AC controller among consumers.
smart AC controller market revenue will reach approximately USD 33.3 billion in 2022. Further, our Smart AC Controlle market insights show that the market is expected to grow at a CAGR of approximately 12% during the forecast period and reach a value of approximately USD 103.4 billion by 2032.
Smart Home Trends
The smart home technologies are making significant penetration into various geographies across the globe. The smart tech lovers across the globe are installing multiple smart technologies into their homes. Further, factors such as growing awareness about the benefits of smart technologies coupled with the increasing willingness of consumers to spend money on connected devices are paving the way for the growth of the market.
Rising Disposable Income
The levels of disposable income across the world are increasing and due to this, the number of consumers with plenty of spending power is growing. The rapid rise in disposable income of the population is allowing them to spend on improvement of their living standards. Furthermore, the consumers are spending more on potential technologies that can ease their life and this factor is expected to bolster the sales of smart AC controller in upcoming years.
The smart AC controller manufacturers are continuously advancing their controllers in order to capture a large pool of consumers across the globe. The manufacturers are improving their smart AC controller’s compatibility so that they can meet consumer’s requirements. Also, manufacturers are focusing to make their products more user-friendly and are adding new features. For instance, Ambi climate v2 have additional features such as temperature mode as compared to Ambi climate V1. Such advancements are expected to foster the market growth in upcoming years.
Increasing Sales of AC
The 2019 world AC demand had reached reach 110.5 million units with 8.1% increase compared to previous years. The demand for AC in Asian countries such as China, India, Japan and other is growing remarkable as incomes and living standards improve in many developing countries of this region. Since the ACs are getting more efficient and affordable, the growth in AC demand in hotter regions is set to soar which in turn expected to bolster the demand for smart AC controllers in upcoming years. In addition to this, rising electricity prices and environmental concerns are also predicted to escalate the growth of smart AC controller as these controllers with improved control algorithms can reduce electricity bills. Some manufacturers claim that their smart AC controllers can reduce your AC's electricity use by up to 40%. Such cost benefits of smart AC controllers are expected to foster the adoption rate of smart AC controllers in the upcoming year.
Barriers in Market
Advancements in thermostat technology have introduced connected and smart thermostats, which are one of the major barriers in the growth of global smart AC controller market. A major part of consumers is considering smart thermostat over smart AC controllers and this factor is expected to limit the market growth of smart AC controller in upcoming years. Price issues with smart AC controllers is another major concern which has been adversely affecting the demand for smart AC controllers. The population with limited spending power is hesitating to spend additional money on devices such as smart AC controllers. This reason is weakening the market of smart AC controller in low-income countries. The AC demand in cold countries is exceptionally low and consumers in cold countries prefer thermostat over smart AC controllers. For instance, the sales of air conditioners in Europe were 6.1 million units in 2016 as compared to 40.6 million units in China. Further, this weak AC sales and high preference of thermostats in cold regions are likely to emerge as major barriers in the growth of smart AC controller market.
Global smart AC controller market value is projected to witness a Y-O-Y growth of 14.7% in 2025 as compared to previous years. Growing interest from Chinese manufacturers to invest in connected appliances for value gains, rising disposable income of Chinese households and support from internet retailers and the government will drive adoption rates of smart AC controller in China.
With respect to usage, the market is segmented into the split ACs, mobile ACs, window ACs, central ACs and portable ACs, out of which, smart split AC controller segment shared approximately 73.4% of the global market in 2019. Further, in the type segment, the standard melting Smart AC Controller segment is expected to be the most attractive market in the global smart AC controller market over the forecast period. Further, this segment is projected to open new avenues for the market players and to be the most lucrative market over the forecast period.
With respect to connectivity, the market is segmented into Bluetooth + IR, IR and others, out of which, IR smart AC controller shared approximately 83.2% of the global market in 2019. Bluetooth + IR connected smart AC controller captured 13.7% market shares in 2019. In the connectivity segment, IR smart AC controller is expected to maintain healthy growth, with a CAGR of 12.4% during 2020-2025. Growth in value terms is expected to be higher than the growth in volume terms.
Global smart AC controller market is also segmented by usage and distribution channel. Online store sales channel contributed 70.4% of share in 2019. In order to open global growth, internet retailers should prepare a robust catering strategy to connected appliance consumers. Smart AC controller manufacturers should expand internet retailing options for competitive differentiation to drive sales growth. According to KDMI, internet retailing is the most significant channel amongst all distribution channels for smart AC controller. Apart from computers, several Internet-connected devices, including smartphones and tablets are also driving the growth of hyper-connected consumers, As a result, it is not surprising to see shopping habits for home appliances moving away from traditional channels to online channels and especially in the emerging countries where there is fluid infrastructure development and sharp consumer price sensitivity.
In terms of geography, the smart AC controller market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific smart AC controller market was held at USD 13,703.0 thousand in 2019 and is anticipated to reach USD 26,082.1 thousand by the end of 2024. Asia Pacific smart AC controller market accounted for a market share of 55.0% in 2019 and further, is expected to stand at a market share of XX% by the end of 2024.
The key players profiled in the report include Tado, Airpatrol, Ambi Labs, and other major key players. These market players have adopted different business strategies, such as acquisition, product launch, merger, and partnership to stay competitive in the global market. Smart AC controller manufacturers are expanding their business into new markets in order to capture maximum possible consumers. The consumers across the globe are not fully aware of smart AC controllers, and to aware them, companies are launching their products in new markets. For instance, a U.S. based Europe based Tado GmbH announced the official market launch of its Smart AC Control in Singapore. This product launch helped the company to expand its business in Singapore and other nearby countries.
- Bluetooth + IR Smart AC Controller
- IR Smart AC Controller
- Others Smart AC Controller
- Split ACs
- Mobile ACs
- Window ACs
- Central ACs
- Portable ACs
By Distribution Channel
- Online Store
- Offline Store
- North America (U.S. & Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand and Rest of Asia Pacific)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Middle East & Africa (GCC, North Africa, South Africa and Rest of the Middle East & Africa