Ductless Heating and Cooling Systems Market

Ductless Heating and Cooling Systems Market Value and Growth

 Ductless Heating & Cooling Systems Market is valued at USD 65.6 billion in 2022 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 8.1 % during the forecast period to become a USD 96.83 billion markets in 2027.

Ductless Heating and Cooling Systems Market Overview

In heating or cooling system with ducts a central heating or cooling unit is installed which is connected to all the rooms of the building through ventilation ducts. These systems are still used in the USA and other developed countries but newer systems without ducts, which have smaller heating/cooling units individually installed, have made these duct ventilation systems redundant as the older systems are very inefficient in comparison.

Ductless Heating and Cooling Systems Market Recent Developments

Richard Branson the head of the Virgin group recently announced a USD 3 million prize for a more energy-efficient Air conditioner design.

Drivers and Restraints of Market

One of the primary drivers of this market is the fact that the technology used in these systems is superior to the older duct systems, at least as far as smaller spaces are concerned. Ductless systems are much more efficient and cost-effective than the duct systems for residential and commercial spaces. With the increase in the net available disposable income in the emerging economies, the desire and means for external heating/cooling have drastically increased. And with the ease of deployment and usage offered by the ductless systems, they have become the preferred ventilation systems in this area of the world. In many Asian countries like China, India, and Japan there is a large constraint on the available space, so any system which is small in size without skimping on the benefits is welcomed with open arms. These ductless systems have a much smaller footprint when compared to the traditional duct ventilation systems. With the increasingly rapid manner in which climate change is occurring artificial heating and cooling have become an absolute necessity in many countries.

These systems still consume a lot of electricity and hence their customer base is still upper middle class in many developing countries. With the conflict in the Middle East and the reimposition of sanctions on Iran and Venezuela by the Trump administration, there is a shortage of oil around the world. Since most of the countries around the world still rely on petroleum-based fuels for electricity generation, the prices of electricity are bound to soar. The increasing prices of raw materials for the production of these systems is also negatively hurting the industry. Rising labor and transportation costs are another challenge for the market.

Despite the above hurdles being faced by the market, it is showing great promise for future growth and expansion.

Ductless Heating and Cooling Systems Market Segmentation

By type, the  Ductless Heating & Cooling Systems Market is classified into Window Air Conditioner Systems, Split Systems. Window air conditioner systems combine the fan, compressor, and outlet all into one system. They are noisy and are thought to be the previous generation. Split systems are the latest technology in this sector, where only the outlet is in the house while compressor and fan are outside minimizing the noise output and space consumed by the system. For that reason, they are the largest segment in the market. Split Systems are the largest segment in the market and are anticipated to retain the lead during the upcoming years.

By application, the market can be divided into Commercial Buildings, Residential Buildings, and Industrial Buildings. Commercial and residential building widely use the ductless systems while the industrial buildings in many countries still prefer the duct systems due to the large area that needs to be covered. In this category residential buildings dominate as more and more consumers are installing these at their homes to brace for harsher summer and colder winters.

Residential systems are the largest segment of the market. By region, the  Ductless Heating & Cooling Systems Market can be broken down into Latin America, North America, Asia Pacific, Europe, Middle East, and Africa. The Asia Pacific was the largest segment in 2018 and is projected to grow faster than other markets due to the booming middle class and manufacturing industry. The Asia Pacific was the largest market in 2018 and is projected to grow with the highest CAGR during the period of 2020-2025.

Key Players

Some of the major players in the Ductless Heating & Cooling Systems market are Samsung Electronics Co. Ltd. (South Korea), Hitachi Ltd. (Japan), Blue Star (India), LG Electronics (South Korea), Voltas (India), Haier (China), Carrier (U.S.), United Technologies Corporation (U.S.), and Johnson Controls (U.S.).Samsung Electronics Co. Ltd. is a multinational company that is one of the companies in the Samsung chaebol headquartered in Suwon, South Korea. It accounted for more than 70% of the revenue of Samsung chaebol and posted as a net revenue of USD 211.8 billion as of 2017.

Research Report Key Highlights

• The evaluation of the current market for your product or services and the future implications of the market
• Addresses the opportunities by better understanding the market through size estimates and growth rate analysis to forecast the market for the future.
• Extensive segmentation to understand the dynamics of the market at a very granular level by splitting down the market to the smallest segment.