According to The Insight Partners' research, the North America room AC market was valued at US$ 8,506.77 million in 2024 and is expected to reach US$ 11,901.57 million by 2031, registering a CAGR of 5.0% from 2025 to 2031. Accelerated manufacturing expansion and technological advancement are among the critical factors attributed to driving the North America room AC market growth.
The room air conditioner market is poised for a significant transformation driven by large-scale investments in manufacturing capacity and technological advancements. Key industry players are making strategic initiatives to meet the surging demand for energy-efficient, environmentally sustainable cooling solutions. This trend underscores a broader shift toward localized production, eco-friendly innovation, and scale-up of advanced HVAC (Heating, Ventilation, and Air Conditioning) components. Blue Star Ltd. has announced a substantial investment of ~US$ 48 million for the fiscal year 2025-2026 to expand its manufacturing capacity. This investment will span across room air conditioners, commercial refrigeration, and commercial air conditioning segments. By increasing its production capabilities, Blue Star is positioning itself to address rising domestic and global demand while enhancing its competitive edge in a market that increasingly values operational scale, innovation, and sustainability. Mitsubishi Electric Corporation is setting a precedent in high-efficiency HVAC technology by allocating a significant investment of US$ 143.5 million to retrofit its factory in Maysville, Kentucky, USA. Currently engaged in the production of automotive electrical equipment, this facility will be transformed to manufacture advanced variable-speed compressors-a core component in energy-efficient heat pumps. Production is slated to begin in October 2027, with an anticipated annual capacity of 1 million compressors. This reinforces Mitsubishi's commitment to low-greenhouse-gas solutions and highlights a future-focused strategy of integrating cutting-edge technology into HVAC components to meet growing environmental and regulatory expectations in the US and beyond. The emphasis on regional production hubs, energy-efficient components, and green technologies illustrates a proactive shift toward a future-ready HVAC industry prepared to meet both the challenges of climate change and the expectations of modern consumers.
On the contrary, volatile raw material prices and supply chain issues hamper the growth of the North America room AC market.
By product type, the North America room AC market is bifurcated into split AC, window AC, and portable AC. The split AC held 68.0% share of North America room AC market share in 2024, amassing US$ 5,786.31 million. It is projected to garner US$ 8,264.58 million by 2031 to register 5.3% CAGR during 2025-2031.
By technology, the North America room AC market is bifurcated into inverter technology and non-inverter technology. The inverter technology held 76.6% share of North America room AC market share in 2024, amassing US$ 6,517.89 million. It is projected to garner US$ 9,391.34 million by 2031 to register 5.4% CAGR during 2025-2031.
By end users, the North America room AC market is divided into residential and commercial. The residential held 69.6% share of North America room AC market share in 2024, amassing US$ 5,923.08 million. It is projected to garner US$ 8,436.17 million by 2031 to register 5.3% CAGR during 2025-2031.
Based on country, the North America room AC market is categorized into the US, Canada, Mexico. Our regional analysis states that the US captured 73.3% share of North America room AC market in 2024. It was assessed at US$ 6,234.61 million in 2024 and is likely to hit US$ 8,601.28 million by 2031, registering a CAGR of 4.8% during 2025-2031.
Key players operating in the room AC market are Blue Star Ltd, Carrier Global Corp, Daikin Industries Ltd, Johnson Controls - Hitachi Air Conditioning Company, LG Electronics Inc, Mitsubishi Electric Corp, Panasonic Holdings Corp, Samsung Electronics Co ltd, Voltas Ltd, Whirlpool Corp, and among others.
- In April 2024, Carrier Global Corporation announced that its venture group, Carrier Ventures, is leading an investment and technology partnership with Strategic Thermal Labs ("STL"). Through this investment, Carrier will leverage STL's groundbreaking technology for a liquid cooling solution for data centers. The liquid cooling market is expected to approach $3 - 5B by 2028, driven by greenfield AI data center builds that will bring significantly higher rack power densities.
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