Report

The United Kingdom air conditioner market was valued at USD 1.25 Billion in 2024. The industry is expected to grow at a CAGR of 6.30% during the forecast period of 2025-2034 to attain a valuation of USD 2.30 Billion by 2034.

United Kingdom Air Conditioner Market Growth

In the United Kingdom, air conditioners offer several advantages: they ensure precise climate control, providing comfort during hot weather and heatwaves. They enhance indoor air quality by filtering pollutants and allergens.

In the United Kingdom air conditioner market dynamics and trends are driven by productivity in offices and schools by creating a comfortable environment. They also promote better sleep with controlled temperatures and are energy-efficient, helping to manage energy use and cut costs. Moreover, they regulate indoor humidity, which reduces mould growth and boosts overall comfort.

ANNUAL MEAN TEMPERATURE UK (DEGREE CELSIUS)

United Kingdom Air Conditioner Market Analysis

The United Kingdom air conditioner market demand is driven by rising temperature levels in the country. Moreover MCE trade show, a leading global event for the HVACR sector, provides a platform for companies to display their latest technologies. Major players like Haier and LG showcased their innovations, with LG presenting the DUALCOOL residential air conditioner indoor unit.

In tandem with these technological advancements are environmental considerations. According to the UK Government, the country's annual mean temperature reached a record high of 10.03 degrees Celsius, potentially influencing the growth of the United Kingdom air conditioner industry.

United Kingdom Air Conditioner Industry Outlook

As per United Kingdom Government, in the financial year ending March 2022, the United Kingdom completed 204,530 dwellings, with the largest number in England at 171,190, followed by Scotland with 20,770, Northern Ireland at 7,300, and Wales with 5,270. The quarterly figures for Q1 2024 show that new build dwelling starts in England reached 22,310, reflecting an 11% increase compared to Q4 2023. This indicates a rebound from the previous quarter, though the starts are still 67% below the Q2 2023 peak and 34% above the Q2 2020 trough. The number of new build dwelling completions in England for Q1 2024 was 34,630, seasonally adjusted, marking a 12% decrease from both Q4 2023 and Q1 2023. Despite these decreases, completions were 115% above the 2020 Q2 trough and 29% below the Q1 2021 peak.

These trends demonstrate a fluctuating but generally positive momentum in the UK's housing market, driven by ongoing construction efforts and economic conditions. The significant number of completions in 2022 and the seasonal adjustments in 2024 highlight the market's resilience and the influence of regulatory and economic factors on housing activity. The steady rise in new housing starts from Q4 2023 to Q1 2024 underscores the sector's growth and recovery potential, boosting the United Kingdom air conditioner market revenue, as modern homes increasingly feature advanced HVAC systems to improve comfort and energy efficiency, this trend addresses rising temperatures and evolving climate conditions.

Furthermore, rising urbanisation in the UK is boosting the United Kingdom air conditioner industry revenue as, urban areas experienced slightly higher growth, reaching an index of around 106.5, reflecting consistent urbanization trends. Rural areas, while growing at a slower rate, still saw a notable increase, with the index rising to about 103.5 by 2019. The overall population growth in England highlights the ongoing demographic shifts, with urban areas leading the growth trajectory. This trend highlights the increasing concentration of populations in urban centres, driven by factors such as better economic opportunities and enhanced living standards.

High focus on advanced features like energy efficiency, smart controls, and air purification drives growth of the United Kingdom air conditioner industry.

- Rising temperatures and frequent heatwaves boost the need for air conditioning solutions.
- The presence of leading global brands like LG and Haier enhances market credibility and consumer trust.

The upfront investment for high-quality air conditioners can be substantial, potentially limiting consumer access.

- Regular maintenance is necessary to ensure optimal performance, which can be a deterrent for some buyers.
- Despite improvements, air conditioners can still lead to higher electricity bills and environmental concerns.

Growing interest in eco-friendly and energy-efficient models presents opportunities for the United Kingdom air conditioner market.

- Innovations in smart technology and IoT integration can attract tech-savvy consumers.
- Potential for support through government rebates and incentives for energy-efficient appliances.

New regulations and standards on energy efficiency and environmental impact could affect market dynamics.

- Economic downturns can reduce consumer spending on non-essential home improvements.
- Intense competition from international and local brands can lead to price wars and reduced profit margins.

Key Players in the United Kingdom Air Conditioner Market and their Key Initiatives

AB Electrolux

- Focused on energy-efficient air conditioners to cater to eco-conscious UK consumers.
- Integrated smart technology in air conditioners to meet the growing demand of the United Kingdom air conditioner market.

Daikin Industries, Ltd.

- Exanded its product range with energy-efficient air conditioners.
- Invested in smart technology to enhance user control.

Haier Group Corp.

- Focused on energy-efficient air conditioners to capture the United Kingdom air conditioner market opportunities.
- Expanded smart home ecosystem by integrating advanced AI technology.

LG Corporation

- Launched energy-efficient air conditioners with advanced inverter technology.
- Focused on smart home integration, offering air conditioners with IoT capabilities.

United Kingdom Air Conditioner Industry Segmentation

"United Kingdom Air Conditioner Market Report and Forecast 2025-2034" offers a detailed analysis of the market based on the following segments:

Market Breakup by Type:

- Window AC
- Central AC
- Mini Split AC
- Others

Market Breakup by Size:

- <12K BTU
- 12K-36K BTU
- 36K-60K BTU
- 60K+ BTU

Market Breakup by End Use:

- Commercial
- Residential

Market Breakup by Distribution Channel:

- Hypermarkets/Supermarkets
- Specialty Stores
- Online Channels
- Others

Market Breakup by Region:

- England
- Wales
- Scotland
- Northern Ireland

United Kingdom Air Conditioner Market Share

In the United Kingdom air conditioner market, central air conditioners are popular for cooling entire buildings and are commonly used in large commercial structures. They ensure consistent temperatures across multiple rooms or floors. Conversely, window air conditioners are used for cooling individual rooms and are installed in windows or through-wall openings, with the compressor and condenser placed outdoors.

The United Kingdom air conditioner industry revenue is driven by both commercial and residential needs. Commercial air conditioning supports offices, retail stores, and hotels by maintaining comfortable environments for employees and guests, while residential systems offer relief from extreme temperatures and enhance indoor comfort.

Leading Companies in the United Kingdom Air Conditioner Market

The companies specialise in innovative HVAC solutions, providing advanced heating, ventilation, and air conditioning systems.

- Carrier Global Corporation
- Hughes Group
- LG Corporation
- AB Electrolux
- Daikin Industries, Ltd.
- Haier Group Corp.
- Samsung Electronics Co. Ltd.
- Panasonic Holdings Corporation
- Johnson Controls International Plc
- Mitsubishi Electric Corp.