The global solar air conditioning market is estimated to be valued at US$ 2.52 billion in 2024, with air conditioning being an energy intensive process that traditionally relies on fossil fuel-generated electricity. Solar air conditioners utilize photovoltaic panels and other solar technologies to power conventional vapor-compression or absorption refrigeration cycles, offering a more sustainable alternative to traditional air conditioners. With growing awareness about climate change and increasing attempts to reduce carbon footprint, solar air conditioning systems that do not emit greenhouse gases are gaining traction. The use of solar energy also lowers electricity costs as householders can offset their consumption using solar-generated power. Their installation is especially beneficial in regions with abundant sunshine, reducing dependence on electricity grids. The global solar air conditioning Market is estimated to be valued at US$ 2.52 Bn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rapidly growing adoption of renewable energy sources coupled with supportive government policies and initiatives is a major driver propelling the solar air conditioning market forward. Many countries offer incentives such as tax credits and rebates to encourage households to install solar panels. For example, the US residential solar tax credit provides a 26% tax credit for systems installed by the end of 2022. Additionally, solar power purchase agreements allow consumers to install solar with no upfront costs by paying a set price per kWh of electricity used. These financing options make solar air conditioning more accessible and bring down long term ownership costs. Furthermore, increasing public awareness about climate change is driving demand for more eco-friendly alternatives to traditionally powered appliances such as air conditioners. As concerns around global warming escalate, consumers are increasingly gravitating towards sustainable products and solutions for energy-intensive household appliances.
Segment Analysis
The global solar air conditioning market is dominated by the commercial segment which accounts for over 55% of the market share. The segment is growing at a faster pace compared to the residential segment due to increasing adoption of solar AC systems in offices, hospitals, hotels and other commercial establishments to reduce energy costs. Within the commercial segment, the healthcare sub-segment holds the largest share owing to large area coverage of healthcare facilities which makes solar AC systems highly viable for them.
PEST Analysis
Political: Favorable government policies and subsidies provided in countries like India, Australia and Middle Eastern nations for adoption of renewable energy technology is boosting the growth of solar AC systems.
Economic: Rising electricity costs and need for reducing operating expenses is encouraging commercial establishments to switch to solar AC systems. The initial installation cost is high but provides long term savings.
Social: Increasing environmental awareness among public and private organizations is driving their preference for clean and renewable energy sources for space cooling.
Technological: Advancements in solar panel efficiencies and development of highly efficient VRV/VRF systems powered by solar are expected to further augment the demand. New technologies are also making solar AC economically viable for residential sector.
Key Takeaways
The Global Solar Air Conditioning Market Size is expected to witness high growth over the forecast period. The commercial solar air conditioning segment currently dominates the market and is expected to continue its strong growth led by the healthcare sub-segment.
Regional analysis: The Asia Pacific region accounts for around 45% of the global solar AC market led by rising adoption in India, China, Australia and other South Asian countries. Governments in the region are providing attractive incentives for renewable energy projects which is fueling market growth.
Key players operating in the solar air conditioning market are REVITA, Ivtherapygreece, IV Boost UK, Harpal Clinic Limited, IV Drips London, VITAMIN INJECTIONS LONDON, Cryojuvenate UK Ltd., Italy Health Retreats, Séchoir, ELIXIR, Swiss Medical Centre, Drip Hydration, REVIV, VITANOVAS, and The IV Doc Inc. Key players are focusing on product innovation and expansion into growing regional markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
