Air Coolers Market Analysis Report By Type, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global air coolers market size was accounted for USD 1.2 billion in 2018. It is projected to expand with 10.8% CAGR during the forecast period, 2019 to 2025. Rising consumer awareness regarding climate changes, high consumption of electricity, and co2 emission are the key driving factors. Moreover, air coolers don’t emit any harmful gases and are eco-friendly. These products provide various advantages such as cost-effectiveness, portability, low power consumption, and easy installation process, which, in turn, is projected to boost the market growth during the forecast period, 2019 to 2025. However, increasing adoption of air conditioners in developed countries like the U.S. Canada, and France is anticipated to hamper the product demand in the forthcoming years.

Growing product awareness among consumers and technological advancement are anticipated to fuel the product demand over the forecast period. Air coolers work on the evaporative cooling principle, which is a simple air-moving concept that extracts fresh air from the outside with the help of wet cooling pads. This makes the air coolers convenient and user-friendly, thereby, leading to higher adoption.

Traditional air coolers are bigger in size and occupy large space in the houses. Therefore, manufacturers are focusing on increasing their investment in R&D for product innovation and developing smaller, streamlined, and trendy designed air coolers. Moreover, manufacturers are making sure it to be efficient enough for large rooms, and an external environment like a balcony. Additionally, low maintenance costs, easy installation processes, and high availability of products at cheap prices are expected to augment the market in the next few years. Moreover, air coolers are 80%-85% cheaper than air conditioners, thus, providing an affordable solution for middle-income group consumers.

Technological advancement and product innovations are projected to create huge growth opportunities for the market in the forthcoming years. Furthermore, manufacturers are offering a wide range of products with advanced features such as multistage air purification, high-efficiency cooling pads, anti-bacterial tank, and touch digital control panel. These types of advanced features are projected to boost the market growth during the forecast period, 2019 to 2025.

Type Insights

The air cooler market by type has been segmented into the tower, dessert, and others. The tower segment accounted for the largest market share, in 2018 and is projected to grow with a CAGR of 11.7% during the forecast period, 2019 to 2025. Rising demand for compact, stylish, and portable air coolers are expected to fuel the demand for tower air coolers in the forthcoming years. Tower coolers occupy less space and are available in different designs. For instance, 5 to 10 liters water capacity coolers are designed for small rooms, whereas more than 30 liters water capacity coolers are usually designed for large spaces. Additionally, it requires less installation cost, maintenance, and operation cost as compared to AC. Moreover, it is available in different forms such as bottom and top loading. These coolers are environmentally friendly, consume less power, and can be used with the inverters in case of a power cut, owing to their less power consumption features.

The dessert segment is anticipated to see substantial growth over the forecast period, 2019 to 2025. Dessert cooler occupied the second-largest market share, in 2018. This high revenue share can be attributed to its high cooling capacity and large size. These coolers have high adoption in developing nations like India, Bangladesh, and Brazil. Additionally, with technological advancement, products are becoming more compact and sleek in designs, which is drawing the attention of the customers and encouraging them to buy the product. Furthermore, other segments are also anticipated to see significant growth, during the forecast period, 2019 to 2025. The other segment consists of windows, mini portable, and personal air coolers. These coolers are smaller in size and portable in nature, due to which they are highly demanded personal use. Additionally, it is equipped with advanced technologies like the Internet of things (IoT), with the help of which consumers can remotely control the settings of Air coolers through a smartphone app. This is projected to create a huge opportunity for the market in the forthcoming years.

Application Insights

The application segment has been bifurcated into residential and commercial. The residential segment held the largest market share in 2018 and is also anticipated to register the fastest growth over the forecast period, 2019 to 2025. Rising temperature, disposable income of the middle-class consumers, and rapid urbanization are anticipated to drive the market growth in the next few years. Additionally, an increasing number of distribution channels, product awareness, and availability is increasing in developing nations like India, Indonesia, Brazil, and China. This is projected to create a huge demand for the segment in the next few years.

The commercial segment is anticipated to see significant growth from 2019 to 2025, owing to rising demand for technologically advanced air coolers in commercial open spaces like bars, restaurants, and cafes. Additionally, with the growing use of air conditioners, there has been an increase in global warming, due to which consumers are shifting towards small, compact, and sleek air coolers. Furthermore, air conditioners consume high power, which increases the organization electricity bill, as well as operational cost. This is projected to propel the segment growth in the forthcoming years.

Regional Insights

The Middle East and Africa market are projected to see substantial growth from 2019 to 2025, owing to the dry & hot climate in the region. Central and South America are anticipated to see significant growth over the forecast period, due to the steppe climate and the strong presence of established players like Symphony limited. Additionally, the wide products availability and continuous product innovation are projected to propel regional growth in the forthcoming years.

Asia Pacific market held the largest market share in 2018 and is expected to see significant growth during the forecast duration, 2019 to 2025, owing to rising temperature and significant climate change across the region. Additionally, rapid urbanization, technological advancement, and a growing number of distribution channels will increase product availability. This is anticipated to fuel the market demand in the coming years. Furthermore, the strong presence of domestic players coupled with high product demand and an increasing number of international players are expected to augment the market growth in forthcoming years. India is one the largest market in the region, due to the high adoption of dessert and tower coolers, the huge presence of middle-class consumers, and the rising number of domestic manufacturers.

COVID-19 Impact Insights

The air cooler market has been negatively impacted by the COVID-19 outbreak, owing to the lockdown imposed by the government across the globe. The Asia Pacific has high adoption of coolers, especially in India and China. Moreover, over the last few months, the sales of coolers have declined significantly, as a result, impeding the market growth. For instance, the profit of Symphony Ltd, the leading player in the market, has declined by 93.33% for the quarter ended in June 2020. However, with the rising temperatures, the growing demand for branded air coolers is expected to create immense growth opportunities for the market in the forthcoming years. Moreover, these coolers are equipped with advanced features such as the internet of things (IoT), intelligent remote, and multistage air purification. For example, as per the PTI, Pradeep Bakshi (Voltas MD & CEO) has argued that they are expecting higher traction, as compared to the last years, owing to strong summer and shifting preference of consumers from local air coolers to the branded air coolers. With the systematic opening of the economy following the COVID-19 outbreak, companies are anticipated to increase their production.

Air Coolers Market Share Insights

Key companies in the market are Bajaj Electricals Limited; Honeywell International.; Luma Comfort; Havels India Limited; De’Longhi Appliances S.r.l; Symphony Limited and others. These companies have implemented several competitive strategies such as merger & acquisition, product & technological advances, and capacity expansion, which are expected to help them in capturing the larger market share. For instance, Symphony Limited has made an acquisition of Munters Keruilai Air Treatment Equipment Co., Ltd. for expanding its product reach in the Chinese market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global air coolers market report based on type, application, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Tower
    • Dessert
    • Others

• Application Outlook (Revenue, USD Million, 2015 - 2025)
    • Residential
    • Commercial

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S
    • Europe
        • U.K.
        • Germany
    • The Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa
        • Nigeria