South Korea Air Conditioner (AC) Market Overview, 2028

South Korea is a highly urbanized country with a greater per capita income, and its technologically adept population likes to employ cutting-edge technology. South Korea's air conditioner market is expanding year after year, owing to a growing middle-class population and an increase in the number of houses, buildings, and other structures. In order to minimize greenhouse gas emissions and prevent climate change, the South Korean government has promoted energy-saving and environmentally friendly technologies in a variety of sectors, including the air conditioning business. Furthermore, in response to the government's initiatives, South Korean air conditioner makers have been incorporating modern technology and novel features into their products in order to make them more energy-efficient and ecologically friendly. Some companies, for instance, employ inverter technology, which changes the compressor speed to match the cooling needs of the space, resulting in decreased energy usage and cheaper electricity bills. Furthermore, there is a growing need for smart air conditioning systems that can be managed remotely via mobile devices. As a result of this trend, IoT-enabled air conditioning systems that can be combined with smart home systems to deliver more tailored and effective cooling solutions have been developed. South Korea places a strong emphasis on energy efficiency in air conditioning systems. Inverter technology is widely adopted, allowing air conditioners to adjust their compressor speed based on cooling needs, resulting in lower energy consumption and cost savings. Improved indoor air quality is a growing concern in South Korea. Air conditioners equipped with advanced air purification and filtration technologies are in demand to address these concerns, particularly in urban areas with air pollution issues.

According to the research report "South Korea Air Conditioner (AC) Market Overview, 2028," published by Bonafide Research, the South Korea Air Conditioner (AC) market is expected to grow at 6.47% CAGR from 2023 to 2028. Multi-split air conditioning systems are becoming increasingly popular, particularly in home and commercial applications. Individual temperature control in various rooms or zones is possible with these systems, boosting comfort and energy economy. South Korean customers place a premium on the aesthetics of their household appliances. Air conditioners with sleek and sophisticated designs that match interior decor are in high demand. Government rebates and incentives for energy-efficient and environmentally friendly air conditioning systems encourage consumers to pick environmentally responsible solutions. The booming commercial and hospitality industries in South Korea are increasing demand for commercial-grade air conditioning solutions such as VRF (variable refrigerant flow) systems and ducted units. Older buildings and households are frequently modified with new air conditioning systems to improve energy efficiency and comfort. This opens up chances for the installation of modern HVAC technologies. South Korean consumers are interested in hybrid air conditioning systems that mix traditional compressor-driven cooling with evaporative cooling methods. Evaporative cooling is energy-efficient and well-suited to South Korea's dry and hot summers. Noise reduction is an important factor in South Korean houses. Manufacturers are concentrating on reducing the noise levels of air conditioning equipment, particularly interior ones, to provide a quieter and more comfortable living environment. Ductless mini-split and multi-split systems continue to gain popularity, particularly in apartments and homes where the installation of ductwork is impractical. These systems offer zoning capabilities and energy efficiency.

Based on product type market is majorly divided into window AC, portable AC, ductless multi split AC, packaged AC, floor mounted AC, central AC, variable refrigerant AC and others. In light of the cramped living conditions in South Korea, homes and apartments sometimes have little wall space. Floor-mounted AC units are created to be positioned close to or on the floor, enabling effective use of available space without necessitating wall-mounted installations. The sleek, unobtrusive form of floor-mounted units complements contemporary home design. Their discrete design reduces visual clutter and harmonizes with different room layouts. Users can adjust the airflow patterns of floor-mounted units to direct conditioned air either vertically or horizontally, depending on their needs. This adaptability guarantees that chilly or warm air is distributed evenly throughout the space. Based on end user market include residential, commercial and industrial. A large section of the population of South Korea lives in metropolitan regions where apartment living is prevalent and where there is a high population density. There is a greater demand for residential units as a result of the frequent need for customized air conditioning systems in apartments. The majority of households in South Korea reside in multi-unit buildings like flats or condominiums. These units often need separate heating and cooling systems, necessitating the use of air conditioners. Residential clients appreciate having the option to personalize their indoor atmosphere. Individual temperature control offered by air conditioners increases household members' comfort.

Based on tonnage market is segmented into upto 2 ton, 2 ton to 5 ton, 5 ton to 10 ton, and more than 10 ton. ACs upto 2 ton are commonly preferred in South Korea. Smaller air conditioners are often more energy-efficient when matched to the cooling needs of typical South Korean living spaces. They can reach desired temperatures quickly and cycle on and off as needed, reducing overall energy consumption. South Korea's climate includes both cold winters and hot summers. Smaller capacity air conditioners are more versatile and can be used for both cooling and heating, making them a practical choice for year-round climate control. A significant portion of South Korea's population lives in apartments, which often have smaller rooms. Air conditioners with capacities up to 2 tons are well-suited for cooling individual rooms within apartment units. Based on technology market include invertor ACs and non-invertor ACs. Invertor is expected to lead the market of South Korea and is expected to grow at fastest rate as well. Based on distribution channel market is divided into multi brand stores, exclusive stores, online and others. Online channel is predicted to grow at fastest rate in South Korea owing to increased internet penetration and ease of online shopping are creating significant demand for Air conditioner in South Korea through online channel.

Considered in this report:
• Geography: South Korea
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• South Korea Air Conditioner (AC) market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type:
• Window AC
• Portable AC
• Ductless Multi Split AC
• Packaged AC
• Floor Mounted AC
• Central AC
• Variable Refrigerant AC
• Others

By End User:
• Residential
• Commercial
• Industrial

By Tonnage:
• Up to 2 Ton
• 2 Ton to 5 Ton
• 5 Ton to 10 Ton
• More Than 10 Ton

By Technology:
• Inverter ACs
• Non-Inverter ACs

By Distribution Channel:
• Multi-brand Stores
• Exclusive Stores
• Online
• Other Channels

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Air Conditioner (AC) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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