Solar Air Conditioning Market Size, Share, Growth, and Industry Analysis, By Type (Split Solar Air Conditioner, Cassette Solar Air Conditioner, Window Solar Air Conditioner, Floor Standing Solar Air Conditioner), By Application (Residential Building, Commercial Building, Industrial Building), Regional Insights and Forecast From 2025 To 2035

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SOLAR AIR CONDITIONING MARKET OVERVIEW

The global solar air conditioning market was valued at USD 0.57 billion in 2025 and is expected to grow to USD 0.59 billion in 2026, reaching USD 0.75 billion by 2035, with a projected CAGR of 2.5% from 2025 to 2035.

Solar air conditioning refers to a type of air conditioning system that utilizes solar energy to power its operation, thereby reducing the reliance on traditional electricity sources and minimizing its environmental impact. In some cases, solar energy can be used to power fans and ventilation systems that help cool indoor spaces by exchanging hot indoor air with cooler outdoor air.

Key factors influencing the solar air conditioning market include advancements in solar panel technology, energy storage solutions, government incentives or subsidies for renewable energy adoption, and growing awareness of climate change and sustainable energy practices.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Hampered the Demand for Market

The global COVID-19 pandemic has been unprecedented and staggering, with solar air conditioning market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Like many industries, the solar air conditioning industry likely experienced disruptions in its supply chain due to lockdowns, travel restrictions, and factory closures in various parts of the world. This could have led to delays in manufacturing, shipping, and installation of solar air conditioner systems. Many construction and infrastructure projects, including solar air conditioner installations, were put on hold or delayed due to the pandemic. This was primarily because of restrictions on movement, labor shortages, and economic uncertainty.  Economic challenges and uncertainty caused by the pandemic might have led to reduced consumer spending on non-essential items, including air conditioning systems. People might have postponed or canceled purchases due to financial constraints. Government priorities and policies might have shifted as a response to the pandemic. Funding or incentives for renewable energy projects, including solar conditioning, could have been impacted as governments redirected resources to address immediate public health and economic concerns. With many people working from home due to lockdowns and safety measures, the demand for office and commercial spaces may have decreased. This could have indirectly affected the demand for commercial solar air conditioner solutions.

LATEST TRENDS

Growing Interest in Sustainable Solutions to Fuel Market Growth

With increasing awareness of environmental concerns and the need to reduce carbon emissions, there has been a growing interest in sustainable and eco-friendly solutions. Solar air conditioning systems align with this trend by utilizing renewable energy to power cooling systems. The solar air conditioner sector has witnessed advancements in technology, including improvements in solar panel efficiency, energy storage solutions, and the integration of smart technologies. These advancements have led to more efficient and reliable air conditioning systems. The integration of energy storage solutions, such as batteries, with solar air conditioner systems has become more common. This enables the storage of excess solar energy generated during the day for use during nighttime or cloudy periods, improving the overall reliability of the system.  Hybrid solar air conditioner systems that combine solar energy with other energy sources, such as grid electricity or natural gas, have gained attention. These systems provide flexibility in energy sourcing, allowing for consistent cooling even when solar energy generation is low.

• According to the U.S. Department of Energy (DOE), the adoption of solar-powered air conditioning systems increased by 25% from 2020 to 2023, driven by the demand for renewable energy solutions.

• The International Renewable Energy Agency (IRENA) reports that off-grid solar air conditioning systems grew by 30% in remote regions between 2021 and 2023, providing cost-effective cooling where grid power is limited.

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SOLAR AIR CONDITIONING MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Split Solar Air Conditioner, Cassette Solar Air Conditioner, Window Solar Air Conditioner, Floor Standing Solar Air Conditioner.

By Application

Based on application, the market can be divided into Residential Building, Commercial Building, Industrial Building.

DRIVING FACTOR

Energy Efficiency and Cost Savings to Drive Market Growth

Solar air conditioning systems utilize renewable energy from the sun, reducing reliance on grid electricity. This leads to significant energy savings and reduced utility bills, especially in regions with high cooling demands and ample sunlight. As awareness of climate change and environmental issues grows, there is an increasing demand for eco-friendly cooling solutions. Solar air conditioner systems produce fewer greenhouse gas emissions compared to traditional air conditioning systems powered by fossil fuels. Many governments around the world offer incentives such as tax credits, rebates, and grants to encourage the adoption of solar technology, including solar air conditioner. These incentives can help offset the initial installation costs and make solar air conditioner more attractive to consumers and businesses.

Growing Need for Solar Panel Technology to Boost Market Growth

Advances in solar panel technology and air conditioning systems have improved the efficiency and affordability of solar air conditioner units. More efficient solar panels, better energy storage solutions, and improved air conditioning technologies have all contributed to the market's growth. Solar air conditioner can be particularly useful in off-grid or remote areas where traditional electricity supply might be limited or expensive to access. It provides a self-sufficient cooling solution in such locations. Commercial and industrial buildings often have high cooling demands due to their size and operational requirements. Solar air conditioner can offer these sectors an opportunity to reduce operating costs and environmental impact. All these factors are driving solar air conditioning market growth.

• The U.S. Energy Information Administration (EIA) states that residential and commercial energy costs increased by 18% from 2021 to 2023, driving the need for energy-efficient cooling like solar air conditioning.

• The U.S. Environmental Protection Agency (EPA) reports a 20% increase in solar air conditioning installations in 2022 due to government rebates and tax credits promoting renewable energy adoption.

RESTRAINNG FACTORS

High Cost to Restrict Market Growth

Solar air conditioning systems typically require higher upfront costs compared to conventional air conditioning systems. The cost of solar panels, energy storage systems, and specialized equipment can be a significant barrier for adoption, deterring some consumers or businesses from investing in these systems.

• The U.S. Department of Housing and Urban Development (HUD) notes that solar air conditioning systems cost 30% more upfront than traditional units, limiting adoption among price-sensitive consumers.

• The International Energy Agency (IEA) reports that 18% of consumers face challenges with the technical complexity and maintenance of solar air conditioning systems, slowing their adoption.

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SOLAR AIR CONDITIONING MARKET REGIONAL INSIGHTS

Asia-Pacific Anticipated to Drive Market Expansion

Asia-Pacific holds leading position in solar air conditioning market share. Countries like China, India, and Australia were prominent players in the air conditioning market due to their abundant solar resources and large populations. These countries were investing in solar technology and sustainable cooling solutions to meet the cooling needs of their rapidly growing urban populations.

KEY INDUSTRY PLAYERS

Adoption Innovative Strategies by Key Players Influencing Market Growth

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.

The top key players in the market are Lennox, Aussie Solar World, ICESolair, Videocon, HotSpot Energy, Solair World International, Gree, Midea, Haier. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.

• Lennox: According to ASHRAE, Lennox has installed solar air conditioning systems in over 1,000 commercial and residential properties in North America, focusing on energy-efficient cooling solutions.

• Aussie Solar World: The Clean Energy Council of Australia (CEC) reports that Aussie Solar World installed over 500 solar air conditioning units in Australia in 2023, offering sustainable off-grid cooling solutions.

List of Top Solar Air Conditioning Companies

• Lennox
• Aussie Solar World
• ICESolair
• Videocon
• HotSpot Energy
• Solair World International
• Gree
• Midea
• Haier

REPORT COVERAGE

This report examines an understanding of the solar air conditioning market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.