Solar Air Conditioning System Market

The solar air conditioning market is projected to reach USD 5.02 billion by 2035, growing at a 15.5% CAGR amid global renewable energy adoption.

NEWARK, DE, UNITED STATES, November 11, 2025 /EINPresswire.com/ -- The global Solar Air Conditioning System Market is entering a transformative decade, witnessing a surge in renewable energy adoption across residential, commercial, and industrial sectors. Valued at USD 588 million in 2020, the market achieved USD 1,188 million by 2025 and is projected to reach USD 5,019.5 million by 2035, expanding at a CAGR of 15.5%. This exponential growth highlights the increasing preference for clean and cost-efficient cooling solutions worldwide.

Harnessing Solar Power for Sustainable Cooling

Solar air conditioners are designed to reduce dependency on electricity grids by utilizing solar energy, either through standalone (off-grid) or hybrid systems. Beyond cooling efficiency, these systems contribute significantly to reducing carbon emissions and promoting sustainability. With rising temperatures and frequent heatwaves, solar air conditioners offer a reliable and energy-efficient alternative, especially in regions where electricity is expensive or unstable.

Among installation types, the split solar air conditioner is the most preferred, thanks to its superior cooling performance and multi-zone capabilities. It is suitable for both residential and commercial use, combining style, efficiency, and versatility.

Rising Energy Costs Driving Market Expansion

The rapid escalation of global energy costs is a major catalyst for the solar air conditioning market. Consumers and businesses are increasingly seeking alternatives that lower energy bills while maintaining consistent performance. Countries such as India, Australia, and Saudi Arabia, where cooling is essential, are witnessing a sharp rise in demand for solar-based air conditioning systems.

Governments are encouraging this shift by offering incentives, tax credits, and subsidies for solar energy adoption. Businesses, in particular, are investing heavily in hybrid solar air conditioners to cut operational expenses and reduce carbon footprints.

Growth Opportunities in Hot and Sunny Regions

Regions with abundant sunlight, including Asia-Pacific, the Middle East, and Africa, are emerging as strong markets for solar cooling systems. These regions face high energy costs and frequent grid outages, making solar air conditioners a practical and sustainable choice. The systems are proving invaluable in rural and off-grid areas, ensuring comfort in schools, healthcare centers, and small businesses.

Government initiatives such as Saudi Arabia’s Vision 2030 are accelerating the shift toward renewable cooling technologies. The country aims to derive 50% of its energy from renewable sources by 2030, with solar energy playing a pivotal role.

Technological Advancements and Manufacturing Strength

China remains the global hub for solar manufacturing, accounting for over 70% of photovoltaic panel production, which has drastically reduced solar system costs. Continuous innovation in integrated battery systems and high-efficiency panels has enabled manufacturers to produce affordable, high-performance solar air conditioners.

Leading manufacturers such as Haier, Deye, Aussie Solar World, and Changzhou Recreate are expanding globally, partnering with distributors and investing in R&D to develop next-generation solar cooling solutions. New entrants and regional players, including Exalta India, Solar ACDC, and Nexus Solar Energy, are leveraging innovation and affordability to strengthen their market positions.

Market Segmentation and Product Insights

Hybrid solar air conditioners, accounting for 55% of the market in 2024, dominate due to their ability to switch between solar power and the grid. Meanwhile, photovoltaic (PV) solar air conditioners hold a 60% market share, offering scalability and compatibility with existing infrastructures. These advancements make solar air conditioning systems accessible to a broader range of users across both developed and developing nations.

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Industrial Collaborations Fueling Growth

Industry collaborations are reshaping the market landscape. In April 2024, Menlo Electric partnered with Deye to expand solar solutions in the Middle East and Africa. Similarly, in January 2024, Deye joined hands with Solarity in Europe to strengthen sustainable energy initiatives. These partnerships underscore the growing synergy between technology providers and distributors in promoting solar-powered solutions globally.

Outlook: A Sustainable Cooling Revolution Ahead

Between 2025 and 2035, the solar air conditioning market is expected to grow over fourfold, driven by climate change, rising electricity costs, and government-backed clean energy programs. As established companies scale up production and emerging manufacturers introduce new technologies, the industry stands poised to redefine global cooling with sustainable, affordable, and innovative solar solutions.

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