Africa Air Conditioner Market Set to Reach USD 12.23 Billion by 2033

According to Renub Research Latest Report Africa air conditioner market is projected to grow from USD 7.67 billion in 2024 to USD 12.23 billion by 2033, at a CAGR of 5.32%. This steady growth is fueled by increasing urbanization, rising disposable incomes, climate change, and expansion of commercial and residential infrastructure. Across the continent, air conditioners are evolving from luxury items into essential equipment for comfort, productivity, and public health, making them a critical part of Africa’s modern living and business landscapes.

Africa Air Conditioners Market Overview

Air conditioners (ACs) are designed to regulate temperature, humidity, and indoor air quality, creating comfortable and safe environments for homes, offices, and industrial spaces. By removing heat and moisture and supplying cooler, drier air, ACs play a vital role in regions with hot and humid climates.

In Africa, air conditioners are more than just comfort appliances—they improve living conditions, boost worker productivity, and support healthcare environments. In the hospitality sector, ACs are key to providing luxurious guest experiences, which is essential in a continent witnessing a boom in tourism. With the continent’s infrastructure and urban landscapes expanding rapidly, demand is increasingly shifting toward energy-efficient and sustainable cooling solutions.

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Key Growth Drivers

Rising Urbanization and Infrastructure Development

Rapid urbanization across Africa is creating significant demand for air conditioners. Urban populations are expected to double by 2050, with the proportion of Africans living in cities projected to rise from 36% in 2010 to 50% in 2030 and 60% by 2050. Cities are becoming economic hubs, with office buildings, residential complexes, shopping centers, and commercial establishments requiring effective cooling solutions.

Government initiatives, such as smart city projects, housing developments, and regional infrastructure upgrades, are further driving market growth. A growing middle class with higher disposable incomes is also contributing to the increasing adoption of ACs in residential and commercial settings. The Harmonized Regional Framework for Implementing the New Urban Agenda in Africa, authored by the African Union Commission, UN-Habitat, and UNECA, emphasizes sustainable urban development, indirectly promoting the use of modern cooling solutions.

Increasing Temperatures and Climate Change

Africa is experiencing rising average temperatures and more frequent heatwaves. Since the pre-industrial period, Africa’s temperatures have increased by 1.4°C, higher than the global average of 1.1°C. These rising temperatures, coupled with prolonged heat periods, are driving demand for cooling appliances in homes, offices, and public spaces.

Regions like North Africa and Sub-Saharan Africa are particularly affected, creating an urgent need for climate-controlled environments in workplaces, schools, and healthcare facilities. Awareness of health risks associated with extreme heat is also motivating consumers to invest in ACs, not just for comfort but for safety and productivity.

Tourism and Hospitality Growth

Tourism continues to be a major growth driver for air conditioners in Africa. Countries such as Egypt, South Africa, Kenya, and Morocco attract millions of visitors annually, creating demand for state-of-the-art cooling in hotels, resorts, and recreational facilities. Airports, shopping malls, and entertainment complexes are also driving commercial AC demand.

For example, South Africa saw a significant increase in tourism in 2023, with 3.5 million travelers in December 2023, up from 2.9 million in December 2022. Egypt’s tourism sector is expected to reach around 15.3 million visitors by the end of 2024, reflecting a 5% growth from 2023. These trends underscore the importance of modern, energy-efficient air conditioning for hospitality and infrastructure development.

Country-Specific Insights

Egypt: Dominating North Africa

Egypt leads the air conditioner market in North Africa due to urbanization, population growth, and extremely hot summers. Projects such as the New Administrative Capital are generating massive demand for residential and commercial cooling systems. The country’s booming tourism sector and government emphasis on energy-efficient buildings have accelerated the adoption of green cooling technologies.

In July 2024, LG partnered with Raya Electric to manufacture LG-branded ACs in Egypt. This agreement allows the production of over 100,000 units annually, marking a significant milestone in local manufacturing and supply chain expansion.

Nigeria: Affordable Cooling Solutions

Nigeria, Africa’s largest economy, is experiencing rapid urbanization, creating growing demand for air conditioners. The tropical climate, rising disposable incomes, and expanding urban infrastructure are driving adoption in residential, commercial, and public sectors.

While electricity access challenges exist, innovations like solar-powered air conditioners are gaining traction. In October 2022, Daikin Industries began assembling AC units in Nigeria to expand its African presence, taking advantage of local manufacturing and distribution facilities.

South Africa: Mature Market with Green Cooling Focus

South Africa’s AC market is sophisticated, with residential, commercial, and industrial demand. Diverse climates—hot summers and mild winters—ensure consistent year-round need for HVAC systems. Energy-efficient and solar-powered ACs are increasingly preferred due to rising electricity costs and environmental concerns.

Government incentives supporting green buildings and sustainable cooling practices have positioned South Africa as a hub for innovative air-conditioning technologies. In November 2023, Hisense opened a joint business office with Filibiz, marking a 15-year milestone in the brand’s South African operations.

Kenya: Emerging Market with Commercial Growth

Kenya’s air conditioner market is growing in response to urbanization, industrialization, and a rising middle class. The government’s focus on affordable housing, infrastructure development, and sustainable energy solutions is supporting residential adoption.

The launch of Kenya’s National Cooling Action Plan (NCAP) in June 2023 highlights the country’s commitment to energy-efficient and environmentally friendly AC systems, positioning Kenya as a key emerging player in East Africa’s air conditioner market.

Morocco: Urbanization and Tourism Expansion

Morocco is experiencing growing demand for air conditioners due to urban development and a flourishing tourism sector. Cities like Casablanca and Marrakech are witnessing increased AC adoption in residential, commercial, and public spaces.

Government initiatives promoting renewable energy and sustainable cooling technologies further support market growth. Partnerships like Daikin Middle East and Africa FZE with Morocco’s OFPPT are aimed at developing skilled HVAC-R professionals, ensuring a capable workforce for the evolving AC market.

Ethiopia: Untapped Potential

Ethiopia represents an emerging market with significant untapped potential. Low adoption rates are primarily due to affordability and limited electricity access, but infrastructure development, industrial parks, and commercial projects are expected to drive demand. Increased awareness of energy-efficient AC systems may establish Ethiopia as a new growth frontier in Africa’s air conditioner landscape.

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Market Segmentation

By Type:

Window Type

Single Split

Multi-Splits

Precision Air Conditioning

Variable Refrigerant Flow (VRF)

By End User:

Residential

Commercial

Industrial

By Geography:

North Africa: Egypt, Morocco, Algeria, Libya, Tunisia

West Africa: Nigeria

Southern Africa: South Africa

East Africa: Kenya, Ethiopia

Rest of Africa

Key Players

The African air conditioner market features a combination of global brands and regional distributors, focusing on energy efficiency, innovation, and sustainable technologies. Key players include:

LG Electronics Africa Logistics FZE

Samsung Electronics SA (Pty) Limited

AHI Carrier South Africa (Pty) Ltd.

Daikin Airconditioning South Africa (Pty) Ltd

Fujitsu General (Middle East) FZE

MS Airconditioning Distributors (Pvt) Ltd

Robert Bosch (Pty) Ltd

Hisense S.A. (PTY) Ltd.

Atlas Air Conditioning (Pty) Ltd

Livance (PTY) Ltd. (Midea)

These companies focus on product innovation, local manufacturing, and strategic partnerships to cater to Africa’s growing AC demand while promoting green and energy-efficient solutions.

Conclusion

The Africa air conditioner market is positioned for steady growth over the next decade, driven by urbanization, rising temperatures, tourism, and expanding commercial infrastructure. Countries like Egypt, Nigeria, South Africa, Kenya, and Morocco are at the forefront, while untapped markets like Ethiopia offer future growth potential.

As African consumers and businesses increasingly demand energy-efficient, affordable, and environmentally friendly cooling solutions, AC manufacturers are responding with innovative products, local production, and strategic partnerships. With continued investments in urban development, tourism, and commercial infrastructure, the air conditioner market in Africa is poised to be a key segment of the continent’s modern economy.

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