Ductless Heating and Cooling Systems Market 2025 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

The global ductless heating and cooling systems market was estimated to be USD 99.3 billion in 2023 and is projected to grow at a CAGR of 8.1% during the forecast period. The adoption of IoT with ductless heating and cooling systems has boosted its popularity in commercial and residential settings. Ductless systems are more energy-efficient than traditional HVACsystems. Growing demand for residential and commercial systems is contributing to market growth. Residential buildings are the leading segment in the market due to high demand for home cooling and heating.

Growing consumer preference for eco-friendly and low-carbon HVAC solutions is driving the market towards success. Smart thermostats and IoT-enabled ductless systems allow remote monitoring and control. Zone cooling and heating help reduce energy consumption and appeal to residential and commercial users.

Growth Drivers

Increasing environmental concerns and regulations push the adoption of energy-efficient and eco-friendly systems. Use of inverter technology and R-32/R-410A refrigerants improves efficiency and reduces carbon footprint. Expansions of cities and high-rise buildings favor ductless systems due to ease of installation. Smart home compatibility (Wi-Fi, IoT, and AI driven climate control) enhances consumer appeal. Ideal for older buildings lacking ductwork, reducing innovation costs.

Governments offer tax credits and rebates for energy-efficient HVAC replacement. Improved performance in harsh winters and hot summers, making them viable across diverse geographies. Easier installation in residential, commercial, and industrial applications, and the ability to cool/heat specific rooms independently, improves comfort and efficiency. Increasing demand for home cooling and heating is driving growth in the market significantly. Due to government incentives, and growing smart homes demand is the key factor behind the significant growth in the market. Industrial buildings are slowly adopting ductless systems in comparison to residential segment. Multi-zone capabilities benefit large spaces, but adoption is slower than residential segment due to high upfront costs.

Increasing demand for split systems Air-conditioning due to the higher energy efficiency, and lower energy consumption which leads to reduced electricity bills, making them cost-effective over time. Split systems offer better temperature control and stronger cooling capacity.

Segmentation

Ductless Heating & Cooling Systems Market by Type:

·         Split System

o   Mini Split System

o   Multi Split System

o   VRF System

·         Window Air Conditioning System      

Ductless Heating & Cooling Systems Market by Application:

·         Residential Buildings

·         Commercial Buildings

·         Industrial Buildings

By Region

·         Asia-Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Ductless Heating and Cooling Systems Market by Application

On the basis of the application, the Ductless Heating and Cooling Systems Market is segmented into Residential Buildings, Commercial Buildings, and Industrial Buildings. Residential buildings are the leading segment in the market due to high demand for home cooling and heating. Inverter-driven ductless systems are increasingly popular for single-family homes, apartments, and condos.

Many older homes lack ductwork, making ductless mini-split systems the preferred choice for HVAC upgrades. Homeowners replaced traditional HVAC systems with modern, cost-effective, and ductless options. Zoning capabilities let users cool or heat only specific rooms, improving efficiency and comfort. Growing middle-class populations in emerging economies further boost the adoption.

Growing demand for energy efficient solutions in offices, hotels, and retail spaces is driving the growth in Commercial segment in market. Multi-zone capabilities benefit large spaces, but adoption is slower than residential due to higher upfront costs. Ductless systems are used in small-scale industrial setups, but large industrial facilities prefer centralized HVAC systems. Adoption is growing, but at a slower pace compared to residential and commercial.

Regional Outlook

On the basis of the regions, the Ductless Heating and Cooling Systems Market is segmented into 5 regions: Asia Pacific, North America, Latin America, Middle East and Africa, and Europe. North America is the leading region in the ductless heating and cooling systems market due to rising energy costs and stringent energy-efficient regulations. Consumers and businesses prefer ductless systems due to lower energy consumption compared to traditional HVAC systems.

Many old buildings in the U.S. and Canada lack ductwork, making ductless mini-splits ideal for retrofits. Homeowners and businesses are upgrading to modern, efficient HVAC systems without major structural modifications. High demand for smart home solutions drives adoption of Wi-Fi-enabled ductless systems with zoning capabilities. Leading companies such as Mitsubishi, Daikin, LG Electronics, Fujitsu, and Carrier have a strong presence in North America.

Local manufacturing and distribution networks improve availability and affordability. Programs like the Inflation Reduction Act in the U.S. support the adoption of heat pumps and ductless solutions. The cold winters in Canada and the Northern U.S. drive demand for ductless heat pumps that work efficiently in low temperatures. Hot summers in southern states boost demand for cooling-focused systems. The presence of key players in North America is contributing to market growth significantly.

The Asia-Pacific region is one of the fastest-growing and largest markets for ductless heating and cooling systems because of massive urban growth in countries like China, Japan, and Southeast Asia. Rising middle-class populations and increasing disposable incomes boost residential demand. Many Asia-Pacific countries experience extreme heat and humidity, especially in India, Southeast Asia, and some parts of China. Governments are promoting eco-friendly HVAC solutions to reduce carbon emissions. Policies like China’s dual carbon goals and Japan’s top runner program encourage energy-efficient ductless systems.

Inverter-driven ductless systems are gaining traction due to their high efficiency and lower electric consumption. China, Japan, and South Korea are global leaders in HVAC manufacturing, ensuring a steady supply of cost-effective systems. Growing demand for smart climate control solutions drives the adoption of Wi-Fi and IoT-enabled ductless systems. Consumers prefer remote-controlled and voice-activated HVAC systems integrated with smart home platforms. India’s fast adoption and manufacturing of the Electric Vehicles Scheme (FAME) includes incentives for energy-efficient appliances. The Asia-Pacific region is projected to maintain its leadership due to rising construction activities, climate change adoption, and continuous technological innovations in energy-efficient HVAC systems.

Key Players

·         Daikin Industries

·         Johnson Controls

·         Carrier

·         Trane Technologies plc

·        LG Electronics

·         Emerson Electric Co.

·         Honeywell International Inc.

·         Mitsubishi Electric Corporation

·         Nortek Air Management

·         Samsung Electronics

·         FUJITSU

·         GREE

·         Hitachi

·         Midea

·         Panasonic

·         Haier Smart Home

·         Whirlpool

·         Electrolux

·         Lennox

·         Other Players