South Korea's air conditioning market offers a unique vertical type of window unit. After three years of rapid growth from 2019, the market reached sales of more than 200,000 units in 2021. In the domestic air conditioning market, window air conditioning took nearly 10% of sales in 2021.
The most common pattern in traditional families in South Korea was installing multi splits air conditioning with two indoor units; one floor-standing unit placed in the living room and another wall mounted unit placed in the main bedroom. The second or third bedroom or study room may have a wall-mounted single splits or have no air conditioning. Historically, there was a significant market for wall-mounted air conditioning units, but a reduction in the number of married couples and the increase in single person households, which now account for 30% of households, has resulted in higher demand for appliances for small space cooling.
The South Korean domestic air conditioning market was saturated for years with sales relying on the hot weather in the summer. Before the advent of the vertical type of window air conditioning, during hot summers, the domestic air conditioning market was dominated by wall-mounted single splits for small rooms or small homes. In 2018, the potable air conditioning surged, with sales volume increasing more than 3.5 times in a year. After that, a local brand launched the vertical type of window air conditioning, which is suitable for installation in South Korean residential windows. Since 2019, the market has taken off and, in many cases, replaced the demand for wall-mounted splits and portables in the residential market.
Window air conditioning is self-contained without an outdoor unit and no need to make a hole in the wall. In addition, the price is similar to that of the wall-mounted split; it is easy to install independently, which does not require on-site integration by technicians. These advantages have been favored by consumers, especially during the pandemic.
After more than three years of iteration, most window air conditioners on the market are of Energy Efficiency Rate 1 and are inverter products. The energy consumption and noise levels are low and various comfort functions are also upgraded every year.
The window air conditioner targets a niche market and therefore has great potential for continued high growth in the next five years. BSRIA forecasting that the window air conditioning market will double in market size by 2026.