• In May 2025, Samsung Electronics announced the acquisition of FlaktGroup from Germany for €1.5 billion, boosting its ductless HVAC and data‑center cooling capabilities deal completion expected later.

• In July 2024, Bosch finalized an 8 billion purchase of residential HVAC and ventilation assets from Johnson Controls and Hitachi, marking its largest-ever deal and expanding its ductless HVAC portfolio.

In this report, the Ductless Heating & Cooling Systems Market has been segmented by Type, Application and Geography.

Ductless Heating & Cooling Systems Market, Segmentation by Type

The Ductless Heating & Cooling Systems Market has been segmented by Type into Split Systems and Window Air Conditioner Systems.

Split Systems

Split systems dominate the Ductless Heating & Cooling Systems market, accounting for approximately 75% of total market share. These systems are widely preferred for their energy efficiency, quiet operation, and zoned temperature control, making them ideal for both residential and commercial applications.

Window Air Conditioner Systems

Window air conditioner systems hold around 25% of the market. They are valued for their compact design and cost-effectiveness, especially in small-scale residential settings or where permanent installation is not feasible.

Ductless Heating & Cooling Systems Market, Segmentation by Application

The Ductless Heating & Cooling Systems Market has been segmented by Application into Residential Buildings, Commercial Buildings, and Industrial Buildings.

Residential Buildings

The residential segment leads the Ductless Heating & Cooling Systems market, contributing approximately 55% of total demand. Homeowners increasingly prefer ductless systems for their ease of installation, energy efficiency, and zoned climate control across individual rooms or floors.

Commercial Buildings

Commercial buildings account for around 30% of the market. Offices, retail spaces, and hospitality establishments adopt ductless systems for their scalability, quiet operation, and cost-effective climate management across multiple zones or tenants.

Industrial Buildings

Industrial buildings represent approximately 15% of the market. These systems are used in warehouses, production facilities, and equipment rooms where targeted cooling or heating is needed without the complexity of ducted infrastructure.

Ductless Heating & Cooling Systems Market, Segmentation by Geography

In this report, the Ductless Heating & Cooling Systems Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Ductless Heating & Cooling Systems Market Share (%), by Geographical Region

North America

North America holds approximately 25% of the Ductless Heating & Cooling Systems market, driven by rising demand for energy-efficient retrofitting in residential and commercial buildings. The U.S. leads the region with growing adoption of zoned HVAC solutions and smart climate control systems.

Europe

Europe accounts for around 20% of the market. Countries such as Germany, the U.K., and France are promoting low-emission HVAC systems through strict energy regulations, fueling demand for ductless systems in both new construction and renovation projects.

Asia Pacific

Asia Pacific dominates the market with over 40% share, supported by extensive residential development and urban infrastructure growth in countries like China, Japan, South Korea, and India. The region benefits from mass adoption of split systems due to compact housing trends and hot climates.

Middle East and Africa

The Middle East and Africa contribute about 8% of the market. High temperatures and increasing investments in smart buildings and commercial centers across the UAE and Saudi Arabia are driving the need for efficient ductless solutions.

Latin America

Latin America holds nearly 7% of market share. Brazil and Mexico are key contributors, with growing demand for cost-effective cooling systems in residential renovations and small commercial spaces.

This report provides an in depth analysis of various factors that impact the dynamics of Ductless Heating & Cooling Systems Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Energy-efficient HVAC system preferences rising
• Growing demand for residential comfort solutions
• Favorable government incentives for energy savings

• Increased renovation and retrofit HVAC adoption - The rise in renovation and retrofit projects across residential and commercial spaces is significantly driving demand for ductless heating and cooling systems. Unlike traditional ducted HVAC setups, ductless systems offer a cost-effective and space-saving solution for buildings that lack the necessary ductwork. This makes them ideal for older buildings or structures undergoing energy-efficiency upgrades.

  As consumers seek ways to improve indoor air quality and reduce energy consumption, they are turning to modern HVAC technologies that provide zone-based comfort. Ductless systems offer individual room control, reducing energy waste and increasing operational flexibility. The minimal disruption caused during installation makes them especially attractive for occupied buildings.

  The surge in residential renovations due to work-from-home trends and changing lifestyle preferences further accelerates adoption. In addition, government rebates and energy incentives for retrofitting old HVAC systems with energy-efficient alternatives encourage market expansion. Property owners and facility managers increasingly prioritize sustainable HVAC solutions in retrofit decisions.

  By supporting goals like decarbonization, energy efficiency, and comfort personalization, ductless systems have positioned themselves as a preferred upgrade option, especially in sectors where infrastructure limitations make ductwork impractical.

Restraints

• High upfront installation and equipment costs
• Limited cooling capacity in large areas
• Technical complexity in multi-zone setups

• Lack of skilled installation professionals - The lack of skilled installation professionals remains a significant challenge for the ductless heating and cooling systems market. These systems require a precise understanding of refrigerant handling, system sizing, and multi-zone integration, which are not always common skills among general HVAC technicians. The shortage of adequately trained labor results in installation delays and higher service costs.

  As demand for ductless systems grows, the gap between available expertise and actual market needs continues to widen. Improper installation can lead to inefficient performance, system malfunctions, and warranty voids, affecting customer satisfaction and overall market credibility. This hesitancy is particularly pronounced in regions with underdeveloped HVAC infrastructure.

  Training programs and certifications are being introduced to address this issue, but adoption remains slow due to the cost and time investment required from both companies and technicians. In markets with strong demand, this shortage limits the scalability and speed of market penetration.

  To unlock full market potential, stakeholders must invest in technical training, create partnerships with vocational institutions, and incentivize workforce development. Expanding the technician base is key to delivering on efficiency claims and customer expectations tied to modern HVAC systems.

Opportunities

• Growth in smart and connected devices
• Expansion in off-grid and remote buildings
• Rising popularity of green building codes

• Integration with solar-powered HVAC solutions - The integration of ductless HVAC systems with solar power solutions is emerging as a transformative opportunity for energy-conscious markets. As the global shift toward renewable energy accelerates, the compatibility of ductless systems with photovoltaic (PV) systems makes them an ideal component of net-zero energy buildings.

  Ductless systems consume less power than central HVAC systems, making them well-suited for off-grid applications and low-energy structures. When paired with solar panels, these systems offer significant cost savings on utility bills and allow building owners to capitalize on green energy tax incentives. This dual benefit of cost-efficiency and environmental sustainability enhances their appeal across residential and commercial segments.

  The increased demand for climate-resilient buildings and low-emission infrastructure is accelerating investment in combined HVAC-solar solutions. Governments are also supporting this trend by offering rebates for renewable energy integration and enforcing building energy codes that reward solar-powered systems. As energy grids become more flexible and decentralized, this integration trend is expected to become mainstream.

  Manufacturers and installers who can provide turnkey HVAC-solar packages will have a significant competitive edge. This opportunity also opens avenues for smart energy management systems, creating a broader ecosystem of connected and sustainable technologies.

Key players in Ductless Heating & Cooling Systems Market include:

• Daikin Industries, Ltd
• Mitsubishi Electric Corporation
• LG Electronics Inc
• Panasonic Corporation
• Fujitsu General Limited
• Toshiba Corporation
• Samsung Electronics Co., Ltd
• Johnson Controls International plc
• Trane Technologies plc
• Carrier Global Corporation

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis