Publications
Publications
- January 2025
- HBS Case Collection
Get Cool: Air Conditioning Industry Background
By: Rosabeth Moss Kanter and Jacob A. Small
Abstract
The “air conditioning paradox” is tied to climate change: the more the planet warms, the greater the need for cooling (due to the dangers of extreme heat as well as comfort within buildings), but the use of electricity-powered AC contributes to further warming. There is a need for innovation to break this cycle, but despite increases in efficiency in recent years, the industry has not changed much since its origins at the turn of the 20th century. This note provides an overview of the global industry with a particular emphasis on the United States. It presents data on global market demand, showing that the U.S. and Asia are the biggest users and the leading global manufacturers. It focuses on American market segments and distribution channels, and it outlines the role of electric utilities and incentives. It shows a consolidating industry with entrenched players, although digital tools are in increasing use. Corporate venture capital and stand-alone venture capital are being deployed in the search for new models and disruptive technologies.
Keywords
Appliances; Global Warming; Energy Efficiency; Climate Change; Venture Capital; Demand and Consumers; Distribution Channels; Green Technology; United States; Asia
Citation
Kanter, Rosabeth Moss, and Jacob A. Small. "Get Cool: Air Conditioning Industry Background." Harvard Business School Technical Note 325-077, January 2025.