Air conditioning

Cooling Inequality: The Income Gap in Access to AC

As heat waves and extreme temperatures become more frequent due to climate change, access to cooling is emerging as a critical, but unevenly distributed, resource. While rising temperatures are driving demand for air conditioning worldwide, ownership remains closely tied to income levels.

As our chart, based on IEA data, shows, this disparity is particularly pronounced in emerging regions. In East Asia and the Pacific, for example, air conditioning penetration rises from roughly 22 percent among the lowest-income households to nearly 80 percent among the wealthiest. A similar pattern, albeit at a much lower level, can be observed in Sub-Saharan Africa, where access remains extremely limited outside the top income group.

By contrast, Europe and Central Asia display a more even distribution across income brackets. While ownership rates are comparatively modest due to the historically more temperate climate, recent heat waves, which are becoming more frequent and more severe, are beginning to challenge that assumption.

Globally, demand for cooling is set to surge in the coming decades, driven by rising incomes, urbanization and, most importantly, higher temperatures. Yet for now, billions of people living in hot climates still lack access to air conditioning, highlighting a growing gap between those who can shield themselves from extreme heat and those who cannot.

Description

This chart shows differences in air conditioning penetration by region and income level.

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Car air conditioning market share for leading companies South Korea 2024
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Daikin Industries' net sales in the air conditioning segment FY 2024, by region
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Exports of air conditioning components South Korea 2023-2024
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GVA of electricity manufacturing industry in Poland 2005-2023
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Nippon Air conditioning Services Co., Ltd. net income 2020-2024
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Nippon Air conditioning Services Co., Ltd. operating profit 2020-2024

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