Why Window ACs Still Dominate in the Philippines: A Regional Perspective
- brg_news_room
- 1 day ago
- 4 min read
Across Southeast Asia, the transition from traditional window air conditioners to more efficient split-type systems have become increasingly evident. Countries such as Thailand, Malaysia and Vietnam have seen rapid uptake of split-type air conditioners, supported by rising household incomes, modernising housing stock and strong policy emphasis on energy-efficient appliances. The Philippines, however, remains an outlier. Window-type air conditioners continue to hold a prominent position in the national cooling landscape, especially outside major urban centres.
Understanding this divergence requires an examination of the Philippines’ socioeconomic profile, its housing and infrastructure realities, and the practical considerations shaping consumer decision-making. These factors collectively explain why window units retain a foothold even as split systems gain momentum.
Income Levels and Affordability Pressures
Cost of the product remains one of the strongest influences on what Filipino households buy, and air conditioners are no exception. Figures from the Philippine Statistics Authority (PSA) show that a large share of families fall within the lower-income brackets, where most spending goes to essentials. With the Philippines recording one of the lower GDP per-capita levels in ASEAN, many households simply have limited room for discretionary purchases.
Because of this, the upfront price of an appliance often becomes the deciding factor. Window-type air conditioners, which generally come at a lower initial cost than other models, naturally attract buyers who are working within tight budgets. For these families, the question is not about long-term energy savings or noise levels, it is about what they can realistically afford today. National household spending patterns echo this behaviour: the initial purchase price tends to dominate decisions on durable goods.
This cost advantage explains why window units continue to draw strong interest, particularly in areas outside major urban centres like Metro Manila, where disposable incomes are typically higher. For many regions, affordability remains the primary gateway to ownership, and window ACs fit that requirement better than most alternatives.
Housing Characteristics and Installation Practicalities
The nature of Filipino housing further reinforces the appeal of window units. Across many provinces, large numbers of homes are built using lightweight materials, with layouts that do not easily accommodate the external compressors and piping systems required by split-type models. Older urban dwellings and smaller rental units often provide limited wall space or lack uniform structural support for air-conditioning retrofits.
A window-type unit, by contrast, can be installed with minimal structural alteration. It typically requires a suitable window opening, basic framing and a stable power source. This simplicity is especially valuable in areas where skilled technicians are not easily accessible or where the cost of installation services constitutes a significant share of the total appliance budget.
The Department of Energy (DOE) and Department of Trade and Industry (DTI) have both noted in their appliance energy-efficiency initiatives that installation complexity can be a barrier to wider adoption of efficient technologies. In many regions, the comparative ease of installing a window unit remains a decisive advantage.
Geographical and Infrastructural Realities
The Philippines' terrain, which is made up of many islands, makes logistics difficult in several ways. Moving supplies, specialists, and installation equipment across islands, steep areas, and remote settlements makes things more expensive and complicated.
Even within the same province, the availability of services might vary a lot depending on the geography and how well it is connected. Because window air conditioners are self-contained, they don't need as much professional staff and can work better in places where the infrastructure isn't perfect. They are easy to move, simple to install, and can be serviced by regular appliance technicians instead of refrigeration experts. This kind of resilience is useful for millions of families living in rural and semi-rural settings.
Consumer Perceptions and the Appeal of Familiarity
Beyond economics and infrastructure, long-standing familiarity plays a cultural role. Window-type units have been present in the Philippine market for decades, and many consumers view them as dependable, repairable and straightforward. In a context where after-sales service quality can be inconsistent, this perception of reliability carries significant weight.
The DOE’s energy-efficiency labelling programme has broadened consumer awareness of modern split-type inverter systems, but household trust in window units remains strong, particularly among users prioritising simplicity over technological advancement.
Evolving Landscape: The Gradual Rise of Split-Type Systems
Even though window units are effective, split-type air conditioners are slowly gaining ground. The Energy Efficiency and Conservation Act has led to stronger performance standards, more labelling regulations, and more people thinking about technology that use less energy. Urbanisation is also having an effect on the market. Newer residential projects, in particular condominiums, are more likely to have infrastructure that works with split-type systems.
As people make more money and learn more about how much electricity costs, more families are looking for split-type inverters that are quieter, look nicer, and work better over time. These changes suggest that split-type units will outsell window units in the medium to long term, just like what has already happened in nearby Southeast Asian markets. But the change is slow and not always smooth. Many regional markets still put practicality and low cost first, which is where window units still have distinct advantages.
A Distinctive Path Within Southeast Asia
The persistence of window air conditioners in the Philippines should not be interpreted as market inertia. Rather, it reflects a complex interplay of economic realities, housing patterns, geographic challenges and consumer priorities. These structural characteristics differentiate the Philippines from its regional neighbours and sustain a market environment where both window and split-type systems are likely to coexist for years to come.
As the country continues its energy-efficiency journey, the long-term trajectory will likely favour split-type inverters. Yet the entrenched relevance of window units, particularly among provincial and budget-conscious households, suggests that the category will maintain a meaningful share of the market in the medium term.
Find out more in our latest edition Southeast Asian's reports.
Source: Ravi Sharma, BRG Research
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