Increasing cost of copper material has forced air conditioner manufacturers to lower copper consumption or focus on alternative materials in air conditioning applications in order to stand at upright position in cost competitive environment. Since copper possesses most of the well-suited characteristics that are needed for the air conditioning system, choice of reducing copper material is preferred over alternative materials. Present study focuses on simulation-based design methodology and performance analysis of split air conditioning system with R32 as a refrigerant. It includes replacement of 7 mm outside diameter condenser coil with 5 mm diameter copper tubes. Simulation technique for investigating optimal condenser coil geometry incorporating smaller diameter tubes is also demonstrated for typical air conditioning system. Simulation results show that cost of condenser coil with reduced tube diameter is much lower than that of existing coil of higher tube diameter without any compromise in the performance of air conditioning system.