Commercial Air Conditioning System Market Size Projected to Generate a Revenue of $ 57,938.30 Million by 2031Download Sample Reports Overview
The Global Commercial Air Conditioning System Market Size is predicted to be valued at $57,938.30 million by 2031, surging from $38,262.10million in 2021, at a noteworthy CAGR of 4.5%.
Impact Analysis of COVID-19 on the Commercial Air Conditioning System Market
The commercial air conditioning business had been greatly impacted by the COVID-19 outbreak. The need for commercial air conditioning systems declined as more people stayed at home and more enterprises had to shut down or operate at a reduced capacity. This was brought on by the decline in the number of people utilizing commercial buildings and the consequent requirement to cool them. The pandemic has also brought attention to the need for enhanced ventilation and air quality systems in business buildings. Increased need for air filtration and purification systems as well as the need for greater ventilation are results of the virus's ability to propagate through airborne particles.
Many businesses in the commercial air conditioning industry have started creating and marketing devices that are especially made to enhance ventilation and air quality to allay these worries. Among these are sophisticated filtration systems, UV-C light systems, and air purification systems. However, the pandemic has also affected the manufacture and distribution of commercial air conditioning systems by causing supply chain interruptions and raising the cost of raw materials and components. Additionally, the pandemic-related economic slowdown has resulted in a fall in the general demand for commercial air conditioning systems, which has a negative impact on the revenue and profitability of businesses in the sector. All these factors have negatively affected the commercial air conditioning system market growth during the pandemic.
Global Commercial Air Conditioning System Market Analysis
The increasing demand for commercial air conditioning systems is due to several factors including population growth and increased urbanization. Moreover, there is increasing demand for commercial buildings, including offices, hotels, retail centers, and other services, as more people move to metropolitan areas. These structures need air conditioning systems that provide a relaxing environment and provide occupants with a safe, productive, and healthy work environment. In addition, there is a trend to install energy-efficient air conditioning systems such as HVAC systems that reduce energy consumption and operating costs as awareness of energy efficiency and sustainability grows. This has led to the creation of advanced air conditioning technology that uses renewable energy sources such as solar and geothermal energy. These are the major factors anticipated to boost the commercial air conditioning system market growth during the analysis timeframe.
However, the governments can implement regulations that limit the use of air conditioning systems in commercial buildings, as a way to promote energy efficiency and reduce the environmental impact of these systems. The mandate minimum energy efficiency standards for air conditioning units, which can help to ensure that new installations or upgrades meet certain requirements for energy consumption and performance. This can help to reduce the overall energy consumption and associated greenhouse gas emissions from air conditioning systems in commercial buildings. Some refrigerants, such as chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), have been found to contribute to ozone depletion and global warming. Governments can mandate the use of alternative refrigerants that are less harmful to the environment, such as hydrofluorocarbons (HFCs) or natural refrigerants like CO2 that can hamper the commercial air conditioning system market demand.
Commercial air conditioning systems that use smart technology are expected to boost the market significantly. Improved passenger comfort, greater energy efficiency, and lower operational costs are just a few advantages that intelligent systems may offer. Smart sensors provide real-time temperature, humidity, and airflow monitoring and control in air conditioning systems, maximizing energy efficiency and minimizing waste. The remote monitoring and management of air conditioning systems is another feature of smart technology that building managers may use. This can lessen the need for on-site maintenance by ensuring systems are operating at their best capability, seeing possible issues early, and preventing them. Furthermore, intelligent air conditioning systems may be connected with other building management systems, such lighting and security, to provide unified, intelligent building environment. The growing focus on sustainability and energy efficiency also contributes to the demand for smart air conditioning systems. Smart air conditioning systems can assist governments and companies accomplish their goals of lowering their carbon footprint and energy expenses.
Global Commercial Air Conditioning System Market, Segmentation
The global commercial air conditioning system market is segmented based on type, installation type, end user, and region.
The type segment is further classified into VRF, Ducted Split/Packaged Unit, Split Units, Room ACs and Others. Among these, the VRF sub-segment accounted for the highest commercial air conditioning system market share in 2021. In comparison to conventional HVAC systems, VRF systems offer high energy efficiency and can result in significant cost savings for building owners and operators. This is because VRF systems can accurately regulate the flow of refrigerant to specific interior units, cutting down on energy waste and raising comfort levels. Regardless of the size or form of a structure, VRF systems are very adaptable and can be quickly customized to meet the unique requirements of a building. VRF systems are therefore a well-liked option for business applications including hotels, office buildings, and hospitals. VRF systems are more user-friendly since they provide a variety of cutting-edge features and capabilities, including zoning, simultaneous heating and cooling, and central control systems. They are more efficient and gentler than conventional HVAC systems. The demand for VRF systems is rising as people become more conscious of energy efficiency and sustainable construction methods. This is because VRF systems are eco-friendly and help buildings achieve LEED certification.
The installation type segment is further classified into new installation and retrofit. Among these, the retrofit sub-segment accounted for the highest commercial air conditioning system market share in 2021. The growing need for HVAC systems that are both sustainable and energy-efficient is what leads the retrofit section of the commercial air conditioning system market. Building owners and operators are looking for methods to lower their energy use and carbon footprint as energy costs continue to climb and environmental concerns spread. One method to accomplish these objectives without having to replace the entire system is to retrofit existing HVAC systems with energy-efficient parts and technology. In addition, the retrofit segment of the commercial air conditioning system market is being encouraged by government regulations and incentives targeted at lowering energy use and greenhouse gas emissions. Many nations have put in place laws and incentives to encourage building owners and managers to upgrade their HVAC systems with eco-friendly parts and methods.
The end user segment is further classified into office & buildings, hospitality, supermarkets/hypermarkets, transportation, government, healthcare, and others. Among these, the office and buildings sub-segment accounted for the highest market share in 2021. The development of new commercial spaces and office buildings has raised the need for air conditioning equipment. The need for cooling and heating systems grows as more buildings are constructed. The demand for air conditioning systems in the office and building market is also being driven by the focus on energy saving. Building owners and operators are searching for more energy-efficient solutions that may lower their running expenses and carbon footprint due to growing energy bills and environmental concerns. In this market, increasing consumer awareness of the advantages of indoor air quality is another factor fueling demand for air conditioning systems. Concerns regarding the quality of the air that people breathe are developing as more and more time is spent indoors. In the office and building sector, innovative filtration and ventilation air conditioning systems are becoming more and more popular.
The commercial air conditioning system market analysis in the Asia-Pacific region is projected to show the fastest growth. The need for commercial air conditioning systems in buildings like offices, retail centers, and hotels is growing as more people relocate into these metropolitan areas. The need for energy-efficient commercial air conditioning systems is growing as a result of increased energy costs and worries about climate change. Asia-Pacific manufacturers are investing in R&D to create more effective solutions that satisfy these demands. Many governments in the Asia-Pacific region are passing laws and providing rewards to promote the use of energy-efficient air conditioning systems. For instance, to promote the adoption of green technology in commercial buildings, the Indian government unveiled the "Energy Conservation Building Code". As incomes rise in the Asia-Pacific region, people are becoming more willing and able to invest in commercial air conditioning systems. This is particularly true in countries such as China and India, where the middle class is growing rapidly.
Key Players in the Global Commercial Air Conditioning System Market
Some of the leading commercial air conditioning system market players are
- DAIKIN INDUSTRIES Ltd
- FUJITSU GENERAL
- Haier Inc
- Hitachi, Ltd
- LG Electronics
- Mitsubishi Electric Corporation
- Panasonic Corporation
- AIREDALE INTERNATIONAL AIR CONDITIONING LTD
In June 2021, Carrier announced the acquisition of a controlling stake in Guangdong Giwee Group (Giwee Group). The acquisition was aimed at expanding Carrier’s geographic footprint to enhance its market position. In addition to acquisitions, major players in the market also indulge in collaborations with local players to increase their products’ reach.