Commercial Air Conditioner (AC) Market Size, Share & Industry Analysis, By Type (Packaged Air Conditioners, VRF/VRV), By Refrigerants (R-32, A-410A/R-407C, R600A/R-290, Others), By End-User (Healthcare, Educational/Institutional, Public/ Government, Retail, Hospitality, Manufacturing) and Regional Forecast, 2019-2032

The global commercial air conditioner market size was valued at USD 40.38 billion in 2018 and is projected to reach USD 76.69 billion by the end of 2032, exhibiting a CAGR of 4.7% during the forecast period.

The commercial air conditioning market is likely to grow significantly in the upcoming years due to improving economic conditions, rising per capita income, and increasing pollution levels. Moreover, major manufacturers are focusing on producing refrigerants, which cause minimum pollution and are also effective.

The commercial AC market has shown significant growth over the decades and is expected to grow moderately in the coming future owing to saturation in the developed countries. The rising construction of green buildings is one of the latest trends that will contribute to the growth of this market in the coming years. Also, the growing data center will be one of the major commercial HVAC market drivers. Data center comprises of highly sensitive electronic components wherein temperature, humidity, airflow, and cleanliness should be maintained to avoid equipment failures.

Therefore, the growing demand for commercial air conditioners in multiple end-use applications such as healthcare, hospitality, etc. is expected to drive the market in the coming years. Furthermore, the highest market share is expected to be witnessed by North America followed by Asia Pacific.

MARKET DRIVERS

“Increased Spending on Infrastructure Globally is expected to positively impact the market”

The increased spending of government and private players on infrastructure globally is expected to create huge demand for commercial air conditioners. The expanding number of commercial buildings that have air conditioners installed, would result in the growth of commercial air conditioners throughout the forecast period 2019-2026. Major players such as Daikin Industries are expanding across the globe by setting up new plants in Brazil, Argentina, etc.

• In 2018, the developing countries such as Vietnam, Myanmar, Indonesia, etc. have announced to increase their investment heavily of infrastructure and commercial buildings and also double the urbanization rate by 2023.

Furthermore, an increase in the economy & population, development of urban infrastructure and high temperatures in countries such as Bangladesh, Brazil, Ghana, India, Indonesia, Kenya and Vietnam, etc. have also become an essential factor the growth of commercial air conditioner market across the globe.

“Introduction of Energy-Efficient Smart Air Conditioners is Expected to Increase Demand for Commercial Air Conditioners”

The introduction of energy-efficient smart commercial AC has resulted in more air conditioner demand with less air pollution or ozone depletion caused. Also, the rising numbers of smart homes and commercial spaces globally have fueled the demand for smart commercial air conditioners with new inverter technology and environment-friendly solutions.

An increase in demand for smart ACs is expected to be observed in all sectors due to lesser energy consumption. Similarly, government regulations on refrigerants are forcing the manufacturers to develop energy-efficient and eco-friendly products by completely phasing out CFC’S and replacing HCFC’s by HFC and other refrigerants in the forecast period 2019-2026.

SEGMENTATION

By Type Analysis

“The Packaged Air Conditioners Segment is Expected to Generate the Highest Revenue in the Forecast Period”

The commercial air conditioners market has been categorized into packaged air conditioners and VRF/VRV air conditioners on the basis of type.

The packaged air conditioners are expected to generate the highest revenue during the forecast period owing to increasing rates of construction of mall, offices, and industries. However, the VRF/VRV Air Conditioners, which are gaining popularity at a rapid pace is expected to grow at the highest CAGR or have maximum growth during the forecast period. The VRF/VRV air conditioner type is expected to grow at a CAGR of 6.4% during the forecast period.  

Furthermore, the VRF/VRV systems are very quiet and energy-efficient as its compressor runs only at the capacity needed at that current condition. It also offers features such as heat and cool simultaneously, less downtime, less space, modern controls etc. Owing to the many features provided by VRF/VRV air conditioners, its demand and growth is expected to be higher than the packaged AC throughout the world.

By Refrigerant Type Analysis

“R-410A/R-407C Refrigerant is Expected to Dominate the Market During the Forecast Period”

The commercial air conditioner market has been segmented into R32, R-410A/R-407C, R-600A/ R-290, Others (R-22, etc.) on the basis of refrigerants used.

The replacement of toxic or ozone-depleting refrigerants such as banning of R-22 refrigerant and shifting towards R-32 refrigerant from R-410A considering R-32 a very less toxic gas for environment is expected to drive growth for commercial AC market over the forecast period. The R-32 refrigerant, owing to be less ozone-depleting is expected to grow at the highest CAGR owing to its increasing use in commercial air conditioners across the globe. 

Furthermore, the R-290 and R-600A refrigerant is also expected to have a rapid growth during the forecast period as many underdeveloped or developing economies are promoting these gases for more and more usage as it is cheap, safe as well as not toxic gas. These gases are considered one of the best for industrial and commercial usage.

By End-user Analysis

“Hospitality Sector is Expected to Dominate the Market During the Forecast Period”

On the basis of end-user segment, the global commercial air conditioner market has been categorized into healthcare, educational/Institutional, public, retail, Hospitality and manufacturing.

The service industry around the world, which includes lodging, food and drink services, theme parks, etc. is experiencing growth owing to the growing tourism sector. The ever increasing tourism sector has resulted in the rapid development of hospitality sector and also the demand for commercial air conditioners. The presence of air conditioners is a necessity in the hospitality sector as it is considered as a quality standard globally. Thus these factors are expected to contribute to the growth of commercial air conditioners in the hospitality sector.

However, the healthcare sector is expected to grow at the highest CAGR of around 5.3% as the healthcare facilities require air conditioners in all parts of the world. Developing countries such as India, China, Brazil, UAE etc. are focusing on the development of healthcare facilities, which leads to increased demand of air conditioners from healthcare sector. Furthermore, the educational/institutional and public buildings sector are also expected to have moderate growth owing to increase in number of infrastructure projects around the world expanding commercial and public buildings.

REGIONAL ANALYSIS

Based on region, the global commercial air conditioner market has been segmented into five regions which include North America, Europe, Asia Pacific, Middle East & Africa as well as Latin America.

Commercial air conditioner market size in North America was projected at around 7.0 Million units in 2018 and is expected to arise as a prominent region in the commercial air conditioner market during the forecast period. The increasing usage of energy-efficient AC’s owing to declining energy consumption rate is anticipated to drive the demand for new and advanced air conditioners.

The replacement of toxic or ozone-depleting refrigerants such as banning of R-22 refrigerant and shifting towards R-32 refrigerant from R-410A considering R-32 a very less toxic gas for the environment is expected to drive growth for commercial AC over the forecast period in North America.

Asia Pacific is projected to grow at the highest CAGR, owing to the constantly expanding infrastructure spending, as well as demand for healthcare facilities, educational buildings and retail stores in India and China. Furthermore, a large number of players in the commercial air conditioner market have their presence in China and also provide air conditioners at lesser prices as compared to international well-established brands which is also expected to contribute to the high sales in the region during the forecast period 2019-2026.

Additionally, in Europe, a high growth rate is anticipated for new advanced VRF/VRV air conditioner sales and the VRF type commercial air conditioners are projected to grow at the CAGR of around 8% as there has been a huge increase in demand from the major countries in Europe such as France, Italy, Spain, Turkey, Portugal etc.   

The market in the Middle East and Africa is expected to have moderate growth owing to the growth of commercial or public buildings and rising temperatures in the region. Furthermore, Latin America is not expected to grow at a substantial rate owing to its struggling economy. However, the economy of the region is expected to recover and the demand for commercial air conditioners are expected to expand during the forecast period.

INDUSTRY KEY PLAYERS

“Significance Towards Eco-Friendly and Energy Efficient Solutions from Daikin, Carrier, Mitsubishi etc.”

Most of the key players in the commercial air conditioner market are constantly focussing on developing cleaner, greener, and eco-friendly refrigerants to be used for air conditioners. Following the ban of R-22 refrigerant in North America, Europe, etc. companies such as Daikin have developed R-32 refrigerant, which is around 68% less toxic and ozone-depleting gas being introduced to the market recently as the cleanest gas for commercial air conditioners.

Furthermore, the companies are constantly developing new and improved solutions such as inverter technology, smart air conditioners, less polluting air conditioners, etc. to stay ahead in completion and increase their market share. Daikin was the pioneer in introducing R32 as a lower GWP replacement for R410A, a step which has since been followed by most chief air conditioner manufacturers.

List of Key Companies Profiled:

• Carrier Corporation


• Daikin Industries Ltd.


• Johnson Controls Pvt. Ltd.


• Mitsubishi Electric


• LG Corporation


• Samsung


• Ingersoll Rand Inc.


• Blue Star Ltd.


• Hitachi Ltd.


• Airedale International Air Conditioning

REPORT COVERAGE

The report presents a comprehensive assessment of the global market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market.

Report Scope & Segmentation

INDUSTRY DEVELOPMENT:

• Aug, 2018: Toshiba Carrier Corporation and United Technologies Corporation have entered into a joint venture to establish a new company, Toshiba Carrier Air-Conditioning India Pvt Ltd, for expanding its footprint in the commercial air-conditioning segment in India


• June, 2017: Daikin Industries, Ltd., through its subsidiary Daikin Australia Pty., Ltd., acquired Airmaster Corporation Pty Ltd., a leading company in Australia for air conditioning equipment so as to strengthen its reach in the Australian market.