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The commercial air conditioner market size is estimated to grow at a CAGR of 6.46% between 2022 and 2027. The market size is forecast to increase by USD 45,610.86 million. The growth of the market depends on several factors, including increasing demand for energy-efficient commercial air conditioners, Rapid urbanization and infrastructure development leading to demand for commercial air conditioners, and product innovation leading to portfolio extension of commercial air conditioners.
This commercial air conditioners market report extensively covers market segmentation by Product (split systems, VRF systems, chillers, rooftops, and others), Technology (non-inverter and inverter), and Geography ( North America, APAC, Middle East and Africa, Europe, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increasing demand for energy-efficient commercial air conditioners notably driving the market growth, although factors such as high initial costs associated with commercial air conditioners may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for energy-efficient commercial air conditioners is the key factor driving the growth of the commercial air conditioners market. Energy costs constitute an important portion of operating expenses for commercial buildings. Increasing emphasis is being placed on reducing energy consumption and lowering operating costs for businesses. Commercial air conditioners, which are more energy efficient than conventional equipment, save a substantial amount of energy.
For instance, Carrier's Greenspeed Intelligence technology, which is incorporated into the company's commercial air conditioners, optimizes performance and energy efficiency by modulating the system's operation based on the building's cooling requirements. By investing in energy-efficient solutions, businesses can achieve substantial cost savings in the long run, making it an attractive proposition for commercial building owners and operators. Such factors are expected to drive the growth of the global commercial air conditioner market during the forecast period.
Growing demand for integrated systems in buildings is the primary trend shaping the commercial air conditioner market growth. HVAC controls and building systems are witnessing more integration, driving demand among end-users who seek the benefits of streamlining systems, such as lighting and access controls. This allows higher energy efficiency in managing building systems as it allows control from one interface.
For instance, access controls integrated with HVAC controls allow building managers to use a single platform to monitor cooling and increase or decrease the cooling based on the number of people in the commercial air conditioner environment. Similarly, integrated systems can use occupancy and air quality sensors for adjusting ventilation rates and air conditioning settings depending on the number of users as well as to measure ambient air quality. Such factors are expected to drive the growth of the commercial air conditioner market during the forecast period.
High initial costs associated with commercial air conditioners is a major challenge to the growth of the commercial air conditioners market. Commercial air conditioners, especially larger and more advanced systems, often require significant upfront investments when compared to residential air conditioning units. They are typically larger and more complex than residential AC units, thus requiring higher-capacity compressors, larger condenser units, and more extensive ductwork.
The cost of all these components and their installation costs, along with the cost of the unit itself, is very high in commercial air conditioning units. In order to meet the increased volume and weight of these systems, the installation of commercial air conditioning installations requires additional expenditure such as specialised labour, material for connecting ductwork, electricity connections, or possible alterations in its structure. When compared to residential units, commercial air conditioners are designed to cool larger spaces and they consume more energy. This higher energy consumption translates into increased operational costs over time, which should be considered in the overall cost analysis of commercial air conditioners. Such factors are expected to pose a challenge to the growth of the global commercial air conditioners market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Commercial Air Conditioners Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AAON Inc.: The company offers commercial air conditioners such as AAON RN series packaged rooftop units.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the split systems segment will be significant during the forecast period. Split air conditioners are widely used in commercial settings, including offices, retail spaces, hotels, and healthcare facilities. This segment is mainly characterized by the division of the system into two main units: the indoor unit and the outdoor unit.
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The split system segment was valued at USD 30,909.91 million in 2017 and continued to grow until 2021. The growth of this segment can be attributed to the rising demand for energy-efficient and cost-effective air conditioning systems in commercial applications. Split air conditioners are more energy-efficient than other types of air conditioners and offer a wider range of features and options. They are also relatively easy to install and maintain, which makes them a popular choice for commercial applications. For instance , market players such as Samsung in this segment continuously focus on product innovation, technological advancements, and customization to cater to the diverse requirements of commercial customers. Such factors are expected to boost the growth of the splits segment of the commercial air conditioner market during the forecast period.
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North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US also has strict energy efficiency regulations that influence the market, pushing for the adoption of more energy-efficient and environmentally friendly solutions. Canada also has a notable commercial air conditioner market, driven by the country's economic growth and urbanization. On the other hand, Mexico's commercial air conditioner market is influenced by factors such as industrial growth, tourism, and climate conditions. The country has a significant hospitality sector, with a high demand for air conditioning in hotels and resorts. Mexico's industrial and manufacturing sectors also contribute to the demand for commercial air conditioning systems.
In 2020, the commercial air conditioner market in North America witnessed a major downturn in revenue. The demand for industrial machinery, including commercial air conditioners, witnessed a drastic setback owing to the surge in the number of COVID-19 cases globally. The sales of equipment such as commercial air conditioners witnessed a decline owing to the nationwide lockdowns, which resulted in the shutting down of factories and production sites. Various vendors operating in the regional commercial air conditioner market witnessed a major decline in their sales as most major commercial end-users, such as hotels and resorts, were shut. However, in 2021, the launch of COVID-19 vaccines by regional governments, the decrease in the number of cases, and the easing of lockdown measures led to the resumption of various industrial and commercial operations. Such factors are expected to drive the growth of the regional commercial air conditioner market during the forecast period.
The commercial air conditioners market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global commercial air conditioner market as a part of the global industrial machinery market. The parent, the global industrial machinery market, covers companies engaged in manufacturing industrial machinery and components covering presses, machine tools, compressors, pollution control equipment, elevators, escalators, insulators, pumps, roller bearings, and other metal fabrications. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Commercial Air Conditioners Market Scope |
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Report Coverage |
Details |
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Page number |
182 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.46% |
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Market growth 2023-2027 |
USD 45610.86 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.2 |
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Regional analysis |
North America, APAC, Middle East and Africa, Europe, and South America |
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Performing market contribution |
North America at 29% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AAON Inc., Blue Star Ltd., Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., Fujitsu Ltd., Haier Smart Home Co. Ltd., Hitachi Ltd., Honeywell International Inc., Johnson Controls International Plc, Lennox International Inc., LG Electronics Inc., Mitsubishi Electric Corp., Modine Manufacturing Co., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Toshiba Corp., Trane Technologies Plc, and Voltas Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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