The market for commercial air conditioning systems (VRF) has been expanding significantly over the past few years as a result of changing lifestyles and rising product demand from hotter locations. The world's average temperature has gradually increased due to the impacts of ozone depletion and the El Nino phenomenon, making spring and summer more comfortable. Additionally, the market has been expanding as a result of the rising population, quick industrialisation, and rapid urbanisation. The demand for energy-efficient air conditioners is expected to be primarily driven by rising per capita income and steadily worsening environmental conditions during the projected period. However, during the anticipated term, high installation prices can limit this market's expansion.
The recession will have a substantial impact on the commercial air conditioning systems (VRF) market. Even though it is anticipated that price inflation would decline in 2023, an increase in interest rates will undoubtedly cause a significant slowdown in the rate of economic expansion. Electricity and raw materials will be pricey for a time. The partial reversal of globalisation, labour shortages that drive up manufacturing costs in many Western countries, and the transition to a shared economy in response to the biggest threat to our species all have an impact on inflation.
Increasing Consumer Demand for Energy-Efficient HVAC Systems to Drive Market Growth
Almost 50% of all energy is used by conventional HVAC systems, which ultimately costs the consumer money. But, because the commercial air conditioning systems (VRF) is more energy-efficient, quieter, and simpler to install and operate, consumers are beginning to prefer it. In nations like the U.S., Japan, and China, the adoption of commercial air conditioning systems (VRF) is anticipated to be influenced by rising awareness of energy-efficiency and evolving regulations. In addition, energy efficiency-improving technologies lessen their system's financial and environmental costs while maintaining efficiency. Many studies have demonstrated the energy efficiency of commercial air conditioning systems (VRF) technology by contrasting the system performance with that of conventional HVAC systems such rooftop variable air volume systems and central chiller and boiler systems. The efficiency of commercial air conditioning systems (VRF) can be increased by 40% to 50% compared to traditional RTU systems. Also, compared to traditional RTU units, the commercial air conditioning systems (VRF) offers greater cooling in multi-story apartments, which is why consumers in the residential and commercial sectors are progressively upgrading their AC systems with VRF technologies.
High Installation Cost of to Limit Market Growth
The high initial cost of commercial air conditioning systems (VRF) is one of the main market inhibitors. For many commercial customers, installing VRF systems can be prohibitively expensive because they are more expensive than conventional HVAC systems. When compared to standard air conditioning systems, this system is 50% more energy efficient while costing 15-20% more. For instance, according to a research by Washington State University, installing a VRF HVAC system costs roughly USD 18 per square foot served, compared to between USD 12 and USD 15 for a typical HVAC system. Moreover, VRF systems may have higher ongoing maintenance and repair costs than conventional HVAC systems.
Based on type, the commercial air conditioning systems (VRF) market is segmented into outdoor units, indoor units and control systems and accessories. The outdoor units category dominated the market in 2022. The growing demand for replacement and retrofitting in nations like the United States, China, Japan, and South Korea is what is driving the market for outdoor units. Consumer preference for VRF systems has replaced traditional HVAC systems as a consequence of increased consumer awareness and the implementation of regulations to reduce carbon emissions, which will support demand during the projection period.
Based on application, the commercial air conditioning systems (VRF) market is segmented into private, public and industrial. The private category dominated the market in 2022. The demand for commercial air conditioning systems in the private sector is anticipated to rise as a result of the rising number of residential development projects across several areas, including Asia Pacific, North America, and Europe. In developed economies like the U.K., Germany, and France, the demand for VRF systems is anticipated to increase as urbanisation and consumer disposable income levels rise.
The Asia Pacific is projected to hold the largest share of the commercial air conditioning systems (VRF) market over the forecast period. The expansion of this area can be ascribed to rising concern over climate change and global warming, as well as the quick urbanisation of nations like China and India. In addition, during the course of the projected period, rising disposable income levels are anticipated to support Asia Pacific's demand for commercial air conditioning systems. On the other hand, North America commercial air conditioning systems (VRF) market is anticipated to grow significantly. The expansion will be brought on by large enterprises adopting VRF systems at a faster rate. The main drivers influencing the market for VRF systems in the region are the rising popularity, notably in the U.S., and the growing knowledge of the associated benefits of installing VRF systems among commercial users and high-end residential structures.
LIST OF KEY COMPANIES PROFILED:
- Mitsubishi Electric
- Samsung Electronics
- Haier Electronics
- In February 2022, Leading provider of HVAC and security systems, Carrier Global Corporation, announced that it had reached a deal to purchase Toshiba Corporation's Toshiba Carrier Corporation (TCC). This acquisition of Toshiba Corporation, a Japanese global conglomerate, is expected to greatly benefit Carrier Global Company in the near future.
|Market Size in 2022||USD 16.5 Billion|
|Market Forecast in 2030||USD 35.9 Billion|
|Compound Annual Growth Rate||13.80 %|
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Type, By Application and By Geography|