According to Research Dive analysis, the global commercial air conditioning system (VRF) market is estimated to generate a revenue of $34,619.0 million by 2027, increasing from $15,859.8 million in 2019, at a healthy CAGR of 13.5%.
Impact Analysis of COVID-19 on the Global Commercial Air Conditioning System (VRF) Market:
The global commercial air conditioning system (VRF) market experienced a diminishing growth rate during the Covid-19 pandemic. Due to the complete shutdown of work areas and other employments, the demand for new installations decreased significantly. Additionally, the closure of commercial establishments and offices negatively impacted the growth of the market. Also, the complete lockdown disrupted logistics leading to a shortage of essential components and supplies. Besides this, implementation of safety norms along with social distancing led to a shortage of manpower thereby hampering production. The manufacturers and service providers are now entering into a strategic alliance to expand their product reach to recover from the pandemic.
Commercial Air Conditioning System (VRF) Market Analysis:
The market for the commercial air conditioning system market is anticipated to be driven by the growing popularity of the VRF system in residential and commercial consumers. The implementation of legislation to curb carbon emissions has fueled the demand for energy-efficient products. The VRF system is around 40%–50% energy efficient as well as the system is easy to install and maintain compared to the traditional HVAC system. The growing popularity along with the increasing awareness related to the benefits of installing VRF systems is expected to boost the demand for the commercial air conditioning system in the foreseeable period. Furthermore, the growing adoption of the VRF technology in North America and the European replacement market is expected to have a positive impact on the growth of the market in the coming years.
Higher capital investment along with the high cost of installation will be one of the restricting factors which may create a negative impact on the market during the forecast period.
The demand for HVAC technologies is steadily increasing in emerging economies such as the UAE, India, Mexico, and Brazil owing to the rising temperature and disposable income. According to the National Oceanic and Atmospheric Administration (NOAA’s), U.S. Department of Commerce, 2020 Annual Climate Report, since 1880 the combined ocean and land temperature has increased at an average rate of 0.08 degrees Celsius per decade; however, the average rate of increase since 1981 (0.18°C) has been more than twice that rate. Besides rising temperature, modern buildings are being constructed across the world are often designed with large panes of glass that attract sunlight due to which rooms heats up much quicker, thereby requiring cooling.
Based on type, the global market for commercial air conditioning system is divided into heat recovery system and heat pump system.
The heat pump system sub-segment shall have the fastest market growth and it is anticipated to generate a revenue of $ 12,470.2 million by 2027.
Based on component, the market is classified into the outdoor unit, indoor unit, and control systems. The outdoor unit sub-segment garnered $ 7,579.6 million in 2019 and is projected to grow exponentially by 2027.
Based on the application, the market is segmented into commercial, residential, and industrial sub-segment. The residential sub-segment is predicted to be growing significantly and it is expected to cross $ 8,809.7 million by 2027.
Based on geographical scope, the market was investigated across North America, Europe, Asia-Pacific, and LAMEA. The North America market is anticipated to rise at a growth rate of 17.5% by 2027 from the revenue generated in 2019.
The companies involved in the global commercial air conditioning system (VRF) market are DAIKIN INDUSTRIES, Ltd., Midea Group, JOHNSON CONTROLS INTERNATIONAL PLC., LG Electronics, MITSUBISHI ELECTRIC CORPORATION, Panasonic Corporation, FUJITSU, TOSHIBA CORPORATION, Ingersoll Rand, and Carrier Global Corporation.