Commercial AC: Key market research findings
- APAC dominates the market geographically
- Ongoing shift towards smart technology
- Key vendors – Carrier, Daikin, Hitachi, and LG
Technavio’s market research analysts predict the global market for commercial ACs to grow at a CAGR of around 9% between 2016 and 2020. The recent increase in global construction activities is a key factor contributing to the growth of the global commercial AC market as HVAC systems account for most of the revenue generated from these activities. During 2015, the global market for commercial ACs was dominated by APAC with a market share of about 51%. Rapid economic growth, expansion in electrification, and a greater product availability are factors that will drive the growth of this segment during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the commercial AC segments based on the product type.
“There is a perceptible shift in the market toward smart grids, smart metering, and building automation. Smart grids enable intelligent power distribution that helps to minimize power losses, whereas smart meters assist in the measurement and reporting of electricity consumption in real time. As HVAC systems are among the biggest consumers of energy, these technologies can accrue good savings by detecting faults in time and enhancing the overall performance,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research.
By 2020, the ductless standard split AC segment will continue its market dominance by accounting for about 46% of the overall market revenue. This type of air conditioning includes a compressor/heat exchanger unit that is installed outside the building. Easy installation, energy efficiency, and the flexibility to cool or heat individual rooms are the key factors driving the market’s growth. Ductless split ACs are becoming popular among hotels and apartment buildings on account of their ability to heat one room while simultaneously cooling another.
The key vendors in the global commercial AC market include Carrier, Daikin, Hitachi, and LG. The global commercial AC market is fragmented and competitive due to the presence of well-established international, as well as local players. Intense competitive environment coupled with high price sensitivity among buyers limits the prospects for growth in this market. The key players in the market are expected to differentiate their geographical presence with a focus on APAC during the forecast period.
A more detailed analysis is available in the Technavio report, Global Commercial AC market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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