report cover1

Commercial Air Conditioning Systems Market - Global Industry, Analysis, Size, Share, Growth, Trends, and Forecasts 2023-2030

Air conditioning is used to manage the air in a given space.  VRF is a Variable refrigerant flow (VRF) it is an HVAC technology invented by Daikin Industries, Ltd. in 1982. This may mean heating, dehumidifying, or cooling air. Commercial air conditioning is a system that is used in any commercial property. Commercial air conditioning can be used in any commercial property, big or small, including offices, shops, or restaurants. By adding an air conditioning system in commercial premises, businesses can ensure customers and employees keep cool in the summer and warm in the winter months. There are several different types of systems and different manufacturers. Each system has different capabilities and power so it’s important to ensure to have the correct system for the commercial space to maximize performance.

Commercial air conditioning and air conditioning in the home have different requirements due to the size of these spaces. Therefore, the amount of power needed and how often the system will be used all matter when it comes to selecting the right air conditioning system for customers. VRFs use refringent as the primary cooling and heating medium and are usually less complex than conventional chiller-based systems. This refrigerant is conditioned by one or more condensing units and is circulated within the building to multiple indoor units. VRF systems allow for varying degrees of cooling in more specific areas.

There are dedicated gateways that connect VRFs with home automation and building management systems controllers for centralized control and monitoring. In addition, such gateway solutions are capable of providing remote control operation of all HVAC indoor units over the internet incorporating a simple and friendly user interface.

Global Commercial Air Conditioning Systems (VRF) Market – Competitive Landscape

On May 27, 2022, Mitsubishi invested USD 113 million to boost production in Turkey. On February 9, 2021, Carrier China signed a USD 17 million contract with China Eastern Airlines investment to provide XCT7 VRF air conditioning systems for commercial offices.

Some of the Key Players in the Global Commercial Air Conditioning Systems (VRF) Market Include –

  • Hitachi Air Conditioning
  • LG Electronics
  • Mitsubishi Electric
  • Panasonic Corporation
  • Samsung India Electronics Ltd.
  • Voltas Limited
  • Daikin
  • Toshiba
  • United Technologies

Global Commercial Air Conditioning Systems (VRF) Market – Growth Drivers

Variable refrigerant flow systems are known for their energy efficiency, allowing precise control over the amount of refrigerant flow to each indoor unit. This can result in a significant amount of energy savings compared to HVAC systems. VRF systems would save around 15-42% and 18-33% for HVAC site and source energy uses. VRF systems enable zoning, meaning different areas or rooms can have individual temperature controls. This zoning capability increases comfort for occupants and allows for better energy management. VRF systems offer flexibility in design and installation. They can be easily adapted to different building layouts and requirements, making them suitable for a variety of commercial spaces. VRF systems often incorporate heat recovery technology. Allowing simultaneous heating and cooling in different areas of a building. This features overall system efficiency and reduces energy consumption. VRF integrates with smart building technologies, allowing for centralized control and monitoring. This enhances overall system management and can lead to better energy optimization. Despite potentially higher upfront costs, VRF systems can offer long-term cost savings through energy efficiency, reduced maintenance, and extended equipment life. In some regions, government incentives and regulations promoting energy-efficient HVAC solutions, including VRF systems, can increase the adoption in the commercial sector.

Global Commercial Air Conditioning Systems (VRF) Market – Restraints

The upfront cost of VRF systems can be higher compared to traditional HVAC systems, which may pose a financial barrier for some businesses, especially smaller ones. Installing VRF systems can be more complex than traditional systems, requiring specialized knowledge and skills. Installation cost of VRF commercial air conditioning system ranges from USD 3000 to USD 5000 This complexity can lead to longer installation times and potential challenges during the construction phase. Regular maintenance of VRF systems may require specialized expertise. The availability of skilled technicians for maintenance and repair could be a loss factor in some regions, potentially leading to downtime if issues arise. The refrigerant used in VRF systems, although often more environmentally friendly, may still pose concerns regarding global warming potential and regulatory changes. Adherence to evolving environmental standards can be a challenge. Some stakeholders may perceive VRF systems as less proven or reliable compared to traditional HVAC systems, leading to hesitancy in adopting this technology. In regions with extreme temperatures, VRF systems may face challenges in maintaining efficient operation, especially in very cold or very hot climates.  In certain regions, the VRF market may still be developing and a lack of awareness or understanding among potential users could hinder widespread adoption.

Global Commercial Air Conditioning Systems (VRF) Market- Opportunities

Growing emphasis on sustainability and green building practices presents an opportunity for VRF systems, known for their energy efficiency and environment-friendly refrigerant.  The escalating energy costs globally make energy-efficient solutions like VRF systems more attractive to businesses seeking long-term operational cost-savings. The ongoing trend of urbanization and infrastructure development, especially in emerging markets, provides a significant growth opportunity for VRF systems as new commercial buildings are constructed. The growing emphasis on indoor air quality in commercial spaces presents an opportunity for VRF systems, which can provide precise control over temperature and ventilation in different zones.

Global Commercial Air Conditioning Systems (VRF) Market – Geographical Insight

The market for global commercial air conditioning (VRF) is segmented into regions such as North America, Latin America, Europe, Asia-Pacific, the Middle East & Africa. Asia-Pacific is the largest market for global commercial air conditioning systems due to rapid urbanization, substantial infrastructure development, and surge in commercial construction activities and growing awareness of energy also contribute. The North American market experienced steady growth, attributed to a strong emphasis on energy efficiency, smart building technologies, and the replacement of older HVAC systems with more advanced VRF solutions.  In European countries due to stringent energy efficiency regulation and a focus on sustainable building practices. The market for VRF air conditioning is characterized by technological advancements.

Global Commercial Air Conditioning Systems (VRF) Market – Key Development

  • On August 9, 2023, Johnson Control-Hitachi Air Conditioning announced the launch of air365 Max, a new top-flow variable refrigerant flow (VRF) air conditioning system in Malaysia.
  • On July 13, 2022, Midea’s industry-first technologies and innovations redefine the VRF industry with the launched energy-efficient V8 VRF series.
Complete the form below and we'll get back to you shortly
Table of Content
Complete the form below and we'll get back to you shortly

Research Methodology: Aspects

Market research is a crucial tool for organizations aiming to navigate the dynamic landscape of customer preferences, business trends, and competitive landscapes. At Cognizance Market Research, acknowledging the importance of robust research methodologies is vital to delivering actionable insights to our clientele. The significance of such methodologies lies in their capability to offer clarity in complexity, guiding strategic management with realistic evidence rather than speculation. Our clientele seek insights that excel superficial observations, reaching deep into the details of consumer behaviours, market dynamics, and evolving opportunities. These insights serve as the basis upon which businesses craft tailored approaches, optimize product offerings, and gain a competitive edge in an ever-growing marketplace.

The frequency of information updates is a cornerstone of our commitment to providing timely, relevant, and accurate insights. Cognizance Market Research adheres to a rigorous schedule of data collection, analysis, and distribution to ensure that our reports reflect the most current market realities. This proactive approach enables our clients to stay ahead of the curve, capitalize on emerging trends, and mitigate risks associated with outdated information.

Our research process is characterized by meticulous attention to detail and methodological rigor. It begins with a comprehensive understanding of client objectives, industry dynamics, and research scope. Leveraging a combination of primary and secondary research methodologies, we gather data from diverse sources including surveys, interviews, industry reports, and proprietary databases. Rigorous data analysis techniques are then employed to derive meaningful insights, identify patterns, and uncover actionable recommendations. Throughout the process, we remain vigilant in upholding the highest standards of data integrity, ensuring that our findings are robust, reliable, and actionable.

Key phases involved in in our research process are mentioned below:


Understanding Clients’ Objectives:

Extensive Discussions and Consultations:

  • We initiate in-depth discussions and consultations with our clients to gain a comprehensive understanding of their objectives. This involves actively listening to their needs, concerns, and aspirations regarding the research project.
  • Through these interactions, we aim to uncover the underlying motivations driving their research requirements and the specific outcomes they hope to achieve.

Industry and Market Segment Analysis:

  • We invest time and effort in comprehensively understanding our clients’ industry and market segment. This involves conducting thorough research into market trends, competitive dynamics, regulatory frameworks, and emerging opportunities or threats.
  • By acquiring a deep understanding of the broader industry landscape, we can provide context-rich insights that resonate with our clients’ strategic objectives.

Target Audience Understanding:

  • We analyze our clients’ target audience demographics, behaviors, preferences, and needs to align our research efforts with their consumer-centric objectives. This entails segmenting the audience based on various criteria such as age, gender, income level, geographic location, and psychographic factors.
  • By understanding the nuances of the target audience, we can tailor our research methodologies to gather relevant data that illuminates consumer perceptions, attitudes, and purchase intent.


Identifying Challenges and Opportunities:

  • We proactively identify the challenges and opportunities facing our clients within their respective industries. This involves conducting SWOT (Strengths, Weaknesses, Opportunities, Threats) analyses and competitive benchmarking exercises.
  • By identifying potential obstacles and growth drivers, we can provide strategic recommendations that help our clients navigate complexities and capitalize on emerging opportunities effectively.

Grasping Specific Goals:

  • We delve into the intricacies of our clients’ objectives to gain clarity on the specific goals they aim to accomplish through the research. This entails understanding their desired outcomes, such as market expansion, product development, or competitive analysis.
  • By gaining a nuanced understanding of our clients’ goals, we can tailor our research approach to address their unique challenges and opportunities effectively.

Data Collection:


Primary Research Process:

  • Surveys: We design and administer surveys tailored to capture specific information relevant to our clients’ objectives. This may involve employing various survey methodologies, such as online, telephone, or face-to-face interviews, to reach target audiences effectively.
  • Interviews: We conduct structured or semi-structured interviews with key stakeholders, industry experts, or target consumers to gather in-depth insights and perspectives on relevant topics. These interviews allow us to probe deeper into specific issues and uncover valuable qualitative data.
  • Focus Groups: We organize focus group discussions with carefully selected participants to facilitate interactive discussions and gather collective opinions, attitudes, and preferences. This qualitative research method provides rich contextual insights into consumer behaviors and perceptions.
  • Observations: We conduct observational research by directly observing consumer behaviors, interactions, and experiences in real-world settings. This method enables us to gather objective data on consumer actions and reactions without relying on self-reported information.

Secondary Research Process:

  • Literature Review: We conduct comprehensive literature reviews to identify existing studies, academic articles, and industry reports relevant to the research topic. This helps us gain insights into previous research findings, theoretical frameworks, and best practices.
  • Industry Reports: We analyze industry reports published by reputable trade associations (whitepapers, research studies, etc.), and government agencies (U.S. Census Bureau, Bureau of Labor Statistics, and Securities and Exchange Commission etc.) to obtain macro-level insights into market trends, competitive landscapes, and industry dynamics.
  • Government Publications: We review government publications, such as economic reports, regulatory documents, and statistical databases, to gather relevant data on demographics, market size, consumer spending patterns, and regulatory frameworks.
  • Online Databases: We leverage online databases, such as industry portals, and academic repositories (PubMed Central (PMC), ScienceDirect, SSRN (Social Science Research Network), Directory of Open Access Journals (DOAJ), NCBI, etc.), to access a wide range of secondary data sources, including market statistics, financial data, and industry analyses.



Data Analysis:

The data analysis phase serves as a critical juncture where raw data is transformed into actionable insights that inform strategic decision-making. Through the utilization of analytical methods such as statistical analysis and qualitative techniques like thematic coding, we uncover patterns, correlations, and trends within the data. By ensuring the integrity and validity of our findings, we strive to provide clients with accurate and reliable insights that accurately reflect the realities of the market landscape.


Transformation of Raw Data:

  • Upon collecting the necessary data, we transition into the data analysis phase, where raw data is processed and transformed into actionable insights. This involves organizing, cleaning, and structuring the data to prepare it for analysis.

Utilization of Analytical Methods:

  • Depending on the research objectives, we employ a diverse range of analytical methods to extract meaningful insights from the data. These methods include statistical analysis, trend analysis, regression analysis, and qualitative coding.

Statistical Analysis:

  • Statistical tools are instrumental in uncovering patterns, correlations, and trends within the data. By applying statistical techniques such as descriptive statistics, hypothesis testing, and multivariate analysis, we can discern relationships and derive valuable insights.

Qualitative Analysis Techniques:

  • In addition to quantitative analysis, we leverage qualitative analysis techniques to gain deeper insights from qualitative data sources such as interviews or open-ended survey responses. One such technique is thematic coding, which involves systematically categorizing and interpreting themes or patterns within qualitative data.

Integrity and Validity Maintenance:

  • Throughout the analysis process, we maintain a steadfast commitment to upholding the integrity and validity of our findings. This entails rigorous adherence to established methodologies, transparency in data handling, and thorough validation of analytical outcomes.

Data Validation:

The final phase of our research methodology is data validation, which is essential for ensuring the reliability and credibility of our findings. Validation involves scrutinizing the collected data to identify any inconsistencies, errors, or biases that may have crept in during the research process. We employ various validation techniques, including cross-referencing data from multiple sources, conducting validity checks on survey instruments, and seeking feedback from independent experts or peer reviewers. Additionally, we leverage internal quality assurance protocols to verify the accuracy and integrity of our analysis. By subjecting our findings to rigorous validation procedures, we instill confidence in our clients that the insights they receive are robust, reliable, and trustworthy.


Importance of Data Validation:

  • Data validation is the final phase of the research methodology, crucial for ensuring the reliability and credibility of the findings. It involves a systematic process of reviewing and verifying the collected data to detect any inconsistencies, errors, or biases.

Scrutiny of Collected Data:

  • The validation process begins with a thorough scrutiny of the collected data to identify any discrepancies or anomalies. This entails comparing data points, checking for outliers, and verifying the accuracy of data entries against the original sources.

Validation Techniques:

  • Various validation techniques are employed to ensure the accuracy and integrity of the data. These include cross-referencing data from multiple sources to corroborate findings, conducting validity checks on survey instruments to assess the reliability of responses, and seeking feedback from independent experts or peer reviewers to validate the interpretation of results.

Internal Quality Assurance Protocols:

  • In addition to external validation measures, internal quality assurance protocols are implemented to further validate the accuracy of the analysis. This may involve conducting internal audits, peer reviews, or data validation checks to ensure that the research process adheres to established standards and guidelines.
- Get Started -

Get insights that lead to new growth opportunities

Need a Custom Report?

We can customize every report – free of charge – including purchasing stand-alone sections or country-level reports

Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail

Business Development

small c popup.png
Buy Now
small c popup.png
Complete the form below and we'll get back to you shortly
small c popup.png
Complete the form below and we'll get back to you shortly
small c popup.png
Complete the form below and we'll get back to you shortly
Ask an Expert