Commercial A/C Market Growth Forecast at 8.98% CAGR to 2020
Emergence of smart technology will be a key trend for market growth
PUNE, India — The global commercial air conditioning market is forecast to grow at a compound annual growth rate (CAGR) of 8.98 percent during the period of 2016 to 2020, according to a research report from ReportsnReports.
The study said the emergence of smart technology will be a key trend for market growth, since with the advent of the smart grid, smart buildings, and smart cities, the scope of data has increased more than ever, enabling better measurement using big data and analytics. Smart grids are capable of communicating with individual buildings, while smart cities can use technology to observe trends across all buildings in the city. Despite the high initial expenditure involved and the need for routine adjustments, the implementation of smart HVAC systems is increasingly becoming a necessary expense for larger buildings, as these systems enhance operational cost savings.
Growth in data center cooling will be a key driver for market growth. Overheating in data centers is a major concern for businesses, as it affects productivity and increases downtime. Owing to the need for increased information storage capacity for higher data processing, companies are not only establishing new data centers, but also expanding their existing data center infrastructure. The onus on companies to increase the efficiency of data centers has led to rising demand for data center cooling.
The recent increase in global construction activities is a key factor contributing to the growth of the global commercial air conditioning market. During 2015, the market was dominated by the Asia-Pacific (APAC) region with a market share of about 51 percent. Rapid economic growth, expansion in electrification, and greater product availability are factors that will drive the growth of this region during the forecast period.
By 2020, the ductless split system segment will continue its market dominance, accounting for about 46 percent of overall market revenue. Easy installation, energy efficiency, and the flexibility to cool or heat individual rooms are the key factors driving growth. Ductless split systems are becoming popular among hotels and apartment buildings due to their ability to heat one room while simultaneously cooling another.
More information is available here.
Publication date: 8/24/2016