Commercial Air Conditioning System Market: By Type (Heat Recovery System, and Heat Pump System), By Component (Outdoor Unit, Indoor Unit, and Control System), By Application (Residential, Commercial, and Industrial), and Geography  

Commercial Air Conditioning System Market was valued at USD 16,921.6 million in 2022 and is poised to grow at a 14.1% CAGR from 2023 to 2029. VRF, short for variable refrigerant flow and also called variable refrigerant volume (VRV), is an HVAC technology. The VRF system comprises refrigerants as the heating and cooling medium for several units and ican deliver simultaneous heating and cooling.  The global market for Commercial Air Conditioning systems (VRF) is primarily driven by the increasing global population. Additionally, nowadays urbanization, takes place rapidly which positively influences the construction industry, these factors are also anticipated to boost the demand for air conditioning systems. For instance, in the previous 50 years, the urban population in the Middle East region has grown at a substantial pace, steadily higher than in China and/or Africa. As a result, almost 70% of the population lives in metropolitan areas across the region, bringing it to the level of Europe. The GCC (Gulf Cooperation Council) is one of the vastly urbanized parts of the world with 85% of people living in cities in 2026, which is further anticipated to increase to 90% by 2050. The Commercial Air Conditioning System (VRF) market is constrained to some extent due to the high capital investment and lack of resources in growing industries. Furthermore, the complexities and higher cost of the VRF system were also cited as important issues that may create a negative impact on the market over the forecast period. The demand for HVAC technologies is progressively increasing in emerging economies such as the UAE, India, Mexico, and Brazil due to the rising temperature and increasing disposable income. As per the National Oceanic and Atmospheric Administration (NOAA), U.S. Department of Commerce, 2020 Annual Climate Report, since 1880 the combined ocean and land temperature have augmented at an average rate of 0.08°C per decade; though, the average rate of increase since 1981 (0.18°C) has been more than twice that rate. Modern buildings constructed worldwide are every so often designed with large panes of glass that draw sunlight and heat up the rooms more quickly, thus the requirement of a cooling system takes place. North America is expected to dominate the market owing to rising industrialization, high disposable income and continues technological development.