The size of the commercial AC market will power at a compound annual growth rate of 3.5% during 2022-2030, to sell 25.4 million units by 2030.

This significant increase in units is due surging number of construction activities around the globe. Increasing disposable income of population in emerging markets is also a key factor in the market growth.

The noteworthy trend in the commercial AC market is the use of refrigerants with a low global warming potential (GWP). Presently, R507, R22, and R404A, which are based on hydrochlorofluorocarbons (HCFC) and chlorofluorocarbons (CFC), are the most widely used refrigerants due to their easy availability.

Further, due to the increasing awareness about their harmful effects on the environment, they are being replaced by R32 and other low-GWP variants. Among the numerous factors behind the advance of the commercial AC market, the most important one is the growing construction industry. From $10.5 trillion in 2017, the global construction sector is set to reach $12.8 trillion by 2022.

The infrastructure pipeline consists metro rail systems, office complexes, and airports, which will require cooling equipment when complete. For instance, India plans to construct 100 airports in the next 15 years, while China is pursuing 216 airports’ completion by 2035.

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Asia-Pacific (APAC) held the largest share in the commercial AC market, on account of its huge construction sector, which already generates around 60% of the worldwide construction revenue. This is itself a result of the growing disposable income and migration of people from rural areas into urban pockets.

Overall, with the increasing global warming raising normal temperatures, ongoing construction projects globally and increasing per-capita income in emerging economies will lead to increase in demand for Acs, thus propel the market growth.