Market Trends of Japan Commercial HVAC Industry
HVAC Equipment Holds the Significant Market Share
- The single split system is the preferred HVAC system for small commercial buildings. It is cost-effective and allows for precise control over the temperature in each room.
- VRF systems in commercial space efficiently circulate the precise amount of refrigerant required for heating or cooling purposes. These advanced air conditioning systems enable businesses to manage multiple air conditioning zones within their premises simultaneously.
- Moreover, Air Handling Units (AHUs) collect air from the external environment and indoor air, filter out contaminants, and regulate the temperature and humidity in the commercial building. The treated air is then circulated back into the atmosphere. Because of their design and operation, AHUs are more efficient than traditional retail air conditioning units. They can potentially lower costs and decrease energy usage within commercial establishments.
- The rising expansion of the hospitality sector in Japan due to growing tourism will propel the demand for commercial HVAC systems in the country. In Japan, travelers can choose from various holiday accommodations, including city hotels, business hotels, resorts, ryokan, and group lodgings. According to the Ministry of Health, Labour and Welfare of Japan, as of the end of March 2023, Japan had seen a surge in the number of registered hotels and inns, totaling around 90,700 establishments, which was a significant increase compared to the previous year.
- Despite Japan's rapid growth in inbound tourism, the market prioritizes domestic travel activities. Although the number of lodging guests has continuously increased in recent years, foreign nationals account for only one-fifth of overnight guests.
Understand The Key Trends Shaping This Market
Download PDF
Commercial Building Segment Holds the Significant Market Share
- The commercial building segment compromises infrastructures, such as office buildings, retail, showrooms, and warehouses, among others. Heating and cooling systems are essential to any commercial building, as they provide occupants with a comfortable environment.
- Commercial HVAC systems are intricate, including elements for heating, ventilation, and air conditioning. They are tailored to meet large buildings' particular requirements to guarantee excellent indoor air quality, energy efficiency, and occupant satisfaction.
- Commercial HVAC systems effectively regulate indoor temperature, control humidity levels, and maintain air quality by coordinating the functions of three key systems. Air conditioning units cool indoor spaces by utilizing refrigerants, which also help in dehumidifying the air. Heating systems raise indoor temperatures using water, radiator coils, or gas. Ventilation systems clean the air with filtration systems and ensure proper air circulation with fans.
- The rising expansion of office space in the country will drive the demand for HVAC services and equipment during the projected timeline. According to the Ministry of Land, Infrastructure, Transport, and Tourism, approximately 9,580 office construction projects commenced in Japan in 2023. The floor area of these office constructions remained consistent with the previous year.
- Moreover, leading retail players are expanding their presence in the country, thus creating high demand for commercial HVAC systems and services. An efficient HVAC system offers a significant benefit by enhancing the air quality in the retail space. This involves removing pollutants, allergens, and unpleasant odors, ultimately improving the shopping experience and ensuring the well-being of both customers and employees.
- In January 2024, IKEA revealed plans to open a new store in the northern Kanto region of Japan. This store has been strategically located to serve the needs of the local communities, encompassing an area with a population of more than seven million individuals. Demonstrating IKEA's dedication to sustainability, IKEA Maebashi is set to become Japan's most environmentally friendly IKEA store, boasting the smallest operational climate impact.
