The commercial HVAC industry has entered a transformative era. As sustainability goals and regulatory requirements shape the market, building owners and contractors have the opportunity to lead the charge toward more efficient, future-forward solutions. To help these stakeholders and others, Mitsubishi Electric Trane HVAC US (METUS) has highlighted three critical trends driving innovation for the commercial HVAC space this year:

  • The ongoing shift to low global warming potential (GWP) refrigerants for a more sustainable future
  • Personalized comfort as a standard expectation
  • Increasing competition for conventional boilers from electric hydronic systems

Here’s what these trends mean for commercial contractors and building owners and how they can use these trends to their advantage to strengthen their teams, customer relationships, and facility management.

Navigating the refrigerant transition

Effective Jan. 1, 2026, manufacturers can no longer produce or import commercial variable refrigerant flow (VRF) equipment using R-410A refrigerant. Instead, the industry has moved to using low-GWP alternatives like R-32, which offers a GWP of 675 compared to R-410A’s 2088 – significantly reducing environmental impact while maintaining high efficiency.

Well-prepared solution providers like METUS have planned for a smooth refrigerant transition, ensuring R-32 equipment availability while supporting existing warranties and parts for R-410A systems for at least another decade. R-410A systems will continue to be available for the first half of 2026 from METUS. Regardless of the brand they choose, contractors should plan ahead by pre ordering equipment during their project submittal phase to ensure adequate inventory.

Contractors and building owners also should investigate how different manufacturers have used the opportunity to enhance serviceability, reliability and overall comfort of the new low-GWP solutions. Newer, well-designed VRF technology should be earning enhanced cooling integrated energy efficiency ratio (IEER) ratings and stronger heating coefficient of performance (COP) scores. Choosing these types of systems may lead to potential energy savings and contribute to reduction in operational costs for building owners.

Contractors should also prioritize training from their solutions providers for their teams to meet evolving safety protocols and code compliance requirements. Engineers, architects, and distributors are also encouraged to attend training to learn how the shift changes VRF system designs. For instance, the industry will likely start seeing installations with a higher number of smaller VRF systems, rather than a lower number of larger systems.

Last, it is crucial that contractors communicate proactively with building owners, accurately positioning the refrigerant transition as a positive step toward improved system performance and greater overall reliability and sustainability. The refrigerant transition isn’t just about compliance. Rather, it’s an opportunity for commercial buildings to modernize and future-proof HVAC systems.

Personalized comfort is the new standard

Today’s occupants expect quiet, comfortable environments, making the noisy, inflexible operation of conventional HVAC systems unacceptable. Personalized, customizable climate control has become a standard requirement in commercial spaces. Facility managers and contractors are expected to increasingly turn toward modern commercial technologies such as VRF and Hybrid VRF systems, which can deliver zoned control and allow occupants to adjust temperatures and schedules for their unique spaces.

Case in point: The buildings of Weber State University in Ogden, Utah were historically cooled with chilled water and heated with steam. Today, many of the campus buildings have been upgraded with water source VRF and Hybrid VRF systems. Hybrid VRF, for example, was recently installed in the university’s six-level SkySuites building, which houses the Weber State Athletics Department, coaching staff offices, a press box, 26 suites, 150 club seats, and a study area for student-athletes.

For years, the temperatures in the SkySuites had been difficult to manage. Hybrid VRF’s zoning capabilities, however, provided individual thermostats in each space, allowing occupants to easily heat or cool their environments to their preferred comfort level. Even the presidential suite, previously always too warm, was cool and comfortable in time for the school’s homecoming game.

Another example of putting control in the hands of building occupants is the Westin Atlanta Gwinnett. Each of the four-star property’s 348 rooms and suites feature a VRF system that provides personalized climate control for each guest. Guests can easily adjust their own thermostats, and in larger suites, the system design was tailored to ensure even comfort regardless of room size.

“It’s difficult to get a good night’s sleep with PTAC [conventional packaged terminal air conditioner],” said Carl Hren, Executive Vice President of Development at Concord Hospitality Enterprises. “The Westin’s intentional HVAC design choices have eliminated that issue for guests.”

Electric hydronic heating gains momentum

Boilers have historically powered hydronic heating and domestic hot water (DHW) systems. Today, the industry is increasingly moving away from fossil-fuel burning building systems and toward smarter, more future-proof solutions. All-electric, air-source heat pumps are starting to compete with boilers for three-phase applications.

Contractors and building owners are increasingly recognizing that all-electric systems can reduce the need for the inspections, safety measures, and maintenance related to fossil fuel combustion systems. Certain designs are also modular, making installation more flexible and maintenance easier than conventional water heating systems.

Building location is also playing a role in the switch. In rural areas, more all-electric projects are being planned because accessing the grid is more efficient than adding additional resources like gas and oil. Additionally, as more legislative changes push for reduced use of fossil fuels, electric solutions are the obvious alternative.

Multi-family residences, hospitals, factories, dormitories, hotels, health centers and more will all be exploring all-electric three-phase options in 2026 for retrofit projects and for new installations. Contractors should contact their distributors and solution providers to learn more about the new technology coming onto the scene.

Mitsubishi Electric’s ecodan®Pro CAHV heat pump water heater, for example, is a modular, air-source heat pump with low-GWP R-454C refrigerant and water temperatures up to 165° F (74° C). This flexibility makes it ideal for diverse commercial applications.

Lead the HVAC charge in 2026

As the commercial HVAC industry evolves in 2026, the path ahead is unmistakable: a shift toward low-GWP refrigerants, an increasing demand for personalized comfort solutions, and the accelerating adoption of all-electric hydronic systems.

These changes present significant opportunities for contractors and building owners to create sustainable, high-performance environments.

“Continuous innovation will define the next chapter of growth for HVAC professionals,” said David Archer, Vice President of Commercial Business at METUS. “Those who embrace these changes will set the standard for sustainable, future-forward buildings.”