The most prominent difference between a commercial unit and a residential unit is the location. A commercial unit in most of the cases is located on a rooftop while the residential air conditioners are installed outside the building either behind or beside it. The commercial units are located on the rooftop so that they do not take up valuable interior space, does not create unnecessary sound pollution and there is no interference in the business when any sort of repair work goes on.
A commercial AC is generally a packaged unit while the residential ones are split. The commercial units are in one single package or within a cabinet. In this case only the ducts and the zone dampers are inside the house while the rest of the unit sits outside. On the other hand, the residential units which are split in nature have an outdoor unit and an indoor unit. The indoor unit has the blower, the condensate drainage, and the evaporator, while the outdoor unit has the compressor, the condenser, and the condenser fan.
The commercial units are modular in nature while the residential units are standalone structures. The residential units come as a single unit that cannot be expanded on requirement. In case, you require more cooling you will have to install a new unit altogether. While the commercial units come as modules to which extra heating or cooling units can be added as per requirement.