VRF System Market

VRF System Market was valued at USD 15417 million in 2019 and is expected to register a CAGR of 12.4% during the forecast period.

Variable refrigerant flow (VRF) is an HVAC technology-based system, which has one outdoor condensing unit and multiple indoor units. The term ‘variable refrigerant flow’ refers to the ability of the system to control the amount of refrigerant flowing to the multiple evaporators that are indoor units and connected to a single condensing unit. VRF systems can either be a heat pump system or a heat recovery system, which provides simultaneous heating and cooling to different zones or rooms within a building at the same time. The use of multiple indoor units of different capacities and configurations provides the ability to create zones that can be individually controlled.

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The significant factors that are responsible for the growth of the global VRF system market include energy-saving potential of VRF system, zoning, individual temperature control, and minimized ductwork. In addition to this, the growing construction sector across the world and the strong demand for advanced air conditioning and heat pump solutions among customers will further boost the demand of the global VRF System Market. Additionally, the variable refrigerant flow (VRF) system serves as an enhanced version of the multi-split system with heat recovery capabilities and provides simultaneous heating and cooling. VRF system helps in improving the efficiency and power-saving capacity of the HVAC system, thereby encouraging the end-users to opt for these systems in the coming years.

The increasing application of VRF systems in various commercial buildings such as hotels, restaurants, corporate offices, and educational institutes, will further propel the market growth over the forecast period. Moreover, the ability of the VRF systems to produce less noise during operation, higher flexibility, modular designs, simple installation feature, and easy to use smart controls of room temperature will attract a large number of end-users to opt for VRF systems. On the other edge of the spectrum, the increasing incidences of refrigerant leak, high installation cost, and lack of awareness regarding the benefits offered by the VRF system, will hamper the growth of the global VRF System Market.

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Based on the type, the VRF System Market is segmented into heat pump system and heat recovery system. The heat pump system segment is expected to grow at a higher CAGR during the forecast period. The major factors driving the demand of the heat pump system include the relatively low cost, less maintenance requirement, followed by the growing awareness regarding energy efficiency. Additionally, the heat pump system is being increasingly adopted in residential buildings, retail stores, cellular offices, restaurants, lobby areas, clubhouses, and religious facilities where either cooling or heating is required during same operational periods. On the other edge, the heat recovery system segment is expected to dominate the market over the forecast period. The VRF heat recovery system offers heat recovery, transfers the heat recovered from the cooling zone and uses it to warm up the room in heating mode, thereby increasing the energy efficiency and energy savings. These systems are mostly used in schools, hotels, historical buildings, office buildings, banks, and other commercial buildings where simultaneous cooling and heating is required.

Based on the component, the market is segmented into outdoor units, indoor units, control systems, and accessories. Indoor Units are expected to grow at a higher CAGR during the forecast period owing to its easy installation into ceilings, ideal for smaller rooms, and the ability to create zones that can be individually controlled. On the other hand, the outdoor unit segment is projected to dominate the market over the forecast period. The major driving factors, including the ability of outdoor units to connect multiple indoor units, growing adoption of inverter driven compressor, lightweight feature, and small footprint, are boosting the demand for the outdoor units segment in the VRF system market.

Based on capacity, the market has been segmented into up to small capacity and large capacity. Among these, the small capacity segment is anticipated to grow at a higher CAGR during the forecast period. This is attributed to the growing demand for up to 10 Tons of VRF systems in residential building applications, small-sized office buildings, and low-rise hotels. The less amount of noise creation, energy-saving, comfortable airflow, and centralized control for small-sized buildings, are the major factors contributing to the growth of the 11 to 18 tons small capacity VRF system market.

Based on the application, the market is segmented into commercial, residential, and others. Among these, the commercial segment is expected to grow at a higher CAGR over the coming years. Simultaneous heating and cooling, precise zonal control, desired temperature control in an easy way, versatility in function, flexibility in design, and higher energy efficiency are some of the major factors contributing to the strong demand for VRF systems in the commercial sector. Additionally, there has been an upsurge in demand of the VRF system in commercial buildings such as shopping malls, small shops, cafes, large office buildings, and public spaces, which is further supporting the market growth in the commercial sector. On the other hand, the residential segment is expected to dominate the market during the forecast period owing to the numerous benefits offered by the VRF system, such as a highly cost-effective, efficient, and flexible HVAC solution. Low cost of operation, long product life, and less downtime are certain factors that are further contributing to the growth of the VRF system market in the residential segment.

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Based on the region, the Asia-Pacific region is expected to witness a higher CAGR during the forecast period owing to the increasing focus on the manufacturing of the VRF system in countries including China, Japan, and South Korea. The growth in the region can also be attributed to the expansion in construction activity in the region, coupled with the increasing per capita income of people in developing countries including India and China as well as growing urbanization, rising population rate, and the increasing demand for smart devices to handle VRF systems. Asia Air Movement and Control Association (AMCA), Energy Conservation Building Codes (India), LEED-INDIA, and Indian Society of Heating, Refrigerating, and Air-Conditioning Engineers (ISHRAE) are some of the organization supporting the adoption of VRF systems in the region. On the other hand, the North American region is projected to dominate the market over the coming years. This is due to the growing awareness about energy efficiency, easy installation process with minimum piping and ductwork, and high disposable income of the population. The VRF systems are often used in the retail, healthcare, and industrial sectors in the North American region.

Various notable players operating in the global VRF System Market include Daikin industries, Ltd., Fujitsu Limited, Mitsubishi Electric Corporation, Johnson Controls International Plc, Toshiba Corporation, Trane Technologies Plc, LG Electronics Inc., Midea Group Co., Ltd., Raytheon Technologies Corporation, Lennox International Inc., Samsung Electronics Co., Ltd., and Panasonic Corporation among others.

Key Developments: 

• • In 2020, Trane Technologies Plc announced the launch of Genyue5+, a full DC Inverter VRF system for India and SAARC markets. Genyue5+ has the ability to be controlled with its GEN Network Control, the advanced 15” touch screen controller. Additionally, the Genyue5+ inverter is expected to be used across various sectors, including retail, healthcare, hospitality, commercial, educational institution, and others.
  • In 2019, Mitsubishi Electric launched R32 City Multi YNW range VRF (Variable Refrigerant Flow) air conditioning systems in the UK market to deliver lower Global Warming Potential (GWP) for large air conditioning systems.
  • In 2019, Johnson Controls International Plc entered into a collaboration with Hitachi Ltd. to introduce the Hitachi Water Source Variable Refrigerant Flow (VRF) heat pump and heat recovery systems. The new multi-module systems offer the capability of connecting multiple single-module units, ranging from 6 to 48 tons and also deliver design flexibility with compact size, and enhanced exterior appearance. The system will be highly adopted in buildings and projects with limited space including high-rise buildings, office buildings, and apartments.
  • In 2019, the LG Electronics Inc. announced the product enhancement of its flagship Variable Refrigerant Flow (VRF) system, the Multi V 5. The new Multi V 5 VRF system is enhanced with the powerful LGRED (Reliable to Extreme Degrees) heat technology and is upgraded to operate in ambient conditions down to -22°F making it a robust VRF solution for all climates.

The global VRF System Market has been segmented on the basis of type, component, capacity, application, and regions. Based on type, the market is segmented into heat pump systems and heat recovery systems. Based on component, the market is segmented into outdoor units, indoor units, control systems and accessories. Based on capacity, the market is segmented into small capacity and large capacity. Based on application, the market is segmented into commercial, residential, and others.

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Key questions answered in this research report:

• • At what pace is global VRF System Market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in VRF System Market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global VRF System Market?
  • Which type generated maximum revenues in 2019 and identify the most promising products during the forecast period?
  • What are the various application areas of global VRF System Market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global VRF System Market by Type

• • Heat Pump Systems
  • Heat Recovery Systems

Global VRF System Market by Component

• • Outdoor Units
    • Compressors
    • Inverters
    • Others
  • Indoor Units
  • Control Systems and Accessories

Global VRF System Market by Capacity

• • Small Capacity
  • Large Capacity

Global VRF System Market by Application

• • Commercial
  • Residential
  • Others

Global VRF System Market by Region

• • North America VRF System Market (Option 1: As a part of the free 25% customization)
    • North America VRF System Market by Type
    • North America VRF System Market by Component
    • North America VRF System Market by Capacity
    • North America VRF System Market by Application
    • US VRF System Market All-Up
    • Canada VRF System Market All-Up
  • Europe VRF System Market (Option 2: As a part of the free 25% customization)
    • Europe VRF System Market by Type
    • Europe VRF System Market by Component
    • Europe VRF System Market by Capacity
    • Europe VRF System Market by Application
    • UK VRF System Market All-Up
    • Germany VRF System Market All-Up
    • France VRF System Market All-Up
    • Spain VRF System Market All-Up
    • Rest of Europe VRF System Market All-Up
  • Asia-Pacific VRF System Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific VRF System Market by Type
    • Asia-Pacific VRF System Market by Component
    • Asia-Pacific VRF System Market by Capacity
    • Asia-Pacific VRF System Market by Application
    • China VRF System Market All-Up
    • India VRF System Market All-Up
    • Japan VRF System Market All-Up
    • Rest of APAC VRF System Market All-Up
  • RoW VRF System Market (Option 4: As a part of the free 25% customization)
    • RoW VRF System Market by Type
    • RoW VRF System Market by Component
    • RoW VRF System Market by Capacity
    • RoW VRF System Market by Application
    • Brazil VRF System Market All-Up
    • South Africa VRF System Market All-Up
    • Saudi Arabia VRF System Market All-Up
    • UAE VRF System Market All-Up
    • Rest of world (remaining countries of the LAMEA region) VRF System Market All-Up

Global VRF Systems Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Daikin industries, Ltd.
  • Fujitsu Limited
  • Mitsubishi Electric Corporation
  • Johnson Controls International Plc
  • Toshiba Corporation
  • Trane Technologies Plc
  • LG Electronics Inc.
  • Midea Group Co., Ltd.
  • Raytheon Technologies Corporation
  • Lennox International Inc.
  • Samsung Electronics Co., Ltd.
  • Panasonic Corporation