Variable Refrigerant Flow (VRF) System Market Forecasts to 2028 – Global Analysis By Component (Indoor Units, Outdoor Units, Control Systems and Accessories), Capacity (11 to 18 tons, Up to 10 tons, 19 to 26 tons, Above 26 tons), and By GeographyAccording to Stratistics MRC, the Global Variable Refrigerant Flow (VFR) Market is accounted for $19.29 billion in 2022 and is expected to reach $32.39 billion by 2028 growing at a CAGR of 9.02% during the forecast period. Variable refrigerant flow (VRF) systems are utilized to cool & heat a region by pull out heat from that region which needs cooling and move it to another region. They assist to manage the least quantity of refrigerant required throughout a single heating or cooling period. This market is quickly rising all over the globe due to its numerous benefits, that comprise high energy effectiveness and energy reserves, outstanding part-load performance, high-quality zoning control.
According to the Japan Refrigeration and Air Conditioning Industry Association, the room air conditioner market in India stood at 4.28 million units in 2018 and is expected to grow at a rate of 10% over the next ten years. VRF systems are being installed by a growing number of homes and public places due to their excellent physical properties, which include a long product life and good air conditioning efficiency. This factor is likely to drive the market during the forecast period. According to US census Bureau, Between 2002 and 2021, public residential building investment in the US increased dramatically in value. Over USD 9 billion were spent on residential construction projects by the public sector in 2021, a minor decline from 2020. The highest rise occurred in 2020, when public residential spending increased to USD 9.19 billion from USD 6.89 billion, representing a significant increase. Over the next few years, it's anticipated that the total cost of newly built homes in the US will rise.
Market Dynamics:
Driver:
Rising Demand for Energy Saving Products & Minimum Maintenance
The systems are energy capable; as they are consists of a stylish variable speed compressor that runs at a minimum temperature circumstance. These systems tolerate less corrosion and slight failures, resultant in abridged downtime. The variable refrigerant stream systems system is well suitable for application in commercial spaces, such as hotels, supermarkets, and office buildings, as it can replace the prevailing equipment in narrow spaces with minimum pipe work.
Restraint:
High Installation Cost of VRF Systems
A variable refrigerant flow system includes compressors, valves, motors, filters, inverters, and control systems. The price of each one equipment design and installation is high. This aspect is possible to hinder the market growth. The universal health emergency produced by the corona virus’s unanticipated extend had a considerable effect on a range of segment. The pandemic has halted production and commercial activity all crossways the world. Also, as workplaces were enforced to shut, interrupting on a daily basis operation, all companies transferred their staff to work distantly from their homes.
Opportunity:
Growing penetration of VRF systems
Growing penetration of variable refrigerant flow systems in both commercial and residential application segments is estimated to spread out the variable refrigerant flow systems market magnitude. Additionally, improved implementation of variable refrigerant flow systems in the industrial division is owed to outstanding services, high air-conditioning presentation, and elongated product life beneath unsympathetic circumstances.
Threat:
Spectrum scarcity issue and Covid-19 emergence
The matter of spectrum shortage for profit-making mobile radio frequency networks is a problem that threatens market growth. The most fundamental requirement of the spectrum sharing approach is the protection of legacy users of the underutilized bands. In addition, a novel design of medium access control (MAC) protocols is required because few existing wireless MAC protocols support spectrum sharing functionality.
Covid-19 Impact
The COVID-19 pandemic has ruthlessly impacted the growth of this market. The sudden outbreak of the COVID-19 pandemic is expected to limit the variable refrigerant flow systems market growth owing to the sharp decline in the demand for commercial spaces. With severe social separation rule imposed by governments global, more than a few business organizations have adopted remote working forms for their recruits. Consequently, the use of commercial office places has radically shrunk. The worldwide health emergency created by the corona virus’s unexpected spread has had a substantial effect on a range of sectors. The epidemic has halted production and commercial activity all across the world. Furthermore, as workplaces were forced to close, interrupting everyday operations, all companies transferred their staff to work remotely from their homes.
The heat pump systems segment is expected to be the largest during the forecast period
Based on system type, the market is further divided to Heat Recovery Systems and Heat Pump Systems. The Variable refrigerant flow heat pump system market is boosted by aspects like rising disposable income, rising consciousness about energy efficiency, and intensifying energy costs. Variable refrigerant flow systems grant a solution for all these issues by using various control systems and sensors. The heat pump systems segment is predictable to hold the largest market share of during the forecast period. Variable refrigerant flow zoning make sure that energy is only used to cool or heat engaged offices. Since Variable refrigerant flow systems have indoor units and be able to preserve exact temperature control, they supply the best part comfortable and productive working atmosphere.
The residential segment is expected to have the highest CAGR during the forecast period
Based on application, the market is segmented into Industrial, Commercial, Residential, Automobile, Educational institutes, Healthcare, Retail store and Hotels. The residential segment is anticipated to rise quickly at a CAGR during the forecast period. Individual controls for each housing component that are make obtainable by variable refrigerant flow systems, creating them very energy competent and low cost to manage. Consequently, a rising number of property owners and managers are choosing for Variable refrigerant flow air conditioning. Variable Refrigerant Flow systems are suitable the perfect choice for flats and cooperative housing since of their comprehensive product life under hard conditions, high air-conditioning performance, and outstanding service.
Region with highest share:
North America region is projected to have highest share during the forecast period. Variable refrigerant flow systems have put on marvelous reputation due to the ever-increasing consciousness about energy competence and simple installation procedure with least piping work. Newly, many companies based in this region commenced Variable refrigerant flow systems incorporated with low down global warming possible refrigerants. The opening of superior environment friendly refrigerants drives the adoption of VRF systems in North America. As people are more conscious of the significance of energy competence and the ease with which they can be installed with least piping work. Numerous North American corporations are recently launching VRF systems that use refrigerants with less global warming probable.
Region with highest CAGR:
Asia Pacific is expected to grow rapidly at a CAGR during the forecast period. Asia Pacific is foreseen to dominate the variable refrigerant flow systems market share during the forecast period on account of the mushrooming growth of commercial buildings in the region. As a consequence, the uptake of VRF systems is skyrocketing across the region. Asia-Pacific has the highest share of the market during the historic forecast period and is predicted to develop rapidly throughout the forecast period. The increasing demand for VRF systems from residential and commercial end-users is one of the reasons driving the growth of the VRF Systems market in the Asia-Pacific region. Furthermore, the market is being driven by the existence of numerous manufacturers such as Daikin Industries Ltd., Fujitsu Limited, Mitsubishi Electric Corporation, and others.
Key players in the market
Some of the key players profiled in the Market include Hitachi Ltd., Panasonic, Emerson, Toshiba Corporation, Mitsubishi Electric, Carrier HVAC, Fujitsu General Limited, Samsung Electronics, Johnson Controls, Lennox International, Inc., Daikin Industries Ltd., United Technologies Corporation, LG Electronics, Midea Group, Blue Star Ltd., Voltas, BOSCH, Whirlpool of India, Ingersoll-Rand PLC, Nortek Global HVAC.
Key Developments:
In October 2018, Fujitsu General Limited acquired 51% shares in F.G. Europe Italia S.p.A. for a value of approximately USD 8.48 million. F.G. Europe is situated in Greece and it is primarily engaged in sales and after sales service of air conditioners in Italy, Turkey, Greece, and the Balkans.
In October 2019, Panasonic Corporation signed a technology agreement with Welcome Air-Tech (WAT) for the development of energy-efficient and sustainable air conditioning and ventilation solutions for the commercial sector across Southeast Asia.
In Oct 2019, Johnson Controls-Hitachi Air Conditioning opened a new Global Development Center in Kadi, Gujarat State, India. The center aimed to drive the company’s world-class innovation capabilities with a strong focus on developing residential air conditioners and commercial packaged air conditioners for India as well as Southeast Asia, Middle East, and European markets.
In Jan 2020, Mitsubishi Electric opened two new showrooms in Patiala and Sangrur cities of Punjab. These showrooms would display and sell Mitsubishi Electric's Air-conditioning products including room air-conditioners, packaged air-conditioners, City Multi VRF systems, and Jet Towels to residential and commercial establishments.
In May 2020, Panasonic Corporation signed an agreement with Quantum Cooling for the distribution of VRF systems and mini-split equipment across Florida. Quantum Cooling LLC is engaged in the manufacturing of HVAC equipment and building automation systems.
Components Covered:
• Indoor Units
• Outdoor Units
• Control Systems and Accessories
Capacities Covered:
• 11 to 18 tons
• Up to 10 tons
• 19 to 26 tons
• Above 26 tons
System Types Covered:
• Heat Recovery Systems
• Heat Pump Systems
Applications Covered:
• Industrial
• Commercial
• Residential
• Automobile
• Educational institutes
• Healthcare
• Retail store
• Hotels
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Research Assistance
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook