VRF System Market

VRF System Market Size Survey Report – In a Glance

As per the survey report on global VRF System market, the market is projected to foresee a CAGR of 12.5% between 2024-2033, and further generate a market size of USD 50.4 billion revenue by the end of 2033. In the year 2023, the market size was valued at USD 21.2 billion revenue.

• The global VRF System market is projected to grow on account of increased demand for energy efficient technology.
• In Japan, the VRF System market growth can be attributed to the increased innovation in the VRF technology.
• KDMI analyst’s growth analysis foresees installation intricacy to challenge the market growth.
• Asia Pacific, having the highest market share in the VRF System market, is projected to dominate the global market.

VRF System Market Analysis

Variable refrigerant flow is a technology that transfers the minimum proportion of refrigerant required while in a single cooling or heating period, for maintaining set temperatures and to guarantee that it automatically switches off in case no occupants are detected in the room. The technology is well equipped to function in minimum energy and offers advantages, a third greater than conventional schemes. There have been several studies over the years, with an assessment of the energy savings capacity of VRF from VAV in the United States climate positions, tracking that heat pump VRF model had about 14% to 39% yearly HVAC location energy saving capacity. A substantial amount of energy bill is saved with the application of VRF technology, and its entire lifecycle costs are even lower. Further, VRF offers a much faster ROI than other HVAC mechanisms. The high energy efficiency quality of the VRF technology is one of the significant growth drivers of the technology and predicts the growth of its market size. Daikin Industries Ltd., Fujitsu Ltd., and Mitsubishi Electric are some of the significant parties in the global market for VRF Systems.

Analyst’s Observation on Japan VRF System Market Survey

By placing greater emphasis on well-being Japan is moving towards constructing a society that respects the planet and the people over and above profit. The country is investing in real, genuine and new ideas, and well-being is a critical segment of Japan’s formula moving forward. Increased innovation in the VRF system is one of the significant growth drivers of the Japanese market. Main players, such as Hitachi, provide a wide variety of VRF AC systems, involving exceptional solutions such as Centrifugal VRF that allows indoor fitting of the outdoor unit. The Japanese producers or manufacturers compete to advance new technologies and products for VRF air conditioning mechanisms, originally advanced in Japan. In the 2016 exhibition of HVAC&R Japan, one producer exposed a hybrid VRF mechanism that linked a gas-engine VRF mechanism and an electric VRF system to a similar refrigerant circuit, thus enabling one item to function on two energy sources. The increasing innovation rate in the VRF system technology bodes well for the growth of the VRF system market size. Daikin Industries Ltd and Toshiba Corporation are some of the significant parties in the global market for VRF Systems.

VRF System Market Growth Driver

Incorporation of IoT and smart features in the VRF technology:

The IoT technology can gather and convey information such as location, temperature, power consumption and humidity. This information is evaluated for decision-making in less time, automating procedures and enhancing energy efficiency. In 2020, the worldwide market for IoT devices was USD 215 billion and will reach USD 1.5 trillion by 2025. In the coming 4 years, the IoT market will expand at a yearly rate of 28%, registering sales of more than USD 9000 billion by 2027. IoT and sensor applications in air conditioning act as smart thermostats to track the temperature and adapt settings automatically to uphold a comfortable ambience and decrease energy consumption and cost. Incorporation of direct growth of air conditioning system, including VRF and chilled water mechanism with IoT technology will maximize energy efficiency, system monitoring and control, in addition to minimizing consumption.

VRF System Market Segmentation

Our experts at KD Market Insights have segmented the global VRF System market research report as:

VRF System Market Regional Synopsis

Asia Pacific dominates the VRF System market due to the high demand for efficient HVAC solutions. Around 36% of the 1.7 billion ACs installed globally in 2017 were in China, and the region, as of 2019, dominated the market for room ACs. In China, the HVAC market is experiencing significant expansion because of urbanization, increasing construction activities and growing emphasis on energy-efficient technology. To aid EVE Energy meet China’s dual carbon targets, Carrier China, as of 2022 broadcasted it has offered 34 chillers to 8 highly effective chiller plants located in Huizhou Guangdong Province, and Jingzhou, Hubei Province, with an entire volume of 60,000 refrigeration tons. Carrier China is a segment of Carrier Global Company, the dominating worldwide offeror of healthy, sustainable, safe and cold chain solutions. In India, HVAC systems are steadily growing, fueled by the growth of infrastructure development and changing climatic situations. Anticipated to have a market size of USD 300 billion by 2030 and expanding at a CAGR of 15.8%, the Indian region is a lush land for international and local HVAC manufacturers.

Regional Company Names

• Gree
• Midea 
• Daikin
• Haier
• Hisense

VRF System Market Competitive Landscape

Some of the key players who top the global VRF System market share:

• Daikin Industries Ltd.
• Fujitsu Ltd.
• Mitsubishi Electric
• Johnson Controls, Inc.
• Toshiba Corporation
• Ingersoll Rand Plc.
• LG Electronics
• Midea Group
• United Technologies Corporation
• Lennox International, Inc.
• Samsung Electronics HVAC
• Panasonic Corporation
• Nortek Global HVAC

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global VRF system Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Type
      2. By Component
      3. By Application
      4. By Region
5. Market Segmentation by Type
   1. Heat Pump Systems
   2. Heat Recovery Systems
   3. Others
6. Market Segmentation by Component
   1. Outdoor Units
   2. Indoor Units
   3. Control Systems
   4. Others
7. Market Segmentation by Application
   1. Residential
   2. Commercial
   3. Rail & Air Transportation
   4. Others
8. Regional Analysis
   1. North America
      1. United States
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      2. Canada
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      3. Mexico
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
   2. Europe
      1. United Kingdom
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      2. Germany
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      3. France
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      4. Italy
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      5. Spain
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      6. Rest of Europe
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
   3. Asia Pacific
      1. China
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      2. Japan
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      3. India
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      4. Australia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      5. South Korea
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      6. Rest of Asia Pacific
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
   4. Latin America
      1. Brazil
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      2. Argentina
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      3. Colombia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      4. Rest of Latin America
         1. Market Size and Forecast
         2. Key Trends and Developments
         3.               Market Analysis by Type, Component and Application
   5. Middle East & Africa
      1. South Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      2. Saudi Arabia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      3. UAE
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
      4. Rest of Middle East & Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Type, Component and Application
9. Competitive Landscape
   1. Market Share Analysis
   2. Company Profiles
      1. Daikin Industries Ltd.
      2. Fujitsu Ltd.
      3. Mitsubishi Electric
      4. Johnson Controls, Inc.
      5. Toshiba Corporation
      6. Ingersoll Rand Plc.
      7. LG Electronics
      8. Midea Group
      9. United Technologies Corporation
      10. Lennox International, Inc.
      11. Samsung Electronics HVAC
      12. Panasonic Corporation
      13. Nortek Global HVAC
      14. Others
10. Strategic Recommendations
11. Appendix
    1. List of Tables
    2. List of Figures
12. References