The VRF Systems Market Size was valued at USD 17.70 Billion in 2022. The VRF Systems industry is projected to grow from USD 22.26 Billion in 2023 to USD 58.74 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.90% during the forecast period (2024 - 2032). Variable refrigerant flow (VRF) systems modify the refrigerant flow to indoor units under the needs of the system. These systems can regulate and maintain the facility-wide flow of refrigerant to a fan coil unit. The most popular forms of these systems are heat pumps and heat recovery systems, and depending on the need for simultaneous heating and cooling, they may be used in a range of applications. The demand for VRF systems is increasing due to many factors, including their capacity to conserve energy, provide design flexibility, and be installed affordably, making them an ideal choice for both residential and commercial users.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The market for VR systems is primarily driven by the increase in consumer desire for goods that use less energy. These systems use a clever variable-speed compressor that operates at a low temperature, making them energy-efficient. These systems have fewer small breakdowns and wear-and-tear, which reduces downtime. In comparison to technology that uses variable air volume, they contribute to energy savings of more than 40%. The variable refrigerant flow systems system can replace the existing equipment in tight places with the least amount of piping, making it ideal for applications in commercial spaces like hotels, supermarkets, and office buildings. The adoption of these systems is projected to be fueled by factors including quieter operation, lower operating costs than conventional techniques, and excellent energy efficiency throughout the forecast period.
The market segmentation, based on Type, includes Heat Pump Systems, Heat Recovery Systems. The Heat Pump Systems segment holds the majority share in 2022, contributing to the global VRF Systems revenue. This is due to increasing energy costs, growing awareness of energy efficiency, and the need for flexible and customized heating and cooling solutions. With the advancement in technology and increasing demand for energy-efficient solutions.
Based on Component, the market segmentation includes Outdoor Units, Indoor Units, Control Systems, and Accessories. The Outdoor Units segment dominated the market. This is because VRF systems typically have the refrigerant compressor and condenser located outside the building, while indoor units are installed inside the building to provide heating and cooling.
Based on Application, the market segmentation includes Residential, Commercial, Rail & Air Transportation, and Others. The residential segment is the largest segment of the VRF (Variable Refrigerant Flow) Systems market. This is due to a growing demand for energy-efficient and cost-effective heating and cooling solutions in the residential sector.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The largest market share belongs to Asia-Pacific. One of the factors fueling the expansion of the Asia-Pacific VRF Systems market is the rising demand for VRF systems from end users in the residential and commercial sectors. Rising urbanization, industrialization, and consumer desire for high-tech equipment such as wireless and connected devices are some other factors advancing the Market.
The North American region is expected to expand significantly at a CAGR. The market is expanding as a result of the growing integration of connected technologies. However, due to commercial organizations' increasing adoption of VRF technology for energy savings and flexible designs.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the VRF Systems industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global VRF Systems industry to benefit customers and expand the market sector. Major market players, including Emerson Electric Co, LG Electronics Inc, Fujitsu Limited, Daikin Industries Ltd, Schneider Electric, and others, are attempting to increase market demand by funding R&D initiatives.
LG Electronics is a manufacturer and distributor of consumer electronics. It sells household appliances, monitors, vacuum cleaners, air conditioners, car parts, and other products.
Fujitsu is a firm that provides information and communication technology (ICT) products, solutions, and services. It is divided into three business segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The Technology Solutions section provides consulting and construction services for information communication systems, infrastructure services, servers and storage systems, and network goods. The Ubiquitous Solutions segment offers personal computers and mobile phones, and automotive electronics. The Device Solutions division offers large-scale integration (LSI) devices, which are utilized in digital household appliances, autos, mobile phones, and servers, and electronic components such as semiconductor packages and batteries.
Emerson Electric Co
Daikin Industries Ltd
Schneider Electric SE
Toshiba Corporation
Johnson Controls International
LG Electronics Inc
Fujitsu Limited
Mitsubishi Electric Corporation
Midea Group Co. Ltd
In July 2022, Toshiba introduced its new Variable Refrigerant Flow (VRF) system called the SHRM Advance. It uses R-32 refrigerant, which has a lower Global Warming Potential (GWP). The reduced GWP of R-32 and the reduced charge of the refrigerant combine to enable the SHRM Advance to reduce comparable carbon emissions by up to 80%*.
The company introduced a range of Wi-Fi-enabled compact VRF air conditioners for residential and commercial buildings in India in June 2021. Its brand-new DVM S Eco unit is the most compact side discharge air conditioning system available, with a footprint below half a square meter and dimensions of W940 x H1630 x D460 mm.
April 2022, Samsung expanded its AC product line with its brand-new DVM S2 Variable Refrigerant Flow (VRF) outdoor air conditioning unit. Cooling is provided by the VRF unit, plus interior AC units. WindFree technology from the company ‘does away with strong cold draughts and diffuses air through 23,000 micro holes at a velocity of 0.15 m/s that helps form an atmosphere still as nothing.’ In heat pump and cooling-only versions ranging from 8HP to 34HP, various capacities will be presented for sale under the new DVM S2 lineup.
In February 2022, Carrier Global Corporation’s joint venture with Toshiba Carrier Corporation (TCC) for variable refrigerant flow (VRF) and light commercial HVAC executed a legally binding agreement that commits them to purchasing out Toshiba Corporation’s stock. There is the provision of healthy, safe, sustainable and intelligent building & cold chain solutions by carrier global corporation. It also enhances its global VRF product platform with cutting-edge technology and unique features while adding a known brand to its portfolio, thereby enhancing the carrier’s position within one of the fastest-growing HVAC categories.
Heat Pump Systems
Heat Recovery Systems
Outdoor Units
Indoor Units
Control Systems
Accessories
Residential
Commercial
Rail & Air Transportation
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 17.70 Billion |
| Market Size 2023 | USD 22.26 Billion |
| Market Size 2032 | USD 58.74 Billion |
| Compound Annual Growth Rate (CAGR) | 12.90% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Component, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Emerson Electric Co, Samsung, Daikin Industries Ltd, Schneider Electric, Toshiba Corporation, Johnson Controls International, LG Electronics Inc, Fujitsu Limited, Mitsubishi Electric Corporation, Midea Group Co. Ltd |
| Key Market Opportunities | Development of energy-efficient technologies and products |
| Key Market Dynamics | Advancement in technology Rising construction activities |
VRF System Market Highlights:
Frequently Asked Questions (FAQ) :
The VRF Systems Market size was valued at USD 17.70 Billion in 2022.
The global market is projected to grow at a CAGR of 12.90% during the forecast period, 2024-2032.
Asia Pacific had the largest share of the VRF Systems Market.
The key players in the market are Emerson Electric Co, Samsung, Daikin Industries Ltd, Schneider Electric, Toshiba Corporation, Johnson Controls International, LG Electronics Inc, Fujitsu Limited, Mitsubishi Electric Corporation, and Midea Group Co. Ltd.
The Heat Pump Systems category dominated the market in 2022.
The Residential segment had the largest share in the global market for VRF Systems.
Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
