VRF Systems Market Research Report - Global Forecast till 2030

VRF Systems Market Research Report Information By Type (Heat Pump Systems, Heat Recovery Systems), By Component (Outdoor Units, Indoor Units, Control Systems, Accessories), By Application (Residential, Commercial, Rail & Air Transportation, Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Industry Size, Share and Forecast Till 2030

ID: MRFR/SEM/8650-HCR | 100 Pages | Author: Shubham Munde | March 2024         

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Global VRF Systems Market Overview:

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 2030, exhibiting a compound annual growth rate (CAGR) of 12.90% during the forecast period (2023 - 2030). 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.

 VRF System Market
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

VRF Systems Market Trends

  • Energy-saving products are on the rise, and less maintenance will help growth

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.

VRF Systems Market Segment Insights:

VRF Systems Type Insights

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.

VRF Systems Component Insights

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.

VRF Systems Application Insights

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.

Figure 2: VRF Systems Market, by Type, 2022 & 2030 (USD Million)
VRF Systems Market, by Type, 2022 & 2030

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

VRF Systems Regional Insights

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.

Figure 3: VRF Systems Market SHARE BY REGION 2022 (%)
VRF Systems Market SHARE BY REGION 2022

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

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.

VRF Systems Key Market Players & Competitive Insights

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.

Key Companies in the VRF Systems market include

  • Emerson Electric Co

  • Samsung

  • Daikin Industries Ltd

  • Schneider Electric SE

  • Toshiba Corporation

  • Johnson Controls International

  • LG Electronics Inc

  • Fujitsu Limited

  • Mitsubishi Electric Corporation

  • Midea Group Co. Ltd

VRF Systems Industry Developments

April 2022: Samsung India has announced the release of India's first AI-enabled Variable Refrigerant Flow (VRF) ACs with Smarter and Faster Cooling.

July 2022: DAIKIN announced that it is expanding its patent non-assertion pledge for air conditioners that use the low GWP refrigerant HFC-32.

VRF Systems Market Segmentation

VRF Systems Type Outlook

  • Heat Pump Systems

  • Heat Recovery Systems

VRF Systems Component Outlook

  • Outdoor Units

  • Indoor Units

  • Control Systems

  • Accessories

VRF Systems Application Outlook

  • Residential

  • Commercial

  • Rail & Air Transportation

  • Others

VRF Systems Regional Outlook

  • 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 Scope:

Report Attribute/Metric Details
Market Size 2022 USD 17.70 Billion
Market Size 2023 USD 22.26 Billion
Market Size 2030 USD 58.74 Billion
Compound Annual Growth Rate (CAGR) 12.90% (2023-2030)
Base Year 2022
Market Forecast Period 2023-2030
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

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, 2023-2030.

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.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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