VRF System Market

Global VRF System Market Size, Trends & Analysis - Forecasts to 2027 By Component (Outdoor Units, Indoor Units, Control Systems and Accessories and Others), By Capacity (Up to 10 Tons, 11 to 18 Tons, 19 to 26 Tons, Above 26 Tons), By Type (Heat Pump Systems, Heat Recovery Systems), By Application (Commercial, Residential and Others), By Region (North America, Asia Pacific, CSA, Europe, and the Middle East and Africa), Company Market Share Analysis, and Competitor Analysis

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This report was recently updated on November 22 2022 with the latest and most recent market numbers

Global VRF System Market Size

The Global VRF System market is projected to grow from USD 17.8 billion in 2022 to USD 32.5 billion by 2027 at a CAGR value of 12.8% from 2022 to 2027.

VRF systems, which were first launched in Japan over 20 years ago and have since gained popularity in several nations, are still relatively obscure in the United States. VRF systems are found in about half of medium-sized commercial properties (up to 70,000 ft2 [6500 m2]) and one-third of large commercial buildings in Japan (more than 70,000 ft2 [6500 m2]). VRF systems' highly energetic capability and simple, low-maintenance requirements are the market's main growth drivers.

Increased industrial and residential units, growing awareness of sustainable energy management systems with high demand for energy-saving products, rapid urbanization with population increase, and substantial investment for infrastructural facilities are driving the market's growth during the forecast period. Furthermore, continual technological advancements in the field of VRF, low maintenance especially with the new compressors utilized, expanding government and intergovernmental organization’s insistence on clean and save power generation programs, and reduced operating cost are all factors that are expected to boost the global market.

The potential of VRF systems to consume 17% and 73% less energy than rooftop systems during the cooling and heating seasons, respectively, as well as easier modular installation, which is especially helpful for building conversion, are driving market expansion. Additionally, the capacity to respond to fluctuations in space load circumstances, as well as quicker and more cost-effective servicing and commissioning, are fuelling market expansion.

VRF systems' capacity to notify users of potential defects, offer diagnosis information, as well as provide temperature control to several thermal zones via individual indoor units is also propelling market expansion. VRF systems also provide excellent energy efficiency, particularly at part load conditions (IEER), as well as concurrent heating and cooling, flexibility in space realignment for future use, and the ability to flawlessly adapt to building modifications, all of which are variables that influence the market growth during the forecast period.

Following, the sudden outbreak and long-term presence of the covid-19 pandemic, numerous sectors were adversely impacted. However, attributable to the need for air conditioning in hospitals, the demand for VRF systems has increased marginally as a result of the global health emergency. Despite modest demand during the early stages of the epidemic, the need for VRF gradually increased.

Several studies, however, demonstrate that there are problems with the use of VRF systems, including a lack of understanding of the energy-saving benefits, greater initial costs, and code compliance requirements.

global vrf system market

Global VRF System Market: By Component

Based on the component, the VRF system market is fragmented into outdoor units, indoor units, control systems and accessories, and others. The outdoor unit segment is expected to grow the fastest in the VRF system market from 2022 to 2027. Outdoor units' capability to provide temperature control and consequent zoned tranquillity, as well as boost total system capacity, are driving segment expansion. Incentives such as fewer malfunctions and unavailability, as well as ease of installation and operation using a variety of small pipes and cables, are fueling growth.

Global VRF System Market: By Capacity

Based on the capacity, the market is divided into up to 10 tons, 11 to 18 tons, 19 to 26 tons, and above 26 tons. The 11 to 18 tons segment is expected to grow the fastest in the VRF system market from 2022 to 2027. The increased demand for VRF systems in residential building applications, small-scale business facilities, and low-rise hotels is attributed to the segment growth. The expansion of the 11 to 18 tonnes small capacity VRF system can also be ascribed to aspects such as reduced noise, energy savings, comfortable airflow, and centralized control for small buildings.

Global VRF System Market: By System Type

Based on the system type, the global VRF system market is classified as heat pump systems and heat recovery systems. The heat recovery system segment is expected to hold a larger share as compared to the other segment. The low cost of the heat pump system, the minimal maintenance requirements, and the heightened recognition of energy efficiency are the main factors pushing its adoption. Furthermore, heat pump systems are increasingly being used in residential buildings, department shops, cellular workplaces, restaurants, lobby areas, clubhouses, and religious establishments where cooling and heating are required at the same time.

Global VRF System Market: By Application

Based on the application of the VRF system, market is divided into commercial residential, and others. The commercial segment is expected to hold a larger share as compared to the other segment. Simultaneous heating and cooling, accurate zonal control, easy temperature control, variety in function, design flexibility, and improved energy economy are only a few of the primary elements driving the increased demand for VRF systems in the commercial sector. In addition, there has been an increase in commercial buildings with the buildings sector accounting for about 76% of electricity use and 40% of all U.S is commercial buildings bolstering the commercial sector's growth.

asia pacific vrf system market

Global VRF System Market: By Region

As per the geographical analysis, the VRF system market can be classified into North America (the United States, Canada, and Mexico), Asia Pacific (India, China, Japan, Malaysia, Singapore, and the Rest of Asia Pacific), Europe (Germany, United Kingdom, Italy, France, Spain, Netherlands, and Rest of Europe), Middle East & Africa (Saudi Arabia, United Arab Emirates, and Rest of the Middle East & Africa) and Central & South America (Brazil, Argentina, and Rest of Central and South America).

North America (the United States, Canada, and Mexico), will have a dominant share in the VRF system market from 2022 to 2027. Major factors driving the growth of the market in the North American region are constant innovation in the field of VRF systems, technological advancements and stringent but high-quality standards, a growing shift towards energy-efficient systems, along the prevalence of key players.

Moreover, the Asia Pacific (India, China, Japan, Malaysia, Singapore, and the Rest of Asia Pacific) region is expected to be the fastest-growing segment in the VRF System market during the forecast period. The increase in government spending, rapid industrialization, and increasing research and development projects in this field are some factors contributing to growth. Major government and constructional infrastructural investments and programs in India, such as the 'Make in India' campaign, the Smart City Mission, the 'National Infrastructure Pipeline' initiative, and PPP Projects in Smart Cities, are likely to boost the market growth in India throughout the forecast period. Furthermore, the rising building sector, as well as strong customer demand for innovative air conditioning and heat pump solutions, will drive up demand in this region.

Global VRF System Market Share and Competitor Analysis

Daikin, Toshiba, Mitsubishi Electric, Midea Group, Johnson Controls, and LG Electronics, Merson Electric Co., United Technologies Corporation, Johnson Controls International PLC, Fujitsu Limited, Daikin Industries Ltd., Samsung Electronics, Panasonic Corporation, Schneider Electric SE, Ingersoll Rand, Lennox, among others are the key players in the global VRF system market.

Please note: This is not an exhaustive list of companies profiled in the report.

Chapter 1   Methodology

1.1    Market Scope & Definitions

1.2    Estimates & Forecast Calculation

1.3    Historical Data Overview and Validation

1.4    Data Sources

1.4.1    Secondary

1.4.2    Primary

Chapter 2   Report Outlook

2.1    VRF System Industry Overview, 2022-2027

2.1.1    Industry Overview

2.1.2    Component Overview

2.1.3    Capacity Overview

2.1.4    System Type Overview

2.1.5    Application Overview

2.1.6    Regional Overview

Chapter 3   VRF System Market Trends

3.1    Market Segmentation

3.2    Industry Background, 2022-2027

3.3    Market Key Trends

3.3.1    Positive Trends

3.3.1. Growing awareness of sustainable energy management systems

3.3.1.2    Massive injection of investment for infrastructural development

3.3.2    System Type Challenges

3.3.2.1    Lack of understanding of the energy-saving benefits

3.4    Prospective Growth Scenario

3.4.1    Component Growth Scenario

3.4.2    Capacity Growth Scenario

3.4.3    System Type Growth Scenario

3.4.4    Application Growth Scenario

3.5    COVID-19 Influence over Industry Growth

3.6    Porter’s Analysis

3.7    PESTEL Analysis

3.8    Value Chain & Supply Chain Analysis

3.9    Regulatory Framework

3.9.1    North America

3.9.2    Europe

3.9.3    APAC

3.9.4    LATAM

3.9.5    MEA

3.10    Application Overview

3.11    Market Share Analysis, 2021

3.11.1    Company Positioning Overview, 2021

Chapter 4   VRF System Market, By Component

4.1    Component Outlook

4.2    Outdoor Units

4.2.1    Market Size, By Region, 2022-2027 (USD Billion)

4.3    Indoor Units

4.3.1    Market Size, By Region, 2022-2027 (USD Billion)

4.4    Control Systems and Accessories

4.4.1    Market Size, By Region, 2022-2027 (USD Billion)

Chapter 5   VRF System Market, By System Type

5.1    Industry Outlook

5.2    Heat Pump Systems

5.2.1    Market Size, By Region, 2022-2027 (USD Billion)

5.3    Heat Recovery Systems

5.3.1    Market Size, By Region, 2022-2027 (USD Billion)

Chapter 6   VRF System Market, By Capacity

6.1    Up to 10 Tons

6.1.1    Market Size, By Region, 2022-2027 (USD Billion)

6.2    11 to 18 Tons

6.2.1    Market Size, By Region, 2022-2027 (USD Billion)

6.3    19 to 26 Tons

6.3.1    Market Size, By Region, 2022-2027 (USD Billion)

6.4    Above 26 Tons

6.4.1    Market Size, By Region, 2022-2027 (USD Billion)

Chapter 7   VRF System Market, By Application

7.1    Commercial

7.1.1    Market Size, By Region, 2022-2027 (USD Billion)

7.2    Residential

7.2.1    Market Size, By Region, 2022-2027 (USD Billion)

7.3    Others

7.3.1    Market Size, By Region, 2022-2027 (USD Billion)

Chapter 8   VRF System Market, By Region

8.1    Regional outlook

8.2    North America

8.2.1    Market Size, By Country 2022-2027 (USD Billion)

8.2.2    Market Size, By Component, 2022-2027 (USD Billion)

8.2.3    Market Size, By Capacity, 2022-2027 (USD Billion)

8.2.4    Market Size, By System Type, 2022-2027 (USD Billion)

8.2.5    Market Size, By Application, 2022-2027 (USD Billion)

8.2.6    U.S.

8.2.6.1    Market Size, By Component, 2022-2027 (USD Billion)

8.2.4.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.2.4.3    Market Size, By System Type, 2022-2027 (USD Billion)

Market Size, By Application, 2022-2027 (USD Billion)

8.2.7    Canada

8.2.7.1    Market Size, By Component, 2022-2027 (USD Billion)

8.2.7.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.2.7.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.2.7.4    Market Size, By Application, 2022-2027 (USD Billion)

8.3    Europe

8.3.1    Market Size, By Country 2022-2027 (USD Billion)

8.3.2    Market Size, By Component, 2022-2027 (USD Billion)

8.3.3    Market Size, By Capacity, 2022-2027 (USD Billion)

8.3.4    Market Size, By System Type, 2022-2027 (USD Billion)

8.3.5    Market Size, By Application, 2022-2027 (USD Billion)

8.3.6    Germany

8.3.6.1    Market Size, By Component, 2022-2027 (USD Billion)

8.3.6.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.3.6.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.3.6.4    Market Size, By Application, 2022-2027 (USD Billion)

8.3.7    UK

8.3.7.1    Market Size, By Component, 2022-2027 (USD Billion)

8.3.7.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.3.7.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.3.7.4    Market Size, By Application, 2022-2027 (USD Billion)

8.3.8    France

8.3.8.1    Market Size, By Component, 2022-2027 (USD Billion)

8.3.8.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.3.8.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.3.8.4    Market Size, By Application, 2022-2027 (USD Billion)

8.3.9    Italy

8.3.9.1    Market Size, By Component, 2022-2027 (USD Billion)

8.3.9.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.3.9.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.3.9.4    Market Size, By Application, 2022-2027 (USD Billion)

8.3.10    Spain

8.3.10.1    Market Size, By Component, 2022-2027 (USD Billion)

8.3.10.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.3.10.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.3.10.4    Market Size, By Application, 2022-2027 (USD Billion)

8.3.11    Russia

8.3.11.1    Market Size, By Component, 2022-2027 (USD Billion)

8.3.11.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.3.11.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.3.11.4    Market Size, By Application, 2022-2027 (USD Billion)

8.4    Asia Pacific

8.4.1    Market Size, By Country 2022-2027 (USD Billion)

8.4.2    Market Size, By Component, 2022-2027 (USD Billion)

8.4.3    Market Size, By Capacity, 2022-2027 (USD Billion)

8.4.4    Market Size, By System Type, 2022-2027 (USD Billion)

8.4.5   Market Size, By Application, 2022-2027 (USD Billion)

8.4.6    China

8.4.6.1    Market Size, By Component, 2022-2027 (USD Billion)

8.4.6.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.4.6.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.4.6.4    Market Size, By Application, 2022-2027 (USD Billion)

8.4.7    India

8.4.7.1    Market Size, By Component, 2022-2027 (USD Billion)

8.4.7.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.4.7.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.4.7.4    Market Size, By Application, 2022-2027 (USD Billion)

8.4.8    Japan

8.4.8.1    Market Size, By Component, 2022-2027 (USD Billion)

8.4.8.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.4.8.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.4.8.4    Market Size, By Application, 2022-2027 (USD Billion)

8.4.9    Australia

8.4.9.1    Market Size, By Component, 2022-2027 (USD Billion)

8.4.9.2    Market size, By Capacity, 2022-2027 (USD Billion)

8.4.9.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.4.9.4    Market Size, By Application, 2022-2027 (USD Billion)

8.4.10    South Korea

8.4.10.1    Market Size, By Component, 2022-2027 (USD Billion)

8.4.10.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.4.10.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.4.10.4    Market Size, By Application, 2022-2027 (USD Billion)

8.5    Latin America

8.5.1    Market Size, By Country 2022-2027 (USD Billion)

8.5.2    Market Size, By Component, 2022-2027 (USD Billion)

8.5.3    Market Size, By Capacity, 2022-2027 (USD Billion)

8.5.4   Market Size, By System Type, 2022-2027 (USD Billion)

8.5.5   Market Size, By Application, 2022-2027 (USD Billion)

8.5.6    Brazil

8.5.6.1    Market Size, By Component, 2022-2027 (USD Billion)

8.5.6.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.5.6.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.5.6.4    Market Size, By Application, 2022-2027 (USD Billion)

8.5.7    Mexico

8.5.7.1    Market Size, By Component, 2022-2027 (USD Billion)

8.5.7.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.5.7.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.5.7.4    Market Size, By Application, 2022-2027 (USD Billion)

8.5.8    Argentina

8.5.8.1    Market Size, By Component, 2022-2027 (USD Billion)

8.5.8.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.5.8.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.5.8.4    Market Size, By Application, 2022-2027 (USD Billion)

8.6    MEA

8.6.1    Market Size, By Country 2022-2027 (USD Billion)

8.6.2    Market Size, By Component, 2022-2027 (USD Billion)

8.6.3    Market Size, By Capacity, 2022-2027 (USD Billion)

8.6.4    Market Size, By System Type, 2022-2027 (USD Billion)

8.6.5    Market Size, By Application, 2022-2027 (USD Billion)

8.6.6    Saudi Arabia

8.6.6.1    Market Size, By Component, 2022-2027 (USD Billion)

8.6.6.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.6.6.3   Market Size, By System Type, 2022-2027 (USD Billion)

8.6.6.4   Market Size, By Application, 2022-2027 (USD Billion)

8.6.7    UAE

8.6.7.1    Market Size, By Component, 2022-2027 (USD Billion)

8.6.7.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.6.7.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.6.7.4    Market Size, By Application, 2022-2027 (USD Billion)

8.6.8    South Africa

8.6.8.1    Market Size, By Component, 2022-2027 (USD Billion)

8.6.8.2    Market Size, By Capacity, 2022-2027 (USD Billion)

8.6.8.3    Market Size, By System Type, 2022-2027 (USD Billion)

8.6.8.4    Market Size, By Application, 2022-2027 (USD Billion)

Chapter 9   Company Landscape

9.1    Competitive Analysis, 2020

9.2    Daikin Industries Ltd

9.2.1    Company Overview

9.2.2    Financial Analysis

9.2.3    Strategic Positioning

9.2.4    Info Graphic Analysis

9.3    Toshiba

9.3.1    Company Overview

9.3.2    Financial Analysis

9.3.3    Strategic Positioning

9.3.4    Info Graphic Analysis

9.4    Mitsubishi Electric

9.4.1    Company Overview

9.4.2    Financial Analysis

9.4.3    Strategic Positioning

9.4.4    Info Graphic Analysis

9.5    Midea Group

9.5.1    Company Overview

9.5.2    Financial Analysis

9.5.3    Strategic Positioning

9.5.4    Info Graphic Analysis

9.6    Johnson Controls

9.6.1    Company Overview

9.6.2    Financial Analysis

9.6.3    Strategic Positioning

9.6.4    Info Graphic Analysis

9.7    LG Electronics

9.7.1    Company Overview

9.7.2    Financial Analysis

9.7.3    Strategic Positioning

9.7.4    Info Graphic Analysis

9.8    Schneider Electric SE

9.8.1    Company Overview

9.8.2    Financial Analysis

9.8.3    Strategic Positioning

9.8.4    Info Graphic Analysis

9.         Fujitsu Limited

9.9.1    Company Overview

9.9.2    Financial Analysis

9.9.3    Strategic Positioning

9.9.4    Info Graphic Analysis

9.10    Samsung Electronics

9.10.1    Company Overview

9.10.2    Financial Analysis

9.10.3    Strategic Positioning

9.10.4    Info Graphic Analysis

9.11    Other Companies

9.11.1    Company Overview

9.11.2    Financial Analysis

9.11.3    Strategic Positioning

9.11.4    Info Graphic Analysis

The Global VRF System Market has been studied from the year 2019 till 2027. However, the CAGR provided in the report is from the year 2022 to 2027. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.

The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply-side analysis for the VRF System Market.

The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.

Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the company and customer analytics.

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Frequently Asked Questions

The global VRF system market is projected to grow at a CAGR value of 12.8% from 2022 to 2027.
Daikin, Toshiba, Mitsubishi Electric, Midea Group, Johnson Controls, and LG Electronics, Merson Electric Co., United Technologies Corporation, Johnson Controls International PLC, Fujitsu Limited, Daikin Industries Ltd., Samsung Electronics, Panasonic Corporation, Schneider Electric SE, Ingersoll Rand, Lennox, among others are the key players in the global VRF system market.
The North American region is estimated to hold the largest share in the global VRF system market.
Following, the sudden outbreak and long-term presence of the covid-19 pandemic, numerous sectors were adversely impacted. However, attributable to the need for air conditioning in hospitals, the demand for VRF systems has increased marginally as a result of the global health emergency. Despite modest demand during the early stages of the epidemic, the need for VRF gradually increased.
Increased industrial and residential units, growing awareness of sustainable energy management systems with high demand for energy-saving products, rapid urbanization with population increase, and substantial investment for infrastructural facilities are driving the markets growth during the forecast period.

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