VRF is a variable refrigerant flow system, also known as a refrigerant system. VRF System refers to the system configuration, including an outdoor condenser and multiple indoor units. In the VRF system, the refrigerant flow rate is variable, depending on the indoor load. When the indoor load is increased, a large return amount of the refrigerant in the indoor units exported, to provide more refrigeration/heat, and vice versa. Variable refrigerant flow (VRF) air conditioners cool the air in one or more rooms by absorbing indoor heat and discharging it outdoors. VRFs can also be used for heating. Unlike home air conditioners, VRF can connect to multiple indoor units. This product is usually used in shopping malls, office buildings, hotels, hospitals, etc. VRF is a type of air conditioning system that uses the same thermodynamic laws and components like air conditioning.
Global VRF system market valued size was over USD 16.36 billion in 2019, and expected to generate USD 43.08 billion by 2027, growing at a CAGR of 11.83 % from 2020 – 2027. The growing construction industry and high energy-saving potential system are anticipated to fuel the demand for the VRF system across the globe in the coming years. Additionally, the surge in demand for energy-efficient alternatives compared to traditional air-conditioning systems is further anticipated to boost the global VRF system industry. The mounting demand for energy-efficient resources coupled with the increase in awareness for environmental impact is strengthening the market growth.
Moreover, the high energy performance of the VRF systems and its ability to save labor and operational costs is expected to witness remarkable growth of the VRF system market in future periods. The growth of the VRF systems market is backed by factors, such as rising government initiatives globally and expansion in the construction sector. Also, the huge sales of energy-efficient HVAC systems escalating the growth of the global VRF system market share in the forecast analysis. VRFs have features such as improvements in efficiency, introducing high-performance cold climate versions designed to provide rated heating capacity even in low ambient outdoor temperature. Additionally, the focus on sustainability globally has resulted in the adoption of various energy conservation measures such as building automation systems, advanced monitoring systems, and intelligent technologies are triggering the growth of the VRF systems industry. Furthermore, the VRF efficiently controls the units with a simple on and off operation and provides a different level of heating and cooling to various parts of the building is to foster the growth of the market.
Across the globe, the VRF systems industry is booming and is projected to grow after the recovery from the global economic crisis. The VRF systems industry started gaining momentum as new construction projects started taking place globally, and these construction projects span residential, commercial, and infrastructure projects which require the addition of VRF systems or the renovation of existing systems. The expanding population and crumbling buildings need construction activities to be performed globally and focusing on the longevity of the building and constructing environmentally friendly buildings have diverted the focus toward the adoption of environment friendly VRF systems. Thereby, the growth in the construction sector is driving the progress of the HVAC market globally.
VRF system has outstanding performance in energy saving and improving indoor environment comfort. With the breakthrough improvement of electronic control technology, the VRF system already has advanced technologies such as high-precision refrigerant control and capacity control. The current VRF system has highly evaluated in terms of the simplicity of effective control according to the load status and use status of the room in actual use, as well as the convenience of design and construction, maintenance management, and quality stability. Because of these advantages, VRF systems are more widely used in buildings for various purposes.
An adequately installed VRF system requires a low level of maintenance. The indoor units include air filters, which need to be periodically cleaned or replaced. Outdoor units require annual cleaning and power-washing.
Based on components, the global VRF system market classified Outdoor Units [Compressors, Invertors, and Others), Indoor Units [Electronic Expansion Valves, Synchronous Electronic Motors, and Others), and Control Systems and Accessories. The Outdoor Units segment held maximum VRF System market share in 2019. It is attributable to the growing adoption of inverter-based compressors for outdoor units and the ability of outdoor units to connect multiple indoor units.
Indoor Units expected to grow rapidly in the forecast period. It is owing to its usefulness for smaller rooms along with easy installation into ceilings.
Based on system type, the global VRF system market bifurcates into the Heat Pump and Heat Recovery System. The Heat Pump segment accounted for a higher revenue share in 2019 and projected to dominate the VRF System market by 2027. It is primarily attributed to the growing demand for VRF heat pumps in commercial buildings, small shops, and cafes to large office buildings and public spaces. VRF heat pump has the variable capacity, multi-split technology, and it is a single air or water-cooled compressor utilizing refrigerants to supply multiple indoor fan coil units.
The heat recovery system will grow with a lucrative growth rate in the forecast period. It is due to heat recovery is more useful for smaller, separated spaces like offices with a known diversity of heating and cooling needs.
Based on capacity, the global VRF system market classified into Up to 10 Tons, 11 to 18 Tons, 19 to 26 Tons, and Above 26 Tons. The above 26 Tons segment will hold higher market potential by 2027. It is owing to above 26 tons VRF is highly demanding in commercial places, industrial and government offices.
Up to 10 Tons held a significant market share in 2019. It is due to the growing demand for Up to 10 Tons of VRF systems in residential building applications.
Based on the application, the global VRF system market segregated into Commercial, Residential, and Others. The residential segment is expected to proliferate by 2027. It is on account of the benefits of the VRF system, such as highly energy efficient. It has a low cost of operation, long product life under harsh conditions, high air-conditioning performance, and excellent service are highly demand in the residential sector.
The commercial will capture a significant market share in 2019. It is due to the increasing demand for the VRF system in commercial buildings like shopping malls, small shops, cafes, large office buildings, and public spaces.
Based on geography, the global VRF System market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia-Pacific is slated to account for a significant share by 2027 in the VRF System market. The growth in the region can be attributed to growth in construction activity in the region coupled with the increasing demand for smart devices to handle VRF systems, and growing urbanization and population.
North America is projected to provide significant growth opportunities due to rising disposable income of the population, growing awareness about energy efficiency and easy installation process with minimum piping work.
Companies such as Daikin, Toshiba, Mitsubishi Electric, Midea Group, Johnson Controls, LG Electronics, Fujitsu, United Technologies, Ingersoll Rand, Lennox, Panasonic, Samsung Electronics, Nortek, Gree, Emerson, Electrolux, and Whirlpool are the key players in the Global VRF System Market.
By System Type