VRF System Market is expected to reach US$ 54.09 Billion by 2031

Pressing Need for Energy Efficiency and Conservation Boosts VRF System Market Growth

According to our latest market study on "VRF System Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis — by Component, System Type, and Applications," the market was valued at US$ 21.65 billion in 2023 and is anticipated to reach US$ 54.09 billion by 2031; it is estimated to record a CAGR of 12.1% from 2023 to 2031. The report includes growth prospects in light of current VRF system market trends and driving factors influencing the market growth.

Growth in the world's population and economy, combined with rising urbanization, is projected to cause a significant increase in energy demand in the future. The United Nations (UN) estimates that the world's population will expand from roughly 8 billion in 2024 to around 9.8 billion by 2050. Meeting rapidly increasing energy demand while lowering detrimental greenhouse gas emissions presents a significant challenge. Thus, the need for devices and practices promoting energy efficiency and energy saving is on the rise worldwide, which is likely to have a significant impact on the VRF system market forecast in the upcoming years. 

VRF System Market Analysis – by Geography, 2023

Source: The Insight Partners Analysis

VRF systems reuse waste/excess heat instead of discharging it into the environment; it is directed to other parts of the building that require heating, which saves energy and contributes to further waste reduction. A VRF system network is intended to provide an appropriate amount of refrigerant to the corresponding interior units. Furthermore, operations without ducts improve the energy efficiency of these systems, as the loss of cool air through ducts accounts for more than 30% of total energy usage. The minimum energy consumption benefit of VRF systems can also be attributed to the fact that indoor units cool rooms according to current room circumstances, and the compressor's ability can be boosted or lowered to reduce energy utilization. Thus, VRF HVAC systems run less frequently and at a lower power. Further, these systems are made from a network of zones that heat and cool only those areas that are in use; this results in refrigerant flow and volume to the minimum required for each system and structure. The equipment quickly responds to changing loads and can be modified to meet specific requirements, which avoids the need to enlarge each terminal equipment item to accommodate each zone's peak load.

The scope of the VRF system market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). In Europe, Germany held the largest VRF system market share in 2023. As a result of potential growth in the country's building industry, the VRF systems market in Germany is anticipated to see a significant thrust in the upcoming years. The Government of Germany is taking several initiatives in various projects. In October 2022, Germany's Ministry for Economic Affairs and Climate Action issued a call for proposals for research and pilot projects to hasten the transition to heat pumps and other climate-neutral forms of cooling and heating. Further, due to the nation's quick urbanization, the considerable need for residential air conditioning systems and the best-in-class home infrastructure will favor the market. The expansion of the German VRF system market is also anticipated to be prompted by a proliferation of technical developments in the electronic industry and a significant rise in the potential number of industrial players in the nation. Also, in May 2023, Johnson Controls announced to supply Germany's Hamburg with a heat pump system. Thus, such developments are expected to offer significant opportunities to the key players, which is likely to have a significant impact on the VRF system market in the next few years. 

In APAC, China held the largest VRF system market share in 2023. China homes manufacturers of advanced VRF systems owing to strong industrialization in the country. Due to its high population, China holds a large manufacturing base in APAC and HVAC system consumption. The country's adoption of VRF systems is higher for commercial, residential, and industrial segments. For instance, in July 2022, China's Midea & Taqeef launched the smart cooling tech V8 series encompassing the key features of all VRF technologies developed and has advanced and improved features that merge the requirements. Thus, the increasing deployment of VRF systems is expected to drive the VRF system market growth in China. In addition, Japan is one of the most technologically progressed countries in APAC. After implementing new technologies in HVAC systems, companies focus more on advancing VRF systems and meeting required air quality demand, a key factor for market growth. Several companies are enhancing their focus on new VRF system development and geographical expansion. For instance, in January 2024, Toshiba Carrier Corporation (TCC) expanded its Toshiba-brand Super Multi-u TM VRF series with a total of 201 heat recovery models and five heating/cooling mode switch models. Similarly, in January 2024, Daikin announced that it would launch variable refrigerant volume (VRV) 7 series variable refrigerant flow (VRF) systems in November 2024 in Japan.

FUJITSU GENERAL, Daikin Industries Ltd, Johnson Controls International Plc, Carrier Global Corp., LG Electronics Inc., Panasonic Holdings Corp., Samsung Electronics Co Ltd., Mitsubishi Electric Corp., Midea Group Co Ltd., Lennox International Inc., Blue Star Ltd., Yanmar Holdings Co Ltd., Trane Technologies Plc, Systemair AB, Voltas Ltd., and Robert Bosch GmbH are among the key players profiled in the VRF system market report. Several other major players were also studied and analyzed in the market report to get a holistic view of the market and its ecosystem. The market analysis provides detailed market insights, which help the key players strategize their growth.

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