US VRF System Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

The US VRF system market size is expected to reach US$ 4.90 billion by 2031 from US$ 2.08 billion in 2023. The market is estimated to record a CAGR of 11.3% from 2023 to 2031. Pairing building automation and VRF systems is likely to be a key market trend.

US VRF System Market Analysis

VRF systems provide higher levels of energy efficiency. Unlike typical systems, which need turning on and off, a VRF system can run continuously at part-load, resulting in much improved overall operating efficiency. It can be equipped with heat recovery, which allows the utilization of heat recovered from one space to condition other places in the establishment requiring heat, and vice versa, subsequently enhancing total system efficiency. VRF systems are often smaller and lighter in weight than their counterparts, making them easier to install and move while maintaining valuable ceiling heights and flooring areas. The pressing need for energy efficiency and conservation, and diversifying applications across various industries are the main factors driving the US VRF system market growth. On the other hand, higher upfront costs limit the growth of the market. Further, the pipeline of high-end construction projects and government standards related to VRF systems create significant growth opportunities for the market. The integration of building automation and VRF systems is likely to emerge as a significant future trend in the US VRF system market

US VRF System Market Overview

VRF, i.e., variable refrigerant flow, systems use refrigerants for both heating and cooling. It is a large-scale, high-efficiency ductless HVAC system. Unlike split ACs, VRF systems can support many indoor units on a single system that can be tailored to the unique requirements of users. These systems are categorized as either heat recovery or heat pump systems. Heat recovery VRF systems can deliver heating and cooling at the same time. Further, VRF systems are outfitted with multiple air handlers that can be regulated separately; they can operate silently, even at full capacities. Thus, these systems are intended for both industrial and residential applications.

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US VRF System Market: Strategic Insights

US VRF System Market

• Market Size 2023
  US$ 2.08 Billion
• Market Size 2031
  US$ 4.90 Billion

Market Dynamics

GROWTH DRIVERS

• Pressing Need for Energy Efficiency and Conservation
• Diversifying Applications Across Various Industries

FUTURE TRENDS

• Pairing Building Automation and VRF Systems

OPPORTUNITIES

• Pipeline of High-End Construction Projects
• Explicit Regulatory Standards

Regional Overview

• US

Market Segmentation

Component

• Indoor Units
• Outdoor Units
• Control Systems and Accessories

System Type

• Heat Pump
• Heat Recovery
• Cooling Only

Applications

• Commercial
• Industrial
• Residential

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US VRF System Market Drivers and Opportunities

Diversifying Applications Across Various Industries Bolster Market

Operations of VRF systems involve the continuous functioning of compressors and directing refrigerant strategically in every zone as needed. A VRF system serves as an HVAC solution for a wide range of applications across various industries due to its small size, high energy efficiency, and exceptional zoning capabilities. These systems are installed in hotels, office buildings, apartment buildings, schools and universities, dormitories, data centers, hospitals, manufacturing plants, laboratory facilities, restaurants, large retail spaces, and anywhere that requires simultaneous heating and cooling over multiple zones. They create a comfortable environment for occupants with their quieter operations and personalized zoning, regardless of room occupancy. Centralized control systems aid in the adjustment of hotel room temperatures before guests' arrival or after checkout, resulting in significant cost savings. VRF systems with a single condenser unlock further energy savings. These devices are also available as water-source heat pumps, serving as an excellent solution for data rooms in office buildings equipped with cooling towers that supply water-cooled air handling systems. Water-source condensing units are incredibly compact and can be installed in a local equipment room with minimal floor space.

Educational facilities, ranging from large college campuses to smaller elementary schools, face particular challenges arising from a variety of rooms. Each room, from modest administrative offices to mid-sized classrooms to big gymnasiums, requires various HVAC equipment. All of these diverse needs can be fulfilled easily by using a VRF system with a single control panel. For example, James C. Kennedy Fitness Center at Emory Saint Joseph's Hospital had installed a Hitachi VRF system to benefit from its high energy efficiency. Air quality and temperature management specifications are critical in hospitals or clinical settings. The air can have an impact on patients' rehabilitation. A VRF system allows for keeping lobbies and common passages heated or at ambient temperatures while maintaining low temperatures inside recovery rooms. Thus, one can create zones without duct leaks, thereby filtering the air more effectively and minimizing cross-contamination. According to the Department of Energy (DOE), an average hospital utilizes 2.5 times more energy than other commercial buildings. The adoption of VRF systems in hospitals provides an energy-efficient way of maintaining safety and hygiene within their premises for the well-being of patients, staff, and visitors. Thus, diversifying applications across various industries drive the growth of the US VRF system market.

Explicit Regulatory Standards to Provide Growth Opportunities for Market Players

The US government has been incorporating various standards regarding VRF systems; these include eco-design regulation, system installation, and energy conservation standards. Since 2012, manufacturers of VRF heat pumps and air conditioners have been obliged to adhere to DOE energy conservation standards. In January 2023, the DOE proposed amendments to energy conservation standards for VRF multi-split air conditioners and VRF multi-split system heat pumps (collectively referred to as VRF multi-split systems) that rely on a new cooling efficiency metric. In July 2024, the Environmental Protection Agency (EPA), under the AIM Act, proposed a rule allowing a one-year sell-through period for VRF systems that use HFCs with a global warming potential (GWP) of 700 or more. The Air Conditioning Contractors of America Association, Inc. (ACCA) is monitoring this proposed rule and its potential impact on contractors. In June 2024, the EPA proposed to amend the Technology Transitions regulations promulgated under the American Innovation and Manufacturing Act. This action permits the installation of new heat pump VRF systems, and residential and light commercial AC systems with a capacity of at least 65,000 British thermal units per hour, using components that were made in the US or imported before January 1, 2026, for an extra year, until January 1, 2027. Such government standards and regulations on VRF systems are creating ample new business opportunities for VRF system market players.

US VRF System Market Report Segmentation Analysis

Key segments that contributed to the derivation of the US VRF System Market analysis are component, system type, and applications.

• Based on component, the market is segmented into indoor units, outdoor units, and control systems and accessories. The outdoor units segment dominated the market in 2023.
• In terms of system type, the market is categorized into heat pump, heat recovery, and cooling only. The heat pump segment dominated the market in 2023.
• Based on application, the market is segmented into commercial, industrial, and residential. The commercial segment dominated the market in 2023.

US VRF System Market Share Analysis, by Country

The US government provides incentives to encourage the use of renewable resources and promote practices contributing to energy efficiency. The government emphasizes on monitoring HVAC system performance at regular intervals in response to rising concerns about global warming. Standardizing production procedures of HVAC systems and their components, such as VRF systems, i.e., the supply side, has significantly mitigated environmental risks and reduced the burden posed by efficiency criteria on the demand side. According to the US Energy Information Administration's report, projected changes in cooling degree days in the US are expected to drive a 71% increase in household cooling demand by 2050. Commercial buildings are projected to see a 30% surge in cooling demand over the same period. In March 2023, the country finalized new energy efficiency standards for room air conditioners. These standards will go into effect in 2026 and are expected to result in reduced home electricity bills and carbon pollution. VRF systems are widely used in such cases. Thus, global warming and the resulting harsh climatic conditions, the continuously growing real estate sector, and the desire for energy-efficient equipment contribute notably to the increasing demand for VRF systems in the US, fueling the growth of the US VRF system market.

US VRF System Market Report Scope

US VRF System Market News and Recent Developments

The US VRF system market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the US VRF system market are listed below:

• Fujitsu General America released Airstage VU-V systems that offer greater flexibility, efficiency, and capacity for commercial and light commercial applications. Airstage VU-V outdoor units can serve either as heat pumps or heat recovery systems with simple setting changes and the addition of refrigerant branch units (RBUs). The new VRF platform offers single modules with broader size ranges, from 6 to 16 tons and up to 36 tons per combined system. As many as 64 indoor units can be connected to a single system.

(Source: Fujitsu General, Press Release, February 2023)

• LG Electronics announced the launch of the new Multi V i VRF solution equipped with the company's highly evolved AI engine, in key global markets starting from Europe. Suitable for mid- to high-rise buildings, such as offices, schools, shopping malls, apartment buildings, and hotels, the energy-efficient Multi V I comes with a range of differentiated, smart features that help reduce energy consumption and deliver a more comfortable indoor environment as well as a quieter outdoor environment throughout a year.

(Source: LG Electronics, Press Release, February 2023)

US VRF System Market Report Coverage and Deliverables

The "US VRF System Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• US VRF system market size and forecast for all the key market segments covered under the scope
• US VRF system market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• US VRF system market analysis covering key market trends, national framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the US VRF system market
• Detailed company profiles