Global VRF System Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Cooling-Only Systems, Heat Pump Systems, Heat Recovery Systems), By Component (Indoor Unit, Outdoor Unit, Refrigerant, Others), By Application (Industrial, Residential, Commercial), And By Geography - Forecasts From 2021 To 2026

The global VRF system market is estimated to be valued at 11.434 billion in 2019. A typical VRF system consists of an outdoor unit, several indoor units, refrigerant piping running from the outdoor to the indoors, using refnet joints, and communication wiring. They provide powerful heating and cooling for all indoor and outdoor units without the use of air ducts.

Market Drivers

VRF systems are energy efficient, controls temperature precisely, and provide simultaneous heating and cooling services. These advantages provide an edge to these systems over traditional heating systems and are the prime reasons behind its market growth. Another major factor driving the growth of the VRF system market is the growing construction industry and easing of norms for construction and real estate sectors and high energy-saving potential as well as easy and minimum maintenance requirements of VRF systems is the driver of this market.

By type, the heat pump system dominates the market owing to its uses in commercial buildings and residential complexes. By application, the commercial segment is expected to witness significant growth as these systems are highly energy-efficient and have a low cost of operation.

Growth Factors

• Growing commercial uses

VRF systems can provide solutions to all HVAC needs irrespective of the size of the complex. They are energy-saving, precise, and easy to maintain in nature. They are well-suited for multi-room schoolhouses or sprawling campuses and have central control. Healthcare facilities demand heat and cooling at the same and these systems are ideal for fresh air, improving climate control, and safeguarding against cross air contamination. They are also used in museums and historical sites as they are ductless. Lobbies, hotels, vast spaces, high-rise office buildings are also shifting to these systems for effective cooling or heating solutions. As commercial infrastructures are expanding and adopting smart design choices in today's time, the market for VRS systems is convinced to expand.

• Sustainable approach

The growing environmental concern as a result of the harmful gases emitted by the heating and cooling devices installed in both residential and commercial setups has drawn the attention of the national governments and international agencies. The VRF systems consume less energy by avoiding the need to pump heated water and air throughout a building thereby reducing the cost and adjusting to environmental impact. There is also the advantage of curtailing energy wastage by providing only the heating or cooling energy required during specific times and occupancy loading. Thus, lowering the stress of global warming substantially.

Impact of COVID-19 on the VRF System Market

As commercial establishments remained shut to curb the spread of coronavirus, the demand for VRS systems began to fall from certain end-user industries. However, the demand from the health sector outgrew during this period. Certain studies have even pointed out the benefits of purified air which many contain the spread of the virus, yet concrete proves still waits. The market players have resorted to hardware and system changes like introducing sophisticated airflow-control systems, such as those that are sensitive to pressure, to allow for smoother adjustment of airflows, installing high-performance air-purification systems among others to grab the profitability that arose.

Competitive Insights

The market leaders for the Global VRF System Market are Johnson Controls, United Technologies, Daikin Industries, Ltd, Fujitsu, Lennox International Inc., LG Electronics, Panasonic Corporation, Mitsubishi Electric, and Danfoss A/S. The key players in the market implement growth strategies such as product launches, mergers, and acquisitions, to gain a competitive advantage over their competitors. For instance,

• Johnson Controls International plc acquired Silent-Aire in 2021.
• Panasonic launched an R32 version of its Mini ECOi VRF air conditioning system in 2021. And in 2019 collaborated with Air-Tech to develop new connected air handling and VRF solution.

Global VRF System Market Scope:

Report Metric	Details
Market size value in 2019	US$11.434 billion
Growth Rate	CAGR of during the forecast period
Base year	2019
Forecast period	2021–2026
Forecast Unit (Value)	USD Billion
Segments covered	Type, Component, Application, And Geography
Regions covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies covered	Johnson Controls, United Technologies, Daikin Industries, Ltd, Fujitsu, Lennox   International Inc., LG Electronics, Panasonic Corporation, Mitsubishi Electric, Danfoss   A/S
Customization scope	Free report customization with purchase

Segmentation:

• By Type
  • Cooling-Only Systems
  • Heat Pump Systems
  • Heat Recovery Systems
• By Component
  • Indoor Unit
  • Outdoor Unit
  • Refrigerant
  • Others
• By Application
  • Industrial
  • Residential
  • Commercial
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Australia
    • Japan
    • South Korea
    • India
    • Thailand
    • Taiwan
    • Indonesia
    • Others

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Frequently Asked Questions (FAQs)

Q1. What is the size of the global VRF system market?
A1. The global VRF system market is estimated to be valued at 11.434 billion in 2019. 

Q2. Who are the major players in the VRF system market?
A2. The market leaders for the Global VRF System Market are Johnson Controls, United Technologies, Daikin Industries, Ltd, Fujitsu, Lennox International Inc., LG Electronics, Panasonic Corporation, among others.

Q3. How is the global VRF system market segmented?
A3. The global VRF system market has been segmented by type, component, application, and geography.

Q4. What factors are anticipated to drive the VRF system market growth?
A4. The major factor driving the VRF system market growth is the growing construction industry and easing of norms for construction and real estate sectors and high energy-saving potential as well as easy and minimum maintenance requirements of VRF systems.

Q5. What is the base year considered in the VRF system market report?
A5. 2019 has been taken as the base year in the VRF system market.

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