The VRF system market was valued at USD 17.6 billion in 2020 and is expected to reach USD 31.9 billion by 2025, growing at a CAGR of 12.7% between 2020 and 2025.
High energy-saving potential and easy and minimum maintenance requirements of VRF systems are the key growth drivers for the market. The market's growth is also propelled by the continuous growth of the construction industry, government incentives through tax credit programs, and regulations and policies of the EU governments pertaining to construction products. However, high installation costs due to the shortage of skilled installers, and lack of awareness about the benefits of VRF technology are the major restraints for the growth of the market.
VRF system's outdoor unit expected to lead the market during the forecast period.
The VRF system market is expected to grow primarily due to a revival in the construction activities and enhanced focus on the implementation of energy-efficient technologies and products. The increasing adoption of inverter-based compressors for outdoor units and the ability of outdoor units to connect multiple indoor units is expected to drive the growth of the market for outdoor units during the forecast period. The increasing adoption of wireless control systems for monitoring indoor units is expected to fuel the growth of the market during the forecast period.
VRF heat recovery system expected to grow at the highest pace during the forecast period.
VRF heat recovery systems can transfer heat from one indoor zone to another, thereby saving energy. VRF systems that can simultaneously cool some zones while heating others have many features, such as precise comfort control, quiet operation, and energy efficiency, making them an ideal solution for commercial buildings. VRF heat recovery systems provide simultaneous heating and cooling of a zone; therefore, these systems are becoming popular globally. The increasing awareness regarding its energy efficiency is another major factor responsible for their growing adoption.
APAC to be the largest market for VRF system during the forecast period.
APAC holds the largest market size due to the presence of major players in this region. Countries such as China, Japan, South Korea, and India are majorly driving the growth of the VRF system market in APAC. These countries have a considerable market size and scope for the development of the VRF industry. Several government regulations, acts, and associations are supporting the adoption of VRF systems in the APAC region. Some of these are the Commercial Building Disclosure (CBD) Program (Australia), Energy Conservation Building Codes (India), LEED-INDIA, and Indian Society of Heating, Refrigerating, and Air-Conditioning Engineers (ISHRAE).
The key players in the market include Daikin (Japan), Toshiba (Japan), Mitsubishi Electric (Japan), Midea Group (China), Johnson Controls (US), and Others.
Key Topics Covered
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Opportunities in VRF System Market 4.2 VRF System Market, by Component 4.3 VRF System Market, by System Type 4.4 VRF System Market, by Application 4.5 VRF System Market, by Region
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 VRF System Market Drivers and Their Impact 184.108.40.206 Growing Construction Industry and Easing of Norms of Fdi for Construction and Real Estate Sectors 220.127.116.11 High Energy-Saving Potential as Well as Easy and Minimum Maintenance Requirements of VRF Systems 18.104.22.168 Focus of Major Players on Providing Technologically Advanced Refrigerants for Air Conditioning and Heat Pump Solutions 22.214.171.124 Government Incentives Through Tax Credit Programs 126.96.36.199 Regulations and Policies of Eu Government Pertaining to Construction Products 5.2.2 VRF System Market Restraints and Their Impact 188.8.131.52 High Installation Cost 5.2.3 VRF System Market Opportunities and Their Impact 184.108.40.206 Significant Opportunities in Developing Countries 220.127.116.11 Increasing Penetration of VRF Systems in Residential and Commercial Applications 5.2.4 VRF System Market Challenges and Their Impact 18.104.22.168 Harmful Environmental Impacts of Refrigerant Leaks 22.214.171.124 Lack of Awareness Regarding VRF Systems in Developing Countries 5.3 Impact of COVID-19 on VRF System Market 5.4 Value Chain Analysis
6 VRF System Market, by Component 6.1 Introduction 6.2 Outdoor Units 6.2.1 Increasing Demand for Compressors, Inverters, Suction Accumulators, and Liquid Receivers is Driving Outdoor Units Segment 6.2.2 Compressors 6.2.3 Inverters 6.2.4 Others 126.96.36.199 Suction Accumulators 188.8.131.52 Liquid Receivers 6.3 Indoor Units 6.3.1 Indoor Evaporator Units Exchange Heat Between Refrigerant and Ambient Air by Blowing Air Over Unit'S Evaporator Coil 6.3.2 Electronic Expansion Valves 6.3.3 Synchronous Electronic Motors 6.3.4 Others 184.108.40.206 Filters 220.127.116.11 Drain Lines 6.4 Control Systems and Accessories 6.4.1 Technological Innovations Such as Touch Controllers and Iot-Enabled Controllers Are Playing Key Role in Driving Control Systems and Accessories Segment
7 VRF System Market, by Capacity 7.1 Introduction 7.2 Small CAPACity 7.2.1 Growth in Construction Activities 7.3 Large CAPACity 7.3.1 Stringent Government Regulations on Emissions and Energy Efficiency
8 VRF System Market, by System Type 8.1 Introduction 8.2 Heat Pump Systems 8.2.1 Growing Awareness Regarding Energy-Saving Potential of VRF Systems Drives Demand for Heat Pump Systems 18.104.22.168 Air-Source Heat Pump Systems 22.214.171.124 Ground-Source Heat Pump Systems 8.2.2 Absorption Heat Pump Systems 8.3 Heat Recovery Systems 8.3.1 Vfr Heat Recovery Mixed-Mode Operation Leads to Energy Savings
9 VRF System Market, by Implementation 9.1 Introduction 9.2 New Constructions 9.2.1 Growing Trend of Smart Homes Will Drive Demand for VRF Systems in New Constructions 9.3 Retrofits 9.3.1 Growing Trend to Upgrade or Refurbish Air Conditioning System Will Drive Retrofit VRF System Market
10 VRF System Market, by Application 10.1 Introduction 10.2 Commercial 10.2.1 Office Buildings, Retail Stores, and Healthcare Facilities Are the Major Commercial Applications of VRF System 10.2.2 Office Buildings 10.2.3 Retail Stores 10.2.4 Healthcare Facilities 10.2.5 Hospitality Buildings 10.2.6 Educational Buildings 10.2.7 Historical Buildings 10.2.8 Government Buildings 10.3 Residential 10.3.1 Growing Awareness Regarding Importance of Indoor Air Quality and Energy Conservation Drive Adoption of VRF Systems in Residential Application 10.4 Others 10.4.1 Metro Stations and Airports Are Key Users of VRF Systems Among Other Applications
11 Geographic Analysis 11.1 Introduction 11.2 North America 11.3 Europe 11.4 APAC 11.5 RoW
12 Competitive Landscape 12.1 Overview 12.2 Market Ranking Analysis: VRF System Market 12.3 Competitive Leadership Mapping, 2019 12.3.1 Visionaries 12.3.2 Innovators 12.3.3 Dynamic Differentiators 12.3.4 Emerging Companies 12.4 Strength of Product Portfolio (For 25 Companies) 12.5 Business Strategy Excellence (For 25 Companies) 12.6 Competitive Situations and Trends 12.6.1 Collaborations, Agreements, and Partnerships 12.6.2 Expansions, Product Launches, and Developments 12.6.3 Acquisitions
13 Company Profiles 13.1 Key Players 13.1.1 Daikin 13.1.2 Toshiba 13.1.3 Mitsubishi Electric 13.1.4 Midea Group 13.1.5 Johnson Controls 13.1.6 LG Electronics 13.1.7 Fujitsu 13.1.8 United Technologies 13.1.9 Ingersoll Rand 13.1.10 Lennox 13.1.11 Panasonic 13.1.12 Samsung Electronics 13.2 Right to Win 13.3 Other Key Players 13.3.1 Nortek 13.3.2 Gree 13.3.3 Emerson 13.3.4 Electrolux 13.3.5 Whirlpool