VRF System Market
The report includes growth prospects in light of current VRF system market trends and driving factors influencing the market growth.
Governments worldwide have been incorporating various standards regarding VRF systems; these include ecodesign regulation, system installation, and energy conservation standards. In November 2023, EPEE, a European trade organization member, finalized preferred ideas to change a key component of the Ecodesign standards for bigger HVACR technologies such as chillers and VRF systems. The organization stated that it recently gathered a group of manufacturing specialists for a workshop to begin preliminary work on developing a formal position for its members who intend to steer modifications to Lot 21 of Ecodesign. The Ecodesign Directive establishes performance standards for a variety of energy-consuming items. The restrictions cover a wide range of products, including heating and cooling systems and commercial technologies.
Similarly, 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 and are equivalent to the levels specified in the industry standard. The department tentatively lacks the clear and persuasive evidence required to establish requirements more stringent than those specified in the industry standard. 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 ACCA is monitoring this proposed rule and its potential impact on contractors. Furthermore, in July 2022, the European Commission proposed an update to the existing F-Gas Regulation, which resulted in tougher refrigerant standards for the European Union. If the new regulation goes into force, it will also apply to VRF systems. Such government standards and regulations on VRF systems are creating ample new business opportunities for the VRF system market growth.
US Holds Largest VRF System Market Share in North America
Global warming and the resulting harsh climatic conditions in the US are expected to increase the demand for VRF systems. The increasing real estate sector and the desire for energy-efficient equipment will also maintain the demand for VRF systems in the US. The American government provides incentives to encourage energy efficiency or the use of renewable resources. The US government’s rules to monitor HVAC system performance in response to growing concerns about global warming will be a key factor boosting the demand for VRF systems. Standardizing production procedures on the supply side of the market has greatly assisted in minimizing environmental risks and efficiency criteria on the demand side. According to the US Energy Information Administration’s report, projected changes in cooling degree days (CDD) in the US are expected to drive a 71% increase in household cooling demand by 2050. Commercial buildings are projected to see a 30% increase in cooling demand over the same period.
In March 2023, the US 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 reduced carbon pollution. The VRF systems are widely used in such cases. Thus, the growing use of VRF systems owing to their benefits is steering the VRF system market growth in the country.
VRF System Market Analysis: Segmental Overview
Based on component, the market is segmented into indoor units, outdoor units, and control systems and accessories. The outdoor units segment held the largest VRF system market share in 2023 and is anticipated to record the highest CAGR during 2023–2031. In terms of system type, the market is categorized into heat pump, heat recovery, and cooling only. The heat pump segment held the largest market share in 2023 and is anticipated to record the highest CAGR during 2023–2031. Based on application, the market is segmented into commercial, industrial, and residential. The commercial segment dominated the market in 2023, and the residential segment is anticipated to record the highest CAGR during 2023–2031.
VRF System Market: Competitive Landscape and Key Developments
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 report provides detailed market insights to help major players strategize their growth. As per the company press releases, below are a few recent key developments:
- In 2024, Carrier developed cutting-edge heat recovery units in the u-Series lineup. The u-Series lineup is a globally recognized, next-generation, three-phase, full line of VRF equipment for commercial and large residential needs. The most recent launch is one of several planned for the lineup. Carrier’s latest addition to the Toshiba Carrier u-Series portfolio, a heat recovery unit, made its premiere at the AHR Expo in Chicago.
- In 2023, Fujitsu General America released Airstage VU-V. Fujitsu General America’s Airstage VU-V systems 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 broader size ranges, with single modules 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.
