The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
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).
Break-up of primary participants’ profiles:
- By Company Type – Tier 1– 69%, Tier 2– 21% and Tier 3 – 10%
- By Designation – C-level Executives – 18%, Directors – 49%, and Others – 33%
- By Region – North America - 12%, Europe – 19%, APAC – 63%, and RoW – 6%
The global VRF system market has been segmented on the basis of components, systems, capacity, applications, and geography. Based on components, the market has been segmented into outdoor units, indoor units, and control systems and accessories. Based on the type of system, the VRF system market has been classified into heat pump systems and heat recovery systems. Up to 10 tons, 11 to 18 tons, 19 to 26 tons, and above 26 tons are the different VRF system capacities covered in this report. The report covers 3 types of applications: commercial, residential, and others. The report covers 4 major geographic regions: North America, Europe, APAC, and RoW.
Reasons to buy the report:
- Illustrative segmentation, analysis, and forecast for the market based on components, system, capacity, application, and geography have been conducted to give an overall view of the VRF system market.
- A value chain analysis has been performed to provide an in-depth insight into the VRF system market.
- Major drivers, restraints, opportunities, and challenges for the VRF system market have been detailed in this report.
- The report includes a detailed competitive landscape, along with key players, in-depth analysis, and revenues of key players.