Global VRF AC System Market by Application (Commercial, Residential, and Others), By Type (Heat Pump System and Heat Recovery System), By Components (Indoor Units, Outdoor Units) - Global Industry Share, Growth, Competitive Analysis and Forecast Period 2022-2028
The global VRF AC system is growing at a CAGR of 5.3% during the forecast period. The major factors that are augmenting the growth of the VRF AC market include increasing demand for energy-efficient heating, ventilation, air conditioning (HVAC), and the growth of various industries including construction and manufacturing. Furthermore, initiatives are taken by the government to ease the foreign direct investment (FDI) standards in the real estate sector, enlargement of open network compatibility, the polarization of VRF designed for cold regions are also estimated to be the major factors that are significantly contributing towards the growth of the market. Additionally, the growing distribution of VRF AC systems in high-rise buildings is expected to provide profitable opportunities to the players that are operating in the VRF systems market.
The deployment of these systems in high-rise buildings is escalating due to the flexibility along with low utility cost benefits that are being offered by these systems. To fulfill the various need of multiple tenants, VRF systems provide control and flexibility in the installation process by removing the need for water piping. Many of the specialized instrument manufacturers have brought in user-friendly control systems with LCD touch screens that combined central air conditioning along with VRF to control central air conditioning systems.
However, certain factors are affecting the growth of the market. High cost associated with the installation of VRF system, complexities related to designing of the VRF system, specific installation requirements that make it tedious, and over-functioning is the major factors that are hindering the growth of the global VRF AC systems market. Further, various companies are introducing novel VRF AC technologies to stay competitive in the market, which in turn is contributing to the market growth as well. For instance, in October 2019, Johnson Controls-Hitachi Air Conditioning had announced the beginning of a new global development center which is to be situated in Kadi, Gujarat, India. The investment was around $22.5 million which would lead to an increase in innovation capabilities with a prime focus on developing air conditioners for residential and commercial for India, Southeast Asia, Middle East, and European markets.
The market is segmented based on application, type, and duct type. By application, the market is segmented into commercial, residential, and others. Based on the type, the market is segmented into heat pump systems and heat recovery systems. Based on components, indoor units and outdoor units. The residential segment is expected to hold a significant market share in the global VRF AC system market. The residential segment is primarily driven by various advantages offered by VRF systems such as improved energy efficiency along with the low cost of operations and individual control system for each household. As a result, an increasing number of managers along with owners of property are involved in the installation of the VRF AC system. These systems are becoming a preferable option for apartments along with collective housing due to long life different circumstances and conditions, high air-conditioning performance, and service.
Global VRF AC System Market Share by Application, 2020 (%)
Global VRF AC System Market Share by Application
Global VRF AC System Market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. North America is estimated to be one of the leading regions in the global VRF AC system market. Growing awareness about energy efficiency, simple installation along with minimum work of piping, advanced and upgraded environmentally friendly refringent among others. The Asia-Pacific is estimated to be the fastest-growing region during the forecast period.
Global VRF AC System Market, by Region 2022-2028
Global VRF AC System Market Share by region
Asia-Pacific is expected to significantly contribute to the growth of the Global VRF AC System Market
Asia-Pacific region is expected to witness significant growth opportunities for the market. Rising urbanization and increasing awareness regarding energy-efficient air conditioners are growing the demand. Additionally, hot and humid climatic conditions along with an air quality index that is becoming poor are supporting the growth of the market. Japan is expected to be one of the leading countries in the region due to the advent of new systems such as variable refrigerant volume (VRV) or Variable Refrigerant Flow (VRF). This system had also been distributed and utilized across the Asia-Pacific region. The system uses R-410-A as the refrigerant to overcome the problem related to ozone depletion.
Market Players Outlook
Key players of the global VRF ac system market include Daikin Industries, Ltd., Fujitsu General Ltd. (FGL), Johnson Controls, LG Electronics, Samsung, Panasonic Corp. These players operating in the market are adopting several innovative packaging technologies to thrive in the marketplace. For Instance, In October 2019, Panasonic Corp. had announced a strategic alliance which is one of the global leading company in the development of heating, ventilation, and air conditioning (HVAC), with Air Tech Ltd. (SAIVER) to create a highly energy-efficient, sustainable air conditioning and ventilation solution for the commercial sector across South East Asia. Further, In November 2019, LG Electronics launched the industry’s first compact R32 VRF range, the Multi V S. This was designed for offering to residential buildings and offices sized from small to medium. The first single-fan R32 VRF solution will make the installation possible easy and supportive in limited space.
The Report Covers
- Market value data analysis of 2021 and forecast to 2027.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global VRF AC system. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where in the market.
Table of Contents
1.2. Market Breakdown
1.2.1. By Segments
1.2.2. By Geography
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Findings
3.1.2. Financial Analysis
3.1.3. SWOT Analysis
3.1.4. Recent Developments
3.2 Key Strategy Analysis
5.2. Global VRF AC System Market by Type
5.2.1. Heat Pump System
5.2.2. Heat Recovery System
5.3. Global VRF AC System Market by Components
5.3.1. Indoor Units
5.3.2. Outdoor Units
6.1.1. United States
6.2.7. Rest of Europe
6.3.4. South Korea
6.3.5. Rest of Asia-Pacific
6.4. Rest of the World
6.4.1. Latin America
6.4.2. The Middle East and Africa
7.2. Blue Star, Ltd.
7.3. Carrier Global Corp.
7.4. Daikin Industries, Ltd.
7.5. Fujitsu General, Ltd.
7.6. Godrej & Boyce Manufacturing Co. Ltd.
7.7. Gree Electric Appliances, Inc.
7.8. Guangdong Chigo Air Conditioning Co. Ltd.
7.9. Haier Electronics Group Co. Ltd. (GE Appliances)
7.10. Hitachi, Ltd.
7.11. Ingersoll Rand Plc
7.12. Johnson Controls, Inc.
7.13. Lennox International, Inc.
7.14. LG Electronics, Ltd.
7.15. Midea Group
7.16. Mitsubishi Electric Corporation
7.17. Nortek Global HVAC LLC
7.18. Panasonic Corp.
7.19. Samsung Electronics Co., Ltd.
7.20. Toshiba Corp.
7.21. Trane Corp
A selection of companies mentioned in this report includes:
- Electrolux AB
- Blue Star, Ltd.
- Carrier Global Corp.
- Daikin Industries, Ltd.
- Fujitsu General, Ltd.
- Godrej & Boyce Manufacturing Co. Ltd.
- Gree Electric Appliances, Inc.
- Guangdong Chigo Air Conditioning Co. Ltd.
- Haier Electronics Group Co. Ltd. (GE Appliances)
- Hitachi, Ltd.
- Ingersoll Rand Plc
- Johnson Controls, Inc.
- Lennox International, Inc.
- LG Electronics, Ltd.
- Midea Group
- Mitsubishi Electric Corporation
- Nortek Global HVAC LLC
- Panasonic Corp.
- Samsung Electronics Co., Ltd.
- Toshiba Corp.
- Trane Corp