Global Variable Refrigerant Flow System Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

The government policies in the developments of the housing projects will significantly create opportunity for the VRF Market to grow

The Global Variable Refrigerant Flow System Market is estimated to be USD 20.49 Bn in 2023 and is expected to reach USD 29.43 Bn by 2028 growing at a CAGR of 7.51%.

A Variable Refrigerant Flow (VRF) system is a type of HVAC (Heating, Ventilation, and Air Conditioning) system that uses a refrigerant to provide heating and cooling to a building's interior spaces. VRF systems employ refrigerant lines to transfer the refrigerant directly to the indoor units instead of the ductwork used by conventional HVAC systems. These indoor units can be separately regulated to provide individualized temperature control for each room or zone. The VRF system includes of several indoor units that are positioned in various rooms or zones throughout the structure, as well as an outside unit that holds the compressor and the refrigerant. There is a thermostat for each indoor unit, allowing for customized temperature control.

The market is driven by the surging demand for energy-efficient HVAC system. More energy can be saved if each zone can be controlled separately. VRF systems include silent operation, adaptability in design and installation, and simple maintenance. These systems are exceptionally energy-efficient and have minimal operating costs since they provide customized controls for each housing unit. VRF air conditioning systems are being installed by an increasing number of building owners and managers as a result. VRF systems are becoming a more popular choice for apartments and shared housing because to its prolonged product life in challenging environments, powerful air-conditioning performance, and superior servicing. In order to centrally manage air conditioning systems that integrate central air conditioning and VRF system components, VRF manufacturers are developing systems that are user-friendly and offer management through LCD touchscreens.

However, the market is restrained by high initial costs. Due to the expense of the equipment itself, it is often more expensive than conventional heating and cooling systems. The price of the refrigerant piping, indoor units, and outside unit can add up quickly. In order to ensure optimal performance, the system must be thoroughly balanced, and the refrigerant piping requires specific knowledge and tools. VRF systems can cost 20-30% more to install than conventional systems. To make sure they are working effectively, they need to be serviced and inspected frequently. Also, if there is a problem with the system, it can cost a lot of money to have expert technicians diagnose and fix the problem.

However, the market has an opportunity of growing technology advancement in the system due to a variable refrigerant flow system offering special benefits to smaller buildings compared to features in high-end building automation systems. This is because of its capacity for using less energy. VRF systems are being used more frequently in the industrial sector thanks to their superior services, high air-conditioning performance, and robust product lifespan. While deciding whether to spend money on this technology, consider the potential energy savings and increased comfort that a VRF system can offer. By halting the movement of dust, allergies, and other impurities, it contributes to bettering the quality of indoor air. Furthermore, some VRF systems provide cutting-edge air filtration choices that can enhance indoor air quality even more.

• However, the market has been challenged by refrigerant leaks causing concern for harmful environmental impacts. A VRF system poses a major risk to people's health and safety in the space. The maintenance personnel have difficulty with it because of its high-volume design. If a refrigerant leak happens, all the refrigerant charges will diffuse into the room. The temperature has an impact on VRF efficiency. For the effective operation of both indoor and outdoor units, it is necessary to install several pipes and couplings. If not positioned correctly, it may leak. VRF systems are anticipated to benefit from rising urbanization, digitization, tax credit programs, and government incentives.

Market Segmentations

• The Global Variable Refrigerant Flow System Market is segmented based on Component, System, End-User, and Geography.
• By Component, the market is classified into Control Systems & Accessories, Outdoor Units, and Indoor Units.
• The Outdoor Units shares the largest revenue. It takes up minimal room and is transportable. Because they will fit in a service elevator, there is no need for a crane to lift them to a rooftop installation. It is occasionally possible to lower the overall building cost because additional roof support is not required because of the unit's modest weight. However, the level of efficiency gained will differ based on the layout of the available outside units. A VRF system's outdoor units with multiple inverter-driven twin rotary scroll compressors exhibit the broadest range of advantages. The system with three inverter-driven compressors also provides extra capacity for backup. If one of the compressors breaks, the system will maintain the conditioned space pleasant until the broken compressor can be replaced by operating at 67% of its initial capacity.
• By System, the market is classified into Heat Pump Systems and Heat Recovery Systems.
• The heat pump system segment registered the largest revenue share. A heat pump is a device that transfers thermal energy from the outside to heat a building using the refrigeration cycle. By rejecting heat outside after removing it from the enclosed space, many heat pumps can also be utilized to chill a structure. While the heating mode is engaged, a refrigerant that is at room temperature is compressed. This thermal energy can be delivered to a central heating system. Heat pumps are substantially more versatile than an air conditioners orfurnacese since they can provide warm air in the winter and chilly air in the summer. Customerutilize a heat pump to replace two separate systems for cooling and heating. Because a heat pump is a two-in-one system and does not require a separate furnace or air conditioner, the customer can save money by buying one. Anyone looking for an energy-efficient choice has a lot of fantastic options, including heat pumps. They use less electricity and no fuel than conventional air conditioners since they don't create hot or cold air; instead, they only transfer it. They use less electricity throughout the summer because they dehumidify spaces more efficiently than traditional air conditioners. Because of their lower carbon emissions and increased energy efficiency, they are environmentally friendly.
• By End-User, the market is classified into Industrial, Commercial, and Residential.
• The commercial segment registered the largest revenue share. Installing VRF systems in commercial buildings has long been a popular HVAC choice all around the world. A VRF system includes a louder condenser that is normally housed outside or in a mechanical room. The smaller air handling units that are maintained inside are, nevertheless, quieter than those that are coupled to a large central unit. As a result, they run without making a sound, making them ideal for offices where noise disruption is an issue. Another significant advantage enjoyed by owners of commercial real estate is the energy efficiency of VRF systems. Especially, the VRF system design allocates precisely the right amount of refrigerant to each individual air handling.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• The Asia-Pacific is the leading VRF systems market. This is due to a greater presence of important VRF system manufacturers, particularly in Japan. Due to large expenditures made in the building and construction industry, the Middle East and Africa are considerably contributing to market growth. The region's urbanization and rising demand for high-tech gadgets like wireless and connected devices are anticipated to hasten the expansion of the global market. Also, the expansion of office buildings, retail stores, and hospitals in this area is projected to increase demand for variable refrigerant flow systems.

Recent Development

• Daikin Europe invested EUR13 million in its Turkish factory to start producing its VRV air conditioning systems for the Turkish and Middle Eastern markets. - May 2022
• Samsung has expanded its AC product portfolio with the release of its brand-new DVM S2 Variable Refrigerant Flow (VRF) outdoor air conditioning unit. - April 2022
• The variable refrigerant flow (VRF) and light commercial HVAC joint venture between Carrier and Toshiba Carrier Corporation (TCC) have signed a legally binding agreement to buy out Toshiba Corporation's ownership stake. - February 2022

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are AHI Carrier, Awal Gulf Manufacturing, Blue Star, Bosch Industriekessel, Carrier Global, Danfoss A/S, Daikin Industries, Emerson Electric, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxemburg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
• The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Variable Refrigerant Flow System Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Variable Refrigerant Flow System Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Variable Refrigerant Flow System Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
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Report Highlights:

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market