The VRF System Market size was valued at US$ 21.65 billion in 2023 and is expected to reach US$ 54.09 billion by 2031. The VRF System Market is estimated to record a CAGR of 12.1% from 2023 to 2031.
The European VRF system market is segmented into Germany, Russia, France, the UK, Italy, and the Rest of Europe. The market growth in Europe is mostly driven by increased residential infrastructure projects and rising government regulations regarding energy efficiency. In European countries, such as Germany, the UK, and France, the government rules focus on energy efficiency and the use of environment-friendly refrigerants that are projected to increase the demand for VRF systems. In July 2022, the European Commission updated the F-Gas Regulation to implement strict requirements for the use of refrigerants. The HFC refrigerant commonly used in VRF systems is R410A. HFC-32 has various benefits that can help reduce the environmental impact of air-conditioning. HFC-32 is a non-ozone-depleting refrigerant.
Smart Buildings Alliance (SBA) has 170 member organizations from various trades within the building sector (industrial companies, builders, developers, service companies, design offices, developers, architects, and innovative startups) in France. Several initiatives are being put forth to promote sustainable building development in Europe. A number of European businesses have committed to reducing their building's CO2 emissions to zero with the use of VRF systems. As part of an agreement, major participants in the construction industry, including Deerns, BuroHappold, Grimshaw Architects, and Carbon Credentials, joined Helsinki and Valladolid in signing the World Green Building Council's Net Zero Carbon Buildings Commitment. Similarly, in December 2023, the European Commission signed an agreement to reduce the emissions and energy use of buildings across the region. It aims to reduce the average primary energy use of residential buildings by 16% by 2030 and 20-22% by 2035. Thus, the factors mentioned above are positively influencing the VRF system market growth in Europe.
Based on system type, the market is categorized into heat pump, heat recovery, and cooling only. The heat pump segment held the largest VRF system market share in 2023. Heat pump VRF systems are the most common type and can either heat or cool a building, but they can't perform both of these functions simultaneously. In the heating mode, the system extracts heat from the outdoor air and transfers it indoors via the refrigerant. In cooling mode, it reverses the process, removing heat from the indoor air and releasing it outside. These systems are ideal for environments where heating or cooling is needed one at a time throughout the building. For instance, these are used in office buildings, retail spaces, and residential buildings where different areas typically require uniform temperature settings. Heat pump systems are energy-efficient due to the use of a variable-speed compressor that adjusts the refrigerant flow based on demand. Moreover, they are simple to install and maintain compared to more complex VRF systems.
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 prominent players profiled in the VRF System Market report. Several other major players were also studied and analyzed in the VRF System Market report to get a holistic view of the market and its ecosystem.
The overall VRF System Market share has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the VRF System Market. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the VRF System Market.
Table Of Contents
1. Introduction
- 1.1 The Insight Partners Research Report Guidance
- 1.2 Market Segmentation
2. Executive Summary
- 2.1 Key Insights
- 2.2 Market Attractiveness
3. Research Methodology
- 3.1 Secondary Research
- 3.2 Primary Research
- 3.2.1 Hypothesis formulation:
- 3.2.2 Macro-economic factor analysis:
- 3.2.3 Developing base number:
- 3.2.4 Data Triangulation:
- 3.2.5 Country level data:
4. VRF System Market Landscape
- 4.1 Overview
- 4.2 PEST Analysis
- 4.3 Ecosystem Analysis
- 4.3.1 List of Vendors in Value Chain
5. VRF System Market - Key Market Dynamics
- 5.1 VRF System Market - Key Market Dynamics
- 5.2 Market Drivers
- 5.2.1 Pressing Need for Energy Efficiency and Conservation
- 5.2.2 Diversifying Applications Across Various Industries
- 5.3 Market Restraints
- 5.3.1 Elevated Upfront Costs
- 5.4 Market Opportunities
- 5.4.1 Pairing Building Automation and VRF Systems
- 5.4.2 Explicit Regulatory Standards
- 5.4.3 5.4.1 Pipeline of High-End Construction Projects
- 5.5 Future Trends
- 5.5.1 VRF System Integration with Home Automation
- 5.6 Impact of Drivers and Restraints:
6. VRF System Market - Global Market Analysis
- 6.1 VRF System Market Revenue (US$ Million), 2021-2031
- 6.2 VRF System Market Forecast Analysis
7. VRF System Market Analysis - by Component
- 7.1 Indoor Units
- 7.1.1 Overview
- 7.1.2 Indoor Units: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 7.2 Outdoor Units
- 7.2.1 Overview
- 7.2.2 Outdoor Units: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 7.3 Control Systems and Accessories
- 7.3.1 Overview
- 7.3.2 Control Systems and Accessories: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
8. VRF System Market Analysis - by System Type
- 8.1 Heat Pump
- 8.1.1 Overview
- 8.1.2 Heat Pump: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 8.2 Heat Recovery
- 8.2.1 Overview
- 8.2.2 Heat Recovery: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 8.3 Cooling Only
- 8.3.1 Overview
- 8.3.2 Cooling Only: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
9. VRF System Market Analysis - by Applications
- 9.1 Commercial
- 9.1.1 Overview
- 9.1.2 Commercial: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 9.2 Industrial
- 9.2.1 Overview
- 9.2.2 Industrial: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 9.3 Residential
- 9.3.1 Overview
- 9.3.2 Residential: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
10. VRF System Market - Geographical Analysis
- 10.1 Overview
- 10.2 North America
- 10.2.1 North America VRF System Market Overview
- 10.2.2 North America: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.2.3 North America: VRF System Market Breakdown, by Component
- 10.2.3.1 North America: VRF System Market - Revenue and Forecast Analysis - by Component
- 10.2.4 North America: VRF System Market Breakdown, by System Type
- 10.2.4.1 North America: VRF System Market - Revenue and Forecast Analysis - by System Type
- 10.2.5 North America: VRF System Market Breakdown, by Applications
- 10.2.5.1 North America: VRF System Market - Revenue and Forecast Analysis - by Applications
- 10.2.6 North America: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.2.6.1 North America: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.2.6.2 United States: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.2.6.2.1 United States: VRF System Market Breakdown, by Component
- 10.2.6.2.2 United States: VRF System Market Breakdown, by System Type
- 10.2.6.2.3 United States: VRF System Market Breakdown, by Applications
- 10.2.6.3 Canada: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.2.6.3.1 Canada: VRF System Market Breakdown, by Component
- 10.2.6.3.2 Canada: VRF System Market Breakdown, by System Type
- 10.2.6.3.3 Canada: VRF System Market Breakdown, by Applications
- 10.2.6.4 Mexico: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.2.6.4.1 Mexico: VRF System Market Breakdown, by Component
- 10.2.6.4.2 Mexico: VRF System Market Breakdown, by System Type
- 10.2.6.4.3 Mexico: VRF System Market Breakdown, by Applications
- 10.3 Europe
- 10.3.1 Europe VRF System Market Overview
- 10.3.2 Europe: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.3.3 Europe: VRF System Market Breakdown, by Component
- 10.3.3.1 Europe: VRF System Market - Revenue and Forecast Analysis - by Component
- 10.3.4 Europe: VRF System Market Breakdown, by System Type
- 10.3.4.1 Europe: VRF System Market - Revenue and Forecast Analysis - by System Type
- 10.3.5 Europe: VRF System Market Breakdown, by Applications
- 10.3.5.1 Europe: VRF System Market - Revenue and Forecast Analysis - by Applications
- 10.3.6 Europe: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.3.6.1 Europe: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.3.6.2 France: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.3.6.2.1 France: VRF System Market Breakdown, by Component
- 10.3.6.2.2 France: VRF System Market Breakdown, by System Type
- 10.3.6.2.3 France: VRF System Market Breakdown, by Applications
- 10.3.6.3 Germany: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.3.6.3.1 Germany: VRF System Market Breakdown, by Component
- 10.3.6.3.2 Germany: VRF System Market Breakdown, by System Type
- 10.3.6.3.3 Germany: VRF System Market Breakdown, by Applications
- 10.3.6.4 United Kingdom: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.3.6.4.1 United Kingdom: VRF System Market Breakdown, by Component
- 10.3.6.4.2 United Kingdom: VRF System Market Breakdown, by System Type
- 10.3.6.4.3 United Kingdom: VRF System Market Breakdown, by Applications
- 10.3.6.5 Italy: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.3.6.5.1 Italy: VRF System Market Breakdown, by Component
- 10.3.6.5.2 Italy: VRF System Market Breakdown, by System Type
- 10.3.6.5.3 Italy: VRF System Market Breakdown, by Applications
- 10.3.6.6 Russian Federation: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.3.6.6.1 Russian Federation: VRF System Market Breakdown, by Component
- 10.3.6.6.2 Russian Federation: VRF System Market Breakdown, by System Type
- 10.3.6.6.3 Russian Federation: VRF System Market Breakdown, by Applications
- 10.3.6.7 Rest of Europe: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.3.6.7.1 Rest of Europe: VRF System Market Breakdown, by Component
- 10.3.6.7.2 Rest of Europe: VRF System Market Breakdown, by System Type
- 10.3.6.7.3 Rest of Europe: VRF System Market Breakdown, by Applications
- 10.4 Asia Pacific
- 10.4.1 Asia Pacific VRF System Market Overview
- 10.4.2 Asia Pacific: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.4.3 Asia Pacific: VRF System Market Breakdown, by Component
- 10.4.3.1 Asia Pacific: VRF System Market - Revenue and Forecast Analysis - by Component
- 10.4.4 Asia Pacific: VRF System Market Breakdown, by System Type
- 10.4.4.1 Asia Pacific: VRF System Market - Revenue and Forecast Analysis - by System Type
- 10.4.5 Asia Pacific: VRF System Market Breakdown, by Applications
- 10.4.5.1 Asia Pacific: VRF System Market - Revenue and Forecast Analysis - by Applications
- 10.4.6 Asia Pacific: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.4.6.1 Asia Pacific: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.4.6.2 Australia: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.4.6.2.1 Australia: VRF System Market Breakdown, by Component
- 10.4.6.2.2 Australia: VRF System Market Breakdown, by System Type
- 10.4.6.2.3 Australia: VRF System Market Breakdown, by Applications
- 10.4.6.3 China: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.4.6.3.1 China: VRF System Market Breakdown, by Component
- 10.4.6.3.2 China: VRF System Market Breakdown, by System Type
- 10.4.6.3.3 China: VRF System Market Breakdown, by Applications
- 10.4.6.4 India: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.4.6.4.1 India: VRF System Market Breakdown, by Component
- 10.4.6.4.2 India: VRF System Market Breakdown, by System Type
- 10.4.6.4.3 India: VRF System Market Breakdown, by Applications
- 10.4.6.5 Japan: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.4.6.5.1 Japan: VRF System Market Breakdown, by Component
- 10.4.6.5.2 Japan: VRF System Market Breakdown, by System Type
- 10.4.6.5.3 Japan: VRF System Market Breakdown, by Applications
- 10.4.6.6 South Korea: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.4.6.6.1 South Korea: VRF System Market Breakdown, by Component
- 10.4.6.6.2 South Korea: VRF System Market Breakdown, by System Type
- 10.4.6.6.3 South Korea: VRF System Market Breakdown, by Applications
- 10.4.6.7 Rest of APAC: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.4.6.7.1 Rest of APAC: VRF System Market Breakdown, by Component
- 10.4.6.7.2 Rest of APAC: VRF System Market Breakdown, by System Type
- 10.4.6.7.3 Rest of APAC: VRF System Market Breakdown, by Applications
- 10.5 Middle East and Africa
- 10.5.1 Middle East and Africa VRF System Market Overview
- 10.5.2 Middle East and Africa: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.5.3 Middle East and Africa: VRF System Market Breakdown, by Component
- 10.5.3.1 Middle East and Africa: VRF System Market - Revenue and Forecast Analysis - by Component
- 10.5.4 Middle East and Africa: VRF System Market Breakdown, by System Type
- 10.5.4.1 Middle East and Africa: VRF System Market - Revenue and Forecast Analysis - by System Type
- 10.5.5 Middle East and Africa: VRF System Market Breakdown, by Applications
- 10.5.5.1 Middle East and Africa: VRF System Market - Revenue and Forecast Analysis - by Applications
- 10.5.6 Middle East and Africa: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.5.6.1 Middle East and Africa: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.5.6.2 South Africa: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.5.6.2.1 South Africa: VRF System Market Breakdown, by Component
- 10.5.6.2.2 South Africa: VRF System Market Breakdown, by System Type
- 10.5.6.2.3 South Africa: VRF System Market Breakdown, by Applications
- 10.5.6.3 Saudi Arabia: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.5.6.3.1 Saudi Arabia: VRF System Market Breakdown, by Component
- 10.5.6.3.2 Saudi Arabia: VRF System Market Breakdown, by System Type
- 10.5.6.3.3 Saudi Arabia: VRF System Market Breakdown, by Applications
- 10.5.6.4 United Arab Emirates: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.5.6.4.1 United Arab Emirates: VRF System Market Breakdown, by Component
- 10.5.6.4.2 United Arab Emirates: VRF System Market Breakdown, by System Type
- 10.5.6.4.3 United Arab Emirates: VRF System Market Breakdown, by Applications
- 10.5.6.5 Rest of Middle East and Africa: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.5.6.5.1 Rest of Middle East and Africa: VRF System Market Breakdown, by Component
- 10.5.6.5.2 Rest of Middle East and Africa: VRF System Market Breakdown, by System Type
- 10.5.6.5.3 Rest of Middle East and Africa: VRF System Market Breakdown, by Applications
- 10.6 South and Central America
- 10.6.1 South and Central America VRF System Market Overview
- 10.6.2 South and Central America: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.6.3 South and Central America: VRF System Market Breakdown, by Component
- 10.6.3.1 South and Central America: VRF System Market - Revenue and Forecast Analysis - by Component
- 10.6.4 South and Central America: VRF System Market Breakdown, by System Type
- 10.6.4.1 South and Central America: VRF System Market - Revenue and Forecast Analysis - by System Type
- 10.6.5 South and Central America: VRF System Market Breakdown, by Applications
- 10.6.5.1 South and Central America: VRF System Market - Revenue and Forecast Analysis - by Applications
- 10.6.6 South and Central America: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.6.6.1 South and Central America: VRF System Market - Revenue and Forecast Analysis - by Country
- 10.6.6.2 Brazil: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.6.6.2.1 Brazil: VRF System Market Breakdown, by Component
- 10.6.6.2.2 Brazil: VRF System Market Breakdown, by System Type
- 10.6.6.2.3 Brazil: VRF System Market Breakdown, by Applications
- 10.6.6.3 Argentina: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.6.6.3.1 Argentina: VRF System Market Breakdown, by Component
- 10.6.6.3.2 Argentina: VRF System Market Breakdown, by System Type
- 10.6.6.3.3 Argentina: VRF System Market Breakdown, by Applications
- 10.6.6.4 Rest of South and Central America: VRF System Market - Revenue and Forecast to 2031 (US$ Million)
- 10.6.6.4.1 Rest of South and Central America: VRF System Market Breakdown, by Component
- 10.6.6.4.2 Rest of South and Central America: VRF System Market Breakdown, by System Type
- 10.6.6.4.3 Rest of South and Central America: VRF System Market Breakdown, by Applications
11. Competitive Landscape
- 11.1 Company Positioning & Concentration
- 11.2 Heat Map Analysis By Key Players
12. Industry Landscape
- 12.1 Overview
- 12.2 Market Initiative
- 12.3 Product Development
- 12.4 Mergers & Acquisitions
13. Company Profiles
- 13.1 FUJITSU GENERAL
- 13.1.1 Key Facts
- 13.1.2 Business Description
- 13.1.3 Products and Services
- 13.1.4 Financial Overview
- 13.1.5 SWOT Analysis
- 13.1.6 Key Developments
- 13.2 Daikin Industries Ltd
- 13.2.1 Key Facts
- 13.2.2 Business Description
- 13.2.3 Products and Services
- 13.2.4 Financial Overview
- 13.2.5 SWOT Analysis
- 13.2.6 Key Developments
- 13.3 Johnson Controls International Plc
- 13.3.1 Key Facts
- 13.3.2 Business Description
- 13.3.3 Products and Services
- 13.3.4 Financial Overview
- 13.3.5 SWOT Analysis
- 13.3.6 Key Developments
- 13.4 Carrier Global Corp
- 13.4.1 Key Facts
- 13.4.2 Business Description
- 13.4.3 Products and Services
- 13.4.4 Financial Overview
- 13.4.5 SWOT Analysis
- 13.4.6 Key Developments
- 13.5 LG Electronics Inc
- 13.5.1 Key Facts
- 13.5.2 Business Description
- 13.5.3 Products and Services
- 13.5.4 Financial Overview
- 13.5.5 SWOT Analysis
- 13.5.6 Key Developments
- 13.6 Panasonic Holdings Corp
- 13.6.1 Key Facts
- 13.6.2 Business Description
- 13.6.3 Products and Services
- 13.6.4 Financial Overview
- 13.6.5 SWOT Analysis
- 13.6.6 Key Developments
- 13.7 Samsung Electronics Co Ltd
- 13.7.1 Key Facts
- 13.7.2 Business Description
- 13.7.3 Products and Services
- 13.7.4 Financial Overview
- 13.7.5 SWOT Analysis
- 13.7.6 Key Developments
- 13.8 Mitsubishi Electric Corp
- 13.8.1 Key Facts
- 13.8.2 Business Description
- 13.8.3 Products and Services
- 13.8.4 Financial Overview
- 13.8.5 SWOT Analysis
- 13.8.6 Key Developments
- 13.9 Midea Group Co Ltd
- 13.9.1 Key Facts
- 13.9.2 Business Description
- 13.9.3 Products and Services
- 13.9.4 Financial Overview
- 13.9.5 SWOT Analysis
- 13.9.6 Key Developments
- 13.10 Lennox International Inc
- 13.10.1 Key Facts
- 13.10.2 Business Description
- 13.10.3 Products and Services
- 13.10.4 Financial Overview
- 13.10.5 SWOT Analysis
- 13.10.6 Key Developments
- 13.11 Blue Star Ltd
- 13.11.1 Key Facts
- 13.11.2 Business Description
- 13.11.3 Products and Services
- 13.11.4 Financial Overview
- 13.11.5 SWOT Analysis
- 13.11.6 Key Developments
- 13.12 Yanmar Holdings Co Ltd
- 13.12.1 Key Facts
- 13.12.2 Business Description
- 13.12.3 Products and Services
- 13.12.4 Financial Overview
- 13.12.5 SWOT Analysis
- 13.12.6 Key Developments
- 13.13 Trane Technologies Plc
- 13.13.1 Key Facts
- 13.13.2 Business Description
- 13.13.3 Products and Services
- 13.13.4 Financial Overview
- 13.13.5 SWOT Analysis
- 13.13.6 Key Developments
- 13.14 Systemair AB
- 13.14.1 Key Facts
- 13.14.2 Business Description
- 13.14.3 Products and Services
- 13.14.4 Financial Overview
- 13.14.5 SWOT Analysis
- 13.14.6 Key Developments
- 13.15 Voltas Ltd
- 13.15.1 Key Facts
- 13.15.2 Business Description
- 13.15.3 Financial Overview
- 13.15.4 SWOT Analysis
- 13.15.5 Key Developments
- 13.16 Robert Bosch GmbH
- 13.16.1 Key Facts
- 13.16.2 Business Description
- 13.16.3 Products and Services
- 13.16.4 Financial Overview
- 13.16.5 SWOT Analysis
- 13.16.6 Key Developments
14. Appendix
- 14.1 About The Insight Partners
- 14.2 Word Index