HOME Top Market Reports VRF Systems Market by System Type (Heat Pump and Heat Recovery System), Component (Compressor, Invertor, Electronic Expansion Valve, Synchronous Electronic Motor and Installation services), Application, and Geography - Global Forecast to 2022

VRF Systems Market by System Type (Heat Pump and Heat Recovery System), Component (Compressor, Invertor, Electronic Expansion Valve, Synchronous Electronic Motor and Installation services), Application, and Geography - Global Forecast to 2022

By: marketsandmarkets.com
Publishing Date: July 2016
Report Code: SE 4444

 

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The global VRF system market size was valued at USD 11.08 billion in 2015 and is expected to reach USD 24.09 Billion by 2022, at a CAGR of 11.4% during the forecast period. Energy efficiency and easy installation & maintenance of VRF system is the main driving factor for the VRF systems market. The introduction of energy-efficient and environmentally friendly products in the global market is expected to contribute toward the growth of the global VRF systems market in the years to come. For instance, Daikin Industries Ltd. (Japan) launched a new product known as HFC-32 refrigerants. HFC-32 (difluoromethane) is a next-generation refrigerant that addresses a range of environmental considerations in a balanced manner. It is a non-ozone depleting substance, which is energy efficient and has a low global-warming potential (GWP). The base year considered is 2015 and the market forecast provided is between 2016 and 2022. The main objectives of this report is to define, analyze, and forecast the global market for VRF systems, segmented on the basis of component, system type , application, and geography. To provide the impact analysis of the market dynamics on factors that currently drive and restrain the growth of the market, along with their impact in the short-, medium-, and long-term.

The research methodology used to estimate and forecast the VRF systems market begins with capturing data on key vendor revenues through secondary research. The vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up approach was calculated from the geographic shipments of the VRF systems. The total number of VRF systems shipped and the ASPs were calculated to reach the global VRF system market. The top-down procedure was employed to arrive at the overall market size of the global VRF systems market from the global revenue generated from the air-conditioning market. The total number VRF system was split from the global air-conditioning market size by volume and value. After arriving at the overall market size, the total market was split into application segments and system type segments which are then verified through primary research by conducting extensive interviews with key people such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary respondents is depicted in the below figure.

VRF Systems Market

To know about the assumptions considered for the study, download the pdf brochure

The ecosystem of VRF systems includes R&D, manufacturers, system integrators, consultants, software service vendors, marketing & sales teams, and end users. The report provides the competitive landscape of key players which indicates their growth strategies in terms of the VRF systems market. The report provides the profiles of major companies in the VRF systems market. The key players are  Daikin industries Ltd. (Japan) , LG Electronics (South Korea), Mitsubishi Electrical (Japan), Midea Group (China), Fujitsu General Corporation (Japan), Johnson Controls, Inc. (U.S.), Lennox International Inc. (U.S.), Toshiba Corporation (Japan), Ingersoll Rand Plc. (Ireland), and United Technologies Corporation (U.S.).

Target Audience:

  • Original device manufacturers (ODMs)
  • System integrators
  • Electronic hardware equipment manufacturers
  • Commercial construction site owners
  • Assembly and packaging vendors
  • Technical universities
  • Government research agencies and private research organizations
  • Research institutes and organizations
  • Market research and consulting firms

“Study answers several questions for the stakeholders, primarily which market segments to focus in the next two to five years for prioritizing the efforts and investments.”

Scope of the Report:

The market covered in this report has been segmented as follows:

VRF Systems Market, by Application:

  • Commercial
  • Residential
  • Transportation Applications (Metro & Railway stations and Airports)

VRF Systems Market, by System Type

  • Heat Pump Systems
  • Heat Recovery Systems

VRF Systems Market, by Component:

  • Outdoor Units
  • Indoor Units
  • Installation Services

VRF Systems Market, by Geography:

  • North America
  • Europe
  • APAC
  • RoW (South America, the Middle East, & Africa)

Available Customizations:

  • Type of VRF systems by country data can be provided in terms of value and volume
  • Further breakdown of applications in VRF can be provided in terms of value
  • Country-wise breakup for types of VRF systems
  • Detailed analysis and profiling of the additional market players (up to five)

Table of Contents

1 Introduction (Page No. - 16)
    1.1 Objective of the Study
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Package Size
    1.6 Limitations
    1.7 Stakeholders

2 Research Methodology (Page No. - 20)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primary Interviews
    2.2 Market Size Estimation
           2.2.1 Bottom-Up-Approach
           2.2.2 Top-Down Approach
           2.2.3 Market Breakdown and Data Triangulation

3 Executive Summary (Page No. - 28)

4 Premium Insights (Page No. - 34)
    4.1 Attractive Opportunities in the VRF Systems Market
    4.2 Application of Commercial Buildings Held the Largest Share in APAC in 2015
    4.3 The North American VRF Systems Market Expected to Grow at the Highest Rate During the Forecast Period
    4.4 Life Cycle Analysis, By Region

5 Market Overview (Page No. - 38)
    5.1 Introduction
    5.2 Market Evolution
    5.3 Market Segmentation
           5.3.1 By Component & Service
           5.3.2 By System Type
           5.3.3 By Application
           5.3.4 By Region
    5.4 Market Dynamics
           5.4.1 Drivers
                    5.4.1.1 Energy Saving Potential and Easy Installation & Maintenance of VRF Systems
                    5.4.1.2 Design Flexibility and Reliability of VRF System for Commercial Building Applications
                    5.4.1.3 Ability to Respond to Fluctuations in Space Load Conditions
           5.4.2 Restraints
                    5.4.2.1 High Up Front Cost of Installation
                    5.4.2.2 Specific Design Criteria for Refrigerant Piping
           5.4.3 Opportunities
                    5.4.3.1 VRF Systems Becoming Popular in North America
                    5.4.3.2 Growing Construction Activities Likely to Increase Installation of VRF Systems
           5.4.4 Challenges
                    5.4.4.1 Complexity in Designing VRF Systems
                    5.4.4.2 Need to Comply With Ashrae Safety Standards
                    5.4.4.3 Designing VRF Systems to Cope With Variations in Climatic Conditions

6 Industry Trends (Page No. - 48)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Porter’s Five Forces Analysis
           6.3.1 Intensity of Competitive Rivalry
           6.3.2 Threat of Substitutes
           6.3.3 Bargaining Power of Buyers
           6.3.4 Bargaining Power of Suppliers
           6.3.5 Threat of New Entrants

7 VRF Systems Market, By Component (Page No. - 57)
    7.1 Introduction
    7.2 Outdoor Units
           7.2.1 Compressors
           7.2.2 Inverters
           7.2.3 Others
                    7.2.3.1 Suction Accumulators
                    7.2.3.2 Liquid Receivers
    7.3 Indoor Units
           7.3.1 Electronic Expansion Valves
           7.3.2 Synchronous Electronic Motors
           7.3.3 Others
                    7.3.3.1 Filters
                    7.3.3.2 Drain Lines
    7.4 Installation Services

8 VRF Systems Market, By System Type (Page No. - 64)
    8.1 Introduction
    8.2 Heat Pump VRF Systems
           8.2.1 Air-Source Heat Pump VRF Systems
           8.2.2 Ground-Source Heat Pump VRF Systems
           8.2.3 Absorption Heat Pump VRF Systems
    8.3 Heat Recovery VRF Systems

9 VRF Systems Market, By Application (Page No. - 75)
    9.1 Introduction
    9.2 Commercial
           9.2.1 Building Applications
           9.2.2 Retail Stores
           9.2.3 Healthcare Facilities
           9.2.4 Hotels & Restaurants
           9.2.5 Educational Institutions
    9.3 Residential
    9.4 Others

10 VRF Systems Market, By Geography (Page No. - 103)
     10.1 Introduction
     10.2 North America
             10.2.1 North America:Increasing Demand for VRF Systems for Energy Efficiency and Cost-Effectiveness
             10.2.2 U.S
                        10.2.2.1 Slow Penetration of VRF Technology in the U.S
                        10.2.2.2 Increasing Awareness of VRF Systems in the U.S
             10.2.3 Canada
             10.2.4 Mexico
     10.3 Europe
             10.3.1 U.K
             10.3.2 Germany
             10.3.3 Russia
             10.3.4 Italy
             10.3.5 France
             10.3.6 Turkey
             10.3.7 Rest of Europe
     10.4 APAC
             10.4.1 Presence of Major VRF Systems Manufacturers in APAC
             10.4.2 Japan
             10.4.3 China
             10.4.4 South Korea
             10.4.5 India
             10.4.6 Rest of APAC
     10.5 Rest of the World
             10.5.1 The Middle East
             10.5.2 South America
             10.5.3 Africa

11 Competitive Landscape (Page No. - 130)
     11.1 Introduction
     11.2 Market Ranking 2015
     11.3 Competitive Scenario
     11.4 Developments
             11.4.1 New Product Launches
             11.4.2 Acquisition and Mergers
             11.4.3 Partnerships, Agreements, Expansion & Collaborations
             11.4.4 Expansion

12 Company Profiles (Page No. - 138)
(Overview, Products and Services, Financials, Strategy & Development)*
     12.1 Introduction
     12.2 Daikin Industries, Ltd.
     12.3 Johnson Controls, Inc.
     12.4 LG Electronics, Inc.
     12.5 Toshiba Corporation
     12.6 Fujitsu General Ltd.
     12.7 Mitsubishi Electric Corporation
     12.8 Midea Group Co., Ltd.
     12.9 Schneider Electric SE
     12.10 United Technologies Corporation
     12.11 Emerson Electric Co.
     12.12 Ingersoll-Rand PLC
     12.13 Lennox International Inc.

*Details on Overview, Products and Services, Financials, Strategy & Development Might Not Be Captured in Case of Unlisted Companies.

13 Appendix (Page No. - 182)
     13.1 Insights of Industry Experts
     13.2 Discussion Guide
     13.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     13.4 Introducing RT: Real-Time Market Intelligence
     13.5 Available Customizations
     13.6 Related Reports


List of Tables (99 Tables)

Table 1 Market Segmentation: By Component & Service
Table 2 Market Segmentation: By System Type
Table 3 Market Segmentation: By Application
Table 4 Market Segmentation: By Geography
Table 5 Energy Savings Estimation of VRF Systems for Different Locations
Table 6 Guidelines Related to Standards of the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) 2015
Table 7 VRF Systems Market, By Component & Service, 2013–2022 (USD Million)
Table 8 Global VRF Systems Market, By System Type, 2013–2022 (USD Million)
Table 9 Heat Pump VRF Systems Market, By Region, 2013–2022 (USD Million)
Table 10 Heat Pump VRF Systems Market, By Application, 2013–2022 (USD Million)
Table 11 Heat Recovery VRF Systems Market, By Region, 2013–2022 (USD Million)
Table 12 Heat Recovery VRF System Market, By Application, 2013–2022 (USD Million)
Table 13 VRF Systems Market, By Application, 2013–2022 (USD Million)
Table 14 VRF Systems Market, By Application, 2013–2022 (Thousand Units)
Table 15 Commercial Application, By Region, 2013–2022 (USD Million)
Table 16 Commercial Application, By System Type, 2013–2022 (USD Million)
Table 17 Commercial Application in North America, By System Type, 2013–2022 (USD Million)
Table 18 Commercial Application in North America, By System Type, 2013–2022 (Thousand Units)
Table 19 Commercial Application in Europe, By System Type, 2013–2022 (USD Million)
Table 20 Commercial Application in Europe, By System Type, 2013–2022 (Thousand Units)
Table 21 Commercial Application in APAC, By System Type, 2013–2022 (USD Million)
Table 22 Commercial Application in APAC, By System Type, 2013–2022 (Thousand Units)
Table 23 Commercial Application in RoW, By System Type, 2013–2022 (USD Million)
Table 24 Commercial Application in RoW, By System Type, 2013–2022 (Thousand Units)
Table 25 Market Size, By Region, 2013–2022 (USD Million)
Table 26 Market for Residential Application, By System Type, 2013–2022 (USD Million)
Table 27 Market for Residential Application in North America, By System Type, 2013–2022 (USD Million)
Table 28 Market for Residential Application in North America, By System Type, 2013–2022 (Thousand Units)
Table 29 Market for Residential Application in Europe, By System Type, 2013–2022 (USD Million)
Table 30 Market for Residential Application in Europe, By System Type, 2013–2022 (Thousand Units)
Table 31 Market in APAC, By System Type, 2013–2022 (USD Million)
Table 32 Residential Application VRF Systems Market for Residential Application in APAC, By System Type, 2013–2022 (Thousand Units)
Table 33 Market for Residential Application in RoW, By System Type, 2013–2022 (USD Million)
Table 34 Market Fro Residential Application in RoW, By System Type, 2013–2022 (Thousand Units)
Table 35 Market for Other Applications, By Region, 2013–2022 (USD Million)
Table 36 Market for Other Applications, By System Type, 2013–2022 (USD Million)
Table 37 Market for Other Applications in North America, By System Type, 2013–2022 (USD Million)
Table 38 Market for Other Applications in North America, By System Type, 2013–2022 (Thousand Units)
Table 39 Market for Other Applications in Europe, By System Type, 2013–2022 (USD Million)
Table 40 Market for Other Applications in Europe, By System Type, 2013–2022 ( Thousand Units)
Table 41 Market for Other Applications in APAC, By System Type, 2013–2022 (USD Million)
Table 42 Market for Other Applications in APAC, By System Type, 2013–2022 (Thousand Units)
Table 43 Other Applications in RoW, By System Type, 2013–2022 (USD Million)
Table 44 Other Applications in RoW, By System Type, 2013–2022 (Thousand Units)
Table 45 Market, By Region, 2013–2022 (USD Million)
Table 46 Market, By Region, 2013–2022 (Thousand Units)
Table 47 VRF Systems Market in North America, By Country, 2013–2022 (USD Million)
Table 48 Market in North America, By Country, 2013–2022 (Thousand Units)
Table 49 Market in North America, By Application, 2013–2022 (USD Million)
Table 50 Market in North America, By Application, 2013–2022 (Thousand Units)
Table 51 Market in North America, By System Type, 2013–2022 (USD Million)
Table 52 Market in North America, By System Type, 2013–2022 (Thousand Units)
Table 53 VRF Systems Market in Europe, By Country, 2013–2022 (USD Million)
Table 54 Market in Europe, By Country, 2013–2022 (Thousand Units)
Table 55 Market in Europe, By Application, 2013–2022 (USD Million)
Table 56 Market in Europe, By Application, 2013–2022 (Thousand Units)
Table 57 Market in Europe, By System Type, 2013–2022 (USD Million)
Table 58 Market in Europe, By System Type, 2013–2022 (Thousand Units)
Table 59 VRF Systems Market in APAC, By Country, 2013–2022 (USD Million)
Table 60 Market in APAC, Bycountry , 2013–2022 (Thousand Units)
Table 61 Market in APAC, By Application, 2013–2022 (USD Million)
Table 62 Market in APAC, By Application, 2013–2022 (Thousand Units)
Table 63 Market in APAC, By System Type, 2013–2022 (USD Million)
Table 64 Market in APAC, By System Type, 2013–2022 (Thousand Units)
Table 65 VRF Systems Market in RoW, Byregion , 2013–2022 (USD Million)
Table 66 Market in RoW, By Region, 2013–2022 (Thousand Units)
Table 67 Market in RoW, By Application, 2013–2022 (USD Million)
Table 68 Market in RoW, By Application, 2013–2022 (Thousand Units)
Table 69 Market Size in RoW, By System Type, 2013–2022 (USD Million)
Table 70 Market Size in RoW, By System Type, 2013–2022 (Thousand Units)
Table 71 Market Rank Analysis of the Top Players in the VRF Systems Market
Table 72 New Product Launches, 2015–2016
Table 73 Acquisition & Merger, 2014–2016
Table 74 Partnerships, Agreements, and Collaborations, 2015–2016
Table 75 Expansion, 2015–2016
Table 76 Daikin Industries Ltd.: Key Financial Statements (USD Million)
Table 77 Daikin Industries, Inc.: Key Financial Ratios
Table 78 Johnson Controls, Inc.: Financial Snapshot (USD Million)
Table 79 Johnson Control, Inc.: Key Financial Ratios
Table 80 LG Electronics, Inc.: Financial Snapshot (USD Million)
Table 81 LG Electronics, Inc.: Key Financial Ratios
Table 82 Toshiba Corporation .: Key Financial Statement (USD Million)
Table 83 Toshiba Corporation.: Key Financial Ratio
Table 84 Fujitsu General Ltd.: Key Financial Statement (USD Million)
Table 85 Fujitsu General Ltd.: Key Financial Ratio
Table 86 Mitsubishu Electric Corporation.: Key Financial Statement (USD Million)
Table 87 Mitsubishu Electric Corpotation.: Key Financial Ratio
Table 88 Midea Group Co., Ltd.: Key Financial Statement (USD Million)
Table 89 Midea Group Co., Ltd .: Key Financial Ratio
Table 90 Schneider Electric SE: Key Financial Statement (USD Million)
Table 91 Schneider Electric SE: Key Financial Ratio
Table 92 United Technologies Corporation : Financial Snapshot (USD Million)
Table 93 United Technologies Corporation : Key Financial Ratios
Table 94 Emerson Electric Co.: Key Financial Statement (USD Million)
Table 95 Emerson Electric Co.: Key Financial Ratio
Table 96 Ingersoll Rand PLC.: Key Financial Statements (USD Million)
Table 97 Ingersoll Rand PLC.: Key Ratios
Table 98 Lennox International, Inc .: Key Financial Statement (USD Million)
Table 99 Lennox International, Inc.: Key Financial Ratio


List of Figures (90 Figures)

Figure 1 VRF Systems Market Segmentation
Figure 2 Global VRF Market: Research Methodology
Figure 3 Research Methodology: VRF Systems
Figure 4 Market Size Estimation Methodology: Bottom-Up Approach
Figure 5 Market Size Estimation Methodology: Top-Down Approach
Figure 6 Data Triangulation : VRF Systems Market
Figure 7 Global VRF Systems Market Size Estimation, in Terms of Value and Volume, for the Forecast Period (2016-2022)
Figure 8 VRF Systems Market Size Estimation, By Component & Service, for the Forecast Period (2016-2022)
Figure 9 Turkey Expected to Grow at the Highest Rate During the Forecast Period (2016-2022)
Figure 10 Commercial Application Accounted for the Largest Share of the VRF Systems Market in 2015
Figure 11 Heat Pump Systems Expected to Hold A Major Share During the Forecast Period (2016-2022)
Figure 12 Regional Scenario of VRF Systems Market in 2015
Figure 13 Commercial Application Estimated to Grow at the Highest Rate Between 2016 to 2022
Figure 14 China Held the Largest Share of the VRF Systems Market in 2015
Figure 15 China Held the Largest Share of the Global VRF Systems Market in 2015
Figure 16 North American Expected to Witness Rapid Growth Between 2016 and 2022
Figure 17 VRF System Market Evolution
Figure 18 Energy Saving Potential & Easy Installation and Maintenance of VRF Systems Would Increase Their Demand
Figure 19 Growth in Residential Construction Market, By Region
Figure 20 Asia–Pacific: Components of Total Construction, 2015
Figure 21 Value Chain Analysis: Maximum Value is Added During Manufacturing, Systems Integration, and Consultation Stages
Figure 22 Bargaining Power of Buyers Expected to Have A High Impact
Figure 23 Porter’s Five Forces Analysis
Figure 24 Market: Intensity of Competitive Rivalry
Figure 25 Market: Threat of Substitutes
Figure 26 Market: Bargaining Power of Buyers
Figure 27 Market: Bargaining Power of Suppliers
Figure 28 Market: Threat of New Entrants
Figure 29 Market Segmentation: By Component & Service
Figure 30 Global VRF Systems Market, By Component, 2016 vs 2022 (USD Million)
Figure 31 Components of Outdoor Units
Figure 32 Components of Indoor Units
Figure 33 VRF Systems Market Segmentation: By System Type
Figure 34 Schematic Representation of VRF Systems Operation
Figure 35 Global VRF Systems Market, By System Type, 2016–2022 (USD Million)
Figure 36 Types of H Heat Pump VRF Systems
Figure 37 Schematic Representation of Refrigerant Piping in VRF Systems
Figure 38 Heat Pump VRF Systems Market, By Region, 2016 vs 2022 (USD Million)
Figure 39 Heat Pump, By Application, 2016 vs 2022 (USD Million)
Figure 40 Heat Recovery VRF Systems Market, By Region, 2016 vs 2022 (USD Million)
Figure 41 Heat Recovery, By Application, 2016 vs 2022 (USD Million)
Figure 42 Market, By Application
Figure 43 VRF Systems Market, By Application, 2016 vs 2022 (USD Million)
Figure 44 Application of VRF Systems in Commercial Buildings
Figure 45 Market for Commercial Application, By Region, 2016 vs 2022 (USD Million)
Figure 46 Market for Commercial Application, By System Type, 2016 vs 2022 (USD Million)
Figure 47 Market for Commercial Application in Europe, By System Type, 2016 vs 2022 (USD Million)
Figure 48 Commercial Application in APAC, By System Type, 2016 vs 2022 (USD Million)
Figure 49 Application of VRF Systems in Residential Buildings
Figure 50 VRF Systems Market for Residential Application, By Region, 2016 vs 2022 (USD Million)
Figure 51 Market for Residential Application in North America, By System Type, 2016 vs 2022 (USD Million)
Figure 52 Residential Application VRF Systems Size in APAC, By System Types, 2016 vs 2022 (Thousand Units)
Figure 53 Application of VRF Systems in Transport Buildings
Figure 54 VRF Systems Market for Other Applications, By Region, 2016 vs 2022 (USD Million)
Figure 55 Market for Other Applications in North America, By System Type, 2016 vs 2022 (USD Million)
Figure 56 Market for Other Applications in APAC, By System Type, 2016 vs 2022 (USD Million)
Figure 57 VRF Systems Market for Other Applications in RoW, By System Type, 2016 vs 2022 (USD Million)
Figure 58 Segmentation: By Geography
Figure 59 Geographic Snapshot (2016–2022)
Figure 60 Country-Wise Growth (2016–2022)
Figure 61 North America: Market Segmentation
Figure 62 North America: Market Snapshot
Figure 63 Europe: Market Segmentation
Figure 64 Europe: Market Snapshot
Figure 65 APAC: Market Segmentation
Figure 66 APAC: Market Snapshot
Figure 67 Rest of World: Market
Figure 68 Companies Adopted Product Innovation as the Key Growth Strategy Between 2013 and 2015
Figure 69 Market Evaluation Framework—New Product Launches Drive Growth and Innovation Between 2013 and 2015
Figure 70 New Product Launches Was the Key Strategy in the Battle for the Market Share 2015
Figure 71 Geographic Revenue Mix of Top 5 Market Players (2015)
Figure 72 Daikin Industries, Ltd.: Company Snapshot
Figure 73 Daikin Industries, Ltd.: SWOT Analysis
Figure 74 Johnson Controls Inc.: Company Snapshot
Figure 75 Johnson Controls, Inc.: SWOT Analysis
Figure 76 LG Electronics, Inc.: Company Snapshot
Figure 77 LG Electronics, Inc.: SWOT Analysis
Figure 78 Toshiba Corporation: Company Snapshot
Figure 79 Fujitsu General Ltd.: Company Snapshot
Figure 80 Fujitsu General Ltd.: SWOT Analysis
Figure 81 Mitsubishi Electric Corporation: Company Snapshot
Figure 82 Mitsubishi Electric Corporation: SWOT Analysis
Figure 83 Midea Group Co., Ltd.: Company Snapshot
Figure 84 Schneider Electric SE: Company Snapshot
Figure 85 Schneider Electric SE: SWOT Analysis
Figure 86 United Technologies Corporation: Company Snapshot
Figure 87 United Technologies Corporation: SWOT Analysis
Figure 88 Emerson Electric Co.: Company Snapshot
Figure 89 Ingersoll-Rand PLC.: Company Snapshot
Figure 90 Lennox International Inc.: Company Snapshot

The VRF systems market size is expected to grow at a CAGR of 11.4% between 2016 and 2022, from the market size of USD 11.08 Billion in 2015 to USD 24.09 Billion by 2022. The growth of the systems is driven by factors such as the increasing demand for improved energy-efficient devices and lower environmental impact due to use of VRF systems, growing construction activities, and increased legislation & energy management initiatives for increasing the adoption of VRF systems. Factors such as the high level of efficiency by advance compressor controls & inverters, and tax reduction from government are also supporting the growth of the VRF systems market.

The scope of this report covers the VRF systems market on the basis of application, system type, component, and geography. In terms of application, the commercial building segment is expected to hold the largest market share during the forecast period. VRF systems are widely used in the commercial sector which has been further segmented into building applications, educational institutions, healthcare facilities, hotels & restaurants, retail stores, and others. The implementation of VRF systems in commercial buildings helps in improving the efficiency and better working environment.

In terms of VRF systems by system type, heat pump VRF systems are expected to hold the largest market share in 2015. VRF heat pump systems offer an energy-efficient alternative compared to traditional air-conditioning systems. Because heat pump systems move heat rather than generate heat, heat pumps can provide equivalent space conditioning at as little as one quarter of the cost of operating conventional heating or cooling appliances.

On the basis of geography, Asia-pacific accounted for the largest market share in 2015 and the market in APAC is expected to grow at a significant CAGR between 2016 and 2022. The growth of the construction activities in APAC coupled with increasing demand for smart devices to handle the VRF systems and increasing population & urbanization has led to the increasing demand for implementing VRF systems in the APAC region.

VRF Systems Market

The restraint for the development of the market is the lack of awareness regarding benefits of VRF systems and high initial cost of investment. Daikin Industries Ltd. (Japan) is considered as one of the important players in the development of VRF systems market. The company invented variable refrigerant volume (VRV) systems in 1982. Daikin Industries Ltd. (Japan) had high investments in R&D for designing innovative products to match the market needs and explore new opportunities to drive growth and profitability. Moreover, the company is focusing on new product developments and acquisitions as a major growth strategy to strengthen its market presence in the ecosystems of VRF systems. Daikin Industries Ltd. (Japan) has repeatedly realized important innovations with respect to air-conditioning and refrigerant technologies. In 2014, the Daikin Group (Japan) adopted the new refrigerant R32, which reduces the global warming factor by two-thirds over traditional refrigerants. Since then, aiming for R32 to be adopted globally, the company have actively worked with environmental and air-conditioning-related parties in each country and region on setting a new global standard. These innovations have enabled the company to strengthen its position in VRF system market. In February 2016, Daikin Industries Ltd. (Japan) acquired Flanders Holdings LLC (U.S.) an air filter manufacturer. As a result of the merger, the filter business of the Daikin Group would become a business with sales exceeding USD 10 Billion annually.

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