In 2017, the global variable refrigerant flow systems market generated a revenue of $11,400.7 million and is predicted to advance at a 13.4% CAGR during the forecast period (2018–2023).
The market is growing because of the rising demand for energy-efficient heating, ventilation, and air conditioning (HVAC) systems and inclination toward state-of-the-art technology and modern controls. VRF systems are air-conditioning unit system which comprise two major components, indoor and outdoor units.
On the basis of system type, the VRF systems market is bifurcated into heat recovery systems and heat pump systems. The market was dominated by heat pump systems during the historical period (2013–2017), which are further expected to account for the major share of the market during the forecast period, in terms of value.
Moreover, heat pump VRF systems have a lower cost of acquisition, negligible design constraints, and lesser manufacturer limitations.
When application area is taken into consideration, the VRF systems market is categorized into residential, commercial, and others (which include airports, metro stations, and railway stations).
Among these, the commercial category held the largest share of the market during the historical period, in terms of value, and is predicted to retain its position during the forecast period. This is due to the increasing construction activities and strict building regulations regarding energy efficiency.
The residential category is expected to grow at the fastest pace during the forecast period.