VRF (Variable Refrigerant Flow) functions at varying speeds that reduce energy load and saves approximately 55% of energy as compared to the traditional HVAC (Heating, Ventilation, and Air Conditioning) systems. The commercial air conditioning systems (VRF) includes an air conditioner inverter and as per comfort alters refrigerant flow and motor speed. These systems are popular commercially because they offer climate control by the building’s occupants. Moreover, the VRF systems can simultaneously alter temperatures in various rooms within a building. Also, VRF systems run automatically, and only the main control panel needs to set at an ideal room temperature. Minimal ductwork, delivery of constant comfort, and quiet operations are some of the benefits of using the VRF systems in a commercial building.
Forecast Analysis of the Commercial Air Conditioning Systems (VRF) Market
The global commercial air conditioning system (VRF) market is predicted to enhance in the upcoming years due to its energy-efficient nature. The conventional HVAC systems take up almost 50% of the total energy, thus burdening the consumer financially. As a result, people are shifting towards the VRF systems as they are energy efficient, easy to install, and quieter. Furthermore, awareness about energy efficiency is rising, and this has led to the adoption of VRF systems in countries such as Japan, the U.S.A, and China. For instance, an article on the economic times site stated that the 14th five-year-plan has been approved by the National People’s Congress, China. The nation has outlined climate and energy policies for the upcoming decade. China is set to work on plans for peaking carbon emissions before 2030 and achieve carbon neutrality by the end of 2060. Apart from this, an article stated that Japan observes ‘Energy conservation Day’ on the first day of every month and ‘Energy Conservation Month’ in February every year. These all factors are expected to boost the market growth in the forthcoming years.
According to a report published by Research Dive, the global commercial air conditioning system (VRF) market is anticipated to reach $34,619.00 million from 2020 to 2027 timeframe. Furthermore, several studies state that the performance of the VRF systems is more efficient than the conventional HVAC systems such as rooftop variable air volume systems (RTU-VAV) and boiler systems. For instance, an article on sciencedirect.com states that the VRF systems save approximately 15% to 42% and 18% to 33% for HVAC and source energy usage respectively as compared to the RTU-VAV systems. Apart from this, the VRF systems offer better cooling capacity in a multistorey building. These all factors are expected to influence the market growth in the future years.
Recent Developments in the Market
The well-known players of the global commercial air conditioning systems (VRF) market are aiming for unique strategies such as building product portfolios, mergers and acquisitions of promising companies, investments in research & development areas, new product announcements, and financing for the forthcoming activities and innovations. These tactics are propelling the growth of businesses across the world. For instance, in January 2021, Samsung, a multinational conglomerate company based in South Korea, announced the launch of large-capacity VRF air conditioning systems in India. This system can be installed in 0.5 square meters of space in villas, premium apartments, houses, and bungalows. This VRF system offers eco-friendly, efficient, and quiet air conditioning as well.
Apart from this, in January 2019, Trane, a manufacturing company of ventilation, heating, and air conditioning, introduced Genyue5+, a full DC inverter VRF system for SAARC and Indian markets. This product is an ideal choice for healthcare, retail, hospitality, educational facilities, and commercial sectors. Moreover, in July 2017, Mitsubishi India, an automotive company, introduced a new range of VRF (Variable Refrigerant Flow) air conditioning systems. The product's design is in-built for operation, smart control, and compactness of the system.
Covid-19 Impact on the Market
The global commercial air conditioning systems (VRF) market experienced a significant impact due to the Covid-19 pandemic. The reason being disruptions in the supply chains of the industries and social distancing protocols due to which installation services declined, thus resulting in reduced demand of the VRF systems. Furthermore, the implementation of safety protocols brought down the manpower in the industries, thus decreasing the production rate as well. These all aspects are affecting the global market during the coronavirus pandemic.
Future Scope of the Market
The demand for air conditioning systems is estimated to rise in countries such as India, UAE, Brazil, and Mexico due to an increase in disposable income and a rise in temperature levels. The desire for luxurious items by households is likely to create opportunities for the market in the upcoming years.