VRF AC System Market Poised for Remarkable Growth: Energy Efficiency Drives Innovation and Adoption

Published: Jun 2025

VRF AC (Variable Refrigerant Flow Air conditioning) system market was valued at $19.5 billion in 2024 and is projected to grow to $53.2 billion with a CAGR of 9.6% during the forecast period (2025–2035). The key factors that are increasing the growth of the VRF AC market such as increasing demand for energy-efficient heating, ventilation, and air conditioning (HVAC), and the growth of various industries, including construction and manufacturing.

Browse the full report description of “VRF AC System Market Size, Share & Trends Analysis Report by Type (Heat Pump System and Heat Recovery System), By Components (Indoor Units, Outdoor Units), and by Application (Commercial, Residential, Industrial, Healthcare, and Education), Forecast Period (2025-2035)” at https://www.omrglobal.com/industry-reports/vrf-ac-system-market

Revolutionary HVAC Technology Transforming Building Climate Control.

  • VRF AC systems are energy-efficient HVAC solutions that reduce operational expenses while maintaining optimal comfort and delivering significant power savings through intelligent zone control and variable capacity operation.
  • VRF technology, including new refrigerant options and control systems, is expanding the market's potential. Manufacturers are now introducing eco-friendly solutions like CO?-based VRF systems with very low global warming potential, addressing environmental concerns while maintaining performance.

Key Players and Innovations

Several major players lead the VRF AC System industry, including Carrier Global Corp., Daikin Industries, Ltd., Fujitsu General Limited, Mitsubishi Electric Corp., and LG Electronics. These companies are at the forefront of innovation, continually developing new technologies to meet the industry's evolving needs. For instance, in April 2025, Daikin launched a new VRV range with R-744 refrigerant (CO2) in the UK and European markets. This reflects Daikin’s drive to be at the forefront of developing solutions to lower the carbon footprint of its systems, anticipating and supporting legislation.

Also in May 2024, Lennox Samsung announced an agreement forming a joint venture to sell ductless AC and heat pump (mini-split, multi-split, VRF) products in the United States and Canada. The newly established joint venture will be called Samsung Lennox HVAC North America.

Furthermore, in February 2022, Carrier Global Corporation acquired Toshiba Corporation. The planned acquisition will strengthen Carrier’s position in one of the fastest-growing HVAC segments, as well as scale its global VRF product platform with leading and differentiated technology and the addition of a renowned brand to its portfolio.

Market Coverage

The market numbers available for – 2024-2035

Base year- 2024

Forecast period- 2025-2035

Segment Covered- 

o By Type 

o By Components 

o By Application

Regions Covered-

o North America

o Europe

o Asia-Pacific

o Rest of the World

Competitive Landscape - Carrier Global Corp., Daikin Industries, Ltd., Fujitsu General Limited, Mitsubishi Electric Corp., LG Electronics, and others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Global VRF AC System Market Report Segment

By Type

  • Heat Pump System
  • Heat Recovery System

By Components

  • Indoor Units 
  • Outdoor Units

By Application

  • Commercial
  • Residential
  • Industrial
  • Healthcare
  • Education

Global VRF AC System Market Report Segment by Region

North America

United States

Canada 

Europe

UK

Germany

Italy

Spain

France

Russia

Rest of Europe 

Asia-Pacific

China

India

Japan

South Korea

Australia and New Zealand

ASEAN Economies

Rest of Asia-Pacific 

Rest of the World

Latin America 

Middle East & Africa


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