Rising Demand in VRF Systems for High-Rise and Commercial Buildings

Published: Sep 2025

Japan air conditioning market was valued at $18,276 million in 2024 and is projected to reach $29,472 million in 2035, growing at a CAGR of 4.5% during the forecast period (2025-2035). The increasing demand for VRF AC in high-rise buildings, new commercial developments, particularly in densely populated urban centers, requires flexible and scalable (Heating, ventilation, and air conditioning) HVAC solutions.  Reassembling older buildings with modern VRF systems is also escalating this market, owing to the flexibility, with the low utility cost benefits that are being offered by these systems. 

Browse the full report description of “Japan Air Conditioning Market Size, Share & Trends Analysis Report by Application (Residential, Commercial, Industrial, Healthcare, Institution, Automotive), by Type (Splits, Rooftop, Indoor Packaged, Chillers, VRF, AHU/FCU), by Duct Type (Ducted, Ductless) by Refrigerant Type (HCFC, HFC, HFO, Natural Refrigerant) and Forecast Period (2025-2035)” at https://www.omrglobal.com/industry-reports/japan-air-conditioning-market

To fulfill the various needs of multiple tenants, VRF systems provide control and flexibility in the installation process by removing the need for water piping. Many of the specialized instrument manufacturers have brought in user-friendly control systems with LCD touch screens that combine central air conditioning with VRF to control central air conditioning systems. 

  • In June 2025, Mitsubishi Heavy Industries' KXZ3 VRF series received the highest Platinum Award.
  • In November 2024, Daikin announced the launch of its new CO2 VRF air conditioning product in Europe, combined with its current VRV5 range on R32.
  • In August 2024, Trane Technologies launched the GEN Elite C Series VRF system. This system offered high efficiency, precise temperature control, stable performance, and a flexible design, making it an ideal solution for a wide range of commercial buildings, including offices, hospitals, retail spaces, and more.
  • In February 2023, LG Electronics launched Multi Vi, a VRF solution equipped with an AI engine. These are suitable for mid- to high-rise buildings, such as offices, schools, shopping malls, apartment buildings, and hotels.

Market Coverage

The market number available for – 2024-2035

Base year- 2024

Forecast period- 2025-2035

Segment Covered- 

o By Application

o By Type

o By Duct Type

o By Refrigerant Type

Competitive Landscape - Mitsubishi Electric Corporation, LG Electronics, Daikin Industries, Ltd., Hitachi Air Conditioning Company, Carrier, Samsung, among 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?

Japan Air Conditioning Market Report Segment

By Application 

  • Residential
  • Commercial
  • Industrial
  • Healthcare
  • Institution
  • Automotive

By Type

  • Splits
  • Rooftop
  • Indoor Packaged
  • Chillers
  • VRF
  • AHU/FCU

By Duct Type 

  • Ducted
  • Ductless

By Refrigerant Type

  • HCFC
  • HFC
  • HFO
  • Natural Refrigerant


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