In HVAC VRV, VRV stands for Variable Refrigerant Volume, where cooling is monitored and controlled by refrigerant flow volume to indoor units. This system is more effective in terms of running cost, efficiency, and flexibility in control and use. VRV systems are mostly used in mid and large sized buildings.
Increasing demand from medium and small businesses for efficient HVAC systems owing to decreasing working space is encouraging the overall HVAC VRV market. Growing service sector in several emerging countries and awareness about environmental impact is also expected to surge the growth of the market in the coming years.
Key Drivers of the Global HVAC VRV Market
Significant growth in commercial complexes and offices is a major factor boosting the global HVAC VRV market. Emerging countries are showing growth in service industry, leading to increasing number of small and medium sized buildings in urban areas of these countries. Additionally, other sectors such as healthcare, hotels and restaurants, and malls are anticipated to encourage the overall HVAC VRV market in the near future.
Increasing population and decreasing space size of offices is also a major driver of the HVAC VRV market. Several developed countries are focusing more on energy efficient systems which also supports the global market surge. Automotive industry, and oil and gas industry are also showing increasing demand for HVAC VRV. The overall global HVAC VRV market is expected to expand at a significant rate during the forecast period.
HVAC VRV Anticipated to Create Attractive Opportunities in Future
Developing countries in Asia Pacific and South America are expected to show significant growth in demand for HVAC VRV systems in the coming years owing to increasing industrialization, and a growing service industry. Urbanization has also surged the hotel, restaurant, and healthcare industry, leading to increasing demand for HVAC VRV systems. These factors are expected to create attractive opportunities for manufacturers in the future.
Technological developments to increase efficiency and reduce operational cost of equipment is anticipated to be influencing factors for HVAC VRV system manufacturers in the near future. Increasing demand for eco-friendly equipment which generate less carbon footprint is encouraging manufacturers to focus on product development and innovation.
High Cost of Product Expected to Obstruct the Overall HVAC VRV Market
Currently, high production cost is the major obstruction faced by HVAC VRV manufacturers. Both product cost and maintenance cost of HVAC VRV are high which is anticipated to influence the global HVAC VRV market. HVAC VRV is unaffordable for small and mid-sized companies. This is expected to hinder the HVAC VRV market growth during the forecast period.
North America and Asia Pacific Anticipated to Dominate the Global HVAC VRV Market
North America is the major consumer of HVAC VRV systems followed by Asia Pacific. China has shown significant growth in demand for the product in recent years owing to increasing industrialization and urbanization. Several emerging countries across Asia Pacific are anticipated to boost the demand for HVAC VRV systems in the coming years.
The Middle East and Europe are also experiencing surge in overall demand in the past few years. Growing healthcare industry, restaurants, and hotels are the major end-users boosting demand for HVAC VRV systems in these regions.
Key Players Operating in the Global Market
The global HVAC VRV market is highly concentrated across major manufacturers who account for around 20%–25% share of the overall market. A few of the major players operating in the global HVAC VRV market are: