United States. IHS Research found that the current installed base of VRF (Variable Refrigerant Flow) systems in U.S. commercial applications is 275,000 in 2014, only 3% of the total installed base of split-system air conditioners.
The market analyst company also stressed that this is only expected to increase to 5% in 2019. That is, while VRF systems will begin to replace some split air conditioners, many end users will continue to look for, and installers will continue to sell, traditional equipment.
The study says multiple forces are working against a faster shift to VRFs. Primarily, installers and integrators have a long history with duct systems and are very reluctant to switch to another product that has a learning curve. In addition, manufacturers are unlikely to push solely toward VRF products, as they will have to share more revenue with their Japanese partners.
With these barriers, it remains to be seen whether VRF can maintain the current momentum in the future or whether relevant parties will lose interest in pushing the technology in favor of the most traditionally used products on the market. If this uphill battle proves too costly for manufacturers and energy efficiency is not a strong enough selling feature for consumers, the U.S. market may remain contained in its use in less efficient duct systems and VRF technology may be relegated to niche applications.
However, over the past five years, VRF technology has received increased interest in the industry due to its much-touted energy efficiency compared to traditional ducted air conditioners commonly used in the United States. Because of this interest, there have been numerous changes in the competitive landscape through acquisitions and new partnerships.