Contractors Optimistic on VRF Despite Refrigerant Hurdles

A VRF HVAC system modifies the flow of refrigerant according to the heating and cooling needs in different parts of a building and allows for simultaneous heating and cooling in the building.

An average of 39% of the respondents’ 2024 projects were anticipated to include VRF products or technology, the survey found, up from 24% in 2016. Asked to look ahead five years, respondents, on average, predicted that 52% of their 2029 projects would involve VRF.

For purposes of the survey, VRF was also called VRV, short for variable refrigerant volume, which is essentially the same technology. Zoned VRF — variable refrigerant flow zoning, or VRFZ — was included.

‘VRF Represents the Future’

At Airzone North America Corp., which makes products for VRF systems such as controllers and zoning equipment, Victoria Garcia Massimo, director of operations, said that after “substantial increases” in the VRF market beginning in 2014, the last couple of years have seen a slowdown. The refrigerant transition and the industry’s greater emphasis on heat pumps, driven by consumer incentives, may have put a damper on the VRF market in recent years, she said.

But Airzone remains upbeat about VRF’s market potential, Massimo said.

“We’ve observed a similar pattern in Europe, where VRF adoption initially surged, then slowed during the transition to new refrigerants. However, once the industry adapted to these changes, growth resumed and strengthened,” Massimo said. “We anticipate a parallel trend in North America. Airzone believes strongly that VRF represents the future of HVAC due to its superior energy efficiency, comfort, and flexibility.”

At Fujitsu General America Inc., which makes VRF equipment in its Airzone line, Derrick Paul, director of commercial product sales, was also positive about VRF’s future.

“We are very optimistic about the future of the VRF business,” Paul said. “There will be hurdles to get past with the transition to A2L refrigerants. However, the push for decarbonization and desire for increased efficiencies will push for the product to be more widely accepted.”

Project Types

On average, 34% of survey respondents’ VRF projects were in the light commercial sector and 31% in residential HVAC. Institutional projects, on average, made up about 19% of their work, and industrial projects 15%.

Click chart to enlarge

BREAKDOWNS: On average, light commercial projects made up just over a third of survey respondents’ variable refrigerant flow (VRF) work, with residential projects at 31%, as shown in the chart on the left. More of the work, on average, went to new construction over service, repair, and replacement work (center chart). And the majority of the respondents’ VRF work, on average, was done on ductless systems, as shown in the chart on the right. (Courtesy of myCLEARpinion)

Massimo said that, broadly speaking, those proportions fit with Airzone’s experience in the market, but that regional differences also play a role.

“For example, we see greater adoption of VRF technologies in residential projects in the Northeast and Pacific Northwest compared to the South and Sunbelt, where factors such as local market preferences, building practices, and climate conditions play a larger role than energy-efficiency regulations,” she said. Airzone’s primary VRF markets are residential and light commercial, but the company also has a share of the institutional segment, especially in higher education, she added.

Paul said that the survey results’ “breakdown of project types appears to be in line with our experience” at Fujitsu, and that the company is seeing growth in VRF for multifamily housing.

“With the growth of the multifamily housing market, we could see where the residential sector becomes a larger part of the pie,” he said. “With price increases in the unitary business, we’re seeing wider acceptance of mini-VRF in single-family residential.”

Majority In New Construction

An average of 56% of respondents’ VRF work was in new construction, versus an average of about 43% in replacement, repair, or service.

Massimo, noting that Airzone sees a greater proportion of VRF work in new construction, was surprised that the percentages were that close. “Historically, VRF has been best suited for new construction due to installation complexity in retrofits, but incentives and energy efficiency goals are increasing VRF’s attractiveness for retrofits as well,” she said.

“VRF is beginning to be used more in the replacement market for traditional unitary and packaged equipment,” said Paul.

On average, 54% of the respondents’ VRF projects involved ductless systems, and the remaining 46%, on average, involved ducted systems.

At Airzone, which makes products for both ducted and ductless VRF, that split “is consistent with what we’re seeing in the market, particularly as ductless systems continue to grow in popularity due to ease of installation and zoning advantages,” Massimo said.

“We’ve found that ductless systems are especially common in residential and retrofit applications where space constraints or energy-efficiency goals drive decision-making,” she added. “Ducted systems, on the other hand, remain prevalent in new residential construction, light commercial, and some institutional environments, especially where aesthetics or architectural integration are critical.”

Paul said the ductless-to-ducted ratio found in the survey results is “in line with our experience” at Fujitsu. “Over time, we have seen the use of ducted systems increase,” he added.