MEA VRF Systems Industry Trends
Product Launches Are Biggest Market Trend
Because of the several benefits of variable refrigerant flow systems, like power efficiency, flexibility in installation, better indoor air quality, and negligeable ductwork, their use is picking up throughout the region. Thus, key players are introducing different products, to advance their market position. For example, in 2023, Rheem Middle East has launched a new series of Variable Refrigerant Flow (VRF) units to its already wide portfolio. It is made with pioneering technologies and exceptional features, Rheem’s SAVR-D series advances energy efficiency, improves performance, and maximizes indoor comfort for end users.
In February 2023, LG Electronics announced the launch of the Multi V i, a VRF system equipped with an advanced AI engine. Designed for mid- to high-rise buildings such as offices, schools, shopping malls, apartment complexes, and hotels, the Multi V i offers enhanced energy efficiency. It features a range of smart functions that reduce power consumption, improve indoor comfort, and ensure a quieter outdoor environment year-round.
Construction Boom Drives VRF Systems Demand in the MEA Region
- The rise in construction activities throughout the Middle East and Africa significantly fuels the Variable Refrigerant Flow (VRF) systems industry, propelled by the requirement for enhanced, energy-efficient HVAC solutions in new advances.
- In Saudi Arabia, the Vision 2030 initiative is a major reason, with significant investments in large-scale projects such as:
- NEOM: A USD 500 billion high-tech city powered entirely by renewable energy, spanning 25,900 square kilometers
- The Red Sea Project: A sustainable tourism venture covering 28,000 square kilometers with over 90 islands, focusing on luxury and environmental conservation
- Qiddiya: An entertainment, sports, and arts hub near Riyadh, featuring parks, attractions, and a Six Flags theme park.
- Diriyah: A development of the historical Diriyah area with cultural, educational, and residential facilities
- AlUla: A project to transform the AlUla region into a major cultural and tourist destination, highlighting its historical and archaeological significance
High Installation Cost of VRF Systems to Limit Adoption
The high initial installation costs of Variable Refrigerant Flow (VRF) systems are a major barrier to their adoption in the MEA and Egypt markets. Despite their benefits, such as energy efficiency and precise temperature control, the complexity of VRF technology—requiring advanced components, specialized expertise, and potential structural modifications leads to substantial costs.
For example, in Dubai's commercial office projects and high-end residential developments in South Africa, VRF system installations have been significantly more expensive than traditional HVAC systems, affecting affordability and limiting market growth.