Ventilation System Market Size, Share & COVID-19 Impact Analysis, By Product (Axial & Centrifugal Fans, Recovery Ventilation Systems, and Others), By Application (Commercial, Residential, and Industrial), and Regional Forecast, 2022-2029

The global ventilation system market size was USD 25.76 billion in 2021. The market is projected to grow from USD 27.62 billion in 2022 to USD 46.47 billion in 2029, exhibiting a CAGR of 7.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing higher-than-anticipated demand across all countries compared to pre-pandemic levels. Based on our analysis, the global market exhibited a rise of 6.9% in 2020 compared to 2019.  

Ventilation systems improve indoor air quality (IAQ), which helps in enhancing the indoor environment by exchanging both outdoor and indoor air. Ventilation for indoor air quality is beneficial for the control of thermal comfort with changing weather conditions.

Recent advances in fan technology, evaporative cooling, and controlling are turning out to be significant over the traditional system. The technological advancement streamlined with ventilators is improving usability, efficiency, and effectiveness of the overall ventilation system. Leading manufacturers are improvising heat recovery ventilators, air filters, and others with programmable controls and technology advancements to reinforce streamlined operations. Thus, it is set to boost operational efficiencies. In October 2020, Komfovent technologically upgraded its ‘Domekt R 450 V’, a 2nd-generation ventilation unit with a focus on rotor speed control, aerodynamic shape sensors, energy class, controller, and other aspects. Thus, the technological advancement in ventilation units is providing market growth opportunities across the globe.

COVID-19 IMPACT

COVID-19 to Hamper Business Strategic Approaches Resulting in Market Volatility and Uncertainty

The rapidly evolving pandemic situation has impacted the supply chain, which, in turn, has paralyzed the economic conditions across the globe. Numerous international and national organizations pointed out that the world economy is in the toughest period ever since the financial crisis. The United Nations (UN) analysis stated that the global economy would conceivably shrink to 1% in 2020, whereas it previously predicted a growth of 2.5%. As per the United Nations Conference on Trade and Development’s World Investment Report 2020, the global FDI fell up to 40% in 2020 and is predicted to recover in 2022.

The subsequent lockdown enforced by various governmental bodies across countries, including China, India, Italy, the U.K., and others, is creating challenges that are impacting organizations of all sizes with respect to labor availability, product transportation, and others. However, this business is moderately affected across the world. The reason being, few ventilation and air conditioning activities are halted, owing to the unavailability of workers. Air conditioning and ventilation activities refer to the repairing of existing energy recovery ventilators (ERVs), changing the operation of Heating, Ventilation, and Air-Conditioning system (HVAC), fixing air-conditioned (AC) units, replacing air filters, and others.

Governmental bodies across Germany, India, the U.S., the U.K., and China are heavily investing in installing and maintaining ventilation units across facilities to mitigate the COVID-19 impact. For instance, in October 2020, the German government invested nearly USD 488.0 million to improve these systems in public buildings to minimize the spread of coronavirus and improve air circulation across museums, public offices, universities, and schools. Considering the above-mentioned impact, the growth trajectory for this market was anticipated to be solid with the moderate impact of the COVID-19 pandemic in the year 2020.

LATEST TRENDS

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Escalating Indoor Air Quality (IAQ) Awareness and Rising Green Building Initiatives are Prominent Trends

Nowadays, air quality is becoming an important concern as deficient IAQ creates an adverse impact on the health, productivity, and cognitive function wellbeing of indoor occupants. In such scenarios, the ventilation system’s demand is projected to fuel the market growth. It is attributed to its competence to constantly replace stale indoor air with fresh outdoor air, remove excess moisture & molds, bacteria, and household chemicals present in the indoor environment, minimize carbon footprint, and optimize energy efficiency.

Earlier, it was a challenge to pass insufficient outdoor air in order to enhance the indoor air as the required conditioning process demands a high cost. However, in order to tackle such challenges, manufacturers have introduced ventilation units that improve the outdoor air quality intake and potentially downsize the ventilation energy costs. Moreover, government regulations and their involvement in constructing green buildings and policies associated with carbon emissions for commercial and residential purposes are amongst the major ventilation system market trends.

DRIVING FACTORS

Increased Demand for Decentralized Ventilation System to Spur Market Growth

A decentralized ventilation system refers to one air handling unit (AHU) per apartment in a multi-family residential project or office in a multi-story office building. The concept of a decentralized ventilation unit has been introduced in the HVAC industry to reduce the space requirement for ductwork and eliminate the challenging interconnections between suites in multi-unit buildings. An upsurge in the adoption of decentralized systems across the residential sector is resulting in the growth of the market. It is attributed to benefits including minimal risk in malfunctioning situations and maintenance, and hence each unit in the space can be regulated effortlessly. As a result, system components, i.e., insulation and duct sections, are easily installable.            

In residential and commercial applications, decentralized systems outshine in retrofitting, refurbishment projects where natural ventilation is insufficient. In accordance, industry experts nodded to the fact that decentralized ventilation reduces space conditioning requirements by allowing compartmentalization of buildings into zones that reduces air leakage through the building envelope. This, in turn, improves comfort thus, bolstering the market growth.

RESTRAINING FACTORS

Unavailability of Skilled Technicians is Impeding Market Growth

The fast-tracked HVAC industry has generated the prerequisite of automation processes for all products and services; ventilation units are no exception. It has therefore raised the demand for advanced systems manufacturing and installation across residential and commercial applications. However, the traditional mechanized ventilation depressurizes the room space. The modern residential and commercial room spaces being compact and airtight depress the indoor pressure due to compelling the air to the outside. It results in complications for regular vent appliances that require positive force to release their combustion outside the room space, thus impeding the market growth.

SEGMENTATION

By Product Analysis

Recovery Ventilation Systems Segment to Depict Highest CAGR in Future

In terms of product type, the market is classified into axial and centrifugal fans, recovery ventilation systems, and others (air filters, fan coil units, and more).

The recovery ventilation systems segment is in the best position to lead the market with the highest CAGR over the forecast period. It is attributed to the fact that these systems exchange the energy contained in the exhausted air of a conditioned space or building while treating the incoming outdoor air into fine quality indoor ventilation air. Energy and heat recovery systems have high demands in the residential and commercial sectors as they minimize the consumption of central spaces (while offering wall and ceiling mounted ERVs), thus providing a larger workspace with healthy indoor air quality.

The others segment captured the highest ventilation system market share in 2020, owing to the rising adoption of air filters across countries with extreme climatic situations. Air filters help in purifying the contaminated outdoor air that could affect the health and comfort of consumers. Thus, it holds the largest market share in the ventilation market.

Moreover, the axial and centrifugal fans segment is expected to depict a stable CAGR over the forecast period, as these fans have specific applications in the industrial sector with longer shelf life but require higher maintenance over the period of time.

By Application Analysis

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Commercial Segment to Witness Highest Growth Rate in the Coming Years

As per application, the market is further segmented into residential, commercial, and industrial.

The commercial segment is projected to witness the highest growth rate and market share in the forecast period, as airports, hotels & restaurants, private workplaces, educational institutions, and many more are opting for integrating these systems to provide healthy workplaces that help in escalating the work efficiency. Considering such statistics, the integration of these systems, such as energy recovery ventilators, is expected to grow in the commercial sector in the upcoming years.

On the other side, the residential segment is expected to witness the second-highest growth rate in the forecast period, with the rising per capita spending throughout developing and developed economies. Housing development is on a hike not only in developed countries but also in developing countries, such as China, India, Nigeria, and many more. Moreover, the industrial segment is anticipated to witness moderate market growth, with the limited demand and supply chain. The increasing foreign direct investments in developing countries are expected to surge the demand for ventilation products over the forecast period.

REGIONAL INSIGHTS

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The market is regionally segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The market in Asia Pacific is expected to witness an exponential CAGR in the coming years, with the rising standard of living in China, India, Thailand, and Malaysia. These countries are focusing on modernizing commercial and residential construction projects with the availability of raw materials and low-cost labor. As per the study of the International Finance Corporation (IFC), the East and Pacific Asian region accounts for the lion’s market share in the real estate sector and is expected to witness USD 16 trillion of investment opportunities in the commercial and residential sectors.

North America is projected to have a progressive growth rate in the forecast timeline due to the rising demand for residential indoor air quality systems, attributed to the harsh climatic situations, such as heavy snowfall, hailstorms, hurricanes, and others. Rising investments in the residential sector would soar the need for these systems to offer a safe and healthy indoor environment across the region.

Europe is expected to witness moderate market growth in the near future, owing to the growth in new housing construction in Western Europe. Residential houses in European countries are tightly built with all modern amenities, resulting in issues with indoor air quality and excessive humidity during the winter. This is resulting in the rising integration of ventilation systems in European houses and commercial spaces.

Additionally, GCC and African countries are facing tremendous climatic issues, along with the spread of COVID-19, leading to a drastic economic downfall. Construction projects in the residential and commercial sectors are on hold, leading to stagnant market growth in the Middle East and Africa. The demand for these systems is higher in Middle Eastern countries owing to the rising construction of commercial and residential skyscrapers. Latin America is anticipated to witness steady growth due to the minimized construction and port businesses. Therefore, in 2020, all the regions were anticipated to depict a slow growth rate due to the global economic downfall during the COVID-19 pandemic.

KEY INDUSTRY PLAYERS

Key Companies to Focus on Business Expansion by Implementing Robust Strategies

To slow down the spread of COVID-19, leading manufacturers, such as Johnson Controls, Greenheck Fan Corporation, Honeywell International Inc., and others, are advancing their ventilation system offerings that are resulting in the strong growth of this market. These companies are decentralizing the manufacturing and establishment of manufacturing facilities in different regions for sustainable production in the diverse regional market. This will help these companies to cut the transportation, shipping, and third-party warehouse charges. It would also enable them to meet the requirement of products across different regional markets.

Key manufacturers are working on the development and introduction of new solutions in the market. To achieve this, these key players operating in this market are making noteworthy investments toward the establishment of R&D infrastructure and increasing the annual R&D expenditure. Manufacturers are trying to implement robust marketing strategies to advertise their products and increase their goodwill and brand name in the global market. The increased goodwill and reputation are expected to help vendors in ensuring the reliability of their products and help manufacturers slightly elevate the price of their products, raising the reputable brand perception in this market.

List of Key Companies Profiled:

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  • Midea Group Co., Ltd. (China)
  
  
  • KOMFOVENT (Lithuania)
  
  
  • CaptiveAire Systems (U.S.)
  
  
  • Greenheck Fan Corporation (Japan)
  
  
  • S&P UK Ventilation Systems Ltd. (U.K.)
  
  
  • Twin City Fan & Blower (U.S.)
  
  
  • Honeywell International Inc. (U.S.)
  
  
  • CENTROTEC SE (Germany)
  
  
  • Johnson Controls (Ireland)
  
  
  • Mitsubishi Electric Corporation (Japan)
  
  
  • Nortek Air Solutions, LLC (U.S.)
  
  
  
  

KEY INDUSTRY DEVELOPMENTS:

• April 2021: Midea Group represented a line of several new series of high-efficiency precision cabinet-type industrial precision fan coil units at China Refrigeration and Heating 21 (CRH-2021).


• February 2021: Komfovent launched a new VERSO CF 5000 V air handling unit under its VERSO standard series. CF 5000 V is a compact unit with a vertical duct connection that aids in saving space and effectively utilizes space.


• April 2021: Greenheck introduced a new model, RV-10, the latest addition to its rooftop ventilation unit line for 100% outside air systems and partial recirculation.


• October 2020: Johnson Controls launched the KOCH DuraMAX line of air filters to provide optimal performance with extended lifecycles.

REPORT COVERAGE

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The market research report offers an elaborative analysis of numerous factors affecting the global market. These include opportunities, growth drivers, threats, key industry developments, and restraints. It further helps in analyzing, segmenting, and defining the market based on different segments such as products and applications. It strategically examines several strategies, such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players to gain a competitive edge in the market and attract high market revenue during the market forecast duration.

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