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Energy Recovery Ventilators (ERV) Market Size, Share & Industry Analysis, By Type (Wall-mount, Ceiling-mount, Cabinet), By Application (Residential, Commercial, Others) and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI101139

 

KEY MARKET INSIGHTS

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COVID-19 Cover

This report covers COVID-19 impact analysis on Energy Recovery Ventilator Market

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Generally, end-users spend 75% of their time indoors, so it’s vital to maintain balanced ventilation across the commercial and residential buildings. According to the Environmental Protection Agency, indoor air quality (IAQ) can be two to five times worse than that of outdoor air. The poor indoor air quality in compact building due to lack of ventilation can cause various health issues such as sick building syndrome (SBS). To avoid the adverse consequence, ERV is one of the solutions that provide ventilation as it removes foul air and moisture and improves the indoor environment. Owing to these growing needs of ventilation, this market is expected to spur in the coming years.


But the world is facing the adverse impacts of the COVID 19 pandemic, which has also ultimately affected the production of ERV across the manufacturing sites due to the sudden lockdown. Referring to multiple secondary sources, in the U.S., approximately 45% of the HVAC companies lost their seasonal sale, owing to the shrunken installation of ERV and lack of workers. Several industries are hampered amid coronavirus and is expected to wines a major downfall by the second half of 2020. HVAC is one of the industries that is least affected, owing to the need for ventilation across various sectors. However, most of the residential ventilation systems are not configured for high MERV (minimum efficiency reporting value) rated filters. Thus, it is being expected that the ERV market is anticipated to be moderately affected due to this pandemic and is also projected to recover soon during the forecast period.


MARKET TRENDS


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Increasing Construction of Green Buildings to Accelerate Market Growth


The growing trend towards the construction of green buildings is aiding the market. This is owing to the rising awareness of occupants for health, stringent government norms and standards for energy consumption, rising hazardous emissions, etc. According to The U.S. Green Building Council (USGBC), green and healthier buildings streamlined with supportive ventilation can grow lease potential by 20 percent, return on investment by 19 percent, and building asset value by 10 percent. The building owners are now tending towards constructing green buildings to gain more from RoI and lease. Owing to this, the market for energy ventilators is anticipated to grow significantly in the coming years with the rising deployment of ventilators across multiple projects. Furthermore, key suppliers are aligning their products in line with green building certifications. For instance, RenewAire Company offering products which meets the stringent energy-efficiency requirements for green building certifications. Therefore, growing construction activities across the globe for green buildings are forecasted to drive the energy recovery ventilators market.


MARKET DRIVERS


Rising Awareness for Indoor Air Quality (IAQ) is expected to Fuel Demand


The quality of air is an important concern getting acknowledged nowadays. The deficient Indoor Air Quality (IAQ) creates an adverse impact on the health, cognitive function, productivity, and wellbeing of indoor occupants. According to The Lawrence Berkeley National Laboratory, it is found that efficient indoor air quality can save up to USD 200 billion in worker performance and USD 58 billion in lost sick time annually. Also, according to the Environmental Protection Agency, the productivity of workers at workplace increases by five to six percent when the indoor air quality is graded as “good”. In such scenario, demand for energy recovery ventilator is anticipated to drive the market owing to its capability to continuously replace stale indoor air with fresh outdoor air, ability to remove pollutants including excess moisture and moulds, household chemicals and bacteria present in indoor environment, optimize energy efficiency and minimize carbon footprint, and others. Moreover, until recent times, bringing in enough outdoor air to enhance indoor air quality sufficiently was a major challenge as the conditioning process demands high cost. To overcome such challenges, manufacturers introduced ERV which potentially downsized ventilation energy costs and improve outdoor air quality intake.


Technological advancements in the ERV system is supplementing to market growth. Furthermore, government intervention to construct energy consumption buildings and policies related to carbon emissions for residential and commercial purposes is one of the driving factors for this market.


MARKET RESTRAINT


Complex Installation Process and High Maintenance Cost of Product is Inhibiting the Market Growth


The demand for ERV is growing with the increasing awareness of air quality. However, complex installation procedures is a major factor limiting the market surge.


The old constructed projects wherein the space to install ventilators is ideally not designed, it becomes difficult to integrate ERV at such places. Also, improper location of such systems can minimize the outdoor air intakes and blockage of airflow resulting in the intake of contaminated air.


Furthermore, depending on the designing and installation of ERV, the system requires an additional substantial length of air ducting. These ducts further need sealed and insulated from external dirt and dust and ultimately increases the maintenance of the product. This eventually impacts the direct and indirect cost of the product. Moreover, the total cost incurred for the installation of ERV is too high which can ultimately affect the average selling price of the ERV. This could further lead to high pricing of the product. In addition, lack of awareness of occupants for indoor air quality and ill-effects of bad air on health is one of the major factors responsible to hinder the market.


SEGMENTATION


By Type Analysis


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Ceiling-Mount Type Is Anticipated to Grow Significantly in the Market


The global energy recovery ventilator market is segmented based on type, that defines the installation method namely wall- mount, ceiling-mount, and cabinet-mount.


Amongst the type, ceiling-mount energy recovery ventilator is estimated to hold a vital part of the market share, exhibiting the highest growth rate. Ceiling mounted ERV have exponential demand in the market as the existing wiring and ducting over the walls ultimately minimizes the installation cost and the invasiveness. This type of ERV have higher demand in the commercial and residential place as it reduces the consumption of central spaces, thus offers larger workspace with healthy indoor air quality.


Moreover, the wall-mounted ERV portrays the second-highest CAGR, owing to its feasibility of installing in the buildings without the mechanical ventilation systems. Buildings that possess smaller duct spaces and are built without mechanical ventilation systems prefer installing smaller and unitized wall mounted ERV that vents directly outside through the exterior wall. Emerging Countries like China and India have the highest ever-growing population rate, leading to enormous growth in residential construction in limited spaces, resulting in increasing demand for wall mount ERVs across the Asia Pacific region.


The cabinet mounted ERV is projected to have a moderate growth rate during the forecast period, owing to its high installation and maintenance cost. This type of ERV is mostly integrated into the industrial sector with a life span of more than a decade. Most of the cabinet ERV are installed on the rooftop, as it requires a larger installation space. Cabinet ERV require high maintenance cost, owing to the influence of several atmospheric changes such as hailing storm and high tide wind, acid rain, and many more.


By Application Analysis


Residential Segment to Grow Rapidly in the Forecast Period


Based on the application, the market is segmented into residential, commercial, and the others which include the industrial sector.


The residential sector is anticipated to witness the highest growth rate over the forecasted period, owing to the rising per capita spending throughout the world. According to the study of Congressional Research Service (CRS), as of 2018, the overall spending on housing services was about USD 2.6 trillion in the United States, contributing nearly 11.6% of the GDP. The housing development is on a hike not only in the developed countries but also in developing countries such as China, India, Nigeria, and many more. Increasing residential developments provokes the need for ceiling and wall-mounted ERV’s to regularize the indoor air quality and humidity to provide a safe and healthy indoor environment.


As on the other side, in the commercial sector hotels & restaurants, airports, educational institutions, private workplaces and many more are opting for ERVs to provide a healthy workplace that helps in escalating work efficiency. According to the United Nations Environment Programme Finance Initiative (UNEP FI), in 2015, 195 countries across the world agreed to work together to curb global warming. Commercial buildings consume around 40% of the world’s energy and contribute 30% of its GHG emissions, leading to global warming. Considering such statistics, the integration of ERV is expected to grow in the commercial sector.


Moreover, the industrial sector is expected to witness progressive energy recovery ventilator market growth, owing to its longer shelf life and usage. Rising foreign direct investments in the manufacturing sector of developing countries is uplifting the demand for cabinet ERV for industrial purposes. For instance, Meritor, an American automotive manufacturer invested USD 36.5 million in 2019 to expand its axle manufacturing facility, introducing its electric axles in India for commercial vehicles.


REGIONAL ANALYSIS


North America Energy Recovery Ventilators Market Size, 2016-2027 (USD Million)

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Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific and Rest of the World. They are further categorized into countries.


Asia Pacific energy recovery ventilator market is anticipated to witness the highest CAGR over the forecast period. The upsurge in demand is attributed to the rising standards of living in countries such as, China, India, Malaysia, Thailand, etc. These countries are aiming at modernizing residential and commercial building stocks. According to the International Finance Corporation (IFC), East and Pacific Asia account for the largest market share in the real estate sector and is forecasted to get investment opportunities of USD 16 trillion in the commercial and residential building sector. Such market opportunities will uplift the demand of ERV across the region. Europe is expected to witness progressive market growth in the near future owing to the growth in new housing construction in Western projected to exhibit steady growth attributed to the rise in demand for residential indoor air quality systems. As per the study of Congressional Research Service (CRS), in 2018, the United States' overall spending Europe.


The harsh climatic conditions such as hailstorms, hurricanes, and heavy snowfall and the current pandemic spread of COVID-19 in North America, worsens the indoor air quality, thus directly affects the health of the people. North America is on the residential fixed investment accounted for USD 785 billion with 3.3% of GDP. Rising investments in the residential sector would influence the need of ERV installation in order to offer a safe and healthy indoor environment across the sector.


The rest of the world which includes the Middle East and Latin America are expected to grow moderately compared to the other regions. This is mainly due to the stagnant growth rate of the construction sector across the Middle East and Africa region and minimized construction and port business activities across Latin America.


KEY INDUSTRY PLAYERS


Daikin and Zehnder Group AG is planning to expand its product portfolio


Daikin and Zehnder Group, which are anticipated to hold a prominent position in the ERV market owing to the adoption of various strategies to enhance their product portfolio and expand their business across the residential and commercial sectors.



  • For instance, in March 2019, Zehnder Group AG acquired Recair, a ventilation product offering company established in Germany for approximately USD 8.3 million to offer ventilation solutions in Europe. The acquisition strengthens the market penetration of energy-efficient heat exchanger that is utilized in residential ventilation units

  • In February 2019, Daikin Group acquired Cool international Holding GmbH through its subsidiary in Europe named Daikin Europe N.V., to expand the commercial refrigeration business and capitalize on regulations related to energy savings and refrigerants.


Key players are Focusing on Expanding its Business Across the Globe


Key suppliers are emphasizing to expand its manufacturing plants, research & development centers, to meet customers need on time. Also, these players are pouring heavy investments in upgrading the existing technologies to align with different emission standards. To sustain in the market, key players are strengthening the profit structure by implementing the profitability improvement strategy. This includes sales of ERV units and components to small and medium-sized companies.


List of Key Companies Profiled:



KEY INDUSTRY DEVELOPMENTS:



  • April 2020: - Mitsubishi Electric Corporation’s European subsidiary named ‘Mitsubishi Electric Europe B.V.’ acquired AQS PRODUKTER AB to strengthen selling of commercial cooling and heating products in Sweden and total solution capabilities of Mitsubishi Electric Europe B.V

  • May, 2018: - Ingersoll Rand, a parent company of Trane signed a joint venture with Mitsubishi Electric Corporation. The venture focuses on selling and distribution of ductless and variable refrigerant flow (VRF) heating and air conditioning solutions in the U.S. and selected Latin American countries. The selling and distribution will operate through Trane, American Standard, and Mitsubishi Channels


REPORT COVERAGE


The global energy recovery ventilator market report provides detailed information regarding various insights into the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2020 to 2027 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.


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Report Scope and Segmentation








































 ATTRIBUTE



 DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion) Units (Thousand Units)



Segmentation



By Type



  • Wall-Mount

  • Ceiling-Mount

  • Cabinet



By Application



  • Residential

  • Commercial

  • Others (Industrial)



By Region



  • North America (the U.S. and Canada)

  • Europe (UK, Germany, France, Rest of Europe)

  • Asia Pacific (China, Japan, India, Southeast Asia, and the Rest of Asia Pacific)

  • Rest of the World (the Middle East & Africa and Latin America)



Frequently Asked Questions

As per Fortune Business Insights, the market was worth USD 2.71 billion in 2019.

By 2027, the market size is expected to reach USD 5.07 billion.

The market is projected to grow at a CAGR of 8.2% during the forecast period (2020-2027).

Within Type, the wall-mount segment is expected to lead the market share during the forecast period.

Rising awareness for Indoor Air Quality (IAQ) is expected to Fuel the Market is the key factors driving the market

DAIKIN INDUSTRIES, Ltd., Mitsubishi Electric Corporation, LG Electronics, Carrier are the top companies in the global energy recovery ventilators market.

Asia Pacific is expected to hold the highest CAGR in the market.

The commercial application holds the major market share.

Energy Recovery Ventilator Market  Size, Share and Global Industry Trend Forecast till 2026
  • Jun, 2020
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