Ventilation System Market Size, Share & COVID-19 Impact Analysis, By Product (Data Center Cooling, Centralized Ventilation, Decentralized Ventilation, and Range Hood), By Application (Commercial, Residential, and Industrial), and Regional Forecast, 2023-2030

The global ventilation system market size was valued at USD 27.61 billion in 2022. The market is projected to grow from USD 29.65 billion in 2023 to USD 50.26 billion by 2030, exhibiting a CAGR of 7.8% during the forecast period.

Ventilation systems improve Indoor Air Quality (IAQ), which helps in enhancing the indoor environment by exchanging 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 traditional systems. Rising technological advancements streamlined with ventilators are improving the usability, efficiency, and effectiveness of the overall system. Leading manufacturers are improvising heat recovery ventilators, air filters, and others with programmable controls and technology advancements to reinforce streamlined operations.

In October 2020, Komfovent upgraded its ‘Domekt R 450 V’, a second-generation ventilation unit with a focus on rotor speed control, aerodynamic shape sensors, energy class, controller, and other aspects. The technological advancements in ventilation units is providing market growth opportunities globally.

COVID-19 IMPACT

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

The global market witnessed a moderate downfall in 2020 and is exhibiting strong growth over the forecast period. It is ascribed to the rising need for IAQ, reduced temperature, and awareness regarding health benefits for commercial, residential, and industrial applications that overcome the possible threat of diseases caused by breathing.

However, the ventilation industry was moderately affected across the globe for the first quarter of 2020. This is attributed to the fact that a few air conditioning and ventilation activities were stopped due to the need for more workers. Ventilation and air conditioning activities refer to the repairing of existing Energy Recovery Ventilators (ERVs), fixing Air-Conditioned (AC) units, changing the operation of HVAC systems, replacing air filters, and others.

LATEST TRENDS

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Rising Inclination toward Green Buildings to Impel Market Expansion

The current trend of zero energy buildings in the construction sector is expected to propel the ventilation system market growth in the coming years. The idea of green buildings is supported by various government institutions, including 26 nations in ‘Energy in Building and Communities’. Governments are taking initiatives to construct green buildings and making policies considering carbon emissions for residential and commercial purposes.

Furthermore, building owners are highlighting the construction of green buildings as it is being observed that there is a connection between healthy buildings and financial rewards. As a result, commercial building owners are aggressively installing supportive ventilation systems that have gauged the importance of fresh indoor air. In accordance, developing and developed countries are extensively focusing on green-building initiatives that escalate awareness regarding indoor air quality.

DRIVING FACTORS

Increased Demand for Decentralized Ventilation System to Drive the Market Growth

The surging popularity of decentralized systems to reduce the number of interconnections and ducts in office buildings or multi-family residential projects will result in a sudden increase in sales of ventilation equipment. Additionally, the adoption of decentralized systems in the rising residential sector is constantly increasing owing to the requirement of less maintenance and the low risk of malfunctioning.

In accordance, industry experts acknowledge that decentralized ventilation decreases space conditioning requirements by aiding the compartmentalization of buildings into zones that reduce air leakage through the building envelope. This improves comfort and proliferates market growth. For instance, Mitsubishi Electric Corporation is offering ‘VL50’ and ‘VL100’ decentralized ventilation units that deliver the benefit of controlled ventilation with heat recovery across applications, including living spaces, small businesses, and individual offices.

RESTRAINING FACTORS

High Operating and Maintenance Costs of Ventilation Systems Along with Shortage of Skilled Technicians to Hinder Market Growth

Traditional mechanized ventilation eliminates space congestion. Modern commercial and residential spaces, which are highly airtight and compact, reduce internal pressure by pushing air out. This poses a complication with normal ventilators that require positive force to expel combustion outside the room. The issue can be resolved most effectively by ensuring the regular maintenance of these systems. However, examining the system and identifying and rectifying the error is only sometimes straightforward; skilled technicians are required to do so. Owing to these factors, the cost of operating and maintaining ventilation systems is high. The key market players keep innovating and developing technologies to overcome operating and maintenance issues.

Further, the HVAC industry is facing a concern regarding the unavailability of skilled technicians. The current workforce is on the verge of retiring within the next 10 years, raising the concern for workforce shortages. Due to these reasons, the ventilation system market share could get impacted worldwide.

SEGMENTATION

By Product Analysis

Centralized Ventilation Segment to Depict Highest CAGR Due to Soaring Product Demand

In terms of product, the market is classified into data center cooling, centralized ventilation, decentralized ventilation, and range hood.

The centralized ventilation segment is expected to grow at the highest CAGR over the forecast period. This is on account of an increase in demand for air handling units and fresh air systems for residential and commercial spaces offering energy efficient systems and robust features. Besides, ventilation systems are used for oil & gas fields and related sectors to grow significantly during the forecast period, owing to the growth in the commercial and residential sector.

The data center cooling segment is expected to hold a significant share in the market owing to its demand across industrial sectors. An improving efficiency of data centers and increasing spending on data centers are surging the demand for these systems. Further, precise air conditioners across data centers to maintain indoor temperature and improve indoor air quality are driving the market growth.

The decentralized ventilation and range hood segments are growing with decent growth rate. This is on account of the rising product demand across industrial and commercial sectors owing to various features such as durability, energy efficiency, and the ease of installation.

By Application Analysis

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Commercial Segment to Witness Highest Growth Rate in the Coming Years Due to Growing Product Adoption

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

The commercial segment is set to witness the highest growth rate over the forecast period, as hotels & restaurants, airports, educational institutions, private workplaces, and many more are opting for integrating ventilation systems to provide a healthy workplace that helps in escalating the work efficiency.

In the commercial segment, the centralized ventilation segment is expected to dominate the market. This is due to rising commercial construction buildings such as new hotels, restaurants, airports, and quick service restaurants.

Furthermore, the residential segment is expected to grow with a decent CAGR over the forecast period. The decentralized and centralized ventilation segments are estimated to record moderate growth during the forecast period due to factors such as rising disposable income of end-users, rising number of residential projects, and government initiatives for spending on residential construction related activities, which cater to the growth of the market.

Likewise, the industrial segment is also expected to record a substantial demand for air handlers, precise air conditioner, fresh air systems, range hood products, and others. Also, these types of systems are installed in many industrial sectors such as food & beverages, chemical & pharmaceuticals, oil & gas fields, and other end-users.

REGIONAL INSIGHTS

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Regionally, the market is analyzed across North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The Asia Pacific market size was valued at USD 11.29 billion in 2022. The region is expected to hold the largest market share as emerging markets such as India, South Korea, China, and Japan are becoming more attractive due to the adoption of air handling units and tunnel fresh air ventilation across residential, commercial, and industrial spaces. The emerging markets such as China have become attractive places owing to rising urbanization and increasing disposable income of end-users.

Countries are focusing on modernizing commercial and residential construction projects with the availability of raw materials and low-cost labor. As per a study conducted by the International Finance Corporation (IFC), the East and Pacific Asian region accounts for an appreciable share in the real estate sector and is expected to witness USD 16 trillion of investment opportunities in the commercial and residential sectors.

China, Japan, and South Korea are three countries that are anticipated to dominate the Asia Pacific market. This is due to increasing disposable income of the population, stable economic conditions, and government investment in the construction of new residential and commercial buildings, which need more ventilation units to improve the indoor air quality.

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 & 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. 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, players operating in the market, 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 players 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 the market.

List of Key Companies Profiled:

• 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:

• August 2022: Carrier started to offer Abound Healthy Air Starter Package to improve indoor air quality through a quick, simple, and cost-friendly way to detect and react to the camouflage components.


• May 2021: Johnson Controls completed its takeover of Silent-Aire for an approximate value of USD 0.8 billion. The latter is a global leader in modular critical infrastructure solutions and hyperscale data center cooling.


• April 2021: Midea Group exhibited a line of various high-efficiency precision cabinet-type industrial precision fan coil units. The series was presented at CRH-2021 (China Refrigeration and Heating 21).


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


• 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.

REPORT COVERAGE

An Infographic Representation of Ventilation System Market

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The research report offers a detailed analysis of the 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 forecast period.

Report Scope & Segmentation