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The heat and energy recovery ventilation system market size is forecast to increase by USD 1.77 billion at a CAGR of 8.17% between 2023 and 2028. The market observes growth driven by increasing demand for heat recovery ventilation systems, emphasizing Green Technology and Indoor Air Quality. Residential, commercial, and industrial ventilation sectors benefit from solutions adhering to Environmental Regulations and Building Standards. Integration with Building Automation and IoT enhances energy efficiency and user comfort. Market trends indicate opportunities in Retrofitting Projects and New Construction projects, driving product innovation and quality assurance. HVAC Contractors, Building Owners, and Facility Managers prioritize regulatory compliance and seek solutions with brand recognition. Distribution Channels facilitate access to ventilation Units, ensuring optimal air exchange and fresh air supply.
Market Forecast 2024-2028
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The ceiling-mounted segment will account for a major share of the market's growth during the forecast period. The adaptability, efficiency, and compact design of ceiling-mounted heat and energy-recovery ventilation systems have made them the leading type in the market in recent years.
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The ceiling-mounted segment was the largest and was valued at USD 1.28 billion in 2018. Furthermore, the efficient dispersion of conditioned air is made possible by their centralized positioning. They minimize visual effects in living spaces and guarantee improved air quality in residential situations. With its capacity for heat recovery, ceiling-mounted systems are becoming increasingly popular as energy-efficiency and environmental concerns take center stage. These systems also save money over the long run by consuming less energy. Owing to such factors, ceiling-mounted systems are rapidly becoming the preferred option due to their simplicity, attractiveness, and sustainability. The market is expected to witness growth during the forecast period.
Based on the end-user, the market has been segmented into commercial, residential, and industrial. The commercial?segment will account for the largest share of this segment. The commercial sector has emerged as a leading end-user of this system in recent years. Commercial buildings are using these systems due to growing awareness of indoor air quality and energy-efficiency. To lower energy costs and maintain a comfortable indoor atmosphere, examples of buildings with integrated heat and energy-recovery ventilation include office buildings, shopping centers, and hotels. The commercial sectors adoption of these technologies is also motivated by the continuous focus on sustainability and green construction practices. Such factors will drive the growth of the market during the forecast period.
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North America is estimated to contribute 38% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The North American market forecasting is expected to increase significantly during the forecast period. This growth is being fueled by several factors, such as stricter environmental restrictions, a growing emphasis on indoor air quality, and energy-efficiency. This system has become increasingly popular for their capacity to lower-energy usage while preserving a healthier interior climate, as consumers and organizations are seeking more environmentally friendly and sustainable alternatives.
Moreover, the demand for heat and energy recovery eco-friendly ventilation systems is boosted as a result, which also motivates manufacturers to improve the functionality and features of their products. Such factors are expected to drive the growth of the regional market during the forecast period.
The market is driven by increasing awareness of indoor air quality and energy efficiency. ERV ventilation and ERV air exchangers mitigate pollutants, pollen, and hazardous contaminants, ensuring pleasant indoor air. Growing emphasis on environmental protection and green buildings fuels market growth trends, enhancing building asset value and cognitive function. However, challenges such as sick building syndrome and pollution necessitate advanced solutions. Market trends include innovations in air handling units and ventilation ducts, alongside enhanced air filtration mechanisms. Amidst micromarkets variations, research methodology leveraging secondary sources guide the industry's growth trajectory.
The market experiences a surge in demand for Heat Recovery Ventilation and Energy Recovery Ventilation systems, driven by growing awareness of Indoor Air Quality. Customers prioritize Energy Efficiency and Sustainable Buildings, boosting demand for Ventilation Systems. These systems effectively filter indoor air and recover heat or energy, enhancing indoor air quality and reducing energy costs. Particularly in highly polluted cities like Delhi, Beijing, or Los Angeles, there's a rising preference for such systems to maintain healthy indoor environments.
With stricter regulations, businesses and homeowners increasingly adopt these systems, ensuring comfortable and healthy spaces. Comprehensive market research indicates promising growth and forecasting prospects for the global market.
An emerging trend in the market is the integration of Heat Recovery Ventilators and Energy Recovery Ventilation systems with smart building technologies and Internet of Things (IoT). This integration enables more intelligent regulation of ventilation systems, driven by the increasing demand for sustainable and energy-efficient building solutions. Sensors and automation are enhancing ventilation systems to adjust in real time, optimizing air quality and minimizing energy usage.
For example, sensors measure temperature, air quality, and occupancy levels to adjust ventilation rates accordingly. Smart solutions, such as those by Panasonic, utilize IoT to analyze indoor air quality data and make precise ventilation adjustments automatically. This trend aligns with the broader goal of developing ecologically responsible, smart buildings while enhancing user comfort and energy efficiency. The integration of these ventilation-systems with smart technologies is expected to positively impact market growth analysis and forecasting in the HVAC Systems market during the forecast period.
A challenge faced in the market is the significant upfront expenses associated with installing Energy Recovery Ventilation and Heat Recovery Ventilation systems. Despite their intended improvements in energy efficiency and indoor air quality, the initial costs of purchasing and installing these systems can be substantial. For instance, while a household unit may cost between USD 1,500 to USD 5,000, industrial or commercial installations could reach tens of thousands of dollars. This high upfront cost may deter certain customers, particularly in residential settings where they may opt for less expensive but less effective options.
Although these systems can yield long-term savings by reducing energy conservation and enhancing air quality, their initial expense may discourage buyers with limited funds. Consequently, the high upfront cost of Heat and Energy Recovery Ventilation systems is anticipated to negatively impact market revenue during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Carrier Global Corp- The company offers products such as Comfort energy recovery ventilator, Performance horizontal energy recovery ventilator, and Performance vertical energy recovery ventilator.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Airxchange Inc., Carrier Global Corp., Daikin Industries Ltd., Dais Corp., Fujitsu General Ltd., Greenheck Fan Corp., Johnson Controls International Plc, Lennox International Inc., LG Electronics Inc., Loren Cook Co., Mitsubishi Electric Corp., Munters Group AB, Nortek Air Solutions LLC, Ostberg Group AB, Panasonic Holdings Corp., Paschal Air Plumbing and Electric., S and P SISTEMAS DE VENTILACION S.L.U., Trane Technologies plc, Zehnder Group AG, and KARYER Heat Transfer San. and Tic. Inc.
Technavio report provides an in-depth analysis of the market growth and forecasting and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is experiencing notable growth, driven by increasing awareness of indoor air quality and environmental sustainability. These systems play a crucial role in managing humidity levels, ensuring a pleasant air environment conducive to productivity and wellbeing. By reducing energy consumption and carbon footprint, solutions from companies like Recair are gaining traction across residential and commercial application segments. Government regulations promoting energy efficiency further stimulate market growth. The market is characterized by submarkets catering to diverse needs and preferences, contributing to a fragmented but dynamic landscape. Sustainable building solutions integrate heat systems with automation and control, offering efficient ductwork and heat pumps tailored to specific climate settings. As market engineering processes evolve, the profiles of primary players and raw material suppliers drive innovation and market expansion.
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Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.17% |
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Market Growth 2024-2028 |
USD 1.77 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.66 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 38% |
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Key countries |
US, Canada, China, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airxchange Inc., Carrier Global Corp., Daikin Industries Ltd., Dais Corp., Fujitsu General Ltd., Greenheck Fan Corp., Johnson Controls International Plc, Lennox International Inc., LG Electronics Inc., Loren Cook Co., Mitsubishi Electric Corp., Munters Group AB, Nortek Air Solutions LLC, Ostberg Group AB, Panasonic Holdings Corp., Paschal Air Plumbing and Electric., S and P SISTEMAS DE VENTILACION S.L.U., Trane Technologies plc, Zehnder Group AG, and KARYER Heat Transfer San. and Tic. Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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