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The Indoor Air Quality (IAQ) Solution Market size is forecast to increase by USD 13.21 billion at a CAGR of 7.32% between 2022 and 2027. The market is experiencing robust expansion driven by a confluence of factors. With the launch of innovative air quality products, coupled with stringent government regulations and initiatives worldwide, there's a growing momentum toward addressing indoor air pollution. Heightened awareness about the health risks associated with poor indoor air quality further amplifies the demand for effective solutions. As concerns over air pollution escalate, the market witnesses a surge in adoption, emphasizing the critical role of indoor air quality solutions in safeguarding human health and well-being. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market is witnessing rapid growth fueled by increasing concerns about pollution. Portable indoor monitors equipped with advanced sensors detect various pollutants, including chemical, physical, and biological contaminants, ensuring a healthy indoor environment. Ventilation systems, air filters, and dehumidifiers play crucial roles in maintaining air quality by removing pollutants and regulating humidity levels. Additionally, technologies such as ultraviolet lamps and ozone generators help eliminate harmful microbes and odors. With the rising emphasis on air quality regulations, solutions for carbon monoxide and carbon dioxide monitoring are becoming essential for ensuring compliance and safeguarding human health.
The market addresses the pressing need to combat indoor air pollution and enhance indoor environments. Integrated with HVAC systems and HEPA filters, these solutions utilize UVGI technology for effective air purification. IAQ management systems and building automation ensure continuous monitoring and optimization. Compliant with LEED and WELL Building Standards, they promote healthier living and working spaces. Employing smart home/green building concepts, they offer comprehensive solutions for air pollution monitoring and control. From portable indoor monitors to advanced air purifiers, humidifiers, and ventilation systems, these solutions prioritize pollutant removal, ensuring cleaner, healthier environments worldwide. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
New air quality product launches are one of the key drivers for the growth of the market. New product development, technology improvements, and high-level marketing support are the key factors to increase consumer awareness of smart air purifiers. In recent years, vendors have focused on launching new products and have developed a variety of new products. For instance, Trane Technologies introduced Wellsphere digital Indoor environmental quality management solutions in December 2021 which provide building owners and facility managers with actionable insights for healthier and more efficient indoor spaces and peace of mind to occupants.
Thus, the new product launch gives buyers new choices in design, color, and size for indoor air quality solutions. Additionally, the market players keep buyers informed about the latest technological improvements through advertisements and promotional activities. Hence, such factors will boost the growth of the global market during the forecast period.
An increase in demand for energy-efficient air purifiers is the primary trend in the global market. Traditional indoor air quality solutions that need to run continuously consume a lot of electricity, even more than new refrigerators consume. At the same time, energy-efficient solutions such as air purifiers and humidifiers can save around 40% of energy. Most vendors in the market are now focused on providing energy-efficient air purifiers and other quality solutions.
Moreover, government guidelines and regulatory standards in North America and Europe make mandatory that manufacturers of consumer electronics, including the equipment required to meet energy rating standards. These norms should be followed by the market players while manufacturing air purifiers. Several vendors in the market offer energy-efficient air purifiers. New air purifiers entering the market are given an Energy Star rating according to their energy consumption. Thus, the preference for such energy-efficient products is expected to boost the growth of the global market during the forecast period.
A major factor that affects the growth of the market is rising competition among the vendors. The market has a fragmented vendor presence. Also, the presence of many regional and international players has raised competitiveness, which has a negative impact on indoor air quality solutions, devices, and services.
Moreover, with several local vendors catering to the market, international players face difficulties in retaining their foothold. Local vendors offer solutions and devices such as air filters, air purifiers, humidifiers, and other devices at lower costs, so global vendors should have to offer products at similar prices. Thus, these factors are expected to impede the overall growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
This report extensively covers market segmentation by Product as (Equipment and Services) and Geography (North America, APAC, Europe, South America, and Middle East and Africa). The market encompasses a range of products to address the concerns. These include HVAC systems equipped with HEPA filters, IAQ management systems for monitoring and control, and smart home technologies for green buildings. These solutions target volatile organic compounds (VOCs), pollutants of various types (chemical, physical, and biological), and ensure compliance with LEED and WELL Building Standards. Additionally, products like air filters, dehumidifiers, carbon monoxide alarms, ultraviolet lamps, and ozone generators contribute to comprehensive management. Public-private funding supports innovation and development in this sector, while air pollution monitoring systems and carbon dioxide (CO2) monitoring devices further enhance the assessment.
The equipment segment is estimated to witness significant growth during the forecast period. These solutions and equipment mainly include air-monitor sensors, air-purifiers, and humidifiers. High demand for smart and low-cost air-monitoring sensors are the key factors boosting the growth of the equipment segment.
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The equipment segment was the largest segment and was valued at USD 15.75 billion in 2017. Prominent vendors in the IAQ solution market are focusing on launching innovative and smart variants of the solutions. For instance, Honeywell announced the launch of a new line of Honeywell-branded air purifiers in December 2021 with features such as UV LEDs, ionizers, and humidifiers. Technological innovation and the variety of new devices flooding the market have significantly raised indoor pollutants.
Another company, TSI, provides precision air quality instruments and air quality monitoring solutions that measure key indicators of air quality in real-time to help people better understand air quality. Thus, the availability of a variety of innovative devices will continue to be a key growth driver for this segment during the forecast period.
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North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In the fields of services and equipment, the region is among the early users of modern technologies. The growing variety of pollutants in the region is one of the major factors stimulating the growth of the market.
Moreover, the number of regulatory agencies such as the US Environmental Protection Agency (EPA) is also increasing to further drive the market growth. In North America, the US and Canada are the main countries supporting the growth of the regional market. The growing demand for clean indoor air in both commercial and residential areas plays a key role in the regional market growth 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.
3M Co.: The company offers indoor air quality solutions that include an electrostatically charged air filter that effectively captures up to 96 percent of PM 2.5 particles like dust, pollen, bacteria, viruses, and allergens in 2 hours.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth, driven by the increasing concern over VOCs and indoor air pollution. HVAC systems equipped with HEPA filters and UVGI technology play a crucial role in purifying indoor air. IAQ management systems and building automation facilitate the monitoring and control of air quality parameters, adhering to LEED and WELL Building Standards. IAQM initiatives, supported by public-private funding, promote the implementation of smart homes and green buildings. Air pollution monitoring, including the detection of chemical, physical, and biological pollutants, is integral to ensuring healthy indoor environments. Ventilation systems, dehumidifiers, and ultraviolet (UV) lamps further contribute to its improvement, along with carbon monoxide alarms and particulate matter (PM) detectors. Compliance with air quality regulations drives innovation in carbon dioxide (CO2) monitoring and ozone generation, fostering a growing market for these solutions globally. Smart homes/green buildings integrate advanced indoor air quality monitor and portable indoor monitors to detect various pollutant type, including chemical pollutants, physical pollutants, and ozone generators.
The market is witnessing significant growth, driven by rising concerns over IAQ (Indoor Air Quality) and VOCs (volatile organic compounds) in various sectors. UVGI (ultraviolet germicidal irradiation) technology is increasingly deployed in government buildings, industrial establishments, private establishments, commercial establishments, residential buildings, and others, including private homes and apartments. Key industries such as oil and gas, coal and mining, power and energy, general manufacturing, schools and universities, hospitality, retail, and office buildings are actively seeking IAQ solutions. This market caters to diverse needs, including hotels and restaurants, long-term care communities, and new equipment and service offerings, integrating advanced air quality sensors to ensure healthier indoor environments globally.
The market forecast report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.32% |
Market growth 2023-2027 |
USD 13.21 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.32 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 29% |
Key countries |
US, China, Japan, South Korea, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Aeroqual Ltd., Camfil AB, Carrier Global Corp., ClimateCare, Daikin Industries Ltd., Ferguson plc, Germguard Technologies M Sdn. Bhd., Honeywell International Inc., Johnson Controls International Plc, Lennox International Inc., LG Electronics Inc., MANN HUMMEL International GmbH and Co. KG, Panasonic Holdings Corp., Perfect Pollucon Services, SGS SA, Spectro Analytical Labs Pvt. Ltd., Trane Technologies Plc, Sensirion AG, and UL Solutions Inc. |
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, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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