Growing Government Regulations and Standards Across the Globe Bolsters Energy Recovery Ventilator Growth
According to our latest study on "Energy Recovery Ventilator Market Size and Forecast to 2031 – Geography Analysis – by Technology Type, Mounting Type and End User," the market was valued at US$ 4,698.86 million in 2024 and is projected to reach US$ 8,128.52 million by 2031. It is anticipated to register a CAGR of 8.1% during 2023–2031. The report includes growth prospects owing to the current energy recovery ventilator market trends and their foreseeable impact during the forecast period.
Ventilations are increasingly being used in maintaining a clean and comfortable indoor environment especially in highly insulated and airtight modern commercial and corporate buildings. In addition, energy efficiency, cost saving, and a healthy environment became a priority in commercial or corporate buildings. Unlike heat recovery systems, energy recovery ventilators maintain indoor humidity and provide an approach to temperature and air quality control. The breathing air indoors can often be more polluted than outside due to pollutants such as dust, allergens, volatile organic compounds (VOCs), and even pathogens lurking indoors. Long-term exposure to poor indoor air quality is associated with asthma, cardiovascular disease, and impaired cognitive function. Thus, the growing number of commercial spaces and investment in the commercial real estate sector boosts the energy recovery ventilator market demand.
Energy Recovery Ventilator Size — by Region, 2023
Energy Recovery Ventilator Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Technology Type (Plate Heat Exchanger, Heat Pipe Heat Exchanger, Rotary Heat Exchanger, Run-Around Coil, and Others), Mounting Type (Wall Mounted, Ceiling Mounted, and Cabinet), End User (Residential, Commercial, and Industrial), and Geography
Energy Recovery Ventilator Market Size, Growth, Share by 2031
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Source: The Insight Partners Analysis
A plate heat exchanger consists of a series of parallel plates placed one above the other to create a sequence of channels for fluid flow between them. The heat transfer core of these heat exchangers consists of alternating layers of plates sealed at the edges to form two adjacent but distinct airflow paths. The exchanger has no moving parts, and the transfer of energy from one air stream to the next is completely passive and controlled by the thermal gradient. These exchangers are beneficial for sensitive heat transfer. However, the transfer of latent heat is only possible if the panels are made of material that is permeable to water vapor. This type of heat exchanger saves the cost of power, improves indoor air quality, and enhances the energy efficiency of the energy recovery ventilator. Moreover, the demand for HVAC systems is rising in residential and commercial applications across the globe, fueling the segment's growth.
The geographic scope of the energy recovery ventilator Market report focuses on North America (the US, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, Switzerland and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, Singapore, Malaysia and the Rest of Asia Pacific), Middle East (Saudi Arabia, UAE, Kuwait, Qatar, and the Rest of Middle East), and the Rest of the World (Africa and the Rest of South & Central America). In terms of revenue, Asia Pacific accounted for the largest energy recovery ventilator Market share
The energy recovery ventilator market in Asia Pacific is segmented into Australia, South Korea, India, China, Japan, and the Rest of Asia Pacific. China accounted for largest market share in the Asia Pacific energy recovery ventilator market. The region consists of various developing economies such as India, China, Thailand, Vietnam, Singapore, Taiwan, and New Zealand. These countries are experiencing a gradual increase in the adoption of advanced manufacturing technologies. Furthermore, the availability of low labor costs, low taxes and tariffs, and a strong business ecosystem are attracting international players in the manufacturing industry to expand their production facilities in the region.
Developing infrastructure and increasing population are the prime enablers of the energy recovery ventilator market growth in the region as the commercial and residential segments demand energy-efficient and cost-saving equipment and appliances. Moreover, the region is undergoing several developments in cinema complexes, malls, corporate offices, universities, gyms, and supermarkets, among others. For example, as per the India Brand Equity Foundation (IBEF), the real estate sector in India contributes toward the growth of the economy with a 7.3% share in 2024. India's real estate sector is anticipated to expand to ~US$ 5,800 billion by 2047 and grow at 9.2% CAGR from 2023 to 2028, owing to increasing urbanization, rental market expansion, and other growth factors.
With developed infrastructure and advanced technologies, smart cities are becoming a reality, and the government of Australia has launched a new plan to transform cities and regions. The government has committed to implementing a new Smart Cities Plan. The policy sets out the government's vision for productive and liveable cities that foster innovation and growth. The four-year program was designed to improve the liveability of cities and suburbs in Australia using technology and a relatively new concept of open data. The Smart Cities Plan sets out the government's vision for cities and includes three pillars: smart investment, smart policy, and smart technology in the country.
Australia witnessed a ~2.9% increase in its total construction output in 2023, with an estimated growth of 1.1% in FY2024. Residential building construction output increased by ~4.3% in 2022 and ~2.5% in 2023 and is expected to witness a growth of ~3.0% in FY2024. Therefore, residential construction drives considerable demand for energy recovery ventilators in Australia. In February 2021, Infrastructure Australia (IA) announced its infrastructure priority list, adding a total of 44 new infrastructure proposals. The country is home to several domestic engineering, procurement, and construction (EPC) groups, and a few of them have considerable experience in overseas projects.
The market in North America is segmented into the US, Canada, and Mexico. The well-established infrastructure in developed countries, including the US and Canada, helps manufacturing firms explore the limits of science, technology, and commerce. The US is expected to dominate the energy recovery ventilator market in North America during the forecast period. Technological advancements across North America have led to high competition in the manufacturing industry. As per the National Institute of Standards and Technology (NIST), the manufacturing sector in the US was valued at US$ 2.3 trillion and registered a 10.2% share of the country's GDP in 2023.
Rising urbanization and increasing economic growth have led to an increased number of shopping malls, shopping centers, entertainment centers, offices, hotels, large retail stores, and theaters. Governments across North America are focusing on the development of smart cities and the expansion of airport facilities. Therefore, increasing industrialization, rising construction activities, increasing smart city projects, and a growing tourism industry are driving the demand for energy recovery ventilators in industrial, commercial, and residential sectors across North America. A large number of well-funded startups are offering innovative HVAC solutions and services. Leading manufacturers such as RenewAire; Carrier; Daikin North America LLC.; Mitsubishi Electric; CORE Energy Recovery Solutions; Nortek Air Solutions, LLC; and Greenheck Fan Corporation, focused on energy recovery ventilator R&D and production. The growing application of HVAC systems across North America is anticipated to propel the energy recovery ventilator market growth during the forecast period.
Daikin Industries Ltd; Greenheck Fan Corp; Munters Group AB; Nortek Air Solutions, LLC; Fujitsu General Ltd.; LG Electronics Inc.; Johnson Controls International Plc; Carrier Global Corp; and Panasonic Holdings Corp. are among the key players profiled in the energy recovery ventilator market report. Several other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The energy recovery ventilator market forecast can help stakeholders plan their growth strategies. The market analysis provides detailed market insights, which help the key players strategize their growth.
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