North America Energy Recovery Ventilators (ERV) Market Segmentation By Product (Plate, Heat Pipe, Rotary and Run-Around Coil); By Installation (Ceiling or Wall Mounting and Rooftop); By Airflow Output (120-360 CFM, 361-600 CFM, 600-1200 CFM, 1200-1800 CFM, 1800-2400 CFM and >2400 CFM) and By End Use (Residential and Commercial) - Industry Demand Analysis and Opportunity Assessment 2019-2028
Buy Now Report ID: 2668 | Published Date: Feb 16, 2023
Growth Indicators
Rising Focus To Reduce Carbon Dioxide Footprints and Increase Building Energy Efficiency
Reducing CO2 emissions is an absolute necessity and an expensive challenge for the industries in order to meet the environmental standards. Initiatives by different governing bodies in the United States for reducing dependence on non-renewable source of energy and moving towards sustainable source are increasing the rate of adoption of energy recovery ventilators. Moreover, significant reduction in energy intensity in commercial and residential buildings coupled with implementation of building energy codes, state & federal efficiency standards and ENERGY STAR labelling has improved the efficiency of new appliances drastically, which is further helping to the greater adoption of ERV systems. Additionally, growth in the number of green buildings, which is also raising the demand for the deployment of efficient ERV systems, along with the implementation of several stringent government regulations for lowering carbon emissions are some of the major factors anticipated to drive the growth of the North America ERV market.
Numerous Benefits Associated With ERV Systems To Increase Product Adoption
ERV systems are primarily used to save energy and improve humidity control in the HVAC systems. HVAC (heating, ventilation and air conditioning) systems are one of the major contributors to the increasing use of energy, therefore helping in lowering the peak demand for energy in the building. Moreover, the ERV systems help in reducing the energy required to condition the outside air, the ventilation air intake can be increased. This helps in achieving appropriate ventilation needed in a building. On the other hand, ASHRAE (The American Society of Heating, Refrigerating and Air-Conditioning Engineers), along with other stakeholders in the market, have recognized a growing discrepancy between air-conditioner sensible heat ratio and building’s humidity load. At present, HVAC systems are required to be working to remove more heat than they were designed for. This leads to the increase in indoor humidity levels in the buildings. Thus, the use of ERV systems to pre-dry the incoming ventilation helps in mitigating these conditions, which in turn, is anticipated to boost the adoption rate of ERV systems in North America during the forecast period.
Barriers
Complex Installation Process and Lack of Awareness to Hamper Market Growth
ERV systems are often too complicated for installation. Lack of proper knowledge amongst technicians for the installation of ERV systems, along with the unavailability of skilled technicians for such installation tasks are some of the factors anticipated to hamper the growth of the North America ERV market. Additionally, lack of awareness for indoor air quality and its ill effects on health of individuals, followed by high maintenance costs are some of the additional factors to restrain market growth.
By Product
The North America ERV market has been segmented by product into plate heat exchangers, heat pipe heat exchangers, rotary heat exchangers and run-around coil. The plate heat exchanger segment registered the largest market share of 42.77% in the year 2019 and is expected to grow by the largest CAGR of 11.15% during the forecast period. The segment registered a value of USD 392.9 million in the year 2019 and is anticipated to gain an absolute $ opportunity of USD 576.6 million by growing at 2.3x during the forecast period. Additionally, the rotary heat exchanger segment is anticipated to grow with a significant CAGR of 10.62% during the forecast period. Run around coil systems, on the other hand, are mostly suitable for dehumidification and energy recovery, along with control of temperature in ventilator systems. They have high efficiency over other product types. CLICK TO DOWNLOAD SAMPLE REPORT
By Installation
The North America ERV market has also been segmented on the basis of installation into ceiling or wall mounting and rooftop. The ceiling or wall mounting segment registered the largest market share in the ERV market in North America and is expected to reach USD 1243.0 million by the end of 2028 by registering a CAGR of 10.58% during the forecast period. Additionally, the segment is also anticipated to grow by 2.2x and gain an absolute $ opportunity of USD 687.0 million during the forecast period. Installation of ERVs in the buildings are much more feasible, especially in buildings which don’t have mechanical ventilation systems, and in buildings with smaller duct spaces. Moreover, several residential and commercial sectors, which have the need for the deployment of small size ERVs often go for wall mounted ERV systems as they occupy less space for installation.
Some of the affluent industry leaders in the North America energy recovery ventilators market are Carrier Global Corporation, Mitsubishi Electric Corporation, Daikin Industries, Ltd., Panasonic Corporation, Johnson Controls International plc, Building Performance Equipment, Inc., Zehnder Group AG, S&P USA Ventilation Systems, LLC and Loren Cook Company.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing focus to reduce carbon dioxide footprints and increase building energy efficiency are some of the major factors that are driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of 10.28% over the forecast period, i.e. 2020-2028.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is majorly segmented by product, installation, airflow output and by end use.
Ans: The plate heat exchanger segment, which is a sub-segment of the product segment, held the largest market share of 42.77% in the year 2019 and is anticipated to display significant growth opportunity.
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