The global demand for Energy Recovery Ventilator market was valued at over USD 3,154.87Million in 2021 and is expected to reach above USD 6,776.19 Million in 2028, growing at a CAGR of above 10.7% between 2022 and 2028.
Energy recovery ventilator is a type of HVAC system component which improves the indoor air quality of a building by capturing exhausted air from rooms and using its energy to power the system, consuming less energy. An energy recovery ventilator (ERV) is a central ventilation system that provides fresh air by removing indoor polluted air and balancing the humidity within the room space. It is usually known as ERV ventilation systems and ERV air exchangers. It captures the pollutants, pollen, and other hazardous contaminants to make sure that the pleasing air enters the available room space. A central ventilation system known as an energy recovery ventilator (ERV) distributes fresh air by eliminating indoor pollutants and regulating the humidity levels in the room. Both ERV ventilation systems and ERV air exchangers are typical names for it.
Energy Recovery Ventilator Market Scope
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Attribute
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Details
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Market Size in 2021
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USD 3,154.87 Million
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Estimated Market Size in 2028
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USD 6,776.19 Million
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CAGR Growth Rate
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10.7% CAGR
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Historical Year
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2016 to 2021
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Forecast Years
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2022-2028
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By Technology Type
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- Plate Heat Exchanger
- Heat Pipe Heat Exchanger
- Rotary Heat Exchanger
- Run-Around Coil
- Others
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By Application
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- Residential,
- Commercial,
- Others
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Major Regions Covered
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- North America,
- Europe,
- Asia Pacific,
- Latin America,
- The Middle East & Africa
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Key Market Players
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Mitsubishi Electric Corporation, LG Electronics, Daikin, Greenheck Fan Corporation, Panasonic Corporation, FUJITSU GENERAL, Munters, HEATEX AB, Johnson Controls, Nortek Air Solutions, Ostberg Group¸ and Carrier Airconditioning & Refrigeration Ltd
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Report coverage
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Revenue forecast, company share, competitive landscape, growth factors and trends
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Free customization scope (equivalent to 5 analyst working days)
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If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization
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Energy Recovery Ventilator Market Dynamics
Drivers:
Rising Demand Of Smart And Green Buildings
The ongoing trend of constructing smart and green buildings across the cities in the developing countries like India, China, Brazil and others are going to propel the market growth and development. Late before industrialization, only around 1/3rd of the population of the world lived in cities. But in present scenario, more than half of the population started living in urban and semi urban areas. Cities and urban areas are relatively becoming and affordable living area for the working-age adults as compared to the rural areas. This is because, there has been a significant rise in per capita income of the people, and this followed by the change in life style of the people. Thus, because of this primary factor, the developing countries are facing rapid infrastructural development.
Growing Need To Reduce Energy Consumption In Residential And Commercial Buildings
Buildings are basically power hungry. According to U.S. Energy Department, buildings consume roughly about 39.5% of the total energy that is used in state, and about 69.8% of the country’s electricity. On the other hand, they roughly waste about more than 29% of their energy intake. Because of this issue, the organizations and companies engaging in the HVAC industry are focused on their R&D to develop smart and new technologies in order to run and manage a building efficiently. Sustainable development is the main factor that is driving the need of energy efficient buildings in recent years.
Restraints
High Installation and Maintenance Costs Involved
An energy recovery ventilator can be described as a HVAC (heating, ventilation and air conditioning) system module that mends indoor air quality by capturing air exhausted from rooms and then, using its energy to power the system and thus consumes less energy. The energy recovery ventilator permits the whole system to offer ventilation throughout residential or commercial infrastructure in an eco-friendly way. But, high installation and maintenance costs are associated with the energy recovery ventilator. Normally, installation costs lie in the range of 1500 USD to 2100 USD. Usually, medium-sized recovery ventilators cost between 700 USD and 1200 USD excluding installation fee. The installation fee also differs according to controls, quality, type, capacity and most important energy efficiency. Energy recovery ventilators can cost 250 USD to 400 USD more when compared to the normal HRV. High-efficiency energy recovery ventilator models in general cost 250 USD more when compared to medium-sized recovery ventilators. Heating cost savings pay back the initial cost of the recovery ventilator, often in 5-7 years. But depending upon the type of the energy recovery ventilator, the maintenance costs do vary. Higher the grade of the energy ventilator, higher will be the maintenance costs. Thus, this factor may put a hindrance to the market growth and development in near future.
Opportunities
Innovations And Technological Advancements In HVAC Industry
Traditionally, the HVAC sector is very slow to react towards change and development but in past few years, the HVAC sector has shown tremendous growth and development owing to technology and its advancements. Key and notable trends such as sustainability, energy efficiency, and eco-friendliness coupled with health of the buildings will enhance the market growth in the upcoming years. In order to construct healthy infrastructure and building, certain factors such as energy efficiency, cost effectiveness and sustainability should be kept in mind. Thus, a growing number of building professionals, manufacturing companies engaged in HVAC industry sector are adopting smart HVAC technologies. Smart HVAC technologies include building smart thermostats, energy efficient recovery ventilators with advanced monitoring systems, automation systems, controls, along with Internet of Things (IoT).
Challenges
Complexity in Retrofitting Existing and Old Buildings
Building and infrastructures have a tremendous impact on the nature, environment and ecological balance of the Earth. Retrofitting of existing and old buildings provides substantial prospects for reducing greenhouse gas emissions and global energy consumption. Retrofitting of existing building is measured as one of crucial methods in order to achieve sustainability at relatively low cost in the built environment. Though there are a diverse range of retrofit technologies available, but the approaches to recognize the most cost-effective retrofit measure for a particular existing building is quite a major procedural challenge.
Energy Recovery Ventilator Market Segmentation
The global Energy Recovery Ventilator market is segmented on the basis of Technology Type, Appication and region. By Technology Type, the market is segmented into Plate Heat Exchanger, Heat Pipe Heat Exchanger, Rotary Heat Exchanger, Run-Around Coil, Others. The Plate heat exchanger segment dominated the global industry in 2021 and accounted for the highest revenue share of approximately 42.37% of the overall revenue. Plate heat exchanger is a type of heat exchanger which uses metal plates in order to transfer heat between two fluids. One conventional advantage of plate heat exchanger is it facilitates greater heat transmission coupled with an increase in temperature change. Because of this advantage, the plate heat exchanger is going to drive the market growth in the upcoming years. Rotary heat exchanger technology is anticipated to be the fastest growing segment among all other segment owing to its compact design and high efficiency
Based on Application the market is segmented into Residential, Commercial Others. Commercial segment accounted for the largest share. The anticipated growth rate is 11.2% during the time period from 2022 to 2028. Commercial application refers to facilities such as medical centers, retail shopping centers, shopping malls, and standard spaces for corporate offices among others. Commercial application is predictable to be the fastest growing segment among all other segment owing to the rising demand for improved air quality among these facilities. Residential is key segment of this market and is expected to experience exponential growth in the years to come. According to the U.S. Environmental Protection Agency, indoor pollution level is five times higher when compared to the outdoor pollution level. Thus, good ventilation is important for maintaining good indoor air quality of any residential building. Hence, this reason will enhance the market towards growth and development.
Regional Insights
Energy recovery ventilators have high demand owing to the ongoing developments of the construction sector in emerging nations and countries in and across the region.
North America dominated the Energy Recovery Ventilator Market in 2021 and accounted for the major revenue share of more than 32.43% due to the implementation of an energy recovery ventilation system is backed by major investments from the commercial sector. The North America followed by Europe is expected to emerge as the one of the profitable region for this market over the forecast period. Asia Pacific is predicted to observer the highest CAGR over the estimate period. It is credited to the increasing living standards in countries such as China, India, Malaysia, South Korea, and others.
The growing construction activities in the Asia Pacific region has further propelled the demand for energy recovery ventilator. Moreover, in 2021, the region contributed for 25.7% of share and China is the leading country in this region. Increasing construction activities, rising awareness, and improving lifestyle of population are expected to propel the demand for ERVs in Asia Pacific during the forecast period.
Competitive Landscape
Some of the major competitors dominating the global Energy Recovery Ventilator market include Mitsubishi Electric Corporation, LG Electronics, Daikin, Greenheck Fan Corporation, Panasonic Corporation, FUJITSU GENERAL, Munters, HEATEX AB, Johnson Controls, Nortek Air Solutions, Ostberg Group¸ and Carrier Airconditioning & Refrigeration Ltd among others.
Global Energy Recovery Ventilator Market Segment as follows:
By Technology Type
Plate Heat Exchanger
Heat Pipe Heat Exchanger
Rotary Heat Exchanger
Run-Around Coil
Others
By Application
Residential
Commercial
Others