Heat Recovery Ventilator Market

Heat Recovery Ventilator Market Outlook (2022-2032)

The global heat recovery ventilator market is estimated at US$ 3.7 Bn in 2022, and is forecast to reach US$ 7.7 Bn by the end of 2032, increasing at a CAGR of 7.4% over the 2022-2032 assessment period.

Report Attributes	Details
Heat Recovery Ventilator Market Size (2021A)	US$ 3.5 Bn
Estimated Market Value (2022E)	US$ 3.7 Bn
Forecast Market Value (2032F)	US$ 7.7 Bn
Global Market Growth Rate (2022-2032)	7.4% CAGR
North America Market Share (2021)	~45.2%
North America Growth Rate (2022-2032)	7.3% CAGR
Europe Growth Rate (2022-2032)	8.5% CAGR
Market Share of Top 5 Companies	~40%
Key Companies Profiled	Panasonic Corporation Mitsubishi Electric Fujitsu General Johnson Controls Honeywell International Inc Daikin Industries, Ltd LG Electronics

As per latest analysis by Fact.MR, heat recovery ventilator sales accounted for 6%-8%, which is predicted to rise to 10%-12% by 2032. This is due to increasing application of heat recovery ventilators in end-use verticals such as automotive, aerospace, and machinery manufacturing.

Fact.MR Industrial Goods Research Division, in its recent publication on the global heat recovery ventilator (HRV) market, has positioned it as a moderate growth, high dollar opportunity market, with an absolute dollar opportunity of US$ 4.2 Bn. Heating, ventilation, and air conditioning (HVAC) unit sales are soaring every quarter, thereby driving strong sales for allied industries.

Fact.MR analysts opine that although a large chunk of HRV sales at present are currently in the United States, owing to weather transformation around the globe, over the decade, a spike in demand in other parts of the world is certain.

Revenue Analysis of Heat Recovery Ventilators (2017 to 2021) Compared to Demand Outlook (2022 to 2032)

As per the heat recovery ventilator industry research by Fact.MR, a market research and competitive intelligence provider, from 2017 to 2021, demand for heat recovery ventilation systems increased at around 1.2% CAGR, largely driven by countries such as the U.S., Canada, Brazil, Germany, and China.

While the world is considering global warming as an important agenda, there has been significant improvement in the construction and maintenance of buildings as they are being observed as micro contributors towards climate change. The number of green buildings, where, apart from other component installations such as exhaust fans, are being replaced by efficient heat recovery systems such as heat recovery ventilators, is increasing.

Under the likely market conditions, considering the present pace of climate change and growth in the number of green buildings, alongside other supporting factors, demand for heat recovery ventilation systems is set to cross US$ 7.7 Bn by 2032.

• Consumption of heat recovery ventilators is expected to grow 2.2X by 2032.
• Ceiling-mounted heat recovery ventilators represented 47.2% of total sales in 2021.
• At 55%, residential heat recovery ventilators commanded the largest share of global revenue in end-use verticals.
• On the basis of venting, horizontal heat recovery ventilators are projected to account for and absolute dollar opportunity of US$ 3.6 Bn during 2022 – 2032.
• In terms of air flow volume, heat recovery ventilators with 0 – 100 cfm accounted for 64.3% share in the global market in 2021.

Efficient Ventilation Becoming Essential Standard Feature in Construction Industry

According to the International Finance Corporation (IFC), the floor area of buildings is expected to double from 2021 to 2060, Estimating the low-carbon investment opportunity in the shorter term, by 2032, this ecosystem represents nearly US$ 28 Tn.

Green buildings are expected to be one of the most important components of the low-carbon ecosystem. Citing the statistics of GreenBuilt Alliance, in the U.S., buildings account for 39% of the nation’s total energy consumption, 38% of total electricity consumption, 30% of landfill waste, 38% of carbon dioxide emissions, and 12% of total water consumption.

Green buildings tailor these wastages with several components, including heat recovery ventilators. Owing to this, residential HRVs have become mainstream infrastructural priorities. 

While the installation of heat recovery ventilation systems is becoming a standard feature of new constructions in developed countries, for late adopter countries, their affordability stands as an issue. However, latest trends of heat recovery ventilators suggest that consumers’ interest towards improving quality of life in emerging countries is encouraging them to invest in ventilation systems as well.

How are Ventilation Regulations across Key Countries Driving Heat Recovery System Demand?

In Canada, all new homes needs to be equipped with HRVs. These save significant volumes of energy, thereby reducing GHG emissions created while re-heating cold and fresh air.

In European countries, Spain, Belgium, Italy, France, the U.K., Germany, Ireland, Sweden, Netherlands, Denmark, and Poland have either recommendations or regulations towards ventilation standards for new dwellings as well as for light commercial applications. This, alongside indoor air quality, has brought the agenda of energy efficiency to the fore, consequently augmenting demand for heat exchangers, including heat recovery ventilators.

Which Region is Projected to Offer the Largest Opportunity for Heat Recovery Ventilator Manufacturers?

“North America Mainstay Region in Heat Recovery Ventilator Market”

North America is projected to offer the ample of opportunities for heat recovery ventilators. U.S. alone accounted for 40.5% share of global heat recovery ventilator (HRV) market in 2021. On the other hand, the demand of heat recovery ventilator in Canada is expected to add US$ 336.6 Mn revenues to the existing total, by 2032. Some of the key manufacturers of Heat Recovery Ventilator in U.S. includes Bryant, Honeywell, and Carrier Air Conditioning & Refrigeration.

Country-wise Insights

Why Does the U.S. Enjoy a Notable Market Share in Heat Recovery Ventilation?

“Large Potential for Housing in U.S. Driving Market expansion”

The U.S. market is expected to account for a significant portion of the global share for heat recovery ventilator systems in the near future. The United States currently accounts for 91.3% market share in North America, and is expected to garner an absolute $ opportunity of US$ 1.5 Bn during the assessment period.

Prominent factors such as availability of large potential housing and commercial spaces, adoption of industrial installation, and stable market conditions are likely to drive market growth in the country.

Which is the Leading European Market for Heat Recovery Ventilators?

“Demand for Heat Recovery Ventilators Rising Rapidly in Italy”

Europe is likely to be a lucrative market and is predicted to contribute significantly to the market's growth curve over the decade. Italy is likely to generate an absolute $ opportunity of US$ 630 Mn during the forecast period.

Due to rapid adoption and expanding infrastructure, Italy is likely to dominate demand for heat recovery ventilation systems in Europe. According to Fact.MR research, the Italy ventilation equipment market is predicted to expand at a CAGR of 11%, accounting for around 20% market share in the European region by the end of the assessment period.

Category-wise Insights

Which Type of Ventilators Enjoy Immense Popularity?

“Wall-mounted Heat Recovery Ventilators Hold ¾ Market Share”

The market for wall-mounted heat recovery ventilators is likely to continue with its hegemony over the coming decade. Wall-mounted heat recovery ventilators are preferred over cabinet-mounted heat recovery ventilators and ceiling-mounted heat recovery ventilators, owing to space saving in the case of the former.

Over the decade, demand for ceiling mount type heat recovery ventilators is expected to grow at the fastest pace.

Which End Use Does Fact.MR Project to Drive Most Market Growth?

“Commercial Ceiling Mounted HRVs Augmenting Demand Growth”

While sales of residential HRVs will crossed industry stakeholders’ revenue expectations of US$ 4.75 Bn by 2032, the decade belongs to commercial demand for HRVs. Apart from making profits through the utilization of fixed assets, corporates across the world are also aligning their attention to accrue profits after eliminating the bottlenecks in their variable costs.

According to NFIB's Energy Consumption poll, energy expenses stands as one of the top three business expenses of around 35% of small businesses. Small businesses in the U.S. spend over US$ 60 Bn a year on energy.

These factors have necessitated demand for HVAC and its allied accessories, including HRVs and ERVs. Commercial enterprises mostly use ceiling-mounted HRVs owing to their suitability in enterprise set-up.

Competitive Analysis

Fact.MR evaluates that the heat recovery ventilation system market is concentrated and a large chunk is encapsulated by tier-1 players operating on a global scale. Where tier-1 players are focused on reliability, life expectancy, and technological advancements, tier-2 players are competing with competitive price points.

Key manufacturers in the heat recovery ventilator (HRV) market are located in the U.S., Canada, Sweden, Switzerland, U.K., Japan, and South Korea. Japan and South Korea are likely to represent the most prominent manufacturers of HRVs, including ELIM Electronics, LG Electronics, Panasonic Corporation, Mitsubishi Electric, Fujitsu General, and Daikin Industries, Ltd.

Some of the key recent developments in the market are as follows:

• In Oct 2021, Mitsubishi announced Integrate Building Systems to build a subsidiary via a company split. Building systems, being one of the growth areas, would help realization of a decarbonized society through HRVs and ERVs
• In Sep 2021, Mitsubishi electric launched bypass ventilation systems for homeowners and corporates, which have a high range of variants that can be used as per user compatibility.
• In August 2021, Systemair launched a new generation of AHU air filters capable of neutralizing viruses.
• In Apr 2021, Bryant announced the launching of IOT-based ‘New Bryant Home App’ with ease of operation in managing HRV and ERV systems, with many features and benefits for remote access.
• In Sept. 2020, Zehnder America announced the launch of a fresh air energy recovery ventilation system for residential buildings.
• In Oct. 2020, Venmar launched the VIRTUO smart air exchanger, the world’s first air exchanger with Artificial Intelligence (AI)-based technology. 

Other recent developments related to companies offering heat recovery ventilators have been tracked by the team of Fact.MR, which are available in the full report.

Key Segments of Heat Recovery Ventilator Industry Research

• By Mounting:

  • Wall-Mounted Heat Recovery Ventilators
  • Ceiling-Mounted Heat Recovery Ventilators
  • Cabinet-Mounted Heat Recovery Ventilators

• By Venting:

  • Horizontal Heat Recovery Ventilators
  • Vertical  Heat Recovery Ventilators

• By Control:

  • Automatic Heat Recovery Ventilators
  • Manual Heat Recovery Ventilators

• By Air Flow:

  •  Below 100 cfm Heat Recovery Ventilators
  •  100-150 cfm Heat Recovery Ventilators
  •  150-200 cfm Heat Recovery Ventilators
  •  200-250 cfm Heat Recovery Ventilators
  •  Above 250 cfm Heat Recovery Ventilators

• By Heat Exchanger Type:

  • Cross Flow Plates
  • Counterflow Plate Heat Plates
  • Rotating Heat Exchangers

• By End Use:

  • Residential Heat Recovery Ventilators
  • Commercial Heat Recovery Ventilators
  • Industrial Heat Recovery Ventilators

• By Region:

  • North America Heat Recovery Ventilator Market
  • Latin America Heat Recovery Ventilator Market
  • Europe Heat Recovery Ventilator Market
  • East Asia Heat Recovery Ventilator Market
  • South Asia & Oceania Heat Recovery Ventilator Market
  • Middle East & Africa Heat Recovery Ventilator Market