Demand for Dedicated Outdoor Air Systems in USA

Demand for Dedicated Outdoor Air Systems in USA 2025 to 2035

Demand for dedicated outdoor air system (DOAS) in the USA is projected to grow from USD 2.1 billion in 2025 to approximately USD 3.8 billion by 2035, recording an absolute increase of USD 1.7 billion over the forecast period. This translates into a total growth of 81.0%, with demand forecast to expand at a compound annual growth rate (CAGR) of 6.1% between 2025 and 2035.

The overall demand size is expected to grow by nearly 1.8 times during the same period, supported by increasing regulatory compliance requirements for indoor air quality standards, growing adoption of energy-efficient ventilation systems in commercial and institutional facilities, rising investment in building automation technologies, and expanding infrastructure modernization throughout the USA.

Quick Stats for USA Dedicated Outdoor Air System (DOAS) Industry

• USA Dedicated Outdoor Air System Sales Value (2025): USD 2.1 billion
• USA Dedicated Outdoor Air System Forecast Value (2035): USD 3.8 billion
• USA Dedicated Outdoor Air System Forecast CAGR: 6.1%
• Leading Equipment Type in USA Dedicated Outdoor Air System Industry: Packaged DOAS Units (72.30%)
• Key Growth Regions in USA Dedicated Outdoor Air System Industry: West, Northeast, South, Midwest
• Regional Leadership: West holds the leading position in demand
• Key Players in USA Dedicated Outdoor Air System Industry: Daikin Industries Limited, Carrier Global Corporation, Johnson Controls International Public Limited Company, LG Electronics Incorporated, Trane Technologies Public Limited Company, Greenheck Fan Corporation, AAON Incorporated, DesertAire Incorporated, Addison HVAC, DRI (Desiccant Rotors International)

The packaged DOAS units segment is projected to account for 72.30% of dedicated outdoor air system demand in 2025. Packaged applications are widely used in the USA for commercial building activities, healthcare facility operations, and institutional applications where installation efficiency profiles, proven reliability characteristics, and operational versatility benefits remain essential for ventilation handling applications and system implementations.

The up to 20 tons segment is expected to represent 58.40% of dedicated outdoor air system demand in 2025. Up to 20 tons applications are fundamental to the industry because they provide the operational balance, processing capabilities, and installation flexibility required for small-to-medium commercial building developments and institutional applications.

Between 2020 and 2025, dedicated outdoor air system demand in the USA experienced steady expansion, driven by increasing environmental regulation enforcement patterns and growing recognition of energy-efficient ventilation benefits for air quality optimization and compliance enhancement. The sector developed as commercial building operators and facility managers, especially in major metropolitan centers, recognized the need for reliable ventilation systems and effective air quality solutions to achieve regulatory objectives while meeting environmental standards and operational requirements. Commercial property companies and equipment suppliers began emphasizing technology integration and ventilation acceptance to maintain competitive advantages and operational viability.

Between 2025 and 2030, demand for dedicated outdoor air system in the USA is projected to expand from USD 2.1 billion to USD 2.8 billion, resulting in a value increase of USD 0.7 billion, which represents 41.2% of the total forecast growth for the decade. This phase of growth will be shaped by accelerating building modernization campaigns, rising indoor air quality investment, and growing compliance requirements for advanced ventilation systems across USA regions, particularly in areas where commercial building infrastructure and environmental protection initiatives are accelerating dedicated outdoor air system adoption. Increasing integration of smart control technology in ventilation systems and growing adoption of energy recovery platforms continue to drive demand.

Environmental authorities and commercial building companies are expanding their technology capabilities to address the growing complexity of modern air quality requirements and environmental standards, with USA operations leading investments in energy-efficient ventilation enhancement methods and efficient air quality optimization systems.

From 2030 to 2035, demand is forecast to grow from USD 2.8 billion to USD 3.8 billion, adding another USD 1.0 billion, which constitutes 58.8% of the overall ten-year expansion. This period is expected to be characterized by expansion of advanced ventilation applications, development of enhanced monitoring capabilities, and implementation of comprehensive dedicated outdoor air system technology programs across different commercial and institutional sectors. The growing adoption of intelligent ventilation systems and enhanced air quality optimization platforms, particularly in major commercial centers and institutional operations, will drive demand for more sophisticated ventilation solutions and validated energy-efficient systems.

USA Dedicated Outdoor Air System (DOAS) Industry Key Takeaways

Metric	Value
USA Dedicated Outdoor Air System Sales Value (2025)	USD 2.1 billion
USA Dedicated Outdoor Air System Forecast Value (2035)	USD 3.8 billion
USA Dedicated Outdoor Air System Forecast CAGR (2025-2035)	6.1%

Why is the USA Dedicated Outdoor Air System (DOAS) Industry Growing?

The USA dedicated outdoor air system industry is driven by a surge in the broader commercial building infrastructure sector. A considerable growth in demand for both energy-efficient ventilation solutions and indoor air quality compliance equipment has created a larger base of building owners, facility managers, and commercial professionals requiring reliable dedicated outdoor air system products.

Changing regulatory patterns mandate the use of efficient ventilation systems for optimal environmental performance and air quality optimization. This compliance-driven demand establishes a consistent, regulation-based foundation. As new operators enter the commercial building infrastructure segment and existing facility practices are modernized, the need for standard-issue and specialized dedicated outdoor air system products forms a stable foundation for the industry's growth, ensuring a continuous stream of customers driven by regulatory necessity and environmental compliance.

Technological innovation serves as a powerful secondary engine for this growth. Modern dedicated outdoor air system solutions are no longer just basic ventilation equipment; they are advanced air quality products. The rapid adoption of specialized energy recovery technologies has become a major selling point, significantly reducing maintenance complexity and enhancing operational reliability.

Beyond traditional options, manufacturers are integrating advanced monitoring systems for seamless incorporation with digitally conscious building approaches, and compatibility with various commercial requirements. These features, coupled with improvements in air quality efficiency, system convenience, and equipment quality, are compelling both commercial and institutional operators to upgrade from basic ventilation systems, driving a cycle of replacement and premiumization within the industry.

An increasing emphasis on ventilation efficiency, particularly exploration of advanced energy-recovery technologies, is pushing demand for higher-quality, more diverse dedicated outdoor air system varieties. The segment has also expanded beyond traditional commercial building channels, with growing interest from the healthcare sector, educational applications, and even specialty industrial units. This diversification, combined with the rise of specialized platforms that improve accessibility for all operators, ensures that manufacturers can reach a wider audience than ever before. This confluence of efficiency, innovation, and accessibility creates a fertile ground for continued industry expansion.

Segmental Analysis

The industry is segmented by equipment type, capacity, and region. By equipment type, the industry is divided into packaged DOAS units and custom-built DOAS units. In terms of capacity, the industry is segmented into up to 20 tons, 20-50 tons, and above 50 tons, with packaged DOAS units representing a key growth and innovation hub for ventilation technologies. Regionally, the industry is divided into West, Northeast, South, and Midwest.

By Equipment Type, Packaged DOAS Units Segment Accounts for 72.30% Share

The packaged DOAS units are projected to account for 72.30% of dedicated outdoor air system demand in 2025, making it the leading equipment type across the sector. This dominance reflects the installation requirements and operational acceptance needs of ventilation systems for existing commercial building facilities and institutional applications where energy efficiency is optimized through proven reliability characteristics and integrated design architecture.

In the USA, where substantial commercial infrastructure requires ventilation integration without complete system redesign, packaged dedicated outdoor air system solutions provide practical pathways for air quality enhancement while maintaining operational preferences. Continuous innovations are improving efficiency optimization, reliability preservation, and versatility parameters, enabling facility operators to achieve high performance standards while maximizing operational satisfaction.

• Installation compatibility and existing system integration make packaged DOAS units the preferred equipment type for enhancing commercial facilities and institutional operations.
• Reliability demonstration and performance track records are enhancing operator confidence and equipment viability across large-scale adoption initiatives.

By Capacity, Up to 20 Tons Segment Accounts for 58.40% Share

Up to 20 tons applications are expected to represent 58.40% of dedicated outdoor air system demand in 2025, reflecting the critical role of commercial building requiring comprehensive ventilation solutions. Up to 20 tons operations including office buildings, retail facilities, and institutional systems generate consistent demand for dedicated outdoor air systems that support efficient operational utilization and performance optimization.

Dedicated outdoor air system solutions are widely adopted for up to 20 tons facilities due to significant installation efficiency benefits and enhanced operational capabilities. Their reliable, high-performance operation provides effective, cost-efficient ventilation solutions, enhancing operational independence for up to 20 tons users.

• Commercial building requirements and up to 20 tons operations drive substantial demand for specialized dedicated outdoor air systems designed for institutional applications.
• Operational optimization and performance efficiency demands create consistent ventilation requirements across major commercial regions and building facilities.

What are the Drivers, Restraints, and Key Trends in the USA Dedicated Outdoor Air System (DOAS) Industry?

The demand for dedicated outdoor air system in the USA is advancing steadily due to increasing compliance requirements and growing recognition of advanced energy-efficient necessity for environmental protection, with the West region serving as a key driver of innovation and building modernization.

The sector faces challenges including initial cost considerations, installation complexity with existing systems, and ongoing concerns regarding technical integration and specialized maintenance requirements.

Growth in Commercial Building Development and Air Quality Enhancement Programs

The enhancement of indoor air quality standards, gaining particular significance through regulatory trends and building education campaigns, is enabling dedicated outdoor air system providers to achieve differentiation without prohibitive production costs, providing predictable demand patterns through compliance requirements and operator preferences.

Enhanced indoor air quality standards offering substantial opportunities for dedicated outdoor air system solutions and integrated applications provide foundational dynamics while allowing providers to secure commercial building agreements and distribution partnerships.

Incorporation of Advanced Energy Recovery Capabilities and High-Precision Ventilation Systems

Modern dedicated outdoor air system providers and facility operators are establishing advanced manufacturing networks and centralized production facilities that improve manufacturing efficiency through process standardization and performance analytics.

Integration of energy recovery enhancement systems, high-precision control technology, and coordinated quality management enables more efficient production operations across multiple manufacturing regions.

Creation of Automated Building Systems and Enhanced Compliance Targeting Methods

The expansion of automated building systems and compliance segmentation is driving development of specialized dedicated outdoor air system solutions with enhanced ventilation profiles, improved reliability characteristics, and optimized air quality attributes that address current limitations and expand ventilation applications beyond traditional HVAC systems.

These specialized systems require sophisticated monitoring capabilities and performance expertise that exceed traditional manufacturing requirements, creating specialized demand segments with differentiated equipment propositions. Producers are investing in compliance targeting and air quality optimization to serve emerging commercial applications while supporting innovation in performance development and operator engagement.

Analysis of USA Dedicated Outdoor Air System (DOAS) Demand by Key Regions

Region	CAGR (2025 to 2035)
West	7.20%
Northeast	6.70%
South	6.50%
Midwest	6.30%

The USA dedicated outdoor air system demand is witnessing steady growth, supported by rising compliance requirements, expanding commercial building initiatives, and the deployment of advanced ventilation technologies across regions. West leads the nation with a 7.20% CAGR, reflecting a strong commercial building base, substantial infrastructure development, and established air quality innovation facilities.

West Leads National Growth with Commercial Building and Institutional Applications

Demand for dedicated outdoor air system in West is projected to exhibit strong growth with a CAGR of 7.20% through 2035, driven by a strong commercial building base, substantial infrastructure development creating advanced ventilation opportunities, and a concentration of innovation advancement across California, Oregon, Washington, Nevada, and surrounding states.

Advanced air quality programs and environmental control initiatives are expanding dedicated outdoor air system adoption among building owners, commercial facilities, and institutional suppliers pursuing compliance optimization, air quality development, and specialized ventilation projects throughout major urban hubs and commercial corridors.

• Commercial building base and infrastructure capabilities are requiring comprehensive ventilation strategies and air quality solutions, driving demand for dedicated outdoor air system solutions with demonstrated air quality enhancement performance capabilities and permanent energy efficiency assurance throughout diverse commercial operations.
• Infrastructure development and building concentration are generating substantial dedicated outdoor air system demand across commercial companies, facility managers, and air quality suppliers serving institutional applications and compliance requirements.

Northeast Demonstrates Strong Growth with Established Commercial Excellence

Demand for dedicated outdoor air system in Northeast is projected to grow with a CAGR of 6.70% through 2035, supported by established commercial presence, comprehensive infrastructure development, and strong institutional facilities across New York, Pennsylvania, Massachusetts, New Jersey, and surrounding states.

Established commercial presence and building leadership are supporting dedicated outdoor air system adoption throughout facility operations, institutional buildings, and air quality distribution centers serving compliance enhancement and ventilation applications.

• Strong commercial ecosystem and building networks are enabling dedicated outdoor air system integration across air quality producers, facility managers, and ventilation suppliers pursuing advanced compliance development and air quality programs.
• Premium infrastructure capabilities and commercial excellence are driving dedicated outdoor air system demand among leading facility corporations, air quality centers, and specialized commercial firms focused on performance enhancement, ventilation optimization, and building development targeting compliance applications and advanced institutional operations.

South Shows Steady Growth with Expanding Infrastructure Capabilities

Demand for dedicated outdoor air system in South is forecast to advance with a CAGR of 6.50% through 2035, driven by expanding infrastructure capabilities, growing commercial investment, and increasing air quality consciousness across Texas, Florida, Georgia, North Carolina, and surrounding states.

Rising commercial sector development and building partnerships are supporting dedicated outdoor air system integration across ventilation producers, facility operations, and air quality distributors pursuing compliance enhancement, infrastructure expansion, and air quality initiatives throughout expanding commercial regions and urban centers.

• Growing infrastructure development and commercial investment are creating opportunities for dedicated outdoor air system adoption across emerging ventilation hubs, facility operations, and air quality distribution centers in major metropolitan areas and commercial corridors.
• Infrastructure expansion and air quality growth are driving dedicated outdoor air system demand among commercial operators seeking enhanced performance capabilities and participation in advanced ventilation programs.

Midwest Records Consistent Growth with Building Leadership

Demand for dedicated outdoor air system in Midwest is expected to expand with a CAGR of 6.30% through 2035, supported by building capabilities, infrastructure development, and growing facility efficiency presence across Illinois, Ohio, Wisconsin, Michigan, and surrounding states.

Infrastructure expertise and production capabilities are driving dedicated outdoor air system demand among commercial producers, air quality suppliers, and building companies serving ventilation production and institutional applications.

• Growing building development and infrastructure investment are supporting dedicated outdoor air system adoption across emerging production hubs, commercial facilities, and facility centers pursuing performance enhancement and ventilation programs.
• Expanding infrastructure development and building integration are creating opportunities for dedicated outdoor air system utilization across air quality suppliers, commercial production facilities, and facility operations seeking institutional ventilation production, air quality support, and building capabilities throughout major infrastructure regions and emerging facility commercial centers.

Competitive Landscape of USA Dedicated Outdoor Air System (DOAS) Industry

USA dedicated outdoor air system demand is defined by competition among established commercial corporations, specialized ventilation companies, and integrated air quality producers, with major facility operators maintaining significant influence through production resources and building capabilities. Companies are investing in ventilation advancement, air quality optimization, energy-efficient acceptance technologies, and comprehensive performance services to deliver effective, reliable, and efficient air quality solutions across USA commercial and facility applications.

Daikin Industries Limited dominates with a 23.80% share, offering comprehensive energy-efficient ventilation solutions including advanced equipment, performance enhancement technologies, and distribution services with a focus on commercial applications, air quality consistency, and ventilation optimization across USA operations. The company continues investing in ventilation programs, distribution strategies, and dedicated outdoor air system innovation while expanding operational presence and advanced facility applications.

Carrier Global Corporation provides specialized ventilation solutions with emphasis on performance development and building excellence. Johnson Controls International Public Limited Company focuses on premium air quality development and commercial applications. LG Electronics Incorporated emphasizes infrastructure development and specialized facility equipment production. Trane Technologies Public Limited Company offers ventilation technology solutions and professional performance support. Greenheck Fan Corporation specializes in commercial air quality development and distribution programs.

USA Dedicated Outdoor Air System (DOAS) Industry - Stakeholder Contribution Framework

The USA dedicated outdoor air system industry is a critical backbone for national air quality optimization, supporting commercial installations, facility infrastructure, and institutional applications. With a projected demand value driven by infrastructure development, commercial equipment adoption cycles, and ventilation technology advancement, the sector's resilience depends on collaborative engagement among government agencies, facility operators, ventilation companies, and investors to modernize infrastructure, enhance efficiency, and secure supply chains.

How Governments Could Accelerate Infrastructure Modernization and Industry Competitiveness?

• Federal Air Quality Infrastructure Grants: Expand funding through the Department of Energy and Environmental Protection Agency for R&D into advanced ventilation materials, efficiency-enhanced technologies, and monitoring systems to enhance performance and longevity.
• Tax Incentives for Equipment Installation: Offer investment tax credits for operators replacing conventional HVAC with high-efficiency dedicated outdoor air systems, energy recovery systems, or smart air quality systems that reduce energy consumption and operational costs.
• Domestic Manufacturing and Production Support: Implement policies and strategic reserves for domestic ventilation production, ensuring a resilient supply of raw materials and mitigating import dependency and price volatility.
• Standardized Air Quality and Certification Policies: Introduce unified federal standards for dedicated outdoor air system manufacturing, performance testing, and installation inspection to streamline regulatory approval and boost interoperability.
• Permitting Process Reform: Expedite environmental reviews and permitting for critical ventilation projects that enhance national air quality infrastructure efficiency and commercial capacity.
• Digital Monitoring Mandates: Promote the deployment of smart sensors, wireless connectivity, and remote monitoring technologies as part of ventilation management protocols.

How Industry Bodies & Associations Could Strengthen Sector Coordination and Technical Leadership?

• Unified Material and Air Quality Standards: Develop consensus-based benchmarks for ventilation grades, air quality ratings, and performance standards to ensure interoperability and system-wide efficiency.
• Workforce Development Programs: Create certification pathways for ventilation technicians, air quality installers, and building engineers to address the skilled labor shortage and ensure quality installation.
• Collaborative R&D Consortia: Establish joint programs linking operators, manufacturers, and research institutions to drive innovation in energy recovery technologies, advanced materials, and monitoring systems.
• Performance Data Repositories: Build centralized industry databases for performance incident data, efficiency rates, and material performance to inform better design and maintenance standards.
• Public Outreach and Awareness: Promote the role of modern ventilation infrastructure in air quality reliability, economic growth, and environmental protection through coordinated industry campaigns.

How Dedicated Outdoor Air System Manufacturers & Technology Suppliers Could Capture Value and Drive Innovation?

• Advanced Ventilation Manufacturing: Invest in production technologies for high-grade energy recovery systems, efficiency-enhanced units, and smart air quality solutions for demanding applications.
• Air Quality Monitoring System Integration: Develop integrated diagnostic platforms combining smart sensor data, wireless monitoring, and performance analytics for predictive maintenance.
• Supply Chain Digitalization: Implement digital traceability from component sourcing to final installation, using blockchain or QR codes to ensure material provenance and quality compliance.
• Partnership with Research Institutions: Collaborate with national labs on next-generation materials, such as advanced ventilation technologies and composite air quality systems for high-performance applications.
• Commercial Optimization: Introduce automated manufacturing systems, advanced energy recovery applications, and modular unit fabrication to lower manufacturing costs and improve throughput.

How Facility Operators & Infrastructure Companies Could Optimize Commercial Efficiency and Demand Expansion?

• Digital Asset Integration: Create digital replicas of ventilation assets integrated with real-time sensor data to optimize performance, predict maintenance, and simulate efficiency scenarios.
• Scale-up of High-Value Applications: Focus on ventilation specifications for commercial developments, high-efficiency air quality projects, and institutional building networks.
• Collaborative Supply Ecosystems: Develop long-term contracts with equipment manufacturers and technology suppliers to ensure consistent quality and secure capacity during expansion cycles.
• Pilot-to-Field Deployment Transition: Use phased testing for new ventilation technologies, such as advanced energy recovery systems for facility service, before full-scale field deployment.
• Lifecycle Cost Optimization: Invest in premium ventilation materials and technologies during installation to reduce long-term maintenance and operational expenses.

How Commercial & Service Companies Could Lead Cross-Sector Integration?

• Facility and Building Integration: Deploy advanced monitoring and optimization technologies for aging distribution networks in urban and commercial areas.
• Building and Asset Enhancement: Incorporate real-time air quality management platforms that combine performance data with efficiency assessment for a comprehensive view of asset health.
• Distribution and Infrastructure System Management: Apply advanced efficiency-based methodologies to prioritize maintenance on vast and often complex ventilation networks.
• Regional Testing and Validation Hubs: Create regional facilities to test and validate new monitoring tools, efficiency technologies, and ventilation systems under simulated field conditions.
• Ventilation Life Extension Initiatives: Reuse and upgrade equipment segments for enhanced efficiency services and optimize rehabilitation programs through advanced technology and smart management systems.

How Engineering & Construction Firms Could Unlock Application Innovation and Demand Access?

• Design and Material Expansion: Develop customized ventilation solutions for challenging environments, including urban conditions, weather zones, and high-efficiency applications.
• Modular Air Quality Applications: Integrate prefabricated and pre-optimized ventilation systems into building design to reduce field installation time and costs.
• Advanced Project Delivery Systems: Offer integrated EPC (Engineering, Procurement, and Construction) platforms that include digital as-built handover with all ventilation material records.
• Design for Commercial Services: Partner with operators to provide co-engineered ventilation systems optimized for constructability, operability, and long-term efficiency.
• Digital Platform Development: Launch project management platforms for standardized equipment components, procurement tracking, and quality assurance documentation.

How Investors and Financial Enablers Could Unlock Growth and Technology Scalability?

• Venture Capital for Technology Startups: Support early-stage companies developing novel monitoring systems, efficiency-based detection, and AI-driven air quality software.
• Infrastructure and Modernization Financing: Provide capital for ventilation replacement programs, facility upgrades, and digital control system installations.
• Public-Private Investment Platforms: Create co-financed funds for pilot projects demonstrating commercial efficiency or infrastructure building in enhanced or new-built ventilation systems.
• Strategic Consolidation Funding: Back mergers and acquisitions that consolidate fragmented ventilation technology, service, or manufacturing companies to achieve scale and geographic reach.
• Performance-Linked Financing Models: Tie loan terms and investor returns to key performance indicators like reduced energy consumption, improved efficiency records, and enhanced commercial performance.
• Commercial Transition Financing Programs: Channel innovation-oriented funds into ventilation systems dedicated to commercial efficiency, building development, and air quality efficiency networks.

Key Players in USA Dedicated Outdoor Air System (DOAS) Industry

• Daikin Industries Limited
• Carrier Global Corporation
• Johnson Controls International Public Limited Company
• LG Electronics Incorporated
• Trane Technologies Public Limited Company
• Greenheck Fan Corporation
• AAON Incorporated
• DesertAire Incorporated
• Addison HVAC
• DRI (Desiccant Rotors International)
• Nortek Global HVAC LLC
• Mitsubishi Electric Corporation
• Honeywell International Incorporated
• York International Corporation
• McQuay International

Scope of the Report

Item	Value
Quantitative Units	USD 3.8 billion
Equipment Type	Packaged DOAS Units, Custom-built DOAS Units
Capacity	Up to 20 Tons, 20-50 Tons, Above 50 Tons
Regions Covered	West, Northeast, South, Midwest
Key Companies Profiled	Daikin Industries Limited, Carrier Global Corporation, Johnson Controls International Public Limited Company, LG Electronics Incorporated, Trane Technologies Public Limited Company, Greenheck Fan Corporation, AAON Incorporated, DesertAire Incorporated, Addison HVAC, DRI (Desiccant Rotors International), Nortek Global HVAC LLC, Mitsubishi Electric Corporation, Honeywell International Incorporated, York International Corporation, McQuay International
Additional Attributes	Sales by equipment type and capacity segment, regional demand trends across West, Northeast, South, and Midwest, competitive landscape with established commercial corporations and ventilation suppliers, facility preferences for packaged versus custom-built equipment, integration with commercial facilities and advanced ventilation optimization policies particularly advanced in West region

USA Dedicated Outdoor Air System (DOAS) Industry by Segments

• Equipment Type :

  • Packaged DOAS Units
  • Custom-built DOAS Units

• Capacity :

  • Up to 20 Tons
  • 20-50 Tons
  • Above 50 Tons

• Region :

  • West
  • Northeast
  • South
  • Midwest