Global energy recovery ventilator market is expected
to grow during the forecast period, owing to the following factors including
rising demand to reduce energy consumption in commercial and residential
buildings, surging innovations in cost-effective energy recovery ventilators
(ERVS), growth in the development of smart cities, increasing awareness for
indoor air quality (IAQ), and increase in the construction of green buildings.
An energy recovery ventilator (ERV) is a type of
mechanical equipment that features a heat exchanger combined with a ventilation
system for providing controlled ventilation into a building.
Energy recovery ventilators are comparatively more
expensive among all types of ventilation systems owing to their complex
components and their installation process. The system has more maintenance
intensity and consumes large electric power for running. Energy recovery
ventilators allow a controlled path of ventilation to minimize energy wastage
and transfers heat from the warm exhaust air to the cold supply. The factors
such as reduced heating and cooling costs along with cost effectiveness in
climates with extreme winters and summers are some of the major factors aiding
the growth for the global energy recovery ventilator market. This system is
generally preferred for commercial as well as industrial applications to reduce
the overall building operational costs. Moreover, the system requires freezing
protection in cold climates.
Global Energy Recovery Ventilator Market: Trends &
Drivers
Rising Demand to Reduce Energy Consumption in
Commercial and Residential Buildings
The residential sector consumes a significant amount
of energy equivalent to one third of total primary energy resources available.
Increase in building service demands and improvised lifestyle have further
increased energy consumption. Thus, energy-efficient ventilation systems, such
as energy recovery ventilation (ERV), can drastically save energy by reducing
the demands for electricity and power for heating and cooling and providing
appropriate ventilation to residential or commercial buildings. In addition,
the ventilation system dries it before air enters, increasing its power to
control humidity. Moreover, ventilation system improves indoor air quality and
reduce energy consumption. Additionally, integrating a power recovery fan into
the ductwork of a residential or commercial home can help ensure good
ventilation.
The demands for energy recovery ventilators are
further augmented for removing pollutants emitted by indoor sources. The high
rates of air change can cause energy burden on a building’s heating or cooling
needs. Ventilation accounts for 30% or more of space conditioning energy and
has increased the demand to minimize ventilation rate, reduce energy, and
ensure optimum indoor air quality. The proportion of airborne energy loss is
much higher in buildings constructed at high standards of thermal insulation.
The amount of energy consumed is dependent on the flow rate of ventilation and
the amount of air conditioning necessary to achieve thermal comfort. Additional
energy is needed to drive energy recovery ventilators, cool air by refrigeration,
and maintain humidity levels. Exponential growth in the rate of energy
consumption and dissipation in the commercial and residential sectors has
created an emphasis on energy conservation development, which has, in turn,
increased the demand for energy recovery ventilators.
Surging Innovations in Cost-Effective Energy Recovery
Ventilators (ERV)
The global energy recovery ventilation market is set
to witness remarkable growth, driven by increasing advancements in energy
recovery ventilation technologies. Leading manufacturers are investing
significantly in designing and developing controlled ventilation systems that
enable the transfer of heat from warm exhaust air to cold supply air. This
innovative approach not only reduces energy costs but also enhances the
efficiency of heating ventilation air. Moreover, the utilization of residual
piping in limited energy recovery systems helps minimize expenses. Furthermore,
the incorporation of efficient channels contributes to a reduced system
pressure drop, leading to improved overall performance. The incorporation of
embedded devices in energy recovery systems prevents it from freezing and
reduces frost formation that can damage heat exchangers. This further decreases
the maintenance costs. Increased focus on indoor climate has increased demand
for turn-key heating, ventilation, and air conditioning (HVAC) solutions and
integrated cooling methodologies. This is enabling the market vendors to invest
in technologies that help to obtain good thermal comfort and indoor air quality
in warm summer seasons.
The technological development in the HVAC industry is
focused on cost cutting initiatives and improvements of existing technology.
There is a growing demand for latent heat storage, with higher storage density
and smaller temperature changes. The potential use of Phase Change Material
(PCM) in HVAC solutions for thermal storage and temperature maintenance
applications, innovations in the Next Generation Ventilation (NeGeV) to
optimize system performance and cater to the ventilation and cooling demands
for commercial and industrial sectors are among the factors bolstering the
growth of the market. Further, energy recovery ventilators (ERVs) are
witnessing significant developments and innovations that are expected to revolutionize
the industry. These advancements aim to match current price levels while
substantially reducing operating costs, resulting in substantial energy savings
and a reduced carbon footprint. By offering energy consumption reductions
ranging from 50% to 90%, ERVs are poised to become indispensable components of
energy-efficient buildings. These factors, coupled with the growing demand for
sustainable solutions, present lucrative growth opportunities for market
players in the energy recovery ventilation sector.
Increasing Number of Smart City Initiatives
Growth in smart cities and green building initiatives
is driving the energy recovery ventilators market. Stringent government
regulations to reduce energy consumption and increased demands for sustainable building
options has led to the construction of green buildings. Growing emphasis on
indoor environmental quality (IEQ) in green buildings is increasing the
installations energy recovery ventilators. There is a growing demand for the
use of energy recovery ventilation, whole-house fans, and energy-saving exhaust
fans among the green buildings to address ventilation, moisture control, and
local exhaust, supply air filtration, radon protection, and contaminant
control. Countries such as Sweden and Scotland are actively pursuing a smart
city strategy.
For instance, the European Commission is funding the
smart cities projects through the Horizon 2020 Research and Innovation Program.
Dublin’s smart city program enables regional authorities to engage with smart
technology providers to improve city life. Such initiatives have subsequently
surged the demand for energy recovery ventilators, which is significantly
driving market growth.
Increasing Awareness for Indoor Air Quality (IAQ) to
Boost Product Demand
The quality of the air is an important concern and is
getting acknowledged in the present time. The deficient Indoor Air Quality
(IAQ) creates an adverse impact on the health, cognitive function,
productivity, and wellbeing of indoor occupants. Therefore, the demand for ERVs
is anticipated to drive the market. It can continuously replace stale indoor
air with fresh outdoor air. Additionally, it can remove pollutants, including
excess moisture, household chemicals, optimize energy efficiency, minimize
carbon footprint, and others.
Moreover, enhancing indoor air quality is a major
challenge as the conditioning process demands high cost. To overcome such
challenges, manufacturers introduced ERVs, which possibly reduced ventilation
energy costs and amended outdoor air quality intake. Furthermore, government
intervention to construct energy consumption buildings and policies related to
carbon emissions for residential and commercial purposes are the driving
factors for the growth of the global market.
Global Energy Recovery Ventilator Market: Restraints
Huge Initial Upfront Cost
High cost of procurement, installation, integration,
and maintenance of energy recovery ventilators hinders the growth of the market
worldwide. Improperly assembled and installed energy recovery ventilators in
spaces with limited space will disrupt airflow, introducing dirty air and
pollutants along with clean air. This requires additional air ducting which
increases the cost and maintenance of the product. Exhaust ventilation systems
and supply ventilation systems cause higher heating and cooling expenses, as
they do not eliminate moisture from the outside air before it enters the
building. The balanced ventilation system does not remove moisture before
entering the room; however, they employ filters to eliminate dust of outside
air, which further increases the operational costs. Balanced ventilation
systems are more expensive because of applying two fans and duct systems.
Inappropriate installation of a mechanical ventilation system, backing up mechanical
ventilation for a critical facility, utility service interruption, and
equipment failure are some factors that can increase the operational and
maintenance cost of energy recovery ventilator, thereby hampering the growth of
the market.