The global variable air volume (VAV) systems market valued USD XX million in 2019 and it is expected to grow at a CAGR of 6.38% to reach USD XX million by 2027
Variable air volume systems are the type of heating, ventilating, and/or air-conditioning (HVAC) system. These systems incorporate the one supply duct that when in cooling mode, distributes approximately 55 °F (13 °C) supply air. The variable air volume (VAV) systems provide precise temperature control, reduced compressor wear, lower energy consumption by system fans, less fan noise, and additional passive dehumidification.
The market is driven by the rising demand for the variable air volume systems in the commercial, residential, and industrial buildings as the variable air volume systems are energy-efficient and capable of cooling and heating modern buildings..
On the basis of product type, the global variable air volume market is segmented in to Single-Duct VAV System, Dual-Duct VAV System, Induction-based VAV, Fan-Powered VAV System . Single-Duct VAV System segment is the dominating market with market share of 50.42% in 2019 and is expected to reach USD 9,309.86 million in 2027 with growth rate of 7.21% in the forecast period. Again Fan-Powered VAV System is divided in to Series Fan-Powered VAV System and Parallel Fan-Powered VAV System.
On the basis of application, the market is segmented in to commercial buildings, industrial buildings, residential buildings, and others . Commercial buildings segment is dominating the market with market share of 68.26% in 2019 and is expected to reach USD 12,007.23 million in 2027 with growth rate of 6.39% in the forecast period.
On the basis of region, the variable air volume market is segmented in to North America, South America, Europe, Asia Pacific and Middle East & Africa .
Asia-pacific is dominating the industry with market share of 40.35% in 2019 and is expected to have the highest growth rate of 6.96% followed by Middle East and Africa with a CAGR of 6.66%.
Market Dynamics
Drivers
- Steady growth of the commercial constructions and buildings sector globally
- Growing demand of energy efficient systems for commercial buildings
Restraints
- Routine maintenance requirement and limited application
Steady growth of the commercial constructions and buildings sector globally
The main driving factor for the growth of the global variable air volume (VAV) systems market is the increasing demand in the commercial constructions and buildings sector all around the world. The demand for the variable air volume (VAV) systems market is increasing across various commercial buildings such as retail, office, hospitality, and warehouse. Due to its numerous benefits, such as low power consumption, lesser fan noise, and improved precision, the VAV system has become increasingly popular as compared to other HVAC systems. According to Global Alliance for Buildings and Construction, In 2019, the annual growth rate of the global buildings and construction market was estimated at around 2.6% per year in 2019., Even if it is somewhat slowed down from 2018 rate of 3.2%, still the global scale of building and construction activities makes it a huge industry with great opportunities.
Asian markets are the fastest-growing market and particularly China, have seen construction growth in the region at 4.4% per year, while the North American and European markets in 2019 preserved only a low rate of growth of 1.2% and 2.3%, respectively. The steady growth rate of the construction industry is also affecting the VAV market as it is one of the necessary systems for the smooth functioning of medium-sized and large buildings.
Growing urbanization in various developing countries is also affecting the VAV market positively and made countries such as Brazil, India, Indonesia etc. For instance, According to IEA (International Energy Agency), in India, the building stock is being added at a high rate of 8 percent per year, and building energy use is increasing proportionally. Additionally, U.S. buildings use approximately 40 percent or 38 quads of the nation’s 97 quads of energy consumption. Indian buildings now use 30 percent of the nation’s 24 quads of energy consumption. To lessen consumption, India is bound to use energy-efficient systems in its building construction, which will create more opportunities for the VAV market.
Further, India’s power system requires approximately quadruple in size by 2040 to keep pace with electricity demand that has been boosted by rising incomes and new connections to the grid. The new grid connection increases at roughly 5 percent per year. Other than that, according to industry insiders, the Indian commercial sector footprint could triple to about 1.9 Billion m2 (sqm) by 2030 over a baseline of 2010.
For urbanization, commercial buildings such as IT hubs, offices, supermarkets, big shop hubs, schools, industrial factories, and hotels are necessary. And in turn, this brings the requirement of good air ventilation inside a building which results in the strengthening of the variable air volume market worldwide.
Geographical Analysis
Asia Pacific variable air volume (VAV) systems market is expected to grow with a CAGR of 6.96%, reaching USD XX million in 2027, from its recorded value of USD XX million in 2019. The Asia-Pacific region is expected to have positive market growth due to growing awareness regarding the reduction of consumption of energy. There is a growing adoption of the variable air volume (VAV) systems due to the rising sustainability concerns and energy efficiency legislations. The drastic market growth is expected to observe in the developing countries especially in India, and China due to the growing usage of the single-duct VAV systems in industrial buildings. The increasing domestic income and purchasing power of people shall boost the demand for the variable air volume (VAV) systems over the forecasted period.
China contributed for highest market revenue share of 50% in the year 2019. China VAV systems market is likely to reach USD 4,155.33 million in 2027, from its recorded value of USD 2,393.23 million in 2019. China hosts a vast construction sector, and the developments in the infrastructure and residential sectors in the past two years have supported the growth of the construction sector at large, both in terms of volume and value.
China has been focusing on reducing the environmental impact, in the form of reductions in carbon dioxide emissions and other waste emissions in the recent past. The usage of VAV systems can further enhance the country’s vision to support the reduction in environmental impact. The government is looking forward to boost activities in the construction sector, more specifically in the infrastructure sector, post the recovery from COVID-19, in order to bounce back from the economic impact being faced by the country.
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