The market for indoor air quality (IAQ) solutions is showing no signs of stopping its growth. According to a new Freedonia Group analysis, demand for IAQ equipment is expected to grow 2.1% per year from now to 2025, putting the total market value at $5.6 billion. And leading the pack is the residential market, with homeowners growing more and more willing to spend extra for wellness and comfort in their living spaces.
Products in the scope of this report include central systems and local units, as well as mechanical ventilation systems that can be sold separate from traditional HVACs, individual units purchased by consumers directly and replacement filters. These devices also represent a variety of IAQ technologies, including air filtration, ultraviolet and other small volume products.
Highlights of the Indoor Air Quality Equipment Analysis
Growing Concerns of Indoor and Outdoor Air Alike Fuel Demand
The main factors for the residential market seeing greater adoption in the years to come include:
- A strong housing market and heavy investment in home improvement.
- Heightened concerns about indoor air quality, partly as a result of natural disasters (like wildfires) and outdoor pollution issues.
- Awareness that tightening building envelopes concentrate indoor contaminants, including airborne viruses.
Ailments such as asthma and allergies will also place a greater importance on functioning air quality systems. Additionally, the large uptick in time spent at home is expected to push investment in wellness and comfort products in a consumer effort to craft healthier homes for themselves.
IAQ Makes an Additional Push into Nonresidential Markets
While the market for commercial HVAC equipment is far greater in value compared to residential, it has not yet reached the same level of adoption. Building owners have long relied on central HVAC filters to clean the air in specific parts of a building. However, the pandemic has placed a new importance on improving air in these nonresidential spaces, like schools. Funding expenditures alone show these facilities investing heavily in indoor air quality equipment.
Mechanical ventilation equipment is commonly used in nonresidential segments and will continue to help these markets maintain their size while demand for air treatment equipment normalizes over the next few years.