Rocketing Future for Heat Recovery Ventilation Systems
The year 2015 for residential ventilation systems in Europe was a challenging one. The European market displayed a near-stagnant growth rate of 1.1% in terms of quantity. The market performance was strongly supported by booming sales in the United Kingdom. While central systems with heat recovery well positioned themselves reaching the sales of around 210 thousand units previous year, decentralized units with heat recovery demonstrated high potential with a double-digit increase of 10.6% in terms of volume. According to Interconnection Consulting the residential ventilation market is projected to remain relatively stable in 2016, inching up by another 0.8%.
Buoyant Sales of Decentralized Units
According to Interconnection Consulting, the total market value for residential ventilation systems in Europe (Germany, Austria, the UK, France, Italy, Switzerland, Benelux and Poland) reached 856.9 Million € in the year 2015. The market Europe consists of three different product groups out of which exhaust ventilation without heat recovery covers the largest market share. Almost 2 million sold units in the year 2015 account for a market value of 508.7 Mio €. However, its share is shrinking moderately from 83.8% in 2014 to 83.1% in 2015 due to the increasing popularity of heat recovery units. Central heat recovery units, the second product group of the survey, are gaining popularity throughout total Europe: in the Benelux region this product group displayed a market growth of 11.9% in terms of quantity, accounting for 34.1% of the market value. Another booming market for central HRV units is the UK, where the market grew by 11.2% in terms of quantity. The third surveyed product group is local heat recovery units and it enjoys tremendous popularity in Germany. However, also in Austria and Italy local HRV represents the fastest growing category in the residential ventilation industry thanks to ease of installation both in new construction and renovation as well as lower average prices comparing to central units. In Italy, this segment is expected to surpass the 8 thousand units benchmark in 2016.
Hybrid Systems with Encouraging Prospects
The absolute leadership in Central HRV goes with new construction (87.4%), as the system needs a lot of ductwork making it almost impossible to use for refurbishment (12.6%). Renovation output in exhaust ventilation without heat recovery is present by stunning 60.2% in terms of volume. As for the device type, the European markets are not used to central HRV with heat pumps as such systems are high-end goods. Sales of ventilation units with heat pumps accounted less than 5% in 2015. Such hybrid systems need more investments, but according to Olga Baran, author of the study, they have high potential in the medium term. When it comes to the analysis of distribution channels, most business is run through wholesalers (65.9% throughout all surveyed European markets). It is expected to increase its dominance to 66.8% already this year. Notable exceptions are Switzerland and France where 2-Step distribution is clearly preferred.
Favourable Regulatory Background
The market shows signs of increasing market concentration in 2015: the top 5 producers of central ventilation units with heat recovery consolidated 42.4% in the year 2015, compared to 40.9% in 2014. Individual markets are characterized by the strong presence of domestic producers, but there is a trend towards multi-national operating companies such as Zehnder, Brink or Aldes. In the upcoming years, manufacturers expect to continue to take advantage from a favorable regulatory backdrop: energy efficiency of buildings, emphasis on reducing carbon emissions from buildings and the conscious understanding of the importance of indoor air quality. Over the forecast period the market for central HRV is expected to grow by 4.6% annually in terms of value, reaching a market value of 315.6 Million € in the year 2018.