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Room Ventilation: Local Instead of Central

The residential ventilation market in Germany, Austria and Switzerland is on the upswing again after years of decline. The market growth was 8.0% in 2016. In the next few years, rapid growth of the construction industry in Germany, Austria and Switzerland will benefit the industry, as a new study by Interconnection Consulting shows. By 2019 growth is expected to average around 6%.

Locally Operated Systems Gaining Popularity

The market for residential ventilation in Germany, Austria and Switzerland has a market volume of 233.7 million Euros. In general, a distinction is made between eexhaust ventilation systems without heat recovery and systems with heat recovery. When speaking about systems with heat recovery, a distinction is made between central systems - which are more complex because the ventilation ducts are led to the system - and local systems (the so-called single room units). With a valued share of 42%, central systems with heat recovery get the lions share. The tendency is, however, clearly decreasing. Especially in Germany, the sustained success of locally operated air handling systems is responsible for a noticeable market shift. Locally operated air handling systems with heat recovery have been able to increase their market share from 16.9% (held in 2012) to 24.8% in 2016. The growth in volume in this segment last year was 14.5%. Suppliers of residential building market in particular are asking for locally operated air handling cooling fans, the decisive criteria for their choice being the fans simple installation in new construction and renovation as well as their relatively low average price.

Germany - a Pioneer for Locally Operated Air Handling Systems

The German market (with a market volume of 166 million Euros) recorded the strongest growth (+ 9.7%) in the overall sector compared to its two neighboring countries. The increase in applications and the granting of residential building permits in Germany shows that positive growth will shape the market in the years to come. In Germany, the share of centrally operated air handling systems with heat recovery is the lowest (34.1%) among all the three German-speaking countries, and the trend is still declining.
The market for household fans in Germany has traditionally been strongly characterized by exhaust fans in the kitchen and bathroom. In 2016, about 600,000 of these fans were sold. Exhaust ventilation systems without heat recovery have a market share of 74.9%. "The dynamics in the heat recovery sector were not as strong as expected, due to low energy prices, but growth in this sector will continue in the foreseeable future," said Neva Rukonic, author of the study.

Different Development of Switzerland and Austria

In Austria, the market for residential ventilation systems (market volume: EUR 19.8 million) has fallen by 0.3% in terms of quantity without any recovery expected before 2018. Centrally operated air handling systems represent the strongest segment with a share of 51%. Nevertheless, the market for centrally operated air handling systems with heat recovery continues to be in the red with declining sales volume (12,0% last year). Due to the increasing competition of locally operated air handling systems, centrally operated systems are expected to further their decline for another 11,9% in 2017. The segment of exhaust ventilation without heat recovery has a slightly positive development (+ 1.5%). In Switzerland, the market as a whole grew by 2.9% in 2016, a growth that should continue in the coming years. The largest growth came from centrally operated air handling units with heat recovery (+ 5.1%). Locally operated air handling units with heat recovery increased by 2.1%, whereas the exhaust ventilation without head recovery registered a minus of 3.6%.

Market Shift Responsible for Takeovers

Large producers of central systems are aware of the trend towards locally operated residential ventilation systems and are buying smaller manufacturers of locally operated systems. The latest example is the takeover of the locally operated ventilation manufacturer Blumartin by the big Swedish company Swegon, who hopes to be positioned better in the large German market. In Germany the top 10 companies take up 32,8% of market shares, and in Austria 58.3%.

2017-03-21 11:54:13

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting

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