Australia Ventilation Products Market Insights by End-Use (Residential, Commercial) – Forecast Through 2030

Market Overview

The Australian ventilation products market size stood at $569.4 million in 2021, which is projected to advance at a CAGR of 6.5% during 2021–2030. The growth of the industry is primarily ascribed to the rising number of commercial and residential projects, surging awareness of the health and environmental effects of polluted air, and growing preference for decentralized ventilation.

The rising number of residential and commercial projects is a major factor propelling the growth of the market. This is attributed to the growing population and construction industry in Australia. For instance, in the quarter of June 2021, the total construction work done in Australia rose by around 0.5% from June 2020. The value of work done in the residential sector was around $14 billion and non-residential stood at about $8 billion. Thus, the increasing infrastructure spending and construction boom in Australia is supporting the growth of the market in the country.

Surging Demand for Green/Smart Buildings Is a Key Market Trend

The preference for green/smart buildings is gaining importance, owing to factors such as high carbon emissions, increasing pollution levels, and growing awareness toward creating a healthy and sustainable environment. A green building consists of practices, including energy efficiency, water conservation, greenhouse gas emission reduction, waste reuse and recycling, minimization of natural resource consumption, and protection of the environment. Thus, real estate companies are focusing on the construction of green/smart buildings due to their increasing demand.

Due to the COVID-19 pandemic, the supply chain of refrigerants and electronic components was impacted, such as compressors, embedded systems, and fan units, which, in turn, disturbed the manufacturing of ventilation products. Thus, this factor reduced the demand for their services and also restrained the growth of the Australian ventilation products market.

Growing Preference for Decentralized Ventilation

Decentralized ventilation has several advantages over centralized ventilation. In terms of IAQ, decentralized ventilation allows the system to satisfy the demands of each zone. When a place is occupied, such a system can respond by increasing the ventilation rate and delivering a higher IAQ.

Further, decentralized systems can achieve a higher ventilation efficacy by eliminating pollutants closer to their source, thus reducing the volume of the supply air required and the energy necessary to condition and distribute it. The control and adjustment of a building's ventilation system are simplified because each portion can be managed independently. Moreover, smaller risks exist in maintenance and during malfunction; while one unit is being serviced, others continue to operate.

Areas with moisture issues are small, and the installation work needed is usually minimal. Individual units work individually to remove air from places that can become overly humid, such as bathrooms and kitchens. These factors are contributing to the adoption of decentralized ventilation; hence, supporting the growth of the market in the country.

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Commercial Sector Is Dominating the Market

In the Australian ventilation products market, the commercial category held a larger revenue share, over 70%, in 2021. The economic expansion and surge in the urbanization rate have led to the rising number of offices, malls, hotels, hospitals, and other commercial spaces, which, in turn, boosts the need for ventilation products. Moreover, the development of organized retail outlets and special economic zones is also advancing the growth of the market in the country.

Adoption Rate of Ventilation Products Is Increasing in Residential Sector

The demand for ventilation products in the residential sector is surging at a higher CAGR, of more than 7%, during the forecast period. With the help of home ventilation systems, residents can reside in a safe and comfortable environment. These systems control airflow in the home to prevent pollutants, such as smoke, carbon dioxide, and volatile organic compounds, from building up. Moreover, people are preferring homes with multiple ventilation fans installed to evacuate harmful gases or regulate indoor temperatures.

The Australian market for ventilation products is fragmented in nature. In recent years, players in the market have been involved in partnerships and product launches in order to attain a significant position. For instance:

• In January 2020, Fantech Pty Ltd. announced the launch of a new range of Trade sweep fans that are integrated with Fantech Trade’s latest innovation, “AeroGlide System”. There are four models existing in black and white colors, LED and non-LED models, various sizes, and an IP55-rated model for outdoor areas.
• In August 2019, Vent-Axia Group Limited announced its partnership with Ventair Pty Limited. The partnership allows Ventair to become a new distributor of the Vent-Axia brand in Australia.

Key Players of the Australian Ventilation Products Market Are:

• Mitsubishi Electric Corporations
• Daikin Industries Ltd.
• Samsung Electronics Co. Ltd.
• LG Electronics Inc.
• Ventair Pty Ltd.
• Panasonic Corporation
• Carrier Global Corporation
• Johnson Controls International Plc
• Fantech Pty Ltd.
• Vent-Axia Group Limited