Dedicated Outdoor Air System (DOAS) Market Size and Share Analysis by Capacity (Less Than 20 Tons, 20–40 Tons, 40–60 Tons, Greater Than 60 Tons), Implementation (New Construction, Retrofit), Application (Commercial, Residential, Industrial)- Global Industry Demand Forecast to 2030

Market Overview

The global dedicated outdoor air system market size stood at USD 3,849 million in 2022, which is expected to reach USD 7,447 million by 2030, advancing at a CAGR of 8.60% between 2022 and 2030. This is attributed to the increasing acceptance of these systems in residential and commercial applications, the surging government regulations for HVAC equipment, and the rising attention to ideal indoor air and environmental quality.

A dedicated outdoor air system (DOAS) is a subset of the HVAC system. While ventilation is not a primary function of HVAC devices, the main objective of DOAS is to provide sufficient outdoor airflow. It also separates the external air from the air that regulates the building's interior temperature. Both humidity management and space temperature control are enhanced by using a single system to supply and dehumidify all ventilated air. The equipment successfully splits the latent and sensible loads by conditioning the outside air and recirculating air separately.

Moreover, the primary HVAC unit eliminates the sensible load to provide a contented temperature, while DOAS removes the latent load to manage humidity. Additionally, it can support the main HVAC systems by monitoring smaller internally produced amounts of latent load that are naturally made by inhabitants and other sources.

HVAC Equipment Regulations Drive the Industry

In order to increase energy efficiency and control HVAC equipment, many laws are put into place. The HVAC industry has adopted ASHRAE Standard 62-89 as the standard for ventilated air in commercial buildings. Based on the size of the facility and the number of inhabitants, ASHRAE 62.1 standards determine how much outside air is necessary. In order to comply with this requirement, DOAS improves interior air quality by supplying the right volume of outside air to defined areas.

The HVAC unit's performance should also conform to a rating of less than NC-40 and meet or exceed the ASHRAE 90.1 energy efficiency criteria of ISMRE 11.1 and ISCOP 8.0. With the exception of low-rise residential structures, this complies with the standards for energy-efficient design. For commercial buildings, the system offers energy savings ranging from 15% to 30%. Thus, the demand for this equipment is rising, as a result of the implementation of HVAC standards and the adherence to those regulations with the aid of DOAS.

Governments in major nations also assist the market with a number of measures. For instance, the U.S. Department of Energy established a program in 2021 to support HVAC systems in homes and businesses that are more environmentally friendly. Similarly, in India, the government has also made steps to promote infrastructure expansion in the HVAC-R sector through the national budget.

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40–60 Tons Category To Witness the Fastest Growth

Based on capacity, the market is categorized into less than 20 tons, 20–40 tons, 40–60 tons, and greater than 60 tons. During the projection period, the 40–60 tons category is set to witness the highest growth rate, of 9.1%, during 2022–2030. With extra features and a multi-zone capacity, a dedicated outside air system with a 40–60-ton capacity offers exceptional efficiency and 100% outside air proficiency while decreasing outdoor circulation by conditioning just the quantity of air required for each zone.

Moreover, units with a 40-ton capacity also offer chilled or hot water for hydronic heating or cooling applications, radiant floor heating, and fan coil handlers that pre-treat outside air. Also, DOAS with this capacity is frequently utilized in commercial and industrial structures. For instance, the need for high-capacity DOAS is increasing, as a result of the expansion of technological centers in Asian nations.

New Construction Holds Larger Market Share

Based on implementation, the market is categorized into new construction and retrofit. Of these, the new construction category held a larger revenue share, of more than 60%, in 2022. This is attributed to the increasing investment by major developing economies in the commercial sector to develop infrastructure.

Moreover, the need for these devices is boosted by the rapidly expanding construction industry and the increasing number of energy-efficient structures created to preserve water, cut back on pollution, and safeguard human health. Additionally, the HAVC industry is expanding as a result of increased urbanization, economic expansion, and disposable income in developing nations of Asia-Pacific and the Middle East and Africa.

Whereas, the retrofit category is expected to witness faster growth during the projection period. To achieve the desired efficiency in energy consumption, cost savings, and comfort, retrofits are a good solution. The internet of things (IoT) and integrated smart technologies have improved the efficiency of DOASs relative to earlier systems. There are certain benefits to retrofitting older buildings, such as cost savings from using less energy and water, as well as increased comfort levels from better circulation and temperature control. Retrofitting also enhances the building's sustainability and lowers GHG emissions.

Commercial Is the Largest Application Category

Based on application, the market is classified into commercial, residential, and industrial. Among these, the commercial category dominates the market. This is because air handling systems are used to heat and cool indoor air in commercial settings. Using affordable and energy-efficient technology, these devices offer improved air quality in commercial buildings. Also, these appliances are becoming more popular in commercial building applications since they are designed to withstand extreme weather conditions.

Whereas, the residential category is expected to witness the highest growth rate of around 9%, during the projected period. This can be attributed to the rise in the disposable income of consumers worldwide. People's ability to buy cutting-edge goods and services is increasing as disposable income rises, which makes it possible for these air-cleaning devices to enter the domestic market.

North America Is a Significant Market

North America accounted for a significant market share in 2022. This is due to the existence of numerous well-developed businesses, medical facilities, and commercial spaces, where the need for DOASs is high; the presence of major industry players; and the high demand from residential buildings to enhance indoor air quality, in the region. Moreover, government regulations in this area have helped the sector expand. For instance, the Weatherization Assistance Program (WAP) and the ENERGY STAR Verified HVAC Installation Program are government initiatives promoting the expansion of the DOASs.

On the other hand, the APAC market will witness the highest CAGR, of 9.5%, from 2022 to 2030. This can be ascribed to friendly government policies, the rising population, the increasing building activities, and shifting climatic conditions. Moreover, the industry is fueled by a number of governmental laws and regulations, and organizations advocate the usage of DOASs in the region. Also, the requirement for such systems is high in the residential and commercial sectors, with considerable demand coming from countries like China and Japan.

In China, the manufacturing and construction industries are growing at a significant rate over the past few years, owing to the increased government expenditure on the development of infrastructure projects. The country accounts for 20% of all construction investment worldwide and is supposed to spend almost USD 13 trillion on developing infrastructure and construction activities by 2030. Due to these large expenditures and a rise in real estate construction, the market for DOAS is growing in the country.

Top Players in the Dedicated Outdoor Air System Manufacturers Are:

• Johnson Controls International PLC
• Carrier Global Corporation
• Daikin Industries Ltd.
• Trane Technologies PLC
• LG Electronics Inc.
• Samsung Electronics Ltd.
• Greenheck Fan Corporation
• Nortek Global HVAC LLC
• Ingersoll Rand Inc.
• Mitsubishi Electric Corporation

Market Size Breakdown by Segment

This fully customizable report gives a detailed analysis of the dedicated outdoor air system industry from 2017 to 2030, based on all the relevant segments and geographies.

Based on Capacity

• Less Than 20 Tons
• 20–40 Tons
• 40–60 Tons
• Greater Than 60 Tons

Based on Implementation

• New Construction
• Retrofit

Based on Application

• Commercial
• Residential
• Industrial

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.