DOAS (Dedicated Outside Air System) Market Opportunities and Challenges
The dedicated outdoor air system (DOAS) market is expected to grow from USD 3.9 million in 2022 to USD 5.9 million by 2027, registering a CAGR of 8.8% during the forecast period. DOAS is witnessing rapid growth in the residential and commercial verticals due to the increasing development of real estate globally. This is one of the key factors expected to drive market growth during the forecast period. However, implementation of DOAS involves heavy customizations, making them complex equipment, which may pose a challenge to market growth.
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DOAS units circulate fresh air into the building independent
of heating or cooling efforts. Contrary to conventional heating and cooling
systems, DOAS facilitates outdoor air conditioning before entering the comfort
conditioning equipment. It does not control the temperature in the space, but
provides clean, filtered, conditioned air to the space near room-neutral
conditions. Several units, including rooftop units (RTUs), draw ventilation air
directly from the outside into the unit. DOAS is viewed as a key HVAC equipment
for the green building evolution leading to higher adoption, especially in the
commercial vertical.
Demand for DOAS in the commercial vertical is expected to be
the highest due to the increasing efforts to reduce carbon footprint, booming construction
and development projects post-pandemic, stricter building rules, and efforts to
reduce building maintenance expenses. The HVAC system consumes high energy in
commercial places, about 30% of the energy. Replacing a traditional HVAC system
with an advanced and energy-efficient DOAS can help save energy. Concerns over
the environmental impact and rising energy prices have necessitated the use of
energy-efficient DOAS in commercial spaces. Consequentially, the commercial
vertical is estimated to witness the highest growth during the forecast period.
Some of the industries that essentially require DOAS equipment are healthcare,
education, government, airports, and retail. For instance, the use of DOAS in
healthcare helps maintain indoor air quality and temperature, provide fresh
air, remove contaminants from the air, and maintain humidity levels.
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The DOAS market is segmented into four regions—North
America, Europe, Asia Pacific, and the Rest of the World (RoW). Asia Pacific is
expected to hold the largest share of the DOAS market during the forecast
period. Among key countries such as China, Japan, and South Korea, China is
likely the major contributor to the growth of the DOAS market in Asia Pacific.
Due to heavy investments and growing infrastructure development activities,
China is expected to provide ample opportunities to players in the DOAS market
in the coming years. China has a strong demand for DOAS to meet the rising need
for energy consumption; the government is coming up with various initiatives to
promote efficient energy consumption practices, driving the demand for DOAS in
the country. For instance, in 2020, China’s ‘14th Five-Year Plan’ proposal
demanded that local governments accelerate the promotion of green and
low-carbon development.
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