Market Trends of Europe Ventilation Equipment Industry
Commercial/Industrial End-User Sector to Grow at a Fast Rate
- Proper ventilation is crucial in indoor environments like commercial buildings where many people gather. Without it, properties may become susceptible to stagnant air, making the occupants vulnerable to health conditions.
- Moreover, improving indoor ventilation has a direct impact on improving employee productivity in offices. Also, office ventilation in the region is covered by different legislations, implying that employers are required to ensure that enclosed workplaces - like office blocks - are adequately ventilated to ensure a healthy environment for workers.
- For instance, the Workplace (Health, Safety, and Welfare) Regulations 1992 covered office ventilation in the United Kingdom. As per the legislation, clean air must be brought from outside the workplace and circulated throughout the building to replace the old air inside.
- Similarly, industrial building owners are required to maintain adequate ventilation in industrial warehouses. In countries like Spain, different laws regulate the ventilation of industrial buildings. For instance, according to Real Decreto 1027/2007 in Spain, the minimum air renewal in commercial buildings should be 8 cubic decimeters per second per person.
- Further, the increasing investments in the commercial sector in Europe are creating a positive outlook for the market. For instance, as per Colliers International, the total volume of commercial real estate investment in Central and Eastern European markets amounted to EUR 11.7 billion (USD 12.87 billion) in 2021, considerably higher than in the previous year.
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United Kingdom to Occupy a Significant Share
- The United Kingdom became the first major economy to pass laws to reduce its greenhouse gas emissions to net zero by 2050. Also, in April 2021, the country enacted a new regulation to reduce emissions by 78% by 2035 on 1990 levels. As a part of this plan, the country aims to intensify its efforts and eliminate virtually all emissions from heating, cooling, and energy use in buildings.
- Moreover, energy bills were set to rise drastically in the United Kingdom after the country's energy regulator announced its price cap would increase by over 50% in April 2022. Ofgem, Britain's energy sector regulator, said that its price cap, under which the average household's annual energy bill is currently between GBP 1,277 and GBP 1,370, would be raised by 54%, marking a colossal increase, resulting in the probability of many households witnessing their energy bills rise by around GBP 700 a year. Such factors contribute to the region's growing demand for energy-efficient ventilation systems.
- The market also continues to witness significant product innovation with many product launches. For instance, in February 2023, Domus Ventilation, the UK-based manufacturer of ventilation systems, expanded its HRXE range of Mechanical Ventilation with Heat Recovery (MVHR) units by launching HRXE-ZEUS to meet ventilation requirements for large residential properties.
- The surge in construction activities in the region leading to the rapid expansion in the residential and commercial sectors also acts as a growth accelerator for the market. For instance, as per the Office for National Statistics, total construction output in Great Britain increased by 12.7% in 2021 compared with the previous year, which is the largest increase since annual records began in 1997, surpassing the previous record of 9.9% in 2014.
- Also, in September 2021, the Government in Britain revealed that a record GBP 650 billion (USD 900 billion) of private and public investment would be implemented in infrastructure projects across the region over the next decade. Such investments also support market growth.
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