COVID Creates Long-Term Growth Opportunities for IAQ Markets

The COVID-19 pandemic gave new importance to indoor air quality, with IAQ system sales exploding nearly 25% in 2020 from 2019 levels, according to a new Freedonia Group analysis:

• The CDC and other public health organizations advised consumers and businesses to increase air filtration, install and replace HEPA filters, and invest in ultraviolet germicidal irradiation to mitigate the spread of COVID-19.
• Robust gains were seen in all markets for indoor air quality equipment, with the institutional market seeing the most substantial growth.
• Schools across the US – aided by federal funding – made significant investments in air cleaners and, to a lesser extent, ventilation products.

Strong growth is expected to continue in 2021 as the COVID-19 crisis remains ongoing, and awareness of the effects of poor air quality on health continues to rise. With the backing of the CDC guidance on IAQ, retailers and installers will be key to educating consumers and businesses about the benefits of installing IAQ systems.

IAQ System Market to Reach $5.6 Billion in 2025

Demand for indoor air quality equipment – including air purifiers/cleaners, mechanical ventilation equipment, and replacement filters – is expected to grow an average of 2.1% per year through 2025 to $5.6 billion. While growth will continue through 2021, demand for most indoor air quality equipment will normalize during the latter half of the forecast period, with replacement filters providing the only continued gains.

However, demand levels in general will remain well above those of the pre-pandemic period, due in part to ongoing concerns over respiratory ailments related to air quality and an increase in building construction. As demand is expected to remain elevated, many suppliers will continue to expand their businesses by hiring more workers or by increasing manufacturing capacity.

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Indoor Air Quality Equipment covers the US market for indoor air quality equipment. Historical data for 2010, 2015, and 2020 and forecasts to 2025 and 2030 are provided for indoor air quality equipment demand both in units and in current dollars (which are not adjusted to account for inflation) by product, market, and technology. Also included are consumer survey insights as well as corporate analysis including market share.

Products in the scope of this report include central systems and local units (room-specific or location-specific, including those that are portable). Also included are:

• mechanical ventilation systems that can be sold separately from an overall heating or cooling system
• local units purchased by consumers for personal use outside of the home (e.g., during leisure activities, driving, work, or school)
• replacement filters

Technologies used by indoor air quality equipment include:

• air filtration
• electrostatic air cleaners
• ionic air cleaners
• niche technologies, including ozone, ultraviolet (UV), and other smaller volume products

Markets (sectors):

• residential (single-family, multifamily)
• commercial (office buildings, retail, foodservice, other)
• institutional (healthcare, education, religious)