In a new research report, Future Market Insights (FMI) finds that sales of dedicated outdoor air systems (DOAS) in the United States hold a current valuation of USD 1,236.5 million in 2024. Revenue had reached USD 6,233.0 million in 2023.
Over the forecast period 2024 to 2034, the United States DOAS industry is anticipated to rise at 8.2% CAGR. Demand could surge to USD 2,708.1 million in 2034.
Demand for DOAS is projected to remain high in the 20 to 40 tons and 50 to 60 tons segments in terms of capacity. The latest United States DOAS industry analysis predicts that the target segments will thrive at 8.0% and 8.7% CAGR, respectively, during the assessment period.
| Attributes | Key Insights |
|---|---|
| United States DOAS Industry Size in 2023 | USD 6,233.0 million |
| Estimated United States DOAS Industry Value (2024) | USD 1,236.5 million |
| Projected United States DOAS Industry Revenue (2034) | USD 2,708.1 million |
| Value-based CAGR (2024 to 2034) | 8.2% |
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Industry to Expand around 2.2X through 2034
An expected increase in CAGR compared to the historical one by 2.3% is likely to lead to at least a 2.2x expansion of the United States DOAS industry through 2034. Increasing awareness of indoor air quality (IAQ) will likely propel the industry.
DOAS is likely to be added to building automation control systems (BACS) to improve HVAC performance and building efficiency. It also provides reliability while being able to communicate with the BAS platforms used, increasing their efficiency and reliability.
DOAS deployments combined with IoT devices and smart building technologies are gaining popularity. These enable remote monitoring and optimization of air quality & energy efficiency.
Customers and facility managers are looking for DOAS solutions that can easily fit a complete building management system with comprehensive performance analysis and predictive maintenance functions. Changes in construction, energy consumption, and IAQ-related regulations impact requirements.
Regulations aimed at reducing energy consumption and improving air quality are set to propel demand. DOAS programs are required to meet current regulatory conditions but can be adapted to changing future standards to maintain long-term durability and ensure compliance.
West United States to Remain the Hotbed for DOAS Manufacturers
West United States is expected to rise substantially in the United States DOAS industry during the forecast period. It is set to hold around 35.2% of the share in 2034.
The vast geographical range across Western United States plays a key role in increasing the need for advanced DOAS HVAC systems. This is because the area spans from dry deserts to temperate coastal lands. Hence, the region requires climate control structures that can adapt to a wide range of environmental situations. This has made the system an attractive option among homeowners and firms due to its versatility & efficiency.
Strict environmental regulations that exist in Western United States are set to propel the adoption of DOAS. To reduce emissions while improving energy usage, state and local governments have enacted stringent building codes and green standards. The system emerges as a solution that is compliant with all regulations.
Demand is further encouraged by exponential growth of urban centers in Western United States. In Los Angeles, San Francisco, and Seattle, there has been an influx of commercial development that calls for DOAS system HVAC to accommodate infrastructures. It becomes the keystone of contemporary buildings aimed at ensuring optimum indoor air quality and enhanced occupant comfort amid city growth.
Healthcare Sector becomes a Key Consumer of DOAS
In the healthcare industry, where patient well-being and infection prevention are significant, DOAS plays an important role in maintaining a sterile environment. It also helps in preventing the spread of airborne pollutants.
Hospitals, clinics, and pharmacies rely on DOAS to provide increased ventilation and filtration to patients, staff, and guests. To ensure a comfortable and healthy indoor environment, advanced features such as heat recovery and air purification enhance efficiency.
Sales of DOAS in the United States grew at a CAGR of 3.1% between 2019 and 2023. Total industry revenue reached about USD 1,146.6 million in 2023. In the forecast period, the United States DOAS industry is set to thrive at a CAGR of 8.2%.
| Historical CAGR (2019 to 2023) | 3.1% |
|---|---|
| Forecast CAGR (2024 to 2034) | 8.2% |
Increased awareness of air quality, strict environmental standards, and need for more flexible DOAS in HVAC are set to augment demand. Innovations in technology have led to the development of efficient and sophisticated solutions.
Innovations include heat recovery, unique filtration options, and smart controls to improve system efficiency and energy savings. The forecast period will likely see high adoption of green building practices, which will propel demand for energy-efficient solutions such as DOAS.
Principal Consultant
Regulatory Compliance and Standards
Regulatory requirements and standards mandating minimum air concentrations & IAQ standards in buildings are pushing the adoption of DOAS with ERV. Building codes, such as ASHRAE standards and local codes, often specify ventilation requirements that must be met to ensure occupant health and safety.
New solutions with the ability to provide outdoor ventilation and reduce energy consumption provide an attractive way to comply with this code. Mitsubishi Electric Trane HVAC US (METUS) provides DOAS systems that meet or exceed regulatory requirements.
By providing solutions that help building owners comply with building codes and standards, companies like METUS have established themselves as trusted partners.
High Initial Investments for DOAS
Compared to traditional HVAC systems, DOAS typically involves higher upfront costs due to the need for specialized equipment such as energy recovery ventilators, advanced filtration systems, and sophisticated controls. Additionally, retrofitting existing buildings with these systems can require significant modifications to the building's infrastructure.
These include ductwork, ventilation pathways, and control systems. High initial costs may deter certain building owners and operators, particularly those with limited budgets or stringent financial constraints, from adopting these systems.
Complexity of Design and Installation of DOAS
The United States DOAS industry consists of complex policies and procedures associated with these systems. The system often requires careful technical and design considerations to ensure efficiency, effectiveness, and compatibility with existing building systems.
The DOAS design process involves adequate air volume, airflow distribution, and large equipment. It depends on factors such as building size, occupancy, climate, and indoor air quality requirements.
Establishing a DOAS can be challenging due to the need to collaborate with other building systems, comply with regulatory requirements, and integrate with existing infrastructure. Complex design can be a barrier for a construction project, especially for those with limited technical expertise or resources.
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The table below highlights key states in the United States DOAS industry. California, Texas, and Florida are expected to remain the top three consumers of DOAS air systems, with expected valuations of USD 302.7 million, USD 246.8 million, and USD 144.4 million, respectively, in 2034.
| States | United States DOAS Industry Revenue (2034) |
|---|---|
| California | USD 302.7 million |
| Texas | USD 246.8 million |
| Florida | USD 144.4 million |
| New York | USD 122.1 million |
| Georgia | USD 80.2 million |
The table below shows the estimated growth rates of several states in the United States DOAS industry. Georgia, Texas, and New York are set to record high CAGRs of 9.7%, 8.8%, and 8.2%, respectively, through 2034.
| States | Projected CAGR (2024 to 2034) |
|---|---|
| Georgia | 9.7% |
| Texas | 8.8% |
| Florida | 8.6% |
| New York | 8.2% |
| California | 7.8% |
California is a key state in terms of technology and innovations. Silicon Valley serves as a global hub for cutting-edge research & development in a variety of industries, including sensing and technology.
The state’s vibrant ecosystem of start-ups and research institutions creates a favorable environment for advancing HVAC DOAS technology. It stimulates innovation and pushes the boundaries of possibilities in optical & sensing applications.
California’s diverse geographic and environmental conditions provide several opportunities to implement DOAS programs in a variety of settings. It includes urban environments, rural landscapes, coastal areas, and mountainous areas.
Sales of DOAS in California are projected to soar at a CAGR of around 7.8% during the assessment period. Total valuation in the state is anticipated to reach USD 302.7 million by 2034.
Texas has a diverse economy characterized by a strong presence in the manufacturing, industrial, energy, wind, and aerospace industries. The state's well-established technology base provides a strong foundation for DOAS operations. It provides skilled labor, supplies, and support services needed for manufacturing.
Texas has a great deal of talent, including engineers, scientists, and technicians These skilled personnel are essential for the designing, development, and execution of DOAS systems to ensure smooth manufacturing and extraction of new manufacturing processes.
Texas offers a favorable climate, including business-friendly regulations, low taxes, and incentives for manufacturing investments. The state’s pro-business policies and commitment to economic development attract companies seeking to establish production. It is creating a favorable environment for DOAS entrepreneurs to succeed.
The section below shows the commercial segment dominating by end-use. It is likely to thrive at a 7.9% CAGR between 2024 and 2034.
Based on capacity, the 40 to 60 ton segment is anticipated to hold a dominant share through 2034. It is set to exhibit a CAGR of 8.2% during the forecast period.
| Top Segment (End-use) | Commercial |
|---|---|
| Predicted CAGR (2024 to 2034) | 7.9% |
Based on end-use, the United States DOAS industry is segmented into commercial, residential, and industrial. Among these, the commercial category stands out as the dominant force, significantly influencing the industry’s landscape.
Commercial buildings are subject to stringent regulations and standards for safety, security, and environmental performance. Compliance with these regulations often requires the use of advanced monitoring and control systems, including DOAS solutions. The programs enable owners and operators to meet regulatory requirements while ensuring the well-being of their residents and reducing operational risks.
| Top Segment (Capacity) | 40 to 60 Tons |
|---|---|
| Projected CAGR (2024 to 2034) | 8.2% |
DOAS in the 40 to 60 ton capacity range is robust to meet the air conditioning needs of medium to large commercial buildings. It is also flexible to be used in a variety of environments such as offices, schools, hospitals, and manufacturing facilities.
The capacity is ideal for large mid-rise buildings where DOAS is required to maintain indoor air quality and comfort. Systems in this capacity are typically designed to be more energy efficient, helping building owners and operators reduce operating costs and meet sustainability goals. They typically use unique features such as variable-speed compressors and air recovery to improve efficiency.
Tier 1 players account for around 40 to 44% of the share and a revenue of more than USD 200 million in the United States. These players include Johnson Controls, Modine Manufacturing, Lennox International, Carrier United States Corporation, AAON, Munters Corporation, Trane Technologies, and Daikin Industries.
Tier 2 players include Desert Aire, Greenheck Fan Corporation, RenewAire, Nortek Air Solutions, DRI Innovative Solution, and FlaktGroup SEMCO. Other regional and local players are set to hold 56 to 60% of the industry share.
Leading DOAS manufacturers are focusing on investing in research & development activities to come up with innovative products. They are also participating in several exhibitions to showcase their latest products and gain a large customer base.
Recent Developments in the United States DOAS Industry
| Attribute | Details |
|---|---|
| Estimated Industry Size (2024) | USD 1,236.5 million |
| Projected Industry Size (2034) | USD 2,708.1 million |
| Anticipated Growth Rate (2024 to 2034) | 8.2% |
| Historical Data | 2019 to 2023 |
| Forecast Period | 2024 to 2034 |
| Quantitative Units | Value (USD million) and Volume (Units) |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Industry Segments Covered | Capacity, Implementation Type, Requirement, End-use, Region |
| Regions Covered | Northeast United States; Southeast United States; Southwest United States; Midwest United States; West United States |
| Key Countries Covered | Pennsylvania, New York, Massachusetts, Florida, Georgia, North Carolina, Virginia, Arizona, New Mexico, Nevada, Utah, Illinois, Ohio, Michigan, Indiana, California, Texas, Colorado, Washington |
| Key Companies Profiled | Trane Technologies; Carrier Global Corporation; Johnson Controls; Daikin Industries; DRI Innovative Solution; Nortek Air Solutions; Lennox International; AAON; Desert Aire; Greenheck Fan Corporation; Munters Corporation; Ruskin Company; Modine Manufacturing; SEMCO; RenewAire. |
The United States DOAS industry was valued at USD 1,146.6 million in 2023.
The United States industry value is set to reach USD 1,236.5 million in 2024.
The United States DOAS industry is anticipated to rise at 8.2% CAGR.
The United States DOAS industry is set to reach USD 2,708.1 million by 2034.
Commercial segment is expected to lead the industry during the forecast period.
DOAS stands for dedicated outdoor air system.
The global DOAS industry is likely to be valued at USD 11.4 billion in 2034.
DOAS supplies outdoor air, whereas RTUs provide air directly from the outside.
1. Executive Summary 2. Industry Overview 3. Key Industry Trends 4. Key Success Factors 5. Industry Demand Analysis 2019 to 2023 and Forecast, 2024 to 2034 6. Industry - Pricing Analysis 7. Industry Demand (in Value or Size in USD million) Analysis 2019 to 2023 and Forecast, 2024 to 2034 8. Industry Background 9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Capacity 9.1. Less Than 20 Units 9.2. 20 to 40 Units 9.3. 40 to 60 Units 9.4. Greater Than 60 Units 10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Implementation 10.1. New Construction 10.2. Retrofit 11. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Requirement 11.1. Heating 11.2. Ventilation 11.3. Cooling 11.4. Dehumidification 12. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-use 12.1. Commercial 12.2. Residential 12.3. Industrial 13. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 13.1. Northeast United States 13.2. Southeast United States 13.3. Southwest United States 13.4. Midwest United States 13.5. West United States 14. Northeast Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 15. Southeast Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 16. Southwest Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 17. Midwest Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 18. West Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 19. Sub-region-wise Industry Analysis 20. Industry Structure Analysis 21. Competition Analysis 21.1. Trane Technologies 21.2. Carrier Global Corporation 21.3. Johnson Controls 21.4. Daikin Industries 21.5. DRI Innovative Solution 21.6. Nortek Air Solutions 21.7. Lennox International 21.8. AAON 21.9. Desert Aire 21.10. Greenheck Fan Corporation 21.11. Munters Corporation 21.12. Ruskin Company 21.13. Modine Manufacturing 21.14. SEMCO 21.15. RenewAire 21.16. Other Key Players 22. Assumptions and Acronyms Used 23. Research Methodology
Industrial Automation
February 2024
REP-GB-18974
310 pages
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DOAS Industry Analysis in the United States
