Dedicated Outdoor Air System Market

Dedicated Outdoor Air System: Optimizing Indoor Air Quality and Energy Efficiency

In recent years, with the increasing awareness of indoor air quality (IAQ) and the demand for sustainable building solutions, the Dedicated Outdoor Air System (DOAS) has emerged as a critical component of modern HVAC systems. This essay explores the concept of DOAS, its impact on indoor air quality, energy efficiency, and the government policies promoting its adoption.

Understanding Dedicated Outdoor Air System (DOAS)

The Dedicated Outdoor Air System (DOAS) is an innovative HVAC solution designed to supply fresh, conditioned outdoor air to a building independently of the main heating and cooling systems. Unlike traditional HVAC systems that recirculate indoor air, DOAS introduces a constant flow of fresh air, ensuring a healthier indoor environment by minimizing the accumulation of pollutants, allergens, and odors.

Top Impacting Factors of DOAS

a. Improved Indoor Air Quality (IAQ): DOAS effectively mitigates the risk of indoor air pollution, which is a major concern in modern buildings due to inadequate ventilation and airtight construction. By providing a continuous supply of fresh air, DOAS reduces the concentration of harmful airborne particles, volatile organic compounds (VOCs), and carbon dioxide (CO2), promoting better health and productivity among occupants.

b. Energy Efficiency: DOAS's decoupling of ventilation from heating and cooling offers significant energy savings. With the ability to use energy-efficient heat recovery systems, DOAS can pre-condition incoming air using exhaust air, thereby reducing the energy required for heating or cooling.

c. Humidity Control: DOAS enables precise control over indoor humidity levels. By controlling the amount of outdoor air introduced and using appropriate dehumidification methods, DOAS helps prevent issues such as mold growth and maintains a comfortable and healthy indoor environment.

Government Policies Promoting DOAS Adoption

Governments around the world are increasingly recognizing the importance of sustainable building practices and indoor air quality. Several policies have been implemented to encourage the adoption of DOAS in commercial and residential buildings:

a. Building Codes and Standards: Many countries have incorporated ventilation requirements and IAQ guidelines into their building codes. Some have specific provisions that incentivize the installation of DOAS in new constructions or major renovations.

b. Energy Efficiency Incentives: Governments offer tax credits, rebates, and other financial incentives to building owners and developers who implement energy-efficient technologies, including DOAS. These incentives aim to accelerate the adoption of sustainable building practices.

c. Green Building Certification Programs: Green building certification programs, such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method), reward buildings that meet specific sustainability and IAQ criteria, often favoring projects with DOAS installations.

Dynamics of Dedicated Outdoor Air System Market

Drivers in Dedicated Outdoor Air System Market

Diverse regulations have been enforced to enhance energy efficiency and govern HVAC equipment. Within this context, ASHRAE Standard 62-1989, also known as Standard 62-89, holds a pivotal role as the industry-consensus guideline for ventilation air in commercial structures. Correspondingly, ASHRAE 62.1 regulations delineate the requisite outdoor air volume based on spatial dimensions and occupancy metrics. To meet these stipulations, Dedicated Outdoor Air Systems (DOAS) have emerged as a solution, ensuring optimal indoor air quality by delivering precise quantities of fresh air to designated zones. Moreover, the efficacy of HVAC units must meet or surpass the energy efficiency benchmarks set by ASHRAE 90.1, specifically ISMRE 11.1 and ISCOP 8.0, while maintaining a rating below NC-40. These standards encapsulate the foundational principles of energy-efficient design for most building types, barring low-rise residential constructions. A notable outcome of these regulations and their implementation through DOAS is the substantial energy savings of 15% to 30% observed in commercial edifices, driving a surge in demand for DOAS equipment.

Governments in key nations are also contributing to the market's growth through various initiatives. For instance, in 2021, the US Department of Energy unveiled an endeavor to promote environmentally friendlier HVAC systems in both residential and commercial settings. Similarly, the Indian government has allocated budgetary provisions to propel infrastructure expansion in the HVAC-R sector.

Restrictions in Dedicated Outdoor Air System Market

Obstacles Stemming from Limited Consumer Awareness:

In an era of ceaseless technological advancement, the imperative lies in illuminating consumers about the merits of novel products. In the realm of DOAS, the awareness surrounding the cost and environmentally advantageous aspects remains deficient. DOAS systems are often misconstrued as expensive and cumbersome, impeding their adoption in developing and underdeveloped economies. Moreover, a lack of consciousness prevails regarding the potential energy savings that these systems can confer. Despite numerous innovations, including the development of low Global Warming Potential (GWP) refrigerants for HVAC applications, the uptake of HVAC systems lags behind their potential benefits.

The merits of DOAS are multifarious, encompassing features like consistent airflow that facilitates well-balanced outdoor air distribution across each space. DOAS setups are equipped with superior efficiency air filters. Their energy consumption is notably lower due to the diminished air movement in comparison to conventional recirculating air systems, further alleviated by the absence of return air ductwork resistance. Additionally, DOAS ensures heightened air circulation rates to expel potential contaminants. Unfortunately, these technical benefits of DOAS often remain obscured from consumer understanding. Similarly, a lack of contractor familiarity with DOAS standards impedes a seamless consumer experience and stunts the growth trajectory of the DOAS market.

Opportunities in Dedicated Outdoor Air System Market

Boosting DOAS Adoption Through Increased Construction Activity

The expansion of construction endeavors holds a pivotal role in driving the demand for HVAC systems, specifically Dedicated Outdoor Air Systems (DOAS). The upswing in constructing contemporary structures, coupled with the renovation of existing edifices equipped with DOAS, has served as a catalyst for the DOAS market's growth. Innovations and the assimilation of novel techniques within the construction domain have acted as accelerants for this market's expansion, particularly across the Asia Pacific region. Emerging economies, including China, India, Indonesia, and Singapore, have channeled heightened investments into construction due to rapid urbanization and industrial progress.

The Asia Pacific market's upward trajectory can be attributed to burgeoning construction activities, a burgeoning population, and evolving climate patterns. Integral to this growth are various governmental regulations, enactments, and associations endorsing the uptake of DOAS solutions. An illustrative example exists in the United States, where the Environmental Protection Agency administers the Energy Star (ES) program, offering incentives for procuring efficient HVAC equipment. As the emphasis on constructing environmentally conscious structures gains momentum, the demand for energy-efficient DOAS solutions is poised to rise. Furthermore, the allure of advantages such as diminished operational expenses, heightened energy efficiency, and favorable government inducements has paved the way for escalated DOAS implementation within both new and existing structures across developed nations like the United States, the United Kingdom, Germany, and Japan.

Challenges in Dedicated Outdoor Air System Market

The Complex Landscape of DOAS System Implementation

The realm of DOAS technology entails a sophisticated design integrating indirect evaporative cooling and vapor compression into a compact unitary air handler. This configuration facilitates the cooling of ventilation air within commercial establishments. An innovative aspect involves configuring stale room air as the process air for indirect evaporative cooling. The process of evaporative cooling hinges on the transformation of sensible heat into latent heat, constituting a dynamic heat and mass transfer mechanism.

Radiant heating and cooling systems necessitate meticulous installation, encompassing coordination across building design disciplines and trades. The complexity of these systems in contrast to forced air mechanisms mandates careful consideration during both mechanical systems' design and building envelope installation. Particularly in humid climates, the installation of any radiant cooling system must occur within an airtight structure, facilitating precise mechanical humidity control.

Ecosystem of Dedicated Outdoor Air System Market

Dedicated Outdoor Air Systems (DOAS) with a capacity of 40–60 tons demonstrate exceptional efficiency, offering additional features and multi-zone capabilities. These systems excel in providing 100% outside air proficiency while conditioning only the required amount of air for each zone. The 40-ton DOAS capacity units are well-suited for commercial and industrial buildings and are available from various reputable players such as Johnson Controls, LG HVAC, GreenHeck Fan, and Desert-Aire.

These 40-ton capacity units are versatile, providing chilled or hot water for fan coil handlers to pre-treat outside air, as well as facilitating radiant floor heating and hydronic heating or cooling applications. Their demand remains high, particularly in the commercial and industrial sectors, attributed to the expansion of technology centers in Asian countries.

The market for DOAS heavily depends on new construction and development projects, which are driven by urbanization, economic growth, and rising disposable incomes in emerging economies like Asia Pacific and the Middle East & Africa. Governments' substantial investments in commercial sector infrastructure development contribute positively to the growth of the DOAS market. The fast-growing construction sector, with a focus on energy-efficient buildings designed to reduce energy consumption, conserve water, minimize pollution, and enhance indoor air quality, further boosts the demand for DOAS systems.

During the forecast period, the cooling requirement market segment is expected to hold the second-highest share. DOAS is designed to efficiently handle the latent building load separately from the zone cooling system. By cooling the outdoor air to a temperature of 55°F (13°C) DB, DOAS ensures the outdoor air remains neutral on humidity ratio, shifting a significant latent load to terminal units, which might exceed their designed capacity. DOAS comes to the rescue by employing total energy recovery devices, like enthalpy wheels, to cool and dehumidify outdoor air, reducing the need for additional mechanical cooling.

DOAS is recognized as an ideal system for sustainable air-cooling designs. Its utilization of sensible cooling systems in combination with advanced ventilation methods contributes to energy conservation, making DOAS an energy-efficient and eco-friendly alternative to conventional cooling and ventilation systems.

Increased Adoption of Residential Retrofits Anticipated:

During the projection period, retrofits are set to garner heightened acceptance within the residential sector. Retrofits provide a favorable avenue to attain desired levels of energy efficiency, cost savings, and overall comfort. The inclination among property owners is also evolving in this direction. The infusion of integrated smart technologies and the Internet of Things (IoT) into Dedicated Outdoor Air Systems (DOAS) has notably enhanced their efficiency when compared to older systems. Consequently, the demand for DOAS within the residential domain is projected to surpass that within the commercial sector throughout the forecast period.

Challenges, such as initial installation expenses and prolonged return on investment timelines, are constraining the expansion of the DOAS retrofit market across commercial and industrial realms. Nonetheless, the potential savings garnered from utility costs through the incorporation of novel and highly efficient DOAS systems can be significant, facilitating quicker cost recovery for building proprietors. Retrofitting for aging structures presents several advantages, including lowered energy and water consumption costs, heightened comfort levels due to enhanced airflow and temperature regulation, and an augmented sustainability quotient that leads to reduced greenhouse gas emissions.

Upward Trajectory for Ventilation DOAS Market in Forecast Period:

The central objective of DOAS lies in providing ventilation air to ensure commendable indoor air quality within built environments. A DOAS system comprises two parallel operational components—one for distributing ventilation air to spaces and the other for addressing total latent loads within those spaces. DOAS units have been conceptualized to treat outdoor air before its introduction into a structure, thereby alleviating the burden on zone-specific equipment.

DOAS employs specialized equipment to condition outdoor air as it enters a building, either in direct conjunction with local or central HVAC units. Several ASHRAE standards, including ASHRAE Standard 62.1, outline guidelines for establishing ventilation airflow. ANSI/ASHRAE Standard 62.1, which deals with Ventilation for Acceptable Indoor Air Quality, lays down minimum outdoor air flow prerequisites for design scenarios. The demand for ventilation, particularly within the commercial sector, is pronounced and is expected to surge further as the commercial real estate sector continues its development trajectory.

Segmentation by Verticals categorizes the market into commercial, residential, and industrial sectors. Among these, the commercial segment exerts dominance, primarily owing to the application of air handling systems for indoor air conditioning in commercial settings. These cost-effective and energy-efficient solutions are known to elevate air quality within commercial structures. Furthermore, they are witnessing heightened adoption due to their resilience in the face of adverse weather conditions, making them an optimal choice for commercial building applications.

Conversely, the residential sector is poised to exhibit the most robust growth rate of approximately 9% throughout the envisaged period. This phenomenon can be ascribed to the global increase in disposable income. As consumers' purchasing power rises, their capacity to acquire advanced products and services expands, facilitating the penetration of these air purification solutions into the domestic market.

Regional Insights

North America's Prominent Role in the DOAS Market

North America stands out as a leading stronghold in the Dedicated Outdoor Air System (DOAS) market, predominantly driven by countries such as the United States and Canada. These nations spearhead DOAS growth within the region, with a pronounced demand observed across retail, healthcare, and office applications. The concentration of numerous enterprises, medical establishments, and commercial venues within North America contributes to this substantial requirement for DOAS implementations.

Several factors have coalesced to propel the DOAS market's ascent in North America. Key drivers encompass the imperatives for energy efficiency, heightened indoor air quality, and escalating requests for DOAS solutions across both commercial and residential structures. Of particular significance, the United States is poised to exert considerable influence on the North American DOAS market's expansion. Governmental regulations have played a pivotal role in bolstering this market, exemplified by initiatives like the Weatherization Assistance Program (WAP) and The ENERGY STAR Verified HVAC Installation Program (ESVI).

APAC Market's Exponential Growth with Friendly Policies

Meanwhile, the Asia-Pacific (APAC) market is poised to showcase the most substantial Compound Annual Growth Rate (CAGR) of 9.5% within the period spanning from 2022 to 2030. This robust growth can be attributed to a confluence of factors, including favorable governmental policies, surging population figures, burgeoning construction activities, and evolving climatic conditions. The dynamism of this industry is further propelled by an array of governmental statutes and regulations that actively advocate for the adoption of DOAS solutions across the region. Furthermore, a pronounced need for these systems exists within both the residential and commercial sectors, with notable demand emanating from countries such as China and Japan.

In China, the manufacturing and construction sectors have experienced remarkable expansion over recent years, driven by augmented government expenditures earmarked for infrastructure development endeavors. Notably, the country commands a substantial 20% share of global construction investments and is anticipated to channel nearly USD 13 trillion into infrastructure and construction projects by the year 2030. This substantial financial commitment, coupled with a surge in real estate construction, has engendered a burgeoning market for DOAS within the country.

Dominating Companies in Dedicated Outdoor Air System Market

• JOHNSON CONTROLS
• CARRIER GLOBAL CORPORATION
• GREENHECK FAN CORPORATION
• DAIKIN INDUSTRIES LTD.
• NORTEK, INC.
• TRANE TECHNOLOGIES
• MITSUBISHI ELECTRIC
• LG ELECTRONICS
• FLAKTGROUP SEMCO
• SAMSUNG ELECTRONICS
• RUPP AIR MANAGEMENT SYSTEMS
• ADDISON
• DESERT AIRE LLC.
• DESICCANT ROTORS INTERNATIONAL PVT. LTD. (DRI)
• VENTACITY SYSTEMS INC.
• PETRA
• RENEWAIRE
• MUNTERS
• CAPTIVEAIRE
• UNITED COOLAIR, LLC
• APPLIED AIR
• AQUA AURA INDIA PVT LTD.
• CLIMATEMASTER
• SWEGON NORTH AMERICA
• XETEX

Recent Developments in Dedicated Outdoor Air System Market

• In May 2022, Mitsubishi Electric unveiled plans for a substantial investment totaling 1.44 billion Turkish lira (equivalent to USD 113 million). This investment is earmarked for the construction of a new facility within the Mitsubishi Electric Air Conditioning Systems Manufacturing Turkey Joint Stock Company (MACT). Situated in Turkey, this factory serves as a pivotal hub for the company's air-conditioning production endeavors. The primary objective of this expansion is to augment MACT's annual production capacity for air-to-water (ATW) heat pumps by an impressive 100,000 units, resulting in a total capacity of 300,000 units. Additionally, the annual capacity for room air conditioners will experience an increment of 300,000 units, reaching a new capacity of 1,100,000 units. It is anticipated that the newly enhanced production capacity will be operational by February 2024.
• In the month of March 2022, Johnson Controls introduced a novel Dedicated Outdoor Air System (DOAS) labeled as the York DOAS. This innovative system is meticulously engineered to fulfill the rigorous fresh air prerequisites defined by ASHRAE 62.1. Irrespective of varying weather conditions and climates, the York DOAS ensures the delivery of up to 100% purified and dehumidified external air. A distinguishing feature of the York DOAS is its high degree of configurability, complemented by the inclusion of multiple pre-installed options. The system boasts a robust construction with double-wall panels comprising foam panels, all of which are reinforced by renewable and organic insulation material. Additionally, the insulation value is rated at R13. The system's external casing is constructed from pre-painted G90 galvanized steel and incorporates features such as hinged bottom lifting and lockable doors.
• During the month of February 2022, Carrier Global solidified an agreement to acquire Toshiba's equity share within a longstanding collaborative venture between the two companies. This strategic move underscores Carrier Global's commitment to fortifying its presence in the domain of Variable Refrigerant Flow (VRF) systems and light commercial systems. The acquisition pertains to Toshiba Carrier Corporation (TCC) and is poised to amplify Carrier Global's global manufacturing capabilities, particularly within the realm of VRF systems.
• In August of 2021, LG Electronics introduced two groundbreaking units: the Split Rooftop and the Split Compact Dedicated Outdoor Air System (DOAS). Both of these innovations stand as exemplars of effectiveness and efficiency. The introduction of these units has empowered building proprietors and facility managers with the capability to condition outdoor air in a resource-efficient manner. This enhancement in air quality and comfort is achieved without any compromise on flexibility, dependability, or ease of integration.
• June 2021 saw Trane unveil a suite of new offerings designed to assist clients in achieving their energy efficiency, sustainability, and indoor air quality goals. These offerings are a testament to Trane's comprehensive approach to improving indoor environmental quality (IEQ), encapsulated within the Wellsphere initiative. A prominent inclusion in this product lineup is the Trane Mixed Air DOAS unit. Distinguished by its capacity to provide up to 100% fresh air, this unit significantly enhances indoor air quality in alignment with ASHRAE 62.1 standards.

The Dedicated Outdoor Air System (DOAS) has emerged as a game-changer in the HVAC industry, revolutionizing the way buildings handle ventilation and indoor air quality. With its top impacting factors including improved IAQ, energy efficiency, and humidity control, DOAS offers numerous benefits for occupants and building owners alike. Additionally, the support of government policies promoting DOAS adoption reinforces its significance in the quest for sustainable and healthier built environments. As we move towards a more environmentally conscious future, DOAS is poised to play a pivotal role in creating comfortable and efficient buildings for generations to come.