Product Code: 47394
The fans and blowers market is expected to register a CAGR of 3.4% and reach USD 24.42 billion by 2026, up from USD 20.38 billion in 2019. The COVID-19 outbreak in Q1 of 2020 has severely impacted the global manufacturing sector by disrupting the entire supply chain of various industries. Travel restrictions, delays in projects, and cost cuttings by major manufacturers have resulted in a massive slowdown in the manufacturing sector, thus, impacting the fans and blower market. Factors such as the increasing demand for cooling systems from data centers are likely to drive the fans and blowers market. The data centers, existing and upcoming, are expected to run at higher loads. This, in turn, is expected to drive the demand for sophisticated cooling systems to maintain the temperature in these facilities. Renewable power plants require very limited infrastructure for fans and blowers. With many major countries shifting toward renewable energy sources, the share of the renewable power plants in the power generation mix is expected to increase in the coming years, which, in turn, is expected to restrain the demand for fans and blowers.
- The commercial sector is expected to witness significant demand for fans and blowers in the years to come, driven by the increasing demand from the growing colocation centers, growing commercial kitchens, and large-scale shopping complexes.
- With the increasing urbanization and growing population, the average height of buildings and the congestion has been increasing. With this trend is expected to continue during the forecast period, the demand for ventilating equipment to make up for the unavailability of proper ventilation is expected to increase, providing an opportunity for the market's growth.
- The Asia-Pacific region is expected to continue to dominate the market studied during the forecast period, owing to the increasing demand from China, India, Japan, and major Southeast Asian countries.
Key Market Trends
Commercial Sector to Witness Significant Growth
- Fans and blowers used for commercial applications are typically deployed for supplying air at constant pressure for the purpose of ventilation, reducing the load on the building HVAC systems by replacing the make-up air and exhaust of smelly gases.
- The regulations that mandate zero emissions from buildings, especially in Europe, drive the market for fans and blowers in the commercial sector. All the older buildings across Europe must be retrofitted with adequate fans and blowers in order to achieve energy-neutral buildings.
- The number of commercial buildings is also growing significantly, owing to significant investments in the sector, especially in the developing economies, such as China and India. With the onset of emission reduction initiatives, even the developed economies are expected to deploy fans and blowers on a large scale for the commercial buildings, translating to a huge growth in the market.
- On the other side, due to the COVID-19 pandemic, the demand for fans and blowers from restaurants and new commercial buildings is expected to decline slightly until H1 2020 due to less consumer spending and fewer new construction activities due to the economic slowdown.
- Countries across the world are expected to witness massive growth in the development of data centers in the future on account of the increasing deployment of cloud technology. This, in turn, is expected to drive the market for fans & blowers during the forecast period. In North America, the United States may need to deploy about 4,000 new data center facilities between 2018 and 2020. However, with COVID-19, the construction of a few data centers was delayed, and it is expected to come online by 2022. The development of such facilities may require about 200,000 sq. ft. and 25 MW capacity. As a result, the data center infrastructure in the country came under pressure, particularly in the last three years. Hence, investments in building the new data center infrastructure, as well as updating the existing data centers, are growing at a significant rate.
- For data centers, cooling system infrastructure amounts to the largest share in the capital spending for infrastructure building, and fans are an integral part of this cooling system. Hence, the growth of the data center industry is expected to be a major driver for the demand for fans and blowers in the commercial sector.
Asia-Pacific to Dominate the Market
- The Asia-Pacific region is expected to continue to dominate the market studied during the forecast period. However, the region is expected to register a slow growth rate due to the slowdown in the manufacturing sectors in the top four manufacturing countries in the region, viz., China, India, Japan, and South Korea. The slowdown in these countries is the result of the combination of internal factors, such as government politics, and external factors, such as the United States-China trade war and global economic slowdown due to the COVID-19 outbreak.
- Increasing demand from data centers is a significant driver for the fans and blowers market in the commercial segment. Southeast Asian countries, such as Malaysia, Vietnam, and Singapore, are coming up with new data centers, and they are planning to become the hub of the data center industry in the Asia-Pacific region. Hence, the demand for fans and blowers from the data center industry is expected to come from developing countries.
- However, the recent uncertainty in the major developing countries is expected to restrain the market. The economic slowdown is expected to affect all the major end-user sectors of the fans and blowers market, i.e., chemical industry, cement industry, construction sector, and mining sector negatively. The economic slowdown in major countries, such as China, is expected to be the major restraint for these markets.
- Since the last decade, the growth in China has kept the demand high for the aforementioned sectors. Factors such as policy change by the government, the United States-China trade war, and the country's manufacturing industry and construction sector reaching an early stage of saturation are some of the major reasons for the slowdown.
- India has one of the largest chemical and petrochemical industries in the world. The agricultural and transportation sectors are some of the major consumers of these industries in the country. Additionally, India is also investing in its refinery and petrochemical business. As of January 2021, the refinery production was 22173 TMT, which is 3.2% higher when compared with December 2020. Cumulative production during April-March, 2019-20 was 262940 TMT, which is 1.30% and 2.09% higher than the cumulative target and production, respectively, during the corresponding period of last year. Hence, with the increasing trend, several foreign companies are investing highly in Indian refineries. Therefore, with the increasing growth in these end-user industries, the demand for fans and blowers is expected to increase as well.
- Similarly, countries such as Japan and South Korea have plans to expand their manufacturing and power generation sectors. This, in turn, is expected to drive the demand for fans & blowers during the forecast period.
The fans and blowers market is fragmented. Some of the major players operating in the market include Acme Engineering & Manufacturing Corp., Airmaster Fan Company Inc., and Continental Blower LLC.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2026
- 4.3 Recent Trends and Developments
- 4.4 Market Dynamics
- 4.4.1 Drivers
- 4.4.2 Restraints
- 4.5 Supply Chain Analysis
- 4.6 Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Consumers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes Products and Services
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
- 5.1 Technology
- 5.1.1 Centrifugal
- 5.1.2 Axial
- 5.2 Deployment
- 5.2.1 Industrial
- 18.104.22.168 Power Generation
- 22.214.171.124 Oil and Gas
- 126.96.36.199 Construction
- 188.8.131.52 Iron and Steel
- 184.108.40.206 Chemicals
- 220.127.116.11 Mining
- 18.104.22.168 Other Industries
- 5.2.2 Commercial
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 South America
- 5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 Acme Engineering & Manufacturing Corp
- 6.3.2 Airmaster Fan Company Inc.
- 6.3.3 Continental Blower LLC
- 6.3.4 CG Power And Industrial Solutions Limited
- 6.3.5 DongKun Industrial Co. Ltd
- 6.3.6 Flakt Woods Group SA
- 6.3.7 Gardner Denver Inc.
- 6.3.8 Greenheck Fan Corp.
- 6.3.9 Howden Group Ltd
- 6.3.10 Loren Cook Company
- 6.3.11 Pollrich GmbH
7 MARKET OPPORTUNITIES AND FUTURE TRENDS