The market for fans and blowers in North America is expected to grow at a CAGR of approximately 4.50% during 2020-2025. Increasing demand for cooling systems from data centers and favorable government regulations are the major factors driving the North America fans and blowers market. Renewable power plants require very limited infrastructure for fans and blowers. The trends in North America’s power industry, of moving from fossil-fired power plants to renewable power plants, is expected to restrain the demand for fans and blowers, during the forecast period.
- The commercial sector is expected to account for the largest end-user sector in the North America fans and blowers market owing to increasing private and public investments on the construction of commercial buildings, especially the data centers infrastructure, for which fans are an integral part of the cooling system required in these commercial buildings.
- A new stream of investment in Mexico’s oil and gas infrastructure is expected to create a significant opportunity for equipment, including fans and blowers in the coming years.
- The United States is expected to dominate the market over the forecast period owing to the growing demand from commercial and industrial sectors in the country.
Key Market Trends
Increasing Demand from Commercial Sector
- The commercial sector holds the majority share in the market and is expected to continue its dominance during the forecast period as well. Fans and blowers, in commercial applications, are typically deployed for supplying air at a constant pressure for ventilation, reducing the load on the building HVAC systems by replacing the make-up air and exhaust of smelly gases. Heat exchangers are the primary users of fans & blowers in the commercial sector.
- Commercial kitchens deploy the fans & blowers on a large scale to avoid the build-up of carcinogenic gases within the building, and thus, conditioning the indoor air. The air is continuously replaced in the building interiors with fresh air by using backward-curved blades.
- In the United States, the public sector investments for construction of commercial buildings have steadily increased during 2014-2018, in turn, supporting the growth of the fans and blowers market.
- Apart from that, the internet penetration rate in North America is well above the world average. The internet usage per capita, and in turn, data traffic in the region is growing rapidly. As a result, the data center infrastructure in the region has come 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 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 demand of fans and blowers in the commercial sector.
United States to Dominate the Market
- The United States is expected to dominate the market in 2019 and the trend is expected to continue its dominance in the coming years.
- In the United States, the commercial sector is the largest sector for the demand for fans and blowers. The commercial sector is driven by new corporate offices and relocation, increased number of warehouses, and distribution center spending, driven by outdated facilities and technological and logistics needs. Further, the aging population and rising rate of chronic illness continue to drive outpatient facility investment.
- These factors have led to increased spending in the construction industry, and hence, an augmented demand for goods and raw materials required for the construction. This has translated into increased demand for ventilation systems in the new infrastructures.
- In the United States, the biggest market in North America, the private sector spending on commercial buildings declined post-2008 crisis but started a recovery in 2012. From 2012 to 2018, the private sector spending on commercial buildings has grown at a CAGR of over 15%. During the forecast period, due to the strong economic performance of the country, a similar trend is expected, in turn, driving the fans and blowers market in the commercial sector.
- In the industrial segment, uptake in the construction sector, increasing focus in natural-gas-fired power plants to replace the aging coal-fired ones, and expansion of oil and gas infrastructure have led to increased demand for fans and blowers, especially with explosion proof motors.
- The United States is currently generating 600 zettabytes of new data each year. This amounts to 200% more traffic than what current data centers can handle. To keep up pace with the growth in data generation, the data center industry needs to build about 4,000 new facilities by 2020.
- This upcoming infrastructure is expected to result in increased demand for the ventilation system, and hence drive the fans and blowers market growth.
The North America fans and blowers market is fragmented with a large presence of both major and local players holding significant share in the market. Some of the key players in this market include Acme Engineering and Manufacturing Corp., Airmaster Fan Company Inc., Continental Blower LLC, and Fläkt Woods Group SA.
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