HVAC sensors compare a system’s input temperature to the temperature of a room or building and help adjust the required temperature, and maintain the ideal temperature. They also govern and monitor numerous activities in end-users, such as commercial and residential buildings, such as air temperature, pressure, and quality. HVAC (heating, ventilation, and air conditioning) systems are frequently utilized to reduce energy consumption. They usually have a sensing device that compares the current condition, such as temperature, to a target state.
The rapid rise in industrialization and urbanization worldwide is one of the primary factors driving the market’s growth. The significant increase in the construction of different commercial and residential buildings worldwide is creating considerable demand for HVAC sensors as a space heating and cooling system, ventilation control, humidity control, and air filtration. For instance, according to the IEA, the global building construction sector’s value increased by 5% compared to the previous year, reaching over USD 6.3 trillion.
Heating, ventilating, and air-conditioning in a commercial building usually consume more energy than any other activity in the building. According to U.S. Department of Energy studies of commercial buildings, HVAC equipment usually accounts for over 40% of a building’s energy usage. Owing to the huge amount of energy, HVAC systems use sensors to improve equipment efficiency, which results in significant reductions in building operating costs.
For instance, HVAC monitoring systems include IoT sensors for monitoring temperature, occupancy, fresh air intake, and other indoor climate conditions. Controllers and actuators turn the data collected from these sensors into action. Some actions are immediate and preprogrammed into the system. Smart building management platforms with machine learning capabilities that provide in-depth insights and continuously refine adjustments carry out more complex analyses.
The changing scenario
Increasing sensor compatibility with the Internet of Things (IoT) platform is gradually becoming a prerequisite for facilitating remote monitoring and control. IoT-connected devices have opened massive opportunities for sensors in several applications like industrial, medical, consumer electronics, automotive, etc. According to Cisco’s Annual Internet Report, by 2023, there is expected to be nearly 30 billion network-connected device connections, up from 18.4 billion in 2018. By 2023, IoT devices were expected to make up 50% (14.7 billion) of all networked devices, up from 33% (6.1 billion) in 2018. Such an increase in IoT devices would drive the growth of the studied market.
Furthermore, energy standards and building codes have also significantly driven the design of energy efficient buildings over the past decade. For instance, the US Green Building Council’s (USGBC) leadership in the Energy and Environmental Design (LEED) Green Building Rating System has raised awareness of the need for building designs that use energy efficiently. As such, several states in the country have mandated the use of the LEED rating system for government buildings.
Such initiatives indicate the importance of energy conservation in buildings. Hence, HVAC sensors are being commonly used because the need to reduce energy consumption is increasing, enhancing energy efficiency. As a result, the government and regulatory organizations are primarily focusing on how HVAC controls can reduce energy consumption in buildings.
Effect of corona pandemic
The pandemic significantly influenced the HVAC industry, as demand for the sensors observed a significant drop during the initial months, owing to lockdown restrictions and businesses refraining from investing in new equipment. Due to the pandemic, many construction projects were halted across the world. The reduction in construction activities across the commercial, residential, and industrial sectors temporarily dampened the demand for HVAC sensors, including those for air handling units.
Moreover, due to the production shutdown in countries such as China, multiple industries observed a shortage of supply of various products during February and March 2020. Due to supply chain disruption, the price of raw materials increased, impacting the overall pricing of the sensors.
The present market trend
According to Japan Refrigeration and Air Conditioning Industry (JRAIA), the global demand for room air conditioners has increased to 95.16 million in recent years. Furthermore, according to the United Nations, the world’s population was projected to reach 8 billion on November 15, 2022. The latest projections by the organization suggested that the global population could reach around 8.5 billion in 2030, 9.7 billion in 2050, and 10.4 billion in 2100. Declining levels of mortality partly influence population growth.
Furthermore, in emerging markets like the Asia Pacific region, especially China and India, many people have been migrating from rural areas to cities, raising government and private spending on housing, commercial construction, and infrastructure. New building construction is creating significant demand for new equipment installations for heating, ventilation, and air conditioning systems. Hence, the growing construction industry would likely drive the studied market. For instance, in November 2021, the Indian government approved the construction of 3.61 lakh houses under the Pradhan Mantri Awas Yojana (Urban). The approval of the new housing units takes the total number of sanctioned houses under the scheme to 1.14 crore. Such trends positively contribute to the demand for HVAC sensors, in newly installed HVAC systems.
Moreover, increasing building renovation projects by the government to make them more energy-efficient are significantly increasing the global HVAC sensor market. This is because energy-efficient buildings can help reduce greenhouse gas emissions, lower energy bills for homeowners and businesses, and improve indoor air quality, thus making them suitable for public health.
Also, a country like Europe has presented the European Green Deal, an ambitious package of policy measures to make Europe the first climate-neutral continent by 2050. The European Green Deal aims to double or even triple building renovation rates and speed up building digitization to ensure the EU’s building stock is on track to decarbonize by 2050.
Therefore, with the growing construction and retrofit activities, there will be a significant rise in the demand for energy-efficient HVAC sensors for maintaining comfortable indoor temperatures and good air quality in buildings, owing to the need to reduce energy consumed, increasing and leading to the enhancement of energy and its efficiency.
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