Growth of Humidity Control Market Dependent on Government Regulations
Apr 13, 2005
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Lax enforcement of regulations specifying the levels of humidity to be maintained in occupied spaces is a major issue faced by the vendors as builders and consulting engineers tend to bypass these regulations and opt for less expensive equipment to avoid high installation costs.
Key challenge lies in stringent enforcement of regulations and raising end-user awareness about the health benefits and long-term energy savings of humidity control equipment. New analysis from Frost & Sullivan reveals that this market accrued revenues worth U.S. $423.5 million in 2004 and the market is poised to reach $5.82.4 million by 2011.
There is a high dependency on design engineers for system specification. "Vendors are often selected on the basis of their reputation and standing in the market, as building engineers tend to favor familiar vendors," explain Frost & Sullivan Research Analyst Sapan Agarwal. "This limits the growth of evolving technologies and new vendors."
"Most end-users consider humidity control systems as a comfort commodity rather than a necessity for good health and opt for less expensive systems offered by newer participants," says Mr. Agarwal.
This factor prevents price escalation among existing participants. However, the price sensitivity among end users is expected to decrease, as they are further educated on the benefits of humidity control.
"Associations such as the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), or the Air-Conditioning and Refrigeration Institute (ARI) are making limited efforts to supply potential end-users with more information on the advantages of humidity control," notes Mr. Agarwal.
Nevertheless, a greater effort is expected to be made by governmental agencies such as the Environmental Protection Agency (EPA), in order to educate end-users on the benefits of humidity control, resulting in a substantial growth of the North American humidity control equipment markets.
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