The IAQ equipment segment is expected to demonstrate the highest rate of growth.
The IAQ market in the U.S. totaled $7.8 billion in 2015, is forecast to reach $8.3 billion in 2016, and grow to $10.8 billion by 2021, increasing at a compound annual growth rate (CAGR) of 5.3 percent from 2016 to 2021, according to a report from BCC Research. Most U.S. citizens spend nearly 90 percent of their time in indoor environments, such as homes, workplaces, classrooms and other school environments. BCC Research reveals in its new report that indoor levels of air pollutants can be two to five times higher and occasionally 100 times higher than outdoor levels, ranking indoor air pollution among the top five environmental risks to public health.
The report says that common IAQ problems in the commercial, residential, public building, and health care sectors typically fall under three general categories: (1) problems related to inadequate ventilation, (2) chemical contamination, and (3) microbial contamination. Looking at the IAQ equipment segment, the equipment market is expected to reach nearly $4.3 billion and $5.9 billion in 2016 and 2021, respectively, demonstrating the highest rate of growth at a five-year CAGR of 6.9 percent. Environmental services as a segment is expected to grow at a five-year CAGR of 6.1 percent to reach $1.9 billion and almost $2.6 billion in 2016 and 2021, respectively. Consulting and testing services as a segment is expected to total about $2.2 billion in 2016, rising to $2.3 billion by 2021, with a five-year CAGR of 1.2 percent.
Poor IAQ is a major problem to both American citizens and the U.S. economy. This alone should provide enough impetus to the IAQ industry, but other factors are fueling its growth, as well. Continuing concerns about black mold, bioterrorism, and infectious respiratory diseases are strong drivers. The media have covered these and other IAQ-related issues extensively, raising public concern and awareness about their indoor environments.
In particular, the growing awareness of health problems associated with black mold in homes, offices, and other buildings is keying growth in the IAQ industry, especially for the mold remediation segment of the market. Due to increased media attention, black mold has become a household term and a major IAQ concern, much the same way that asbestos and radon were in previous decades. As a result, the environmental services and remediation segment of the market has been growing by as much as 25 percent annually in recent years.
Equipment, the largest and fastest growing industry sector, includes products such as air cleaners, HVAC replacement filters, ventilation systems and equipment, and IAQ instrumentation used by professionals during inspections. Overall, the IAQ equipment industry has been experiencing steady growth in recent years.