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Savings on Energy Costs Create Market Opportunities for Heat/Energy Recovery Systems
added: 2006-09-04

While tremendous growth opportunities exist in the European markets for heat recovery ventilator (HRV) and energy recovery ventilator (ERV) systems, articipants will, nevertheless, need to design new strategies to boost penetration rates. In addition, they will need to overcome the constraint of low demand in a mature market as well as a potential reduction in profit margins due to intensifying competition.

Frost & Sullivan (http://www.environment.frost.com) finds that the European Markets for Heat and Energy Recovery Ventilator Systems earned revenues of $723.4 million in 2005 and estimates this to reach $845.7 million in 2012.


Most European countries have implemented legislation to reduce their levels of energy consumption. The monitoring of energy consumption in all new and existing buildings has supported efforts to meet stated targets. In this context, the installation of an HRV/ERV system can enable buildings to recover up to 80 per cent of the energy lost by transferring energy from stale, indoor air to incoming fresh, outdoor air.


"The EU Directive for reducing energy consumption in buildings provides promising opportunities for HRV/ERV systems", notes Frost & Sullivan Research Manager Gaia Nocchi. "End users can improve the energy efficiency of buildings by installing a heat/energy recovery system, which can recuperate the heat lost in exhausting indoor conditioned air."


However, a large, conservative end-user base in Europe has resulted in limited market penetration. End users remain largely uninformed about the benefits of using HRV/ERV systems to reduce energy consumption. Natural ventilation systems, such as opening windows or using mechanical exhaust fans where access to outdoor air is remote, continue to be used.


"Most end users are not aware of the features of HRV/ERV systems and consider installing such systems an unwanted expense," says Ms. Nocchi. "Additionally, some consider the use of a mechanical device for ventilation to be unhealthier than natural ventilation, although, in fact, it is the other way round".


Market participants will have to create awareness among potential end users across domestic and commercial sectors about the cost savings accrued by reduced energy consumption, as well as the health benefits achieved by using HRV/ERV systems. The participants should also bring the concept of rate of return for the investment from the savings in energy cost.





Source: PR Newswire

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