The dedicated outdoor air system (DOAS) market is projected to grow significantly, with an estimated market size of USD 5.23 billion in 2025, expected to reach USD 12.39 billion by 2035. The market is anticipated to register a compound annual growth rate (CAGR) of 9%.
This growth is largely driven by the increasing demand for energy-efficient HVAC systems in both commercial and residential sectors. The adoption of DOAS systems is expected to be fueled by the rising focus on sustainability and energy efficiency in modern buildings, as these systems offer improved indoor air quality and enhanced energy performance. Moreover, the growing need for climate control in urbanized regions is expected to further propel market expansion.
Phil Farese, CEO of Mojave Energy Systems, highlighted the company’s focus on the DOAS market in an interview published on May 7, 2025: “Mojave is pursuing a multi-horizon approach when it comes to our total addressable market (TAM).
Initially, we’re focusing on the dedicated outdoor air system market, which represents a USD 4 to USD 5 billion annual TAM, where our product is particularly well-positioned. From there, we plan to expand into other applications, such as industrial dehumidification, cold storage, swimming pools, ice rinks, and more.
This broader market could grow our TAM to USD 10 to USD 12 billion.” This statement reflects the growing interest in DOAS technology, which is well-positioned for both short-term gains and long-term expansion into other energy-efficient solutions.
Technological advancements in HVAC systems are expected to play a crucial role in the market's growth. DOAS systems are designed to separate heating, cooling, and dehumidification processes, which is anticipated to make them highly efficient for modern, energy-conscious buildings. The reduction in the load on traditional HVAC systems is projected to provide significant cost savings for building owners and managers. Additionally, stricter energy efficiency regulations and increasing indoor air quality standards worldwide are expected to create a favorable environment for the adoption of DOAS.
As the market for energy-efficient building solutions expands, the DOAS market is expected to witness continued growth, driven by technological innovations, government regulations, and the demand for sustainable building practices.
| Attribute | Value |
|---|---|
| Market Size in 2025 | USD 5.23 Billion |
| Market Size in 2035 | USD 12.39 Billion |
| CAGR (2025 to 2035) | 9% |
| Attributes | Details |
|---|---|
| Opportunities |
|
The table displays the compound annual growth rates (CAGRs) for five key countries: the United States, Japan, China, the United Kingdom, and South Korea. Among these countries, South Korea stands out as a particularly dynamic market, projected to achieve an impressive 11.5% CAGR by 2035.
Known for its commitment to innovation, South Korea occupies a significant position across various industries, showcasing a thriving economic landscape marked by continual advancements.
| Countries | CAGRs from 2025 to 2035 |
|---|---|
| The United States | 9.2% |
| Japan | 10.4% |
| China | 9.7% |
| The United Kingdom | 10.1% |
| South Korea | 11.5% |
The widespread adoption of DOAS in the United States can be attributed to several factors. Stringent regulations and building codes emphasizing indoor air quality and energy efficiency drive the demand for DOAS solutions.
The diverse climate conditions, ranging from extreme cold to high humidity in some regions, necessitate robust ventilation systems like DOAS to maintain optimal indoor conditions. The presence of a mature HVAC industry and a strong focus on sustainable building practices further propels the usage of DOAS in the United States.
In Japan, where urbanization and space constraints are prevalent, DOAS offers an efficient solution for providing fresh air without compromising interior space.
The strong commitment to environmental sustainability and technological innovation aligns well with the benefits of DOAS, particularly in terms of energy efficiency and improved air quality. The focus on high-tech solutions and advanced building practices also contributes to the widespread adoption of DOAS.
Rapid urbanization and industrialization in China have increased concerns about air pollution and indoor air quality. As a result, there is a growing demand for ventilation systems like DOAS that can effectively mitigate indoor air contaminants while ensuring energy efficiency.
The emphasis on green building initiatives and efforts to combat air pollution further drive the adoption of DOAS in commercial and residential buildings nationwide.
In the United Kingdom, where energy efficiency and environmental sustainability are key priorities, DOAS systems are favored for providing fresh air while minimizing energy consumption.
The stringent building regulations and focus on reducing carbon emissions create a conducive environment for adopting DOAS technologies. The temperate climate and varying weather conditions of the country make efficient ventilation systems like DOAS essential for indoor comfort and air quality.
In South Korea, renowned for its technological advancements and commitment to innovation, DOAS is widely embraced as a solution to enhance indoor air quality and energy efficiency.
The dense urban areas and high-rise buildings of the country necessitate the implementation of effective ventilation systems to ensure occupant comfort and well-being. The strong emphasis on smart building technologies and sustainable development further drives the adoption of DOAS across residential, commercial, and institutional sectors.
The dedicated outdoor air system (DOAS) market is poised for substantial growth in the coming years, driven primarily by key segments such as the 20-40 tons capacity range and ventilation requirements. These segments are expected to dominate the market in 2025, as the demand for energy-efficient, high-performance HVAC solutions rises across commercial, residential, and industrial sectors.
The 20-40 tons capacity segment in the DOAS market is expected to capture 40% of the market share in 2025. This growth is primarily driven by the increasing need for energy-efficient, high-performance HVAC systems in large commercial and industrial buildings.
Companies such as Carrier Global Corporation, Trane Technologies, and Daikin Industries are leading this segment by offering scalable, energy-efficient systems tailored for medium to large-scale applications.
These systems are widely adopted across sectors like retail, hospitality, healthcare, and manufacturing, where air quality and temperature control are essential. The rising focus on sustainability, coupled with regulations mandating higher energy efficiency standards, has propelled the demand for 20-40 tons capacity systems.
Additionally, these systems are increasingly integrated with smart technologies to optimize energy use, contributing to cost savings and enhanced operational efficiency. Given these trends, the 20-40 tons capacity segment is poised to lead the expansion of the DOAS market, reflecting the growing demand for energy-efficient solutions for larger infrastructure projects.
Ventilation systems are projected to account for 50% of the dedicated outdoor air system (DOAS) market share in 2025. The growing need for improved air quality and the implementation of stringent building codes regarding ventilation are driving this segment's dominance.
Companies like Johnson Controls, Trane Technologies, and Daikin Industries are offering advanced ventilation technologies designed to meet the rising demand for energy-efficient systems. With increasing concerns over air quality, especially in commercial and residential buildings, ventilation systems have become essential for ensuring proper air exchange and maintaining indoor air quality.
These systems are also gaining traction due to their ability to reduce the spread of airborne contaminants, making them a key part of HVAC solutions in sectors like healthcare, education, and hospitality. Additionally, the integration of ventilation systems with smart technologies allows for better control of airflow, further enhancing energy savings and performance. Given these benefits, ventilation systems are expected to continue leading the DOAS market as an essential component of energy-efficient building infrastructure.
In the competitive landscape of the DOAS market, several key players vie for market share and dominance. These companies range from established HVAC manufacturers to specialized DOAS solution providers. Technological innovation, product quality, pricing strategies, distribution networks, and customer service are key factors that characterize competition in this market.
Major players in the DOAS market typically offer a diverse range of products and solutions, catering to various building types and sizes. They invest significantly in research and development to introduce advanced features such as smart controls, energy-efficient components, and integration with building automation systems.
The companies frequently engage in strategic partnerships and collaborations with other industry stakeholders, including architects, engineers, and contractors, to expand their market presence and offer comprehensive solutions.
Key Market Developments
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 5.23 Billion |
| Projected Market Size (2035) | USD 12.39 Billion |
| CAGR (2025 to 2035) | 9% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD Billion for value, Tons for capacity |
| Product Types Analyzed (Segment 1) | By Capacity: 20-40 Tons, Less Than 20 Tons, 40-60 Tons, Greater Than 60 Tons |
| Forms Analyzed (Segment 2) | By Requirement: Heating, Ventilation, Cooling, Dehumidification |
| Regions Covered | North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, Middle East & Africa |
| Countries Covered | United States, Canada, Mexico, Brazil, Argentina, Germany, France, United Kingdom, Italy, Spain, Netherlands, China, India, Japan, South Korea, ANZ, GCC Countries, South Africa |
| Key Players influencing the Market | Johnson Controls International PLC, Carrier Global Corporation, Daikin Industries, Ltd., Trane Technologies PLC, LG Electronics, Inc. (LG Corporation), Samsung Electronics Ltd. (Samsung Group), Greenheck Fan Corporation, Nortek Global HVAC LLC (Nortek), Ingersoll Rand, Inc., Mitsubishi Electric Corporation |
| Additional Attributes | Dollar sales by product type (e.g., capacity segments), trends in energy efficiency and air quality solutions, growth in commercial and industrial installations, regional demand for energy-efficient HVAC systems, innovations in DOAS technology. |
By 2025, the dedicated outdoor air system (DOAS) landscape is anticipated to be valued at USD 5.23 Billion.
The dedicated outdoor air system market is projected to flourish at a CAGR of 9% from 2025 to 2035.
By 2035, the market for dedicated outdoor air system is expected to generate USD 12.39 Billion in value terms.
By capacity, 20-40 tons DOAS are likely to be preferred, expanding at an 8.7% CAGR by 2035.
With a CAGR of 8.5%, DOAS for heating are expected to be highly demanded from 2025 to 2035.
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Dedicated Outdoor Air System (DOAS) Market
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