Hydronic Control Market

[144 Pages Report] The hydronic control market was valued at USD 31.00 billion in 2017 and is projected to reach USD 37.70 billion by 2023, at a CAGR of 3.1% during the forecast period. The growth of the hydronic control market is driven by the need for efficient use of energy in buildings, the emergence of the construction market, and the trend of automation in commercial, industrial, and residential sectors in developing countries. Major factors driving the growth of this market include need for efficient use of energy building, emergence of construction market boost adoption of hydronic control, and trend of automation in commercial, industrial, and residential sectors in developing countries.

By equipment, market for flow controllers to grow at highest CAGR during the forecast period

Actuators act as an interface between the mechanical system and the hydronic control system. This device receives signals from controllers and accordingly controls the valves and dampers in the hydronic system. By using building management system (BMS) and bus communication, actuators can be remotely accessed; this saves time during the installation and commissioning of the system. The market for flow controllers is expected to grow at the highest CAGR during the forecast period. Flow controller ensures the appropriate rate of flow is directed to the right location to increase the efficiency within the hydronic system. Self-acting flow controllers are primarily used in district heating systems. The controller closes when the flow is exceeded from its pre-set position. These attributes result in the high growth rate of flow controllers during the forecast period.

By installation type, new installation to lead in the hydronic control market during the forecast period

The new installation provides advantages over retrofits for the implementation of hydronic control solutions at early stages. The advantages help in reducing the operational cost required for implementing hydronic control solutions. The upgradation of new equipment in an old system is termed is termed as a retrofit. The green building initiative and steps taken to reduce the adverse effects on the environment caused by old hydronic control systems are driving the adoption of hydronic controls in retrofits. The adoption of IoT and smart technologies supports the growth of retrofits installation.

By sector, industrial sector to hold the largest size of the hydronic control market during the forecast period

Industrial sector includes manufacturing and processing facilities. Energy consumption in industries is higher than that of residential or commercial facilities; however, a significant amount of energy in industrial facilities is used for processing and manufacturing machinery. The adoption of hydronic controls can help in efficiently powering hydronic systems, along with increasing the productivity of the company. Using hydronic controls across warehouses, production areas, administration offices, control rooms, and distribution centers, water temperature can be maintained according to the industrial norms. . HVAC devices, such as air-conditioners, consume almost 50% of the total power supplied to a residential building; to achieve energy efficiency in a residential building, hydronic systems have to be managed optimally. Various hydronic control equipment, such as actuators, valves, relays, sensors, and thermostats, enable efficient utilization of energy. It is assumed that hydronic and HVAC systems consume a significant amount of energy for residential applications; thus, the governments form regulations and acts to promote the use of hydronic controls.

Hydronic Control Market in RoW to grow at highest CAGR during the forecast period

North America held the largest share of the global hydronic control market in 2017 as some of the world’s major manufacturers of hydronic control have their headquarters in this region. Continuous growth in construction and renovation of residential and commercial buildings are among the major factors supporting the growth of the hydronic control market, along with the increasing adoption of IoT in smart housing. Government regulations regarding environmental safety and water quality are also among the major drivers for the growth of the hydronic control market in North America.

The market in RoW is projected to reach the highest CAGR of 3.4% during the forecast period. Growing awareness about energy conservation, global warming, and fluctuating weather conditions has inclined governments in this region to regulate policies that encourage energy conservation. These factors propel the growth of the hydronic control market in RoW. Also, rapid industrialization and growth in the hospitality industry in RoW drive the growth of the hydronic control market.

INDUSTRIAL SECTOR TO HOLD LARGEST SIZE OF HYDRONIC CONTROL MARKET DURING THE FORECAST PERIOD

Market Dynamics

Driver: Emergence of construction market boost adoption of hydronic control

The hydronic controls market is mainly dependent on hydronic systems. Demand for hydronic controls increases owing to the boom in the construction sector across the world. Increasing urbanization in developing countries of APAC has created a huge demand for hydronic controls. For instance, upcoming projects in India related to smart cities, bullet trains, and infrastructural development fuel the growth of the market for hydronic systems and controls in this country. Population growth and urbanization drive the market for hydronic systems, and eventually, the market for hydronic controls propels.

Growing number of public–private partnership (PPP) projects boosts the construction sector in the Middle East. The Tarif International Airport construction project in Saudi Arabia is a prime example of a PPP project, which involves the construction of the airport to handle 5 million passengers yearly. Several construction projects are being initiated in Qatar because of the 2022 FIFA World Cup. Suspended construction projects in the UAE due to the global economic crisis have been fully recovered. Such boom in the construction sector propels the demand for hydronic systems, thereby driving the growth of the hydronic controls market.

Restraint: High cost of skilled labor and installation

The hydronic industry is poised to experience exponential growth; however, skilled labor is required at all levels of the value chain. Hydronic systems require fine tuning and the custom fabrication of parts during installation to work properly to avoid failure. If the installation is not done by a skilled professional, then the end user would need to pay more in the long run for repairs, or it may not work efficiently. The requirement for skilled labor is expected to incur additional costs to the system. The installation costs of hydronic equipment in residential, commercial, and industrial applications depend on various factors. For instance, in the residential application, the installation cost of all hydronic equipment depends on the size of the home, type of equipment, and SEER value of the equipment. Thus, the requirement of skilled labor, followed by significant installation costs, hinders the implementation and the growth of the hydronic control market.

Opportunity: Increasing environmental awareness and energy efficiency standards

Globally efforts are being made to save energy and conserve our planet’s resources. The level of awareness on environmental issues has increased significantly in recent years. The race to become energy efficient is a key driver, especially in the new builds market where low-carbon legislation is introduced. The pressure to achieve zero carbon buildings and homes is expected to intensify in the near future, which, in turn, signifies the massive growth potential of the hydronic control market. Various new legislations are promoting the use of energy-efficient technologies across the world. For example, the European Standard EN 15232 (Energy performance of buildings – Impact of Building Automation, Controls, and Building Management) was compiled in conjunction with the Europe-wide implementation of the directive for energy efficiency in buildings (Energy Performance of Buildings Directive, EPBD) 2002/91/EG. This standard describes methods for evaluating the influence of building automation and technical building management on the energy consumption of buildings. With increased awareness of energy efficiency in building automation systems, infrastructure developers install hydronic systems in buildings, which will help to regulate temperature and would cause energy savings.

Challenge: Limited technically skilled staff

Trained and skilled personnel are required for maintenance and servicing to ensure that the hydronic control systems run smoothly and have a longer life span. Trained experts are also needed to monitor and upgrade the systems’ infrastructure within the building. Moreover, proprietary building automation software creates problems for users as these systems can be serviced only by the system vendors own service technicians. Due to the lack of availability of such experts in emergency situations, building owners tend to hesitate in adopting hydronic control systems, thereby restricting the growth of this market.

NEW INSTALLATION TO LEAD THE HYDRONIC CONTROL MARKET DURING THE FORECAST PERIOD

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Scope of the Report

The global hydronic control market, in this research report, has been segmented into equipment, installation type, sector, and geographic regions.

Hydronic Control Market, by Equipment

• Actuators
• Valves
• Control Panels
• Flow Controllers
• Others

Hydronic Control Market, by Installation Type

• New Installation
• Retrofit Installation

Hydronic Control Market, by Sector

• Residential
• Commercial
• Industrial

Hydronic Control Market, by Geography

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Netherlands
  • Rest of Europe
• APAC
  • China
  • Japan
  • India
  • Rest of APAC
• South America
  • Brazil
  • Chile
  • Argentina
• Rest of the World (RoW)
  • Middle East
  • Africa

Key Market Players

Siemens (Germany), Danfoss (Denmark), Johnson Controls  (Ireland), Honeywell (US), Schneider Electric  (France), IMI plc (UK), Belimo (Switzerland), Giacomini (Italy), Caleffi (Italy), Flamco (Netherlands), Armstrong (US), Oventrop (Germany), Reflex (Germany), Spirotech (Netherlands), and Xylem (US)

Danfoss strategizes to become one of the key players in the market by adopting acquisitions as its key growth strategy. The acquisition strategy provides the company with a technological edge and helps in expanding its global footprints. This has helped the company grow its business and expand the customer base. For instance, in June 2018, Danfoss extended its partnership with Leanheat. In 2016, Danfoss initially acquired a 23% stake of Leanheat (developer and provider of turnkey IoT solutions that upgrade building HVAC and hydronic systems) and in 2018, Danfoss acquired a total ownership of 46%. The company also focuses on improving quality, reliability, and innovation of its products and services to expand its product portfolio. Danfoss continuously focuses on strengthening its core businesses to improve its market position. For instance, in March 2018, Danfoss launched 2 high-flow proportional valves to its PVG portfolio—PVG 128 and PVG 256, thereby expanding its range of low to high-flow capabilities for OEM customers with demanding applications.

Recent Developments

• In April 2018, Danfoss opened its new office at Columbus Haus in Hamburg's HafenCity. The premises covers 1,600 m2 of office space for 120 employees, and 75 colleagues from all 4 company segments have already started working at the new location.
• In November 2017, The Siemens Building Technologies division launched a new smart thermostat—RDS110 smart thermostat. The thermostat takes a few minutes to install and can be controlled via a mobile phone app.
• In January 2018, Johnson Controls launched GLAS—a simple-to-use, powerful smart thermostat. GLAS is the first smart thermostat of its kind to utilize a translucent OLED touchscreen display to control its functions.
• In April 2017, Honeywell developed HPM sensors to help monitor the quality of air. Honeywell's HPM series particle sensor works in heating, ventilation, and air-conditioning (HVAC) systems and air purifiers to measure the quality of air in homes and buildings and at public spaces. The sensor has already been incorporated in Honeywell's PM2.5 Indoor Air Quality Detector, a portable air monitor for consumers in China.
• In January 2018, Schneider Electric launched Wiser Air. It is the company’s first Wi-Fi smart thermostat for residential consumers. This thermostat includes energy management expertise and intelligent design, and state-of-the-art technology that deliver energy-efficient comfort.

Key Questions Answered

• Where will all these developments take the industry in the long term?
• What are the upcoming trends for the Hydronic Control Market?
• Which segment provides the most opportunity for growth?
• Who are the leading vendors operating in this market?
• What are the opportunities for new market entrants?

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