Industrial Fans and Blowers

Industrial fans and blowers are devices that are used to provide large amounts of air to various parts of
a building; or wherever airflow is needed for exhausting, aspirating, cooling, ventilating, conveying and
other applications. These are used in various industries such as chemicals, petrochemicals, wood,
automotive, food and beverage, and so on. According to the purposes that they serve, industrial
fans/blowers can be categorized into the following: Axial flow, Centrifugal or radial flow, Mixed flow,
and Crossflow.

Industrial fans and blowers are machines whose primary function is to provide and accommodate a
large flow of air or gas to various parts of a building or other structures. This is achieved by rotating a
number of blades, connected to a hub and shaft, and driven by a motor or turbine. The flow rates of
these mechanical fans range from approximately 200 cubic feet (5.7 m3) to 2,000,000 cubic feet (57,000
m3) per minute. A blower is another name for a fan that operates where the resistance to the flow is
primarily on the downstream side of the fan.

The difference between a fan and blower is the input/output pressure ratios. Fans have a specific ratio
up to 1.11, whereas a blower has a specific ratio between 1.11 and 1.20, per the American Society of
Mechanical Engineers (ASME).

Products and Services

The Industrial and Commercial Fan and Blower Manufacturing industry consists of four major product
segments: air purification equipment; power roof ventilators; centrifugal fans and blowers; and parts
and accessories for fan and blower and air purification equipment.

Air purification equipment

Air-purification equipment, which includes dust collection equipment for industrial gas cleaning systems
and dust collection equipment for incoming air, is consistently the industry’s largest segment,
comprising an estimated 49.8% of total industry revenue in 2018. Products include industrial and
consumer dust collection systems, air filters for air conditioners and furnaces and air purifiers for
heating, venting and cooling systems. Within this category, dust collection and other air-purification
equipment for incoming air accounts for the largest portion of industry revenue, at 25.4% in 2018.
Environmental concerns over indoor air quality have gradually increased over the past five years, leading
consumers to look for air-purification solutions. Many air-purification systems can be incorporated
directly into existing HVAC systems, letting consumers exhibit diligence when choosing products. Air-
purification systems reduce allergens, bacteria, dust and smoke, and many are available as DIY
installations. Also present within the category is dust collection and other air-purification equipment for
industrial gas systems. Generally, industrial manufacturers that work with nitrogen, hydrogen, oxygen
and methane need those gases to be upgraded to ultra-high purities before putting them to use.
Purified gas can be used in industrial or medical industries, offering increased flexibility at a lower long-
term cost to the operator.

Centrifugal fans and blowers

Centrifugal blowers include both pressure blowers, which draw and push air at a high pressure, and
volume blowers, which draw and push air at a larger volume but with less static pressure. Centrifugal
blowers are typically made of fabricated steel, stainless steel or cast aluminum. Centrifugal fans are
typically used in heating and air-conditioning equipment, gas ventilation and pollution control systems.
As the third-largest product segment, centrifugal fans and blowers are estimated to comprise 26.4% of
industry revenue in 2018.

Power roof ventilators

The next-largest product segment is power roof ventilators, which comprise an estimated 25.3% of
industry revenue in 2018. Power roof ventilator systems remove hot or humid air from attics by drawing
air into the inlet of the blower, housing and then discharging it at a 90-degree angle through the sides of
the main unit.

Parts and accessories for fans and blowers

Parts and accessories for commercial fans and blowers include motors, relief valves, vacuum pumps,
vanes and lubricants as well as replacement parts. Commercial fan and blower parts and accessories are
expected to comprise 8.6% of industry revenue in 2018.

Market Overview
The global fans & blowers market is expected to grow at a CAGR of more than 3.3% over the period of
2020-2025. Increasing demand for cooling systems from data centers is among the major drivers of the
fans and blowers market. The increasing demand for data centers is expected to outpace the supply,
particularly in developing countries. Hence, the data centers, existing and new, are expected to run at
higher loads, which, in turn, is expected to drive the demand for sophisticated cooling systems to
maintain the temperature in these facilities. Renewable power plants require very limited infrastructure
for fans and blowers. During the forecast period, the average power generation cost of solar PV and
wind power is expected to stay below the average power generation cost of conventional power plants.
Hence, the share of the renewable power plants in the power generation mix is expected to grow at
higher speed, which, in turn, is expected to restrain the fans and blowers demand.
  Under the industrial deployment, the power generation sector has dominated the fans &
blowers market in 2018, owing to the increasing number of conventional power plants across
the globe.
 With increasing urbanization and a growing population, the average height of buildings and the
congestion has been increasing. With the trend expected to continue during the forecast period,
the demand for ventilating equipment, to make up for the unavailability of proper ventilation, is
expected to increase, providing an opportunity for the growth of the market studied.
 Asia-Pacific has dominated the fans & blowers market, with the majority of the demand coming
from China, India, Japan, and South Korea.

Key Market Trends

Power Generation Sector to Dominate the Market Under Industrial Deployment

 Fans and blowers are primarily used in the power industry for cooling and exhaustion purpose,
aeration in the power plant, air pollution control, to maintain the stable flow of the air during
power generation process and heat recovery process, and to maintain required temperature
and pressure.
 Fuel cells used in standby power plants also require complex fan components. The fans and
blowers are critical components in power generation plants for maintaining operational
standards, improving the process efficiencies, and controlling dust particles in the air.
 Globally, the demand for electricity is growing at a rapid rate, on account of surge in population
and industrial expansion. Apart from that, the increasing disposable income in the developing
countries has led to a rise in per capita power consumption that is likely to create a huge
demand for expansion of power infrastructure in the near future.
 Moreover, stringent international and government regulations, such as the Clean Air Act (CAA)
and the Mercury and Air Toxics Standards, enforce the installation of systems that monitor and
curb emissions to bring them to a safer level, in power generation companies using fossil fuels,
which, in turn, is driving the demand for fans and blowers for air pollution control in the power
industry.

Asia-Pacific to Dominate the Market

 Asia-Pacific has dominated the fans & blowers market in 2018 and is expected to continue its
dominance in the coming years as well.
 in 2018, China’s refinery capacity came to 16.8 Mb/d. Hence, the refining industry in China ranks
among one of the top industries in the world. As the oil demand growth shifted from fuel-driven
to petrochemical feedstock-driven, the country is transforming and upgrading the refinery
industry.
 In March 2019, the Wood company was awarded a new contract from Sinochem Quanzhou
Petrochemical for its 1MTA ethylene and refinery expansion project in China.
 Also, in 2018, ExxonMobil and SABIC announced that they are planning to build wholly-owned
petrochemical complexes in coastal southern China. The project scheduled for the start-up in
2023.
  Hence, with the expansion of the refinery and petrochemical business and the upcoming coal-
fired plant, the country is expected to witness an increase in the demand for fans and blowers,
during the forecast period.
 India has one of the largest chemical and petrochemical industries in the world. The agricultural
and transportation sectors are some of the major consumers of these industries in the country.
Additionally, in 2018, the coal consumption rate of India registered a growth rate of 8.7%, which
indicated that the country is still highly dependent on coal for energy generation, which is
expected to supplement the demand for fans and blowers in the country.
 Similarly, countries such as Japan and South Korea has plans to expand their manufacturing
industry and power generation sector. This, in turn, is expected to drive the demand for fans &
blowers during the forecast period.

During 2016, the industrial fans segment accounted for the major shares of the industrial fans and
blowers market. Factors such as the increased usage of industrial fans for sectors like de-dusting,
paint booths, agriculture and silos, boilers and ovens, textile, wood and paper, and microchips will
contribute to the growth of this industry segment in the coming years.

The Industrial and Commercial Fan and Blower Manufacturing industry is in the mature stage of its
life cycle. Its industry value-added (IVA), which measures an industry’s contribution to the overall
economy, is expected to rise at an annualized rate of 0.2% over the 10 years to 2023. Meanwhile,
GDP is expected to grow at an annualized rate of 2.2% during the same period. An IVA growing
slower than GDP is typically indicative of a declining industry. However, over the next five years, IVA
is expected to accelerate slightly, shifting the industry into a mature stage.
The number of companies operating within the industry is expected to rise only marginally over the
10 years to 2023, further suggesting that the industry is in a mature stage. During the 10-year
period, the total number of industry enterprises is expected to rise at an annualized rate of only
0.3%, suggesting that growth within the industry is minimal. In addition, while manufacturing
technology has improved recently, the technology used by the industry has not changed significantly
over the past five years. Mature industries are typically characterized by minimal technological
change.

Market Drivers
Value of private nonresidential construction

The value of private nonresidential construction measures total investment in the construction of
nonresidential buildings, including factories and manufacturing facilities, which often require industrial
fans and blowers. As nonresidential construction increases, demand for industry products rises. The
value of private nonresidential construction is expected to rise in 2018, presenting an opportunity for
the industry.
Industrial production index

The industrial production index measures the output of the manufacturing, mining and utility sectors, all
of which demand industrial fans and blowers. As this index rises, demand for industry products
increases. In 2018, the industrial production index is expected to rise.

Trade-weighted index

The trade-weighted index measures the value of the US dollar against the currencies of major trading
partners. As the value of the dollar rises, domestic goods become relatively more expensive in foreign
markets, causing demand for industry products to fall overseas. In 2018, the trade-weighted index is
expected to decrease. However, volatility in US trade policy could pose a threat to the industry.

Demand from heating and air-conditioning contractors

Heating and air-conditioning equipment accounts for a significant portion of industrial fans and blowers.
As revenue for heating and air-conditioning contractors rises, so does revenue for industrial fan and
blower manufacturers. Demand from heating and air-conditioning contractors is expected to rise in
2018.

Demand from refrigeration equipment wholesaling

Industrial fans and blowers are frequently used in refrigeration equipment. As a result, when demand
for refrigeration equipment rises, so does demand for industry products. In 2018, demand from
refrigeration equipment wholesaling is expected to rise.

Construction

One of the greatest drivers of the Industrial and Commercial Fan and Blower Manufacturing industry is
the value of private nonresidential construction. Industry products are often needed in factories and
manufacturing facilities to control the quality of goods produced in these facilities. Air purifiers are also
used to maintain safe working conditions, reduce outside pollution and protect products from outside
contamination.
Therefore, as the construction of manufacturing facilities increases, so does demand for industry
products. Over the past five years, the value of private nonresidential construction has increased overall
at an annualized rate of 4.0%. However, due to slowed investment in manufacturing after the economic
recovery, private construction has declined during the later part of the five-year period. The value of
private nonresidential construction declined 1.4% and 3.9% in 2015 and 2016, respectively. As a result,
industry revenue fell 2. 3% and 3.4% in those respective years. However, as nonresidential construction
is projected to improve in 2018, industry revenue is also expected to grow. Revenue is anticipated to
rise 3.3% in 2018 due to increased investment in manufacturing and the growing value of private
nonresidential construction. Still, despite this promising turn, industry revenue is expected to stagnate
over the five years at an estimated $6.7 billion.

Downstream demand

Aside from fluctuations in nonresidential construction, the industry has also been influenced by the
performance of downstream service providers and consumers. Industrial fans and blowers are
commonly used as a component in heating and cooling equipment. Heaters, air conditioners and
refrigerators all use fans and blowers for temperature control. Over the past five years, revenue for
heating and air-conditioning contractors has risen at an annualized rate of 2.8%. Contractors install,
maintain and repair heating and cooling equipment, and industry products are their largest input cost;
therefore, growth in their revenue promotes demand for industry products. In addition, revenue for
refrigeration equipment wholesaling has risen at an annualized rate of 3.3% during the five-year period.
Since fans and blowers are a key component of refrigeration equipment, rising revenue for these
wholesalers similarly means greater demand for industry products. While support from downstream
industries has kept companies from exiting the industry over the past five years, few new companies
have entered the industry. Over the five years to 2018, the number of companies in the industry has
grown at an annualized rate of only 0.1% to 416. Meanwhile, although the industry has remained stable,
industry input costs including the price of steel have grown over the past five years. As a result, the
average industry operator’s profit is expected to account for 6.0% of revenue, down from 6.9% in 2013.
Additionally, as purchase costs have grown, companies have been forced to reduce wages. Total
spending on labor has consequently decreased at an annualized rate of 0.1% to $1.3 billion over the five
years to 2018.

Industry Segmentation
 By Product Type
o Pedestal Fans
o Wall Mounted Fans
o Blower Fans
o Industrial Ceiling Fans
o Others (Industrial ventilation fans and blowers)
 By Distribution Channel
o Axial Fans
o Centrifugal
o Forward Curved Centrifugal Fans
o Backward Curved Centrifugal Fans
 By Type
 o Ceiling Fans
o Cage Fans
o Wall Mountable Fans
o Other
 By Industry
o Commercial
o Industrial
 Power Generation
 Oil and Gas
 Mining, Metal Manufacturing, and Processing
 Cement Industry
 Other Industrial Deployments
 Chemical
 Food and beverage
 Petrochemicals
 Wood
 Automotive
 By Geography
o North America
 United States
 Canada
 Mexico
o Europe
 Germany
 UK
 France
 Italy
 Russia
o Asia-Pacific
 China
 Japan
 South Korea
 Southeast Asia
 India
o South America
 Brazil
 Argentina
 Chile
 Peru
o Middle East and Africa
 Turkey
 Saudi Arabia
 UAE
 South Africa
  Nigeria
o By Industrial Chain
 Centrifugal Fans
 Axial Fans
o

Industry Size
U.S. Industrial & Commercial Fan & Blower Manufacturing

The past five years have been challenging for the Industrial and Commercial Fan and Blower
Manufacturing industry. Companies in this industry manufacture fans, blowers and other air ventilation
equipment for industrial, commercial and aerospace settings. Therefore, industry demand is supported
by growth in the manufacturing, construction and utilities sectors. After experiencing inflated growth
prior to 2013 due to the manufacturing sector’s rapid recovery following the recession, industry revenue
has declined. As recovery has slowed and the economy has reached prerecession levels, revenue has
weakened throughout the manufacturing sector. Overall investment in manufacturing declined slightly
during the later part of the five-year period, as illustrated by the industrial production index’s growth of
only 1.0% over the five years to 2018. In addition, the value of private nonresidential construction has
fluctuated significantly over the five years to 2018, contributing to revenue decline. Nonresidential
construction includes the construction of factories and other manufacturing facilities, which is crucial to
the industry since such facilities often require industry products. Thus when the value of private
nonresidential construction fell 1.4% and 3.9% in 2015 and 2016, respectively, industry revenue
suffered. However, as construction improves and investment in manufacturing rises in 2018, industry
revenue is expected to increase 3.3% over the year. Overall, industry revenue is expected to stagnate
over the five years to 2018, holding at $6.7 billion. Despite struggling over the past five years, industry
revenue is expected to grow over the next five years. This growth is expected to be driven by the value
of private nonresidential construction, which is forecast to rise at an annualized rate of 3.1% over the
five years to 2023, presenting a significant opportunity for industry operators. As the manufacturing
sector improves, the industry stands to benefit significantly. Industry revenue is projected to increase at
an annualized rate of 2.2% to $7.5 billion during the outlook period.

 The United States accounted for almost 75% of the market share in 2018 and is expected to
continue its dominance in the coming years.
 In the United States, the commercial sector is the largest sector for the demand for fans and
blowers. The commercial sector is driven by new corporate offices and relocation, increased
number of warehouses, and distribution center spending, driven by outdated facilities and
technological and logistics needs. Further, the aging population and rising rate of chronic illness
continue to drive outpatient facility investment.
 These factors have led to increased spending in the construction industry, and hence, an
augmented demand for goods and raw materials required for the construction. This has
translated into increased demand for ventilation systems in the new infrastructures.
 In the United States, the biggest market in North America, the private sector spending on
commercial buildings declined post-2008 crisis but started a recovery in 2012. From 2012 to
 2018, the private sector spending on commercial buildings has grown at a CAGR of over 15%.
During the forecast period, due to the strong economic performance of the country, a similar
trend is expected, in turn, driving the fans and blowers market in the commercial sector.
 In the industrial segment, uptake in the construction sector, increasing focus in natural-gas-fired
power plants to replace the aging coal-fired ones, and expansion of oil and gas infrastructure
have led to increased demand for fans and blowers, especially with explosion proof motors.
 The United States is currently generating 600 zettabytes of new data each year. This amounts to
200% more traffic than what current data centers can handle. To keep up pace with the growth
in data generation, the data center industry needs to build about 4,000 new facilities by 2020.
 This upcoming infrastructure is expected to result in increased demand for the ventilation
system, and hence drive the fans and blowers market growth.
Industry Fragmentation
The Industrial and Commercial Fan and Blowing Manufacturing industry is highly dependent on several
demand and economic variables, as well as weather patterns. The industry is leveraged to residential
and commercial construction, in that almost all new buildings require the installation of new fan and
blowing systems and equipment. Therefore, the majority of product demand comes from the following
industries: heating and air-conditioning contractors (IBISWorld report 23822a), plumbing contractors
(IBISWorld report 23822b), construction industries and wholesalers.

Residential and commercial construction markets

According to the Air-Conditioning, Heating, & Refrigeration Institute, 88.0% of new homes are built with
central air conditioning, and 97.0% of new homes are built with heating systems. Demand for single and
multi-family housing construction is subject to economic influences, such as the overall employment and
the affordability of housing through low interest and mortgage rates. Demographic trends, like
population growth and migration patterns influence sales of industrial fan and blower equipment.
Commercial or nonresidential construction markets are dependent on corporate revenue and
profitability, whereby increased revenue and demand compels companies to increase capacity by
building new stores, factories or offices. Like the residential market, fully functioning credit markets and
low interest rates are helpful in that building projects are financed through credit.

Remodeling and replacement markets

Replacement sales are strongest in those areas where heating and cooling equipment is already
installed. The age of equipment, the trade-off between repair and replacement and the environmental
acceptability of newer equipment also influence product demand. The retrofit market can be divided
into two categories: the replacement of old or damaged equipment; and the upgrade of current fan and
blower equipment for more energy efficient, environmentally conscious models. Aside from ordinary
wear and tear, hurricanes, floods and other forms of severe weather often cause damage to existing fan
and blower equipment. Demand for replacement products, repair parts and services generally increases
during summer months; however, the overall influence of seasonality on this segment of the industry is
mitigated by sales of new equipment, where demand is less seasonal.

Persistently high energy costs, continual tax incentives for purchasing energy efficient products and
increased public favor for less-harmful environmental options have all spurred sales of fan and blower
retrofits that were not necessitated by equipment breakdown.

Major Markets

The largest market for industrial and commercial fans and blowers is heating and air-conditioning
equipment manufacturers. Fans and blowers are a key input for air-conditioning and heating equipment,
as one of the main uses for fans and blowers is temperature regulation. Heating and air-conditioning
equipment is used in all construction, both residential and nonresidential. Therefore, there is almost
always significant demand for industry products from heating and air-conditioning equipment
manufacturers. While this industry does not include heating and air-conditioning equipment used in
homes, it does include equipment used by HVAC contractors in commercial and industrial settings. In
2018, this segment is expected to account for 29.0% of industry revenue.

Computers and semiconductors

Computer and semiconductor manufacturers often use very precise equipment that needs to be kept
clean and uncontaminated during the manufacturing process. Semiconductors in particular need to be
manufactured in highly regulated environments to avoid dust and other contaminants. Therefore, these
manufacturers use air purifiers, fans and blowers to regulate the environment of their facilities. In 2018,
these segments are expected to account for a combined 17.6% of industry revenue.

Transit

Mass transit is the second-largest market for industry products. Transit industries use fans and blowers
to control temperature, move air and clean. Transit industries also use air-purification systems to
control and limit pollution. These products are particularly used by subway systems and other transit
methods that need to pump air. In 2018, this segment is expected to account for 15.5% of total industry
revenue.

Exports

While exports represent an important market for industry operators, they have been declining as a
share of revenue over the past five years. Fan and blower manufacturers have experienced increased
international competition from low wage countries like China and Mexico as these countries have
expanded their manufacturing sectors. In 2018, exports are expected to account for 22.0% of industry
revenue.

Other

Fans and blowers are used in a wide variety of manufacturing settings. Similar to computer and
semiconductor manufacturers, many other manufacturers use industry products to control the
environment of their manufacturing facilities. Additionally, many facilities use industry products to
reduce and control pollution and maintain safe work environments.

Imports

Imports account for a significant portion of domestic demand for industrial and commercial fans and
blowers. In 2018, imports of industry products are expected to account for 37.8% of domestic demand,
up from 29.0% in 2013. The majority of industry imports come from China, with China accounting for
34.7% of total imports. Over the past five years, the appreciating US dollar has made imports relatively
less expensive. As a result, the value of industry imports is expected to increase at an annualized rate of
8.4% to $3.2 billion over the five years to 2018. This increase has created more competition for domestic
operators.

Exports

Over the past five years, exports have been falling as a share of industry revenue. This has mainly been
the result of the appreciating US dollar. While this has reduced the price of imports, it has also made
industry products more expensive in foreign markets. However, the value of the dollar has declined in
2017 and 2018, contributing to growth in the value of exports. As a result, the value of industry exports
is expected to decrease at an annualized rate of only 0.2% to $1.5 billion over the five years to 2018. In
addition, exports have declined from 22.2% of revenue in 2013 to 22.0% in 2018.
According to data from the US Census Bureau’s Statistics of US Businesses report, business locations in
the Industrial and Commercial Fan and Blower Manufacturing industry are most heavily concentrated in
the Great Lakes region (27.4%), the Southeast (24.2%) and the West (13.5%). Demand is distributed
based on weather and population patterns. New houses built in warmer states are more likely to be
fitted with air-conditioning equipment than those built in cooler states, where the installation of central
heating systems tends to be higher. In addition to weather patterns, the spread of industry
establishments generally follows the US population and construction activity. By state, California, Illinois,
North Carolina and Texas have the highest numbers of establishments. The Great Lakes region has a
higher share of industry establishments than its proportion of US population, largely due to the
concentration of industrial activity in the region, which comprises the third largest share of industrial
construction companies. Cold winters in the region, combined with an abundance of manufacturing
activity, creates a strong demand base for both industrial and residential fan and blower equipment.
Michigan, for example, has the fifth highest concentration of locations in the Industrial and Commercial
Fan and Blower industry.

Resources
 https://www.mordorintelligence.com/industry-reports/fans-and-blowers-market
 https://www.technavio.com/report/global-industrial-fans-and-blowers-market
 https://www.transparencymarketresearch.com/industrial-fans-and-blowers-market.html
 https://www.industryresearch.co/2014-2026-global-industrial-fans-and-blowers-industry-
market-14958331
 https://en.wikipedia.org/wiki/Industrial_fan
 https://www.mordorintelligence.com/industry-reports/north-america-fans-and-blowers-market
