Small Vendors in the Indoor Air Quality Market Will Face Challenges as International Companies Expand


According to TechNavio’s recent report on the Global Indoor Air Quality market, indoor air pollution is currently ranked as one of the top five environmental dangers for the public.

In light of these statistics, TechNavio analysts predict a significant increase in consumer demand for air quality solutions between 2012-2016.

Nevertheless, although the market is expected to grow as a whole, some vendors may encounter challenges in the next few years as larger key-players expand to saturate different market sectors. 

Presently, the indoor air quality industry can be divided into three main subsections:

  • Consulting and test services
  • Environmental services
  • Equipment

These categories can be divided even further based on the enormous range of indoor contaminants and causes. For instance, low risk allergens like dust and pollen will need to be treated differently than extremely dangerous compounds like carbon monoxide. Until recently, this high degree of fragmentation allowed smaller vendors to advance in the market by providing specialized technology and products.

Unfortunately it is becoming increasingly difficult to sustain business by filling specific product niches, as international players increase their footprints and their range of available indoor air quality solutions.

The negative impact for local vendors and start-up companies is made even greater by the fact the market’s key end-user segmentation, such as schools, hospitals, and commercial customers, often form contracts with large vendors and sign long term buying agreements for multiple indoor air quality solutions.

Despite the magnitude of these challenges however, the Global Indoor Air Quality Market is not without opportunities for smaller industry players. One trend that may prove to be extremely favorable is the increase in homebuilders’ air quality initiatives. Many builders are electing to install air quality management systems during the construction process to help reduce costs in the long run. Residential building companies are often local businesses themselves, and in turn, they are more likely deal with other local vendors.

Mergers and acquisitions also provide opportunity for small and large vendors. Key-players are in constant competition with each other to provide ”the next best thing” and by merging with smaller providers of niche products, they can often do this and avoid extra R and D costs, thus benefiting both parties.

Overall, despite the many challenges on the horizon, most of these difficulties can be overcome by utilizing the industry strategies noted in Technavio’s most recent report on the Global Indoor Air Quality Market-including those mentioned in this article.

In addition, all vendors should find solace in the fact that the biggest challenge faced by any industry-product demand-is already taken care of, as consumers grow increasingly aware of the many contaminants and toxins in the air around them.

Other Related Reports:
Ventilation Equipment Market in the US 2012-2016
Global Air Conditioner Market 2011-2015