Air Handling Unit Market Size - By Product Type (Heating/Cooling Coils, Filters, Dampers, Fans, Air Handlers, Blowers), By Category (Packaged AHU, Rooftop AHU, Modular AHU, Heat Recovery AHU, Energy Recovery AHU), By Capacity, Application & Forecast, 2024 - 2032

Air Handling Unit Market Size - By Product Type (Heating/Cooling Coils, Filters, Dampers, Fans, Air Handlers, Blowers), By Category (Packaged AHU, Rooftop AHU, Modular AHU, Heat Recovery AHU, Energy Recovery AHU), By Capacity, Application & Forecast, 2024 - 2032

Air Handling Unit Market Size

Air Handling Unit (AHU) Market was valued at around USD 13.6 billion in 2023 and is estimated to register a CAGR of approximately 4.8% between 2024 and 2032. The demand for AHUs with cutting-edge filtration and air purification technologies is driven by the growing awareness of the significance of Indoor Air Quality (IAQ) for comfort and health, as well as the need to lower toxins and enhance air quality.

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According to a Honeywell survey conducted in 2022, 72% of office workers are worried about the IAQ in their workplaces. They would need frequent information on the air quality in their building. Further, stricter IAQ rules and regulations in several industries, including healthcare, real estate, and education, accelerate the demand for high-performance AHUs, thereby enhancing business demand.
 

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AHUs are expensive, especially those with sophisticated features such as energy recovery systems and smart controls. This might discourage potential customers, especially Small & Medium-sized Enterprises (SMEs) or industries with tight budgets. For AHUs to operate optimally and last a long time, frequent maintenance is necessary. This can result in ongoing costs due to routine cleaning, component replacement, and system checks.

Air Handling Unit Market Trends

The need for Heating, Ventilation, and Air Conditioning (HVAC) systems, particularly AHUs, is increasing as a result of the rapid urbanization and development of smart cities, which is driving up the construction of new residential, commercial, & industrial buildings. The pursuit of green building certifications, such as LEED and BREEAM, encourages the adoption of AHUs that enhance energy efficiency and lower carbon footprint. To enhance air quality and fulfill more stringent IAQ regulations, advanced air filtration technologies, such as Ultraviolet Germicidal Irradiation (UVGI) and High-Efficiency Particulate Air (HEPA) filters, are being integrated into AHUs.

Air Handling Unit Market Analysis

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Based on product type, the heating/cooling coils segment accounted for a revenue of approximately USD 3.1 billion in 2023 and is expected to reach USD 5 billion by 2032. Thermal exchange efficiency is the primary design goal of contemporary heating/cooling coils. AHUs can now address the growing need for energy-efficient HVAC systems by maintaining optimum temperatures while using less electricity. AHUs can comply with strict environmental requirements and standards by utilizing coils made to operate with environment-friendly refrigerants, including R-410A/natural refrigerants, which in turn accelerates market growth.

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Based on end use, the commercial segment accounted for the 50% of the market share in 2023 and will hold 51% by 2032. Commercial buildings are required to adhere to strict energy efficiency rules and regulations, such as those outlined in municipal building codes/the Energy Star program. This promotes the use of energy-efficient AHUs, which save operating costs and help comply with energy regulations. To maintain a secure & comfortable atmosphere for patients and employees, hospitals & other healthcare facilities must strictly regulate the humidity, temperature, and air quality. This increases the need for AHUs equipped with features such as humidity control and HEPA filtering.

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Asia Pacific region held the 43% share of the air handling unit market in 2023 and is anticipated to reach USD 9.1 billion by 2032. Strong economic expansion in the area is expediting investment in infrastructure and building activities, which is accelerating the demand for HVAC systems, especially in China and India. The need for AHUs that deliver dependable and effective heating, cooling, and ventilation is driven by the growth of commercial real estate, including office buildings, retail centers, hotels, and educational institutions. To maintain acceptable living conditions, there is a growing demand for efficient HVAC systems due to the increasing population and urban migration.

Country-level Analysis

The U.S. dominated the air handling unit market with a revenue of over USD 2.8 billion in 2023 and is expected to grow at a CAGR of 4.9% through 2032. The Department of Energy's efficiency mandates and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers' (ASHRAE) standards are two examples of the strict energy efficiency laws that apply to buildings in the U.S. These regulations drive the adoption of energy-efficient HVAC systems, such as AHUs. The U.S. leads the world in green building certifications such as ENERGY STAR and LEED (Leadership in Energy and Environmental Design), which promote the use of energy-efficient and sustainable HVAC systems, including AHUs. The demand for AHUs that can interface with Building Management Systems (BMS) is driven by the trend toward smart buildings, aiming for better control, energy monitoring, and maintenance efficiency.

Germany dominated the Europe air handling unit market with a revenue of around USD 694 million in 2023 and is expected to grow at a CAGR of 5% from 2024 to 2032. Strict energy performance requirements for buildings are mandated by Germany's Energy Saving Ordinance (EnEV), which requires efficient HVAC systems, including AHUs, to lower energy consumption and CO2 emissions. Green building certifications, such as LEED and DGNB (German Sustainable Building Council), demonstrate Germany's dedication to sustainable building methods. To meet strict sustainability criteria, these certifications promote the adoption of energy-efficient HVAC systems such as AHUs. AHUs must be able to effectively connect with sustainable heating solutions, including heat pumps, to provide both heating and cooling. To improve sustainability and livability, Germany's smart city efforts encourage the integration of cutting-edge & energy-efficient technologies such as AHUs in urban infrastructure.

China dominated the Asia Pacific air handling unit market with a revenue of around USD 2 billion in 2023 and is expected to reach around USD 3.1 billion by 2032. The construction of new residential, commercial, and industrial buildings is driven by the major migration from rural to urban regions, which is significantly responsible for China's rapid urbanization. All of these structures require efficient HVAC systems including AHUs. China released its first national Green Cooling Action Plan (GCAP) in June 2019. GCAP is an integrated master plan aimed at promoting green refrigerants and improving cooling efficiency. It sets new energy efficiency and market penetration targets for air conditioners and other cooling products, aiming to save. 400 billion kWh of electricity annually by 2030. The plan includes a 25% increase in the energy efficiency of major cooling products, a 40% increase in the market share of green & efficient cooling products, and a 30% increase in the energy efficiency of large public buildings in comparison to 2022 levels.

Air Handling Unit Market Share

The global market is fragmented, with several regional companies operating on a global scale. In 2023, Carrier Corporation, Daikin Industries, LG Electronics, Toshiba Corporation, and Trane Technologies led the global AHU industry. These corporations strategically deploy mergers, acquisitions, partnerships, and facility expansions to expand its customer base, diversify its product offerings, and establish a stronger foothold in the market. These companies also leverage its vast distribution networks and resources to explore new markets.

Air Handling Unit Market Companies

Major players operating in the AHU market are

• Bosch Thermotechnology GmbH
• Carrier Global Corporation
• CIAT Group
• Daikin Industries, Ltd.
• FläktGroup Holding GmbH
• Hitachi, Ltd.
• Johnson Controls International PLC
• Lennox International Inc.
• LG Electronics Inc.
• Mitsubishi Electric Corporation
• Munters Group AB
• Systemair AB
• Trane Technologies plc
• TROX GmbH
• Zehnder Group International AG

Air Handling Unit Market News

• In May 2023, Trane Technologies acquired MTA S.p.A (MTA), a leading industrial process cooling technology business, which brought complementary & high-performing solutions to Trane’s comprehensive commercial HVAC product and services portfolio.
• In February 2022, Carrier Corporation entered into a binding agreement to acquire majority ownership in Toshiba Carrier Corporation (TCC), a joint venture specializing in Variable Refrigerant Flow (VRF) and light commercial HVAC systems. TCC designs and manufactures flexible, energy-efficient, and high-performance VRF and light commercial HVAC systems along with commercial products, compressors, and heat pumps.

This AHU market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD billion) from 2021 to 2032, for the following segments

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Market, By Component Type

• Heating or cooling coils
• Filters
• Dampers
• Fans
• Air handlers
• Blowers
• Others (humidifiers/dehumidifiers, isolators, etc.)

Market, By Category

• Packaged AHU
• Rooftop AHU
• Modular AHU
• Heat recovery AHU
• Energy recovery AHU
• Others (cleanroom AHU, outdoor AHU, etc.)

Market, By Capacity

• Below 5,000 CFM
• 5,000 CFM – 10,000 CFM
• Above 10,000 CFM

Market, By Application

• Residential
• Commercial
• Industrial

Market, By Distribution Channel

• Online
• Direct
• Indirect

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Malaysia
  • Indonesia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA