HVAC Air Handling Units Market Size - By Product (Heating or Cooling Coils, Filters, Dampers, Fans, Air Handlers, Blowers), By Application (Residential, Commercial, Industrial), By Distribution Channel (Direct, Indirect), By Capacity & Forecast, 2024 - 2032

HVAC Air Handling Units Market Size - By Product (Heating or Cooling Coils, Filters, Dampers, Fans, Air Handlers, Blowers), By Application (Residential, Commercial, Industrial), By Distribution Channel (Direct, Indirect), By Capacity & Forecast, 2024 - 2032

HVAC Air Handling Units Market Size

Heating, Ventilation, and Air Conditioning (HVAC) Air Handling Units (AHU) Market was valued at around USD 65.3 billion in 2023 and is estimated to register a CAGR of around 4.4% between 2024 and 2032.

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The growing demand for HVAC air handling units is attributed to the rising construction of new residential buildings such as single-family homes, multi-family housing complexes, condominiums, and apartment buildings. HVAC air handling units are crucial parts of home HVAC systems as they enhance Indoor Air Quality (IAQ), comfort levels, and the circulation of conditioned air. According to the Residential Energy Consumption Survey 2020, Nearly 90% of U.S. homes used air conditioning, in turn, fueling market demand.
 

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The design and installation of HVAC air handling units has become more complicated and expensive due to compliance with changing building regulations, energy efficiency standards, and regulatory requirements. Further, HVAC air handling units installation, which includes AHU installation, can have substantial up-front costs will hamper business growth.

HVAC Air Handling Units Market Trends

Smart air handling units provide remote HVAC system monitoring and control through the use of web-based platforms, tablets, and smartphones. Remote access increases convenience and flexibility by enabling users to modify fan speeds, temperature settings, and scheduling from any location with an internet connection. For instance, Trane Technologies plc provides Trane's ComfortLink II communication technology, which facilitates the creation of web-based platforms and mobile apps for remote monitoring, scheduling, and diagnostics of AHUs and other HVAC equipment, driving market growth.

HVAC Air Handling Units Market Analysis

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Based on the component type, the filters segment accounted for revenue of around USD 18.9 billion in 2023 and is expected to cross USD 29.6 billion by 2032. The growing awareness of the value of IAQ in institutional, commercial, and residential buildings is fueling segment growth. Filters are essential to eliminating allergens, pollutants, airborne particles, and other contaminants from the air to improve IAQ and support occupant health & well-being. Green building certification programs, such as Leadership in Energy and Environmental Design (LEED) and WELL Building Standard, prioritize IAQ and mandate the use of high-performance air filtering systems in HVAC designs.

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Based on application, the commercial segment held approximately 50% of the market share in 2023 and will capture 51% by 2032. The demand for HVAC air handling units is prominently increased by the construction of commercial buildings including offices, shopping malls, hotels, restaurants, medical facilities, and educational institutions. HVAC air handling units are used to distribute conditioned air, maintain comfort levels, and ensure IAQ in these business spaces. The demand for HVAC air handling systems that promote IAQ, thermal comfort, and occupant well-being is expected to rise in response to the growing awareness of health & wellness in the workplace, enhancing business growth.

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Asia Pacific region dominated the 43% share of the HVAC air handling units market in 2023 and is predicted to surpass USD 42.4 billion by 2032. HVAC air handling units are in high demand in the region due to the growing commercial & industrial sectors including manufacturing, hotel, retail, healthcare, education, and IT services. These sectors are subject to temperature control requirements for buildings and facilities. In addition, the growing demand for refrigeration, air conditioning, and ventilation solutions in commercial spaces, data centers, cleanrooms, hospitals, and laboratories is spurring the adoption of HVAC air handling units with particular features and capabilities.

Country-level Analysis

The U.S. dominated the North America HVAC air handling units market with revenue of over USD 13.5 billion in 2023 and is expected to grow at a CAGR of 4.5% through 2032. Programs, such as efficiency STAR certification, tax incentives, utility rebates, and building efficiency codes, encourage the use of high-performance air handling units with advanced controls, variable-speed drives, and energy recovery technology.

Germany dominated the Europe HVAC air handling units market with revenue of around USD 3.3 billion in 2023 and is likely to register at a CAGR of 4.7% from 2024 to 2032, due to the construction of commercial projects including office buildings, retail centers, hotels, and healthcare facilities, as well as residential projects comprising single-family & multi-family homes and condominiums.

China dominated the Asia Pacific HVAC air handling units market with revenue of around USD 9.3 billion in 2023 and is expected to reach around USD 14.7 billion by 2032. The demand for HVAC systems and air handling units is boosted by the Chinese government's investments in sustainable construction initiatives, urban regeneration projects, and infrastructure development. In addition, energy-efficient HVAC solutions are becoming increasingly popular in China owing to government initiatives, such as the "Green Buildings Program" and the "Thirteenth Five-Year Plan," which support green building practices, energy efficiency, and environmental sustainability.
HVAC Air Handling Units Market Share

The HVAC air handling units industry is fragmented, with several regional companies operating on a global scale. In 2023, the Carrier Corporation, Daikin Industries, LG Electronics, Toshiba Corporation, and Trane Technologies led the market. To expand their customer base, broaden their product offerings, and establish a stronger foothold in the market, these corporations strategically deploy mergers, acquisitions, partnerships, and facility expansions. They also leverage their vast distribution networks and resources to investigate new markets.

HVAC Air Handling Units Market Companies

Major players operating in the HVAC air handling units industry are

• Airedale International Air Conditioning Ltd.
• Carrier Global Corporation
• Daikin Applied Americas
• Daikin Industries, Ltd.
• Johnson Controls International plc
• Lennox International Inc.
• LG Electronics Inc.
• Mitsubishi Electric Corporation
• Munters Group AB
• Rheem Manufacturing Company
• Systemair AB
• Titus HVAC
• Toshiba Corporation
• Trane Technologies plc
• York International Corporation

HVAC Air Handling Units Industry 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 a majority ownership in Toshiba Carrier Corporation (TCC), a Variable Refrigerant Flow (VRF) and light commercial HVAC joint venture between Carrier and Toshiba Corporation. 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 HVAC air handling units market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and volume (Million Units) 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 or dehumidifiers, isolators, 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

• 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