Air Handling Units (AHU) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 15.07 Billion |
| Market Size (2029) | USD 20.25 Billion |
| CAGR (2024 - 2029) | 6.08 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
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*Disclaimer: Major Players sorted in no particular order |
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Air Handling Units (AHU) Market Analysis
The Air Handling Units Market size is estimated at USD 15.07 billion in 2024, and is expected to reach USD 20.25 billion by 2029, growing at a CAGR of 6.08% during the forecast period (2024-2029).
- Air handling units (AHUs) are commonly used in large facilities visited by many people, such as shopping malls, as such facilities frequented by people are subjected to strict regulations regarding the exhaustion of carbon dioxide and air cleanliness. A large facility must let adequate amounts of air into the building and use multiple blower fans and other equipment to circulate the air. As the air handling units deliver outside air into the rooms, they can significantly reduce the number of required blower fans.
- The rapid rise in industrialization and urbanization around the world is one of the primary factors driving market growth. The significant increase in the construction of different commercial and residential buildings worldwide creates considerable demand for Air Handling Units as a space cooling and heating system. For instance, as per CIArb, the volume of construction output is anticipated to grow by about 85 percent globally to USD 15.5 trillion by 2030.
- According to the European Commission, buildings in the EU region are responsible for around 36 percent of GHG emissions and 40 percent of energy consumption, mainly from construction, usage, renovation, and demolition. HVAC systems account for a considerable share of energy usage in these buildings. Hence, the demand for energy-efficient HVAC systems, including air handling units, is anticipated to gain traction during the forecast period.
- Furthermore, the HVAC equipment market, including air handler units, is highly dependent on sectors such as construction, government regulations, and new initiatives by the governments of various regions to boost the infrastructure and industrial and manufacturing sectors. Any fluctuations in the growth in the commercial and industrial sectors are bound to impact the demand for this equipment directly.
- Additionally, macroeconomic factors such as geo-political issues and the recent economic instability witnessed in the North American and European regions are also anticipated to influence the studied market's growth. For instance, the growing energy prices, owing to the Russia-Ukraine war, are anticipated to slow down the demand for air handling units in Europe as energy consumption by these devices is higher.
Air Handling Units (AHU) Market Trends
Commercial Segment to Occupy a Significant Share
- Air Handling Units are used in any commercial structure, such as restaurants, data centers, hospitals, schools, hotels, and office buildings, to provide inhabitants with a comfortable environment. For instance, an air handling unit (AHU) is used in medium- and large-sized industrial or commercial buildings to condition and transport fresh air throughout the structure. AHUs are a component of the bigger HVAC system; they draw fresh outdoor air in, clean and condition it, and then heat or cool it as necessary.
- Air handler units can be utilized for either a single space or an entire building due to their wide range of size and functionality. They are frequently located in the basement or on the roof of commercial-sized buildings. The air handler unit can then be allocated to particular regions of a building to deliver heating or cooling as needed.
- The increasing demand for environmentally friendly and energy-efficient HVAC systems is credited with driving the segment's expansion. The need for energy-efficient and cost-effective HVAC solutions is driving the increased demand for air handling systems. Air handling units provide several advantages over other types of HVAC systems, including higher energy efficiency, cheaper running costs, and better indoor air quality.
- The commercial sector consumes a large portion of North America's overall energy consumption. There are approximately 6 million buildings in the business sector of the United States, totaling 97 billion square feet of floor space, according to the environmental services firm Carbon Reform. Additionally, mechanical heating and cooling systems are used in some capacity on more than 90 percent of the total commercial floor space. Additionally, it is anticipated that the expanding construction sector will drive the market and contribute to the overall energy requirements for commercial buildings.
- Considering a large commercial sector, the sector is also among the leading consumer of electricity in the United States; according to EIA, in 2022, about 4.9 quadrillion British thermal units of primary energy was consumed by the commercial sector in the United States. Hence, the growing energy consumption is anticipated to drive the demand for energy-efficient air handling units in the country during the forecast period.
Asia-Pacific is Expected to Register the Fastest Growth
- The air handling unit (AHU) market is anticipated to grow fastest in the Asia-Pacific region during the projected period, primarily due to the expanding infrastructure and building project investments and increased demand for energy-efficient technologies in the area. This market is anticipated to rise throughout the projected period due to technological developments such as intelligent AHUs.
- Countries like India and China are fast emerging as the pharmaceutical manufacturing hub in the Asia Pacific region. In the pharmaceutical business, air handling units are primarily used to maintain a regulated atmosphere for medicines and other items with high sanitation standards to prevent contamination, among other things. Due to the development of new chemical and pharmaceutical facilities like the Yeosu Mononitrobenzene Manufacturing Plant and Tuas Biomedical Park New Vaccine Production Facility, the market for air handling systems is anticipated to grow in the region.
- The fast-increasing industrial sector in Asia is one of the primary causes responsible for the most significant share. It is also anticipated that growing urbanization and commercialization in this region's developing nations, including India, Japan, China, and South Korea, will raise demand for air handling systems. Additionally, the rising disposable income and changing lifestyle also drive demand for pleasant living spaces, which is a significant element driving the market's direction.
- The Asia-Pacific region is crucial to global efforts to attain net zero and a transition to green energy. The "green" trend is exploding throughout Asia-Pacific due to numerous governments establishing national or regional initiatives and programs to promote energy conservation efforts. The government's initiatives provide enormous prospects for technologists in the green and energy efficiency sectors of HVAC and building automation systems.
- Moreover, environmental laws are becoming more prevalent in Asia-Pacific, including the Australian Minimum Energy Performance Standards (MEPS), China's Green Building Evaluation Label (GBEL), and India's Bureau of Energy Efficiency Standards and Labeling Program (BEE Labeling Program), among others. As a result, the HVAC industry in this area is turning toward environmentally friendly AHUs with low Global Warming Potential (GWP) and energy-efficient technology.
Air Handling Units (AHU) Industry Overview
The competitive rivalry in the AHU market is growing, as the market comprises many large vendors that command a prominent market share besides having access to well-established distribution networks. However, the growing demand is encouraging new players to enter the market, shifting its landscape towards a fragmented stage. Many manufacturers are focusing on energy efficiency as one of the key concerns. Moreover, major vendors in the market studied are involved in both M&A activities and partnerships to gain higher penetration and market share. Some key market players include Daikin Industries, Carrier Corporation, TRANE Inc., and Johnson Controls, among others.
In May 2023, Colmac Coil Manufacturing, Inc. launched its latest HygenAir A+H Hygienic Air Handler. According to the company, the air handler is designed to improve hygiene inside processing room environments wherein sanitation is critical and is custom-engineered to help food processors increase worker safety and meet the strict requirements of the USDA by maintaining high quality.
In May 2023, Edgetech Air Systems Pvt. Ltd., a provider of advanced air handling systems used in central air conditioning, installed Smart Air Handling Units in India's Central Vista Project. According to the company, the installed air handlers are equipped with advanced analytics and monitoring and analytics systems to provide real-time operational intelligence and contribute to energy efficiency.
Air Handling Units (AHU) Market Leaders
Daikin Industries Ltd
Carrier Corporation
TRANE Inc. (Trane Technologies PLC)
Lennox International Inc.
Johnson Controls International PLC
*Disclaimer: Major Players sorted in no particular order
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Air Handling Units (AHU) Market News
- December 2022: Swegon announced the acquisition of a British air handling manufacturer named Dalair, one significant market player in the UK AHU market. This strategic agreement aims to strengthen Swegon’s position in UK&I by adding a brand that offers air handling units in various segments covering commercial buildings, offices, retail, healthcare, and pharmaceutical industries.
- November 2022: Trane Technologies acquired AL-KO Air Technology, a division of AL-KO SE based in Jettingen-Scheppach, Germany. AL-KO Air Technology designs, manufactures, sells, and services a wide range of sustainable air handling units and extraction systems for applications in diverse markets, such as pharmaceutical, healthcare, industrial processes, retail, recreation, and commercial buildings.
- May 2022: Aspen Manufacturing, one of the largest independent manufacturers of air handlers and evaporator coils for the residential and commercial residential HVAC marketplace in the United States and Canada, introduced the LGM Series high-efficiency, multi-position, aluminum coil 120-volt air handlers, which offer remarkable installation versatility. Available in 2- to 4-ton cooling capacity without electric heat, all LGM Series models are backed by a 10-year limited warranty.
Air Handling Units (AHU) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of Macro Trends on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Population and Urbanization is Driving Market Demand
5.1.2 Increasing Demand for Energy-efficient HVAC Systems
5.2 Market Challenges
5.2.1 Dependence on Macroeconomic Conditions
5.2.2 Growing Competition to Limit Margins
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Packaged
6.1.2 Modular
6.1.3 Custom
6.1.4 Other Types
6.2 By End User
6.2.1 Residential
6.2.2 Commercial
6.2.3 Industrial
6.3 By Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia-Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Daikin Industries Ltd.
7.1.2 Carrier Corporation
7.1.3 TRANE Inc. (Trane Technologies PLC)
7.1.4 Lennox International Inc.
7.1.5 Johnson Controls International PLC
7.1.6 Systemair AB
7.1.7 TROX GmbH
7.1.8 Swegon Group AB (Investment AB Latour)
7.1.9 Hitachi Ltd
7.1.10 Blue Star Limited
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Air Handling Units (AHU) Industry Segmentation
An air handling unit (AHU), also called an air handler, is a piece of equipment used to condition and circulate air as a component of a heating, ventilating, and air conditioning system. It is usually a large metal box that comprises a blower, heating and cooling elements, filter chambers, sound attenuators, and dampers.
The air handling units (AHU) market is segmented by type (packaged, modular, custom), end user (residential, commercial, industrial), and geography (North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Type | |
| Packaged | |
| Modular | |
| Custom | |
| Other Types |
| By End User | |
| Residential | |
| Commercial | |
| Industrial |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Air Handling Units (AHU) Market Research Faqs
How big is the Air Handling Units Market?
The Air Handling Units Market size is expected to reach USD 15.07 billion in 2024 and grow at a CAGR of 6.08% to reach USD 20.25 billion by 2029.
What is the current Air Handling Units Market size?
In 2024, the Air Handling Units Market size is expected to reach USD 15.07 billion.
Who are the key players in Air Handling Units Market?
Daikin Industries Ltd, Carrier Corporation, TRANE Inc. (Trane Technologies PLC), Lennox International Inc. and Johnson Controls International PLC are the major companies operating in the Air Handling Units Market.
Which is the fastest growing region in Air Handling Units Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Air Handling Units Market?
In 2024, the Asia-Pacific accounts for the largest market share in Air Handling Units Market.
What years does this Air Handling Units Market cover, and what was the market size in 2023?
In 2023, the Air Handling Units Market size was estimated at USD 14.21 billion. The report covers the Air Handling Units Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Air Handling Units Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Air Handling Units (AHU) Industry Report
Statistics for the 2024 Air Handling Units (AHU) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Air Handling Units (AHU) analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
