; Air Handling Units Market size, share, trend 2034

Air Handling Units Market

Air Handling Units Market Size, Share, and Analysis, By Type (Packaged, Modular, Custom), By Business Type (New Equipment and Aftermarket), By Capacity (Less than 5,000 M3/h, 5,001 M3/h-15,000 M3/h, 15,001 M3/h-30,000 M3/h, and more than 30,000 M3/h), and By Application (Residential, Commercial, and Industrial), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034

Published on: Jan-2024
Report Code: FG INEQ 01816
No. of Pages: 170-350
Report Format: PDF

Air Handling Units Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 6.2% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 12.3 billion and is projected to reach USD 23.8 billion by the completion of 2034.

Product Overview

Air handling units (AHUs) are essential components of HVAC systems which are used to manage and circulate air throughout spaces including offices, hospitals, and industrial facilities. These units consist of various elements such as filters, fans, coils, and dampers, that are essential for preserving the purity of the indoor air. They perform several activities, including drawing in outside air, filtering it to enhance air quality, conditioning it via coils, and distributing it throughout the building. The filtering process removes dust, allergens, and pollutants, resulting in better indoor environments. Meanwhile, fans help to circulate air, while dampers control airflow and guide conditioned air to specified places. Therefore, AHUs create optimal indoor conditions for residents and industrial procedures, by ensuring sufficient ventilation, temperature, and air purification. Their well-coordinated operation supports HVAC system efficiency while maintaining comfortable and healthful surroundings.

Source: Fatpos Global

Market Highlights 

Air Handling Units Market is expected to demonstrate a Compound Annual Growth Rate (CAGR) of 6.2% throughout the forecast period spanning from 2024 to 2034

Air Handling Units Market is projected to achieve USD 23.8 billion during the forecast period, owing to increased demand for efficient HVAC systems across diverse industries. This surge is driven by growing awareness regarding indoor air quality, energy efficiency regulations, and the requirement for improved ventilation systems. Additionally, the market observed significant developments such as increasing inclination toward energy-efficient AHUs that contain modern innovations such as heat recovery systems, variable air volume controls, and smart sensors to improve efficiency. Moreover, healthcare, industrial, and data centers, collectively make significant contributions to market growth by providing superior air quality and accurate temperature management. Furthermore, businesses across the world are prioritizing healthier indoor environments and energy-saving solutions, which is driving continuous innovation and technological improvements in AHU systems. Therefore, the trajectory of this market indicates that it will continue to expand as need for efficient HVAC systems remains a global priority.

Source: Fatpos Global

Air Handling Units Market Segmentation

Modular segment will gain appeal due to its scalability and cost-effectiveness

Based on Type, Air Handling Units Market is segmented into Packaged, Modular, and Custom. The modular segment is anticipated to dominate the market due to its scalability, which allows flexible expansion or reduction in accordance with specific demands. Their modular design allows for easier adaptation to meet the demands of various applications and industries. Additionally, cost-effectiveness is another driving factor, since modular units often cut installation time and labor costs due to their plug-and-play design, which leads to cost reductions. Furthermore, due to their flexible setup, individual modules can be replaced and maintained effectively, which reduces downtime. Moreover, as modular units typically have energy-efficient parts that promote better energy consumption and reduces environmental impact, the market witnessed significant development due to the growing need for sustainable solutions.

Commercial segment will dominate due to rising demand for AHUs in the commercial sector

By Application, the Air Handling Units Market is divided into Residential, Commercial, and Industrial. The commercial segment is expected to lead the market as it includes multiple industries, including shopping malls, hospitals, data centers, universities, pharmaceuticals, and laboratories, which significantly depend on AHUs to ensure excellent indoor air quality in controlled settings. The rising demand for AHUs in these sectors is driven by specific needs. Shopping malls and commercial spaces prioritize air quality and the comfort of visitors, while hospitals and laboratories demand clean and sterile air to ensure patient health and safety. Simultaneously, data centers and educational institutions require precise climate control to protect sensitive equipment and provide ideal conditions for experiments and studies. Furthermore, the expansion of commercial infrastructure, combined with a growing emphasis on energy efficiency and regulatory compliance, fuels the demand for advanced AHUs in the commercial sector.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Growing Need for Energy-Saving Solutions Will Open Up New Business Prospects

Increasing demand for energy-efficient solutions is driving the growth of air handling unit (AHU) market. Manufacturers are actively including modern elements like variable speed drives, intelligent controls, and heat recovery systems into AHUs to simplify energy usage and reduce operational expenses and ecological footprints. This surge in demand is due to strict regulatory obligations and the commitment across the industry for sustainability. Furthermore, the ongoing growth of the market can be attributed to the availability of air handling units that meet energy efficiency criteria and effectively address the evolving needs of various industries. Consequently, the growing focus on energy-efficiency promotes innovation and impacts the future of the AHU market by meeting rising industrial requirements and encouraging environmentally responsible practices.

Developing Commercial Infrastructure Will Create New Opportunities for Growth

Expansion of commercial infrastructure in sectors like healthcare, retail, data centers, and education are responsible for the growth of the AHU market during the forecast period. These industries require accurate temperature control and high-quality air management, which promotes the adoption of air handling units. Furthermore, with a global surge in construction and infrastructure development, there's a consistent rise in AHU installations across commercial spaces. This sustained expansion creates a continuous demand for air handling units and stimulates market growth. Therefore, the ongoing developments of commercial facilities strengthens the AHU market and highlights its important role in addressing the increasing need for efficient air handling and temperature regulation systems in various commercial settings.

Restraints

Concerns about high initial implementation costs may limit market growth

Significant upfront costs associated with implementing air handling units is a significant limitation for the growth of air handling unit market. Despite the long-term benefits such as energy efficiency, the high initial investment required to implement modern AHU systems could hinder its adoption in financially constrained sectors or industries. This challenge could discourage the widespread adoption and expansion of AHUs, particularly in industries where immediate financial changes heavily influence the decision-making procedures. Thus, managing the upfront expenses with long-term advantages remains a major challenge, as certain sectors might struggle to adopt these systems due to capital constraints, which can potentially affect the adoption rate of air handling units.

Recent Developments

  • In February 2022, Salda UAB introduced the Amber Air Compact S-CX air handler system designed for commercial and industrial use. It boasts user-friendly installation, energy efficiency, and durable material coating.
  • During January 2022, Munters AB completed the acquisition of EDPAC International, an Ireland-based company specializing in air handling units and HVAC systems. This strategic move aimed at enhancing their product range and geographic footprint in the European market.
  • In December 2021, Daikin Industries Ltd expanded its presence in North America by acquiring HVAC systems and air handling unit distributors such as Thermal Supply Inc and AirReps LLC in Washington.
  • Carrier Corporation launched a new high wall ductless system in March 2021, comprising 38 MARB outdoor units and 40 MAHB indoor units, available in 36K, 24K, and 48K sizes. Tailored for commercial and industrial use, this system offers versatile applications.
  • In June 2020, Johnson Controls International Plc acquired Silent-Aire Europe Limited, a Canadian company specializing in air handlers and HVAC systems. This acquisition aimed to enhance their air handler product line for data centers and industrial purposes.

Air Handling Units Market

Key Players:

Regional Analysis

Air Handling Units Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia-Pacific emerged as the largest market for air handling units, owing to the strong industrial sector growth and rising AHU demand in countries such as India, Australia, and Taiwan. Furthermore, increasing urbanization and commercialization in these nations played a significant role in driving the growth of AHU market. For instance, India is projected to exhibit significant AHU demand within Asia-Pacific due to improving living standards and rising disposable incomes. These factors collectively encouraged the adoption of advanced air conditioning systems, including AHUs. Hence, the combination of industrial expansion and evolving consumer choices reinforces the dominance of Asia-Pacific region in the air handling unit market.

Source: Fatpos Global

Impact of Covid-19 on Air Handling Units Market

COVID-19 pandemic brought substantial impacts to the air handling unit (AHU) market. Manufacturing and construction were initially disrupted due to lockdowns, travel restrictions, and supply chain delays. This resulted in project delays or cancellations and impacted AHU installation across industries. However, the crisis highlighted concerns regarding indoor air quality and the importance of efficient ventilation in restricting airborne transmission of disease. This led to an increase in demand for AHUs with improved filtration and ventilation capabilities, particularly in offices, hospitals, and public areas, with the objective of creating safer indoor environments. Therefore, while some industries experienced setbacks during the pandemic, others, such as the healthcare and pharmaceutical industries, saw rising demand for AHUs since these facilities required improvements to meet increased ventilation standards.

Air Handling Units Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Air Handling Units Market Scope and Segments:

ATTRIBUTE

  DETAILS

Study Period

2018-2034

Base Year

2023

Forecast Period

2024-2034

Historical Period

2019-2022

Growth Rate

CAGR of 6.2% from 2024-2034

Unit

Value (USD Billion)

Segmentation

Main Segments List

By Type

  • Packaged
  • Modular
  • Custom

By Business Type

  • New Equipment
  • Aftermarket

By Capacity

  • Less than 5,000 M3/h
  • 5,001 M3/h-15,000 M3/h
  • 15,001 M3/h-30,000 M3/h
  • More than 30,000 M3/h

By Application

  • Residential
  • Commercial
  • Industrial

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions (FAQ):

Air Handling Units Market size was values at USD 12.3 billion in 2023 and is projected to reach the value of USD 23.8 billion in 2034, exhibiting a CAGR of 6.2% during the forecast period.

Air handling units regulate indoor air in buildings, managing ventilation, heating, and cooling for better air quality and comfort. They include filters, fans, and coils, catering to various sectors with a focus on energy efficiency and improved air control, addressing urbanization, environmental concerns, and technological advancements.

The Modular segment and the Commercial segment accounted for the largest Air Handling Units Market share.

Key players in the Air Handling Units Market include Daikin Industries Ltd., Carrier Global Corporation, Trane Technologies plc, Johnson Controls International plc, Mitsubishi Electric Corporation, Systemair AB, LG Electronics Inc., Lennox International Inc., FläktGroup Holding GmbH, Munters Group AB, Nortek Air Solutions, Sabiana S.p.A., Wolf GmbH, Biddle B.V., CIAT Group, and Other Prominent Players.

Growing need for energy-saving solutions and developing commercial infrastructure are the factors driving the air handling unit’s market.

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