Air Handling Units Market Size

Air Handling Units Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Air Handling Units Market is expected to grow at a CAGR of 4.3 per cent from 2024 to 2032. The growth rate is expected to be 5.5 per cent from 2024 to 2032. The increasing demand for energy-efficient HVAC systems and the stringent regulations aimed at improving indoor air quality are the key drivers for this market. In addition, the growing trend of smart buildings and the integration of IoT technology in air handling units are expected to enhance the operational efficiency and the customer experience. These trends are attracting key players in the air handling units market, such as Trane, Johnson Controls, and Daikin Industries, to increase their R&D expenditure and strategic partnership. For instance, Trane recently launched a new line of energy-efficient air handling units designed to meet the evolving needs of commercial buildings. Such initiatives not only highlight the high level of competition but also demonstrate the industry’s commitment to sustainability and technological advancement, which will help the market to grow in the coming years.

Regional Market Size

Regional Deep Dive

Air Handling Units (AHU) market is characterized by the growing demand for energy-efficient and environment-friendly solutions across various regions. In North America, the market is mainly driven by the stringent regulations related to energy efficiency and indoor air quality, whereas Europe is focusing on the innovation and sustainable development of HVAC solutions. The Asia-Pacific region is witnessing the rapid urbanization and industrialization, which has led to a rise in the investment in the construction of commercial and industrial buildings. The Middle East and Africa region is focusing on modernization and energy conservation, whereas Latin America is gradually adopting advanced HVAC solutions to improve the air quality and comfort of residential and commercial spaces.

North America

• The United States Department of Energy is introducing regulations requiring manufacturers to make their products more energy efficient.
• In the smart AHU market, companies such as Trane and Carrier are investing heavily in integrating the Internet of Things (IoT) into their systems to optimize performance and reduce energy consumption.
• LEED and other green building certifications are influencing the design and operation of AHUs as contractors seek to meet the requirements of sustainable building standards.

Europe

• The Green Deal of the European Union, which aims to make Europe climate-neutral by 2050, is driving the demand for energy-saving air-handling units that comply with the new requirements.
• In this field, companies like Daikin and Siemens are leading the way, developing advanced air handling units that use renewable energy sources and new heat-recovery systems.
• These changes, like the Ecodesign Directive, impose on manufacturers the obligation to make their products conform to these requirements.

Asia-Pacific

• In the meantime, the rapid urbanization of China and India, a major market for air conditioning, is driving a growing demand for air conditioning.
• The air-conditioning industry is introducing systems with improved filtration systems.
• The adoption of modern air handling units is also encouraged by government initiatives, such as the Performance, Achieved and Traded (PAT) scheme in India.

MEA

• The UAE’s Vision 2021, which aims to promote sustainable development, is leading to a significant increase in investment in energy-efficient air conditioning systems, including air handling units, for the commercial and residential sectors.
• In order to modernize the old heating and air-conditioning systems to new energy standards, companies such as the GEA and the Johnson Controls Group are actively participating in projects.
• Extreme climate conditions call for the most advanced cooling solutions, and this has meant the development of new air handling units to increase energy efficiency and performance.

Latin America

• Brazil's National Policy on Climate Change encourages the use of energy-saving equipment, including AHUs, in the commercial and industrial sectors.
• Local manufacturers are increasingly collaborating with international companies to meet the growing demand for advanced HVAC solutions.
• Indoor air quality and comfort are gaining importance in the cities, which are turning towards more sophisticated ventilation systems.

Did You Know?

“The air-handling units improve the quality of indoor air by filtering out impurities and airborne irritants. This is particularly important in cities where air pollution is high.” — U.S. Environmental Protection Agency (EPA)

Segmental Market Size

The air-handling units play a crucial role in the HVAC market. The main objective of this market is to improve the quality of the air and energy consumption in the commercial and industrial premises. This market is currently growing, driven by the increasing demand for energy-saving solutions and the increasingly stringent requirements for reducing the carbon footprint. The demand for healthier indoor environments, especially post-pandemic, is also growing.

The growing emphasis on sustainability, as well as the European Energy Efficiency Directive, which imposes higher efficiency standards, is also driving the market. In the current market, the AHUs are being used on a large scale, with the most advanced designs from companies such as Trane and Carrier. The most important applications are in commercial buildings, hospitals and schools, where the air quality is crucial. The trend towards smart buildings and the integration of the Internet of Things (IoT) is also boosting the market, as these trends enable real-time monitoring and control of the AHUs. AHUs are also becoming more efficient and more effective, as filtration and energy recovery systems develop.

Future Outlook

The air handling unit (AHU) market is expected to reach a significant size between 2024 and 2032, with a projected growth from $13.44 billion to $21.83 billion, a robust compound annual growth rate (CAGR) of 5.5%. The rising demand for energy-efficient HVAC systems is a result of stricter regulations on the environment and the growing emphasis on sustainable development. With the commercial and residential sectors attaching greater importance to indoor air quality and energy conservation, the adoption of advanced AHUs equipped with smart technology is expected to rise, resulting in a higher penetration of these systems in both new constructions and renovations.

The advent of newer technological advances such as the integration of IoT and AI into air handling units will transform the market. The real-time monitoring of air quality and energy consumption will appeal to both consumers and companies with an eco-friendly mindset. In addition, the government’s focus on green building certifications and energy-saving regulations is expected to drive growth. The shift towards more flexible and scalable products will meet the diverse needs of consumers. The industry will need to remain agile to benefit from the new opportunities.