Air Handling Units Market Size & Trends
The size of the global air handling units market was valued at USD 13.05 billion in 2024 and is projected to register a CAGR of 5.3% during the period of 2025-2030. The demand for air handling units (AHUs) is increasing because of higher urbanization, enhanced construction activities, and the requirement of energy-efficient HVAC systems. As per the World Health Organization (WHO), about 55% of the world's population is now urbanized, and this number is likely to rise to 68% by 2050, leading to the demand for commercial and residential buildings that need AHUs.
Government programs such as the "National Infrastructure Program" in India spur construction activities, increasing the demand for AHUs even further. Also, the increasing realization of the advantages of AHUs, including the provision of fresh air quality and thermal comfort within indoor environments, supports their demand. Also, the increasing population worldwide is raising the demand for affordable housing units and improved commercial infrastructure. The United Nations estimates that the world's population will grow to 9.7 billion in 2050, with a growth of 2 billion in the next 30 years. This major surge in the global population is made possible by the growing standard of living of the masses, growing life expectancy, reduced mortality rate, and continuous technological upgradation. The increased global population also puts pressure on the real estate industry to achieve affordable housing. Therefore, new housing developments are being introduced globally. This is likely to have a positive effect on the growth of the market during the forecast period.
In addition, governments across the globe offer financial assistance to buyers through the launch of different housing schemes. For example, the Canadian Government, in the 2023 Fall Economic Statement, announced a new loan financing of USD 15 billion, which is USD 9 billion higher than the last funding. Due to the growing assistance from the governments of various nations and the need for affordable housing, the residential building sector is booming globally. This is expected to boost the demand for market during the forecast period.
Report Coverage & Deliverables
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Market Concentration & Characteristics
The industry for air handling units experiences a fairly fractured competitive environment that involves a blend of established multinational manufacturers and prospective regional manufacturers. Industry leaders Johnson Controls, Daikin Industries, Trane Technologies, Carrier Global Corporation, and Systemair AB retain dominating positions through highly comprehensive product platforms and widespread worldwide operations. Meanwhile, regional producers perform an integral role by tackling local needs as well as facilitating conformity to neighborhood building codes as well as regulatory conditions.
Market expansion is driven mainly by increasing environmental issues and strict regulations aimed at enhancing energy efficiency and indoor air quality. Governments and regulatory agencies are increasingly requiring the implementation of energy-efficient HVAC systems in new buildings and retrofits, leading to the deployment of sophisticated AHUs. These policy initiatives are not only boosting demand but also promoting innovation in design and functionality.
Technological advancement is one of the main forces defining the AHU industry, as technologies like energy recovery systems, intelligent controls, and variable air volume (VAV) technology improve the performance and efficiency of AHUs. These technologies allow units to adjust more easily to shifting indoor climate requirements and save overall energy use, making them better for use in contemporary, sustainable buildings.
Geographically, North America holds a considerable market share as a result of strong commercial and residential construction and favorable regulatory policies supporting energy-efficient solutions. Europe is also following closely behind, spurred on by strong sustainability objectives and building renovation schemes. In contrast, the Asia-Pacific region is also growing at an alarming rate, led by urbanization, infrastructure growth, and rising awareness about indoor air quality in large economies such as China and India.
Drivers, Opportunities & Restraints
The market is driven by several factors such as the growing emphasis on energy efficiency, building standards and codes, and the increasing demand for better indoor air quality. Market growth is also contributed to by increasing smart and connected HVAC system adoption. For example, the U.S. Environmental Protection Agency has implemented indoor air quality policies and standards through its Indoor Air Quality Division. In addition, the Clean Air in Buildings Challenge was established by the EPA, and they released a best practice guide on how to better indoor air. The federal government allocated USD 350 billion for state and local governments and USD 122 billion for schools by way of the American Rescue Plan to enhance public building and school indoor air quality
Further, technology improvements in AHUs like combining IoT and smart sensors are presenting major opportunities for growth. The growing need for modular and tailored AHUs to meet particular application needs propels the market. For example, integrating IoT with HVAC systems enables businesses to analyze external data like the number of people in the room, humidity level, and ambient temperature, among others. Intelligent HVAC systems use this information to determine ideal temperature, fan speed, and energy usage. In addition, IoT facilitates predictive maintenance for customers and HVAC businesses, which reduces the cost of maintenance and avoids system failure.
Air handling unit price ranges are quite broad based on size, capacity, functionality, and application. Nonetheless, the initial expense of AHUs as well as complexity in installation and maintenance can prove to be deterrents to the growth of the market. Moreover, competition from substitute HVAC products and skill requirements for operating AHUs can also hinder the market.
Product Insights
The single-flux product segment led the market and accounted for 53.2% of the global market revenue share in 2024. The need for efficient and cost-effective HVAC solutions in various applications drives the demand for single-flux and double-flux air handling units. Single-flux AHUs are commonly used in smaller commercial and residential spaces, providing a simple and economical way to condition the air. For example, single-flux AHUs are often installed in small offices, retail stores, and single-family homes.
Double-flux AHUs, on the other hand, are designed for larger and more complex buildings, as they offer improved energy efficiency and better control over indoor air quality. These units are frequently used in hospitals, schools, and large commercial complexes where precise temperature and humidity control are essential. The growing construction of commercial and residential buildings, particularly in developing regions, is fueling the demand for single-flux and double-flux air handling units to meet the increasing need for comfortable and healthy indoor environments.
Type Insights
The packaged air handling units type segment led the market and accounted for 58.9% of the global market revenue share in 2024. Packaged AHUs are pre-assembled units with ease of installation, cost-effectiveness, and compact design. The increasing demand for energy-efficient and space-saving HVAC solutions in commercial and residential applications is driving the growth of packaged AHUs.
The modular air handling units segments are expected to grow significantly due to their flexibility, scalability, and ability to meet specific application requirements. Modular air handling units are increasingly used in commercial and industrial applications due to their flexibility, efficiency, and ability to maintain high indoor air quality. They are commonly found in office buildings, shopping malls, hospitals, hotels, and other large facilities requiring precise temperature and humidity control. These factors above are anticipated to drive the demand for air handling units industry over the forecast period.
Capacity Insights
The 5,000 m3/h and below capacity segment dominated the market, holding 32.6% of the global market revenue share in 2024, due to the growing use of AHUs in small and large-scale applications like warehouses, industrial buildings, kitchens, and food service properties. Additionally, lower capacity AHUs tend to be less expensive than larger units, making them appealing choices for residential and small commercial projects with budget constraints. Their lower initial costs are among the reasons for their extensive use.
The requirement for air handling units (AHUs) with a capacity of between 30,001 and 50,000 m³/h is experiencing stable growth, with the key drivers being the increased size of major commercial, industrial, and institutional buildings like airports, hospitals, data centers, and manufacturing units. These mid-to-large capacity AHUs are becoming more and more favored due to their potential to provide high airflow volumes with the inclusion of sophisticated energy-saving technologies such as energy recovery systems, variable frequency drives (VFDs), and intelligent control systems. Increasing focus on indoor air quality and adherence to tight ventilation and energy efficiency regulations also drives demand, especially in markets with strong infrastructure development and retrofitting programs.
Application Insights
The commercial application segment had a revenue share of 46.7% in 2024. Increasing numbers of commercial places like shopping malls, offices, theatres, and hotels are expected to drive the product demand in commercial applications. Numerous factors are kept in mind during the selection of commercial air handling units, including air quality, building design, and energy efficiency. Budget and the system life are other things to keep in mind.
There is an increasing need for AHUs in industrial processes because of the necessity for strict temperature and humidity control and efficient air filtration and circulation. In the pharmaceutical process, for example, AHUs play a very important role in providing clean room conditions necessary to produce sterile medication and medical devices. AHUs clean the air by removing particulates, condition temperature and humidity, and provide the required air changes per hour necessary to provide clean room environments.
Regional Insights
The North America air handling units market is driven by a strong focus on energy efficiency and sustainable construction practices. Increasing indoor air quality awareness prompts upgrades in commercial and residential HVAC systems. Smart building technologies are being integrated with AHUs to optimize performance. Government policies are encouraging the adoption of low-emission systems. The region sees continued growth in both new projects and retrofits.
U.S. Air Handling Units Market Trends
In the United States, infrastructure modernization and rising investments in smart buildings are strong demand drivers for AHUs. Demand is driven by a focus on energy conservation by the government and private sectors. Additionally, end-users are looking for tailor-made solutions in response to local climate requirements. Adoption is increasing in educational institutions, healthcare, and industrial spaces as well.
The Canada AHU market is boosted by an increasing focus on green buildings and indoor air quality in colder climates. Institutional and commercial markets actively invest in HVAC upgrades for comfort and efficiency. Regional climate issues are driving demand for high-thermal-efficiency systems. There is a strong preference for systems capable of meeting diversified seasonal demands. Local regulations continue to influence the direction of system use and design.
Europe Air Handling Units Market Trends
Stringent environmental regulations and strong energy efficiency goals drive the AHU market in Europe. Demand is high for systems that comply with building performance standards and support decarbonization. Retrofitting old buildings with modern HVAC systems is a major trend. The push for healthier indoor environments is also influencing design choices. Innovation and sustainability are central to market strategies across the region.
The Germany air handling units market is shaped by its commitment to green building practices and energy-efficient technologies. The country places a high value on systems with low noise, compact design, and smart control capabilities. Demand is robust in industrial and commercial construction, especially in cities prioritizing sustainability. Regulatory incentives support the adoption of modern HVAC solutions. Local manufacturers focus on engineering precision and environmental compliance.
The UK air handling units market is driven by a growing focus on indoor air quality and climate-conscious design. Upgrades in the healthcare and education sectors drive demand for advanced ventilation systems. Energy performance certificates and green building codes are key regulatory drivers. There's rising interest in AHUs integrated with smart building management systems. The retrofit market is particularly active due to the older building stock.
Asia Pacific Air Handling Units Market Trends
Asia Pacific was the market leader, with 46.8% of the world's air handling units market. The region is witnessing fast-growing market growth due to urbanization and industrialization. Increased construction activity in residential and commercial spaces generates steady demand for AHUs. Compact and energy-efficient models are being launched by manufacturers to meet space limitations. Environmental concerns are promoting the use of green systems. Regional diversity creates different requirements in different countries.
China air handling units market share was the major in Asia Pacific air handling units market. Government policies of promoting sustainable development and large-scale urban planning and infrastructure development activities in China impact China's AHU market. Market demand is pushed by commercial property booms with continuous demand for modern air handling unit installations. Domestic companies are broadening their product range in order to match global players. There is increasing demand for integrated systems in smart city projects.
India's air handling units market is projected to register a CAGR of 6.5% during the period 2025-2030. Urbanization and a flourishing construction industry in India are key drivers of growth for AHUs. There is growing interest in indoor air quality maintenance in offices, malls, and hospitals. Energy-efficient and cost-saving solutions are increasingly popular among developers and facility managers. Demand is also being driven by growing awareness of the benefits of HVAC systems.
Middle East & Africa Air Handling Units Market Trends
Middle East & Africa's AHU market is influenced by demand for efficient cooling systems in aggressive climates. Demand for reducing energy use is also high due to high temperatures, which is the main driving factor in the market. Building construction of major commercial, hospitality, and healthcare developments is the backbone of market growth. Green building certifications are encouraged through regulatory policies. The demand across the region differs considerably depending on the nature of local development.
The Saudi Arabia AHU market is influenced by massive construction and infrastructure developments. Ventilation and cooling demands in hot weather require efficient AHU systems. The trend towards sustainable cities and energy-efficient buildings encourages sophisticated system adoption. Automation and innovation are primary characteristics desired by developers.
Latin America Air Handling Units Market Trends
The Latin American AHU market is influenced by rising urbanization and concern for climate control requirements. Affordability and energy efficiency are key drivers of purchases in the region. Public sector programs are driving the upgrading of ventilation systems in hospitals and schools. Demand from the industrial and hospitality industries is also on the rise.
The Brazilian air handling units market demonstrates consistent demand for AHUs based on its growing commercial building construction industry and warm climatic conditions. The market prefers systems with the ability to provide both cooling efficiency and minimal operational cost. There is greater interest in smart control and easy maintenance systems. Energy conservation regulatory focus aids in the shift to advanced HVAC units.
Key Air Handling Units Company Insights
Some of the prominent players in the market include Carrier Corporation, Trane Inc., Rheem Manufacturing Company, Johnson Controls, and LG Electronics, among others.
Trane is a member of the Ingersoll Rand family of brands. It operates its business in two segments, i.e., climate and industrial. The industrial segment offers products and services focused on enhancing energy efficiency, operations, and productivity. It deals with power equipment, compressed gas & air networks, fluid management systems, material handling systems, and utility & low-speed consumer vehicles. Its climate division deals in energy-efficient products and services including heating, ventilation, and air conditioning (HVAC) systems. The company deals with manufacturing residential, industrial, and commercial HVAC systems. It offers products such as HVAC accessories, thermostat controls, ductless systems, geothermal systems, packaged systems, heat pumps, coils, gas & oil furnaces, air handlers, and air conditioners.
Carrier markets heat pumps, air conditioners, boilers, furnaces, air purifiers, humidifiers, dehumidifiers, ventilators, air scrubbers, thermostats, UV lamps, energy services, and building controls to retail, commercial, transport, and foodservice customers. United Technologies Corporation acquired the company in 1979; however, it was spun off as a separate business in April 2020.
Johnson Controls creates, manufactures, and offers solutions to enhance the operating efficiencies of buildings and other automotive-related systems. It markets building control systems, automation, HVAC products, seating and interior systems, as well as integrated facility management solutions. The company operates four segments, which include building solutions EMEA/LA, building solutions North America, building solutions Asia Pacific, and global products.
Nortek Global HVAC, STULZ GMBH, and Hastings HVAC Inc. are some of the recent entrants in the air handling units market.
Nortek Global HVAC is a leading manufacturer of heating, ventilation, and air conditioning (HVAC) equipment for residential and light commercial applications. The company manufactures a range of products, including air conditioners, heat pumps, furnaces, and air handlers, under such well-known brands as Frigidaire, Maytag, and Westinghouse. Nortek Global HVAC enjoys major presence in North America and has over 1,000 employees at its manufacturing facilities and sales offices.
Hastings HVAC Inc. is a Canadian company that designs, manufactures, and markets commercial and industrial HVAC equipment. The company's product lineup includes air handling units, rooftop units, and custom-engineered applications. Hastings HVAC sells products to North American customers and has a reputation for producing high-quality, energy-efficient products and customer support. Hastings HVAC also produces products in the U.S. and Canada and has an experienced group of engineering, sales, and customer service staff.
Key Air Handling Units Companies
The following are the leading companies in the air handling unit market. These companies collectively hold the largest market share and dictate industry trends.
- Carrier Corporation
- Rheem Manufacturing Company
- Johnson Controls
- Lennox International Inc.
- LG Electronics
- Midea
- Trane Inc.
- Systemair AB
- Munters AB
- Lowe’s
- Sephora
- Target
- Nortek Global HVAC
- STULZ GMBH
- Hastings HVAC Inc.
- VTS Group
- Evapoler Eco Cooling Solutions
- TROX GmbH
Recent Developments
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In February 2024, Modine reported that it had signed a definitive agreement to buy Scott Springfield Manufacturing, a maker of AHUs. With this acquisition, Modine had immediate access to a complementary product line and a customer base in a number of industries, including telecommunications, hyperscale & colocation data centers, healthcare, and aerospace.
Carrier introduced air handling units (AHUs) and fan coil units (FCUs), specially designed to cater to India's diverse demands for its commercial buildings in January 2024. Carrier launched these as a part of extending its line-up of India-made HVAC products and reinforcing more than five decades of Carrier operations in India with this launch signaling and strengthening commitment towards India under 'Make in India' by developing high-efficiency air filteration-enabled healthy indoor environment bespoke solutions.
Air Handling Units Market Report Scope
|
Report Attribute |
Details |
|
Market size value in 2025 |
USD 13.64 billion |
|
Revenue forecast in 2030 |
USD 17.63 billion |
|
Growth rate |
CAGR of 5.3% from 2025 to 2030 |
|
Base year for estimation |
2024 |
|
Historical data |
2018 - 2023 |
|
Forecast period |
2025 - 2030 |
|
Quantitative units |
Revenue in USD million/billion, and CAGR from 2025 to 2030 |
|
Report coverage |
Revenue forecast, company market position analysis, competitive landscape, growth factors, and trends |
|
Segments covered |
Type, product, application, capacity, region |
|
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; Mexico; Germany; France; Italy; UK; Spain; China; Japan; India; South Korea; Australia; Brazil; Argentina; South Africa; Saudi Arabia; UAE |
|
Key companies profiled |
Carrier Corporation; Rheem Manufacturing Company; Johnson Controls; Lennox International Inc.; LG Electronics; Midea; Trane Inc.; Systemair AB; Munters AB; Nortek Global HVAC; STULZ GMBH; Hastings HVAC Inc.; VTS Group; Evapoler Eco Cooling Solutions; TROX GmbH |
|
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
|
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
Global Air Handling Units Market Report Segmentation
Product Outlook (Revenue, USD Billion, 2018 - 2030)
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Single Flux
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Double Flux
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Type Outlook (Revenue, USD Billion, 2018 - 2030)
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Packaged
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Modular
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-
Capacity Outlook (Revenue, USD Billion, 2018 - 2030)
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Up to 5,000 m3/h
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5,001 to 10,000 m3/h
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10,001 to 30,000 m3/h
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30,001 to 50,000 m3/h
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Above 50,001 m3/h
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Application Outlook (Revenue, USD Billion, 2018 - 2030)
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Residential
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Commercial
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Industrial
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Regional Outlook (Revenue, USD Billion, 2018 - 2030)
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North America
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U.S.
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Canada
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Mexico
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-
Europe
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UK
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Germany
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France
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Italy
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Spain
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Asia Pacific
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Japan
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China
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India
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Australia
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South Korea
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Latin America
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Brazil
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Argentina
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Middle East & Africa
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South Africa
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Saudi Arabia
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UAE
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