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Study Period | 2019 - 2030 |
Market Size (2025) | USD 15.99 Billion |
Market Size (2030) | USD 21.47 Billion |
CAGR (2025 - 2030) | 6.08 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Asia-Pacific |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Air Handling Units (AHU) Market Analysis
The Air Handling Units Market size is estimated at USD 15.99 billion in 2025, and is expected to reach USD 21.47 billion by 2030, at a CAGR of 6.08% during the forecast period (2025-2030).
The air handling units industry is experiencing significant transformation driven by stringent regulatory frameworks and evolving building requirements. According to the European Commission, buildings in the EU are responsible for approximately 36% of greenhouse gas emissions and 40% of energy consumption, primarily from construction, usage, renovation, and demolition activities. This has led to increasingly strict regulations regarding air quality and energy efficiency in commercial and industrial facilities, particularly in large public spaces where air handling units play a crucial role in maintaining optimal environmental conditions.
The construction sector's robust growth is creating substantial opportunities for the AHU market size. Industry forecasts from CIArb indicate that global construction output is expected to surge by approximately 85% to reach USD 15.5 trillion by 2030. This expansion is particularly evident in the commercial sector, where according to environmental services firm Carbon Reform, the United States alone has approximately 6 million commercial buildings totaling 97 billion square feet of floor space, with over 90% utilizing mechanical ventilation systems.
Technological advancements are revolutionizing the AHU market, with a growing emphasis on smart building solutions and integrated systems. Recent developments include the integration of Sorbent Ventilation Technology (SVT) in air handlers, as demonstrated by Daikin Applied's enhancement of their Vision and Skyline products in November 2022. This innovation represents the industry's first combination of sorbent media with a class-leading, semi-custom air handling unit, showcasing the market's movement toward more sophisticated and efficient solutions.
The industry is witnessing significant consolidation through strategic acquisitions and partnerships aimed at expanding technological capabilities and market reach. Notable examples include Swegon's acquisition of Dalair Ltd. in December 2022, which strengthened their position in custom air handling units, and their subsequent acquisition of Italian manufacturer Samp SpA in November 2022 to enhance their modular AHU offerings. These strategic moves reflect the industry's focus on expanding product portfolios and geographical presence while addressing the growing demand for specialized industrial air handling solutions.
Air Handling Units (AHU) Market Trends
Rising Population Combined with Urbanization is Driving the Demand
The global population reached a significant milestone of 8 billion in November 2022, with projections indicating further growth to 8.5 billion by 2030 and 9.7 billion by 2050. This population growth, coupled with rapid urbanization, is creating unprecedented demand for air handling units across residential, commercial, and industrial sectors. According to the United Nations Conference on Trade and Development, the urban population share increased from 52.0% in 2011 to 56.5% in 2021, with developed nations showing particularly high urbanization rates of 79.5%.
The impact of urbanization is most pronounced in developing economies, particularly in Asia and Oceania, where the urban rate increased from 43.3% to 50.0% between 2011 and 2021. This trend is driving massive construction activities, especially in emerging markets like China and India, where rural-to-urban migration is fueling government and private spending on housing, commercial construction, and infrastructure. For example, the Indian Government's Pradhan Mantri Awas Yojana (Urban) scheme has sanctioned the construction of 1.14 crore houses, creating substantial demand for HVAC systems, including air handlers.
Increasing Demand for Energy-efficient HVAC Systems
Energy efficiency has become a critical focus in the HVAC industry, driven by rising energy costs and environmental concerns. According to the US Department of Energy, heating and cooling account for approximately 50% of a typical home's energy usage, making high-performance HVAC systems crucial for managing energy consumption and costs. This reality has spurred significant investment in energy-efficient technologies, with governments worldwide offering incentives for upgrading or installing energy-efficient HVAC systems.
The impact of global energy challenges, particularly in Europe following Russia's invasion of Ukraine, has further accelerated the demand for energy-efficient systems. Energy prices have risen sharply since the second half of 2021, with average household electricity prices in the European Union increasing from EUR 22.0 per 100 kWh to EUR 25.3 per 100 kWh in the first half of 2022. This situation has intensified the focus on energy-efficient HVAC solutions, with manufacturers investing in innovative technologies to reduce energy consumption. For instance, governments are implementing various initiatives, such as tax credits ranging from 20 to 30% of installation costs for energy-efficient equipment, driving the adoption of advanced air handling units.
Segment Analysis: By Type
Packaged Segment in Air Handling Units Market
The packaged air handling segment maintains its dominant position in the global air handling units market, commanding approximately 40% of the total market share in 2024. Packaged air handling units have emerged as the preferred choice across various industries, including healthcare, medical facilities, and food processing sectors, due to their all-in-one factory-assembled design. These units offer comprehensive solutions by integrating cooling sections, fans, filters, and dampers into a single package, making them particularly suitable for smaller buildings and commercial applications. The segment's strong market position is driven by increasing demand for energy-efficient and cost-effective HVAC systems, along with the growing need for improved indoor air quality across commercial and industrial facilities.
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Modular Segment in Air Handling Units Market
The modular segment is positioned as the fastest-growing segment in the air handling units market, projected to grow at approximately 7% during 2024-2029. This remarkable growth is attributed to the segment's inherent flexibility, allowing users to select individual components housed in modules with consistent construction and cross-sections. Modular units offer extensive customization options in fans, casings, coils, filters, and other accessories, making them highly adaptable to diverse application requirements. The segment's growth is further fueled by increasing adoption across food, pharmaceutical, electronics, and chemical industries, where specific air processing requirements necessitate flexible and scalable solutions.
Remaining Segments in Air Handling Units Market by Type
The custom air handling and other types segments complete the air handling units market landscape, each serving distinct market needs. Custom air handling units are specifically designed for applications requiring the highest quality construction and are predominantly used in industrial and institutional settings where very close control, high flow rates, and harsh conditions exist. These units find extensive applications in biotechnology, semiconductor, data center, and pharmaceutical industries. The other types segment, including DX integrated and Low Profile (Ceiling) air handling units, caters to specialized applications where standard configurations may not be suitable, providing targeted solutions for specific installation requirements and space constraints.
Segment Analysis: By End User
Commercial Segment in Air Handling Units Market
The commercial air handling segment dominates the global air handling units market, commanding approximately 44% market share in 2024. This significant market position is driven by the extensive deployment of AHUs in various commercial establishments, including restaurants, data centers, hospitals, schools, hotels, and office buildings. The segment's prominence is further reinforced by the increasing focus on energy efficiency in commercial buildings, where HVAC systems typically account for over 40% of a building's energy usage. The demand is particularly strong in data centers, where maintaining precise temperature and humidity levels is crucial for equipment performance and longevity. Additionally, the segment is experiencing the highest growth rate of around 7% through 2024-2029, driven by stringent building energy codes, growing awareness of indoor air quality, and the increasing adoption of smart building technologies that integrate advanced AHU systems for optimal performance and energy management.
[Omitted as Commercial is both largest and fastest growing]
[Omitted as Commercial is both largest and fastest growing]
Remaining Segments in Air Handling Units Market by End User
The residential and industrial air handling segments together constitute significant portions of the air handling units market, each serving distinct applications and requirements. The residential segment is driven by increasing awareness of indoor air quality, rising disposable incomes, and the growing trend of smart homes with integrated HVAC systems. The industrial air handling segment caters to specialized needs in manufacturing facilities, pharmaceutical plants, and other industrial settings where precise air quality control is essential for production processes and worker safety. Both segments are experiencing steady growth, influenced by factors such as urbanization, technological advancements in HVAC systems, and increasing emphasis on energy-efficient solutions across all sectors.
Air Handling Units (AHU) Market Geography Segment Analysis
Air Handling Units Market in North America
The North America air handling units market outlook, commanding approximately 24% of the global market share in 2024, continues to be driven by the region's robust demand for HVAC systems. The United States leads the market, followed by Canada, benefiting from extreme weather conditions, high-efficiency system availability, and sustained construction activity across facilities. The market's growth is further propelled by the increasing adoption of smart systems, Internet of Things (IoT) integration, smart manufacturing initiatives, and Industry 4.0 implementation. The rapidly expanding smart home sector provides substantial support for the HVAC system market, consequently driving demand for air handling units. The region's commitment to sustainable community development, accelerated urbanization, and infrastructure improvements has created a favorable environment for market expansion. Government incentives promoting energy efficiency and renewable resource utilization have become crucial factors in stimulating demand. The market is also witnessing significant research and development investments from key HVAC companies, focusing on innovative technology solutions to address the region's growing demand for high-efficiency heat pumps and sustainable cooling solutions.
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Air Handling Units Market in Europe
The Europe air handling units market outlook has demonstrated robust growth, with an approximate growth rate of 5% from 2019 to 2024, driven by increasing demand for energy and cost-efficient air conditioning systems and ventilation systems. The region's market expansion is supported by rising disposable incomes, growing construction activities, and heightened focus on energy efficiency. The market is particularly influenced by stringent energy efficiency regulations for buildings, systems, and products, coupled with escalating requirements for indoor air quality. The emergence of heat waves across the European continent has made central air conditioning systems increasingly essential for both residential and commercial applications. The region's commitment to reducing carbon emissions and achieving climate neutrality has created substantial opportunities for energy-efficient HVAC solutions. The market is characterized by strong technological advancements, including high-efficiency motor drives and automated maintenance systems, positioning Europe as a key innovation hub for air handling unit technologies.
Air Handling Units Market in Asia Pacific
The Asia Pacific air handling units market outlook is positioned as the fastest-growing region, projected to expand at approximately 7% during 2024-2029. The market's exceptional growth is primarily attributed to expanding infrastructure investments, building project developments, and increasing demand for energy-efficient technologies across the region. The rapid industrialization and urbanization in major economies like China, Japan, India, and South Korea are creating substantial demand for air handling units. The region's commitment to green building initiatives and energy conservation efforts has spawned numerous government initiatives and programs, providing significant opportunities for HVAC and building automation system technologists. The market is witnessing a notable shift toward smart buildings, driving demand for intelligent HVAC systems incorporating AHUs. The growing middle-class population, rising disposable income, and increasing emphasis on comfortable living spaces are further accelerating market growth, making Asia Pacific a crucial region for global market players.
Air Handling Units Market in Latin America
The Latin American air handling units market demonstrates significant growth potential, with Brazil, Argentina, and Mexico emerging as key contributors to regional market development. The region's market expansion is driven by increasing awareness and adoption of energy-efficient products, coupled with supportive regulatory frameworks promoting sustainable building practices. Several countries in the region are moving toward developing comprehensive national energy efficiency programs, supported by both legal frameworks and regulations. The market is benefiting from technological advancements and continuous product innovation, particularly in energy-efficient solutions. The growing emphasis on green building construction and the implementation of energy-efficient systems in the commercial sector is creating new opportunities for market growth. The region's unique climate conditions and increasing urbanization are driving the need for advanced air handling solutions, particularly in commercial and industrial applications.
Air Handling Units Market in Middle East and Africa
The Middle East and Africa air handling units market is characterized by varying growth patterns across different regions, influenced by natural resource availability and energy pricing dynamics. The market is primarily driven by flourishing tourism, expanding construction activities, and significant infrastructure developments. The region's increasing focus on green building construction is creating substantial demand for AHU systems, particularly in countries implementing sustainable building practices. The market is witnessing transformation through the adoption of energy-efficient technologies and sustainable cooling solutions, especially in regions with hot and humid climates. The improving economic stability in various African nations has led to increased consumer spending power, creating new opportunities for HVAC system installations. The market is particularly responsive to the region's unique climatic challenges, driving innovation in cooling and ventilation solutions tailored to local conditions.
Air Handling Units (AHU) Market Overview
Top Companies in Air Handling Units Market
The global air handling unit manufacturers market features prominent players like Daikin Industries, Carrier Corporation, Trane Technologies, Johnson Controls, and Lennox International leading the innovation curve. These air handling manufacturers are heavily investing in research and development to create energy-efficient solutions with advanced technological capabilities, including smart connectivity features and improved indoor air quality systems. The industry demonstrates strong operational agility through modular manufacturing approaches and flexible production systems that enable customization for diverse applications. Strategic initiatives focus on expanding geographical presence through both organic growth and acquisitions, particularly in emerging markets with high construction activity. Companies are also emphasizing sustainability in their product development, incorporating eco-friendly refrigerants and energy-saving features while strengthening their service networks to provide comprehensive lifecycle solutions.
Consolidated Market with Strong Regional Players
The air handling units market exhibits a mixed competitive structure with global conglomerates dominating the premium segment while regional specialists maintain strong positions in specific geographical markets and application niches. These established multinational corporations leverage their extensive distribution networks, broad product portfolios, and significant research capabilities to maintain market leadership, while local players compete through specialized knowledge of regional requirements and closer customer relationships. The market shows moderate consolidation with larger players actively pursuing strategic acquisitions to enhance technological capabilities and expand market presence.
The industry has witnessed significant merger and acquisition activity, particularly focused on acquiring companies with complementary technologies or strong regional presence. Major players are increasingly pursuing vertical integration strategies to control key component supply and enhance manufacturing capabilities. This trend is particularly evident in developed markets where companies are acquiring specialized manufacturers of critical components like fans, filters, and control systems. The competitive dynamics are further shaped by the emergence of new players from Asia, particularly China, who are gradually expanding their presence in international markets through competitive pricing and improving product quality.
Innovation and Service Excellence Drive Growth
Success in the air handling units market increasingly depends on developing innovative solutions that address energy efficiency requirements and environmental regulations while meeting specific application needs across different sectors. Incumbent companies must focus on strengthening their aftermarket service capabilities, expanding their digital solution offerings, and developing more integrated building management systems to maintain their competitive edge. The ability to provide comprehensive solutions that combine hardware excellence with smart controls and predictive maintenance capabilities will be crucial for market leadership.
For contenders looking to gain market share, focusing on specific market segments or geographical regions where they can build strong service networks and customer relationships offers the most promising path forward. The relatively high end-user concentration in commercial and industrial segments necessitates building strong relationships with key decision-makers and specifiers. While substitution risk remains moderate due to the essential nature of air handling units in HVAC systems, companies must stay ahead of evolving regulations regarding energy efficiency and environmental impact. Success will increasingly depend on the ability to navigate stricter environmental regulations while maintaining cost competitiveness and service quality. Leading air handling system companies are poised to capitalize on these trends by offering innovative solutions and robust service networks.
Air Handling Units (AHU) Market Leaders
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Daikin Industries Ltd
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Carrier Corporation
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TRANE Inc. (Trane Technologies PLC)
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Lennox International Inc.
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Johnson Controls International PLC
- *Disclaimer: Major Players sorted in no particular order
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Air Handling Units (AHU) Market News
- July 2024 - Elta, in collaboration with Euroclima, broadens its air handling unit offerings. The partnership with Euroclima, a prominent manufacturer of Eurovent Certified air handling units, ventilation professionals have access to a wider array of design options for air handling units, complementing Elta's current lineup.
- February 2024 - Modine, a frontrunner in innovative thermal management and ventilation solutions, today announced its definitive agreement to acquire Scott Springfield Manufacturing, a premier manufacturer of air handling units (AHU). This acquisition will provide Modine with instant access to a complementary product portfolio and a prestigious customer base across key end markets, such as hyperscale and colocation data centers, telecommunications, healthcare, and aerospace.
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
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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
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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
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5.2 Market Challenges
- 5.2.1 Dependence on Macroeconomic Conditions
- 5.2.2 Growing Competition to Limit Margins
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Packaged
- 6.1.2 Modular
- 6.1.3 Custom
- 6.1.4 Other Types
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6.2 By End User
- 6.2.1 Residential
- 6.2.2 Commercial
- 6.2.3 Industrial
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6.3 By Geography***
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia
- 6.3.4 Australia and New Zealand
- 6.3.5 Latin America
- 6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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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
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Air Handling Units (AHU) Market 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 | |
Australia and New Zealand | |
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 15.99 billion in 2025 and grow at a CAGR of 6.08% to reach USD 21.47 billion by 2030.
What is the current Air Handling Units Market size?
In 2025, the Air Handling Units Market size is expected to reach USD 15.99 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 (2025-2030).
Which region has the biggest share in Air Handling Units Market?
In 2025, 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 2024?
In 2024, the Air Handling Units Market size was estimated at USD 15.02 billion. The report covers the Air Handling Units Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Air Handling Units Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Air Handling Units (AHU) Market Research
Mordor Intelligence provides comprehensive market analysis and industry statistics for the air handling units market, offering detailed insights into market size, growth trends, and competitive landscape. Our research covers various segments including industrial air handling, data center cooling, mechanical ventilation, and commercial air handling applications. The report pdf includes in-depth market forecasts, technological innovations, and strategic developments by leading air handling unit manufacturers, enabling stakeholders to make informed decisions in this evolving industry landscape.
Beyond market research, our consulting expertise extends to specialized services tailored for the HVAC system market and air handling units sector. We assist clients with technology scouting for energy-efficient solutions, regulatory assessment for compliance with indoor air quality standards, and competition assessment of AHU manufacturers. Our capabilities include detailed analysis of building automation trends, customer need assessment for specialized applications like hospital air handling, and product positioning strategies for packaged air handling solutions. We also provide comprehensive analysis of smart building technologies, energy efficiency regulations, and sustainability requirements that impact the industrial ventilation segment.