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The air handling unit market is estimated to grow by USD 3.82 billion at a CAGR of 7.3% between 2022 and 2027. The market's expansion hinges on various factors, notably the burgeoning construction sector, escalating demand for data centers, and rising replacement and refurbishment needs in developed nations. As construction activities surge, the demand for construction materials and equipment follows suit, fostering market growth. Simultaneously, the proliferation of data centers, driven by digital transformation, amplifies the demand for related infrastructure components and solutions. Moreover, the continuous need for replacement and refurbishment in developed economies further fuels market growth, creating ample opportunities for market players to capitalize on these evolving trends.
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The Air Handling Unit (AHU) market is experiencing significant growth, driven by various factors such as the increasing emphasis on indoor air quality, rising demand for energy-efficient HVAC systems, and the expansion of commercial and residential sectors in key regions like India, Japan, and China. AHUs play a crucial role in maintaining air cleanliness, regulating temperature, and managing ventilation in diverse settings, including office buildings, hospitals, schools, and restaurants. With advancements in IoT technology, AHU manufacturers are introducing innovative solutions like HygenAir A+H Hygienic Air Handlers, equipped with features such as sound attenuators, dampers, and filter chambers. This market is witnessing a shift towards energy-efficient products and systems to reduce GHG emissions and promote sustainable practices across industries like pharmaceutical manufacturing and data center cooling. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing construction sector is notably driving the market growth. The construction sector plays a major role in driving the demand for HVACs, in turn driving the demand for AHUs. The rise in the construction of commercial and residential buildings majorly contributes to the growth of the market. The construction industry is expanding at large across the globe. There are a lot of factors leading to the expansion of the construction industry.
The APAC region is a major market for construction and is expected to grow at the highest rate during the forecast period. This is due to the significant growth of the construction sector in emerging markets such as India, China, Vietnam, Australia, and Indonesia. The primary reason for the growth is the ongoing developments in the infrastructure and real estate sectors. The increasing trend of green buildings, owing to the growing environmental concerns, will drive the demand for HVAC systems, thereby driving the demand for AHU systems.
Advanced monitoring systems and intelligent technologies is the key trend in the market. The evolution of monitoring systems and intelligent technology is a driving force for the market. Monitoring systems help in tracking the energy consumption of a building, while intelligent technology controls the energy output of an HVAC system, including handling units.
The integration of IoT with HVAC systems and AHU is opening new avenues for the market in terms of revenue. The commercial building sector is likely to be the early adopter of this technology, as this integration will enhance the efficiency and reliability of BAS. IoT links components or systems with network connectivity to the Internet and enables them to send and receive data over a network. Thus, the growing advancement in technology will drive market growth and trends in focus during the forecast period.
High market competition is the major challenge impeding the market growth. There is intense competition in the market due to the presence of many regional and international players, making the market more competitive. The vendors are also under constant pressure to deal with price fluctuations and retain their competitive edge in the market. Decreasing prices of HVAC equipment and components coupled with reducing profit margins have compelled companies to expand their product base. As regional vendors offer low-cost products and components, international players are unable to retain their foothold in the market.
Joint ventures and strategic alliances have also increased competition in the market. For instance, Hitachi and Johnson Controls signed a deal in recent years to deliver innovative and high-indoor quality HVAC solutions for consumers. As these units are key components of building solutions, this partnership helped both companies to provide better solutions to their consumers.
The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
VTS Polska Sp. z o. o. - The company offers Suspended AHUs as its key offerings. The company offers air-handling units and heating devices to around 100,000 buildings around the world. It also offers air curtains to hotels, shopping centres as well as industrial and public facilities.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The AHU (Air Handling Units) market is witnessing significant growth due to the rising demand for efficient ventilation and air conditioning systems across various sectors. AHUs play a crucial role in maintaining indoor air quality by regulating ventilation and temperature levels in buildings. With the increasing focus on energy conservation and sustainability, AHUs equipped with advanced technologies such as IoT (Internet of Things) are becoming increasingly popular, especially in countries like India, Japan, and China. These units efficiently handle carbon dioxide levels, utilize energy-efficient products, and ensure thermal comfort for occupants. Moreover, AHUs find extensive use in data center cooling equipment, where precise temperature and humidity control are essential for optimal performance. Blower fans, heating & cooling coils, and duct systems are integral components of AHUs, contributing to their effectiveness in central heating & cooling systems. Overall, the AHU market is poised for continued growth as industries prioritize indoor air quality and energy efficiency.
The market share growth of the non-residential segment will be significant during the forecast period. The non-residential end-users of units include manufacturing facilities, commercial and industrial buildings, data centres, retail stores, healthcare facilities, and educational institutions. The increase in construction activities in the non-residential end-user segment will drive the demand for air-handling units.
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The commercial segment accounts for the largest revenue share of the market. This large share is mainly attributed to the rising need for energy efficiency among organizations. HVAC and lighting systems account for a major part of energy consumption in commercial buildings. Therefore, it is crucial for vendors to develop HVAC systems that are energy-efficient and comply with regional as well as international regulations. This is driving the flow of investments into more energy-efficient units by market players.
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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in APAC is primarily driven by the public sector as well as private enterprises in countries such as India and China, which are investing large amounts of money in construction projects. The increasing construction of commercial and industrial buildings, along with the rising investments in infrastructural development in the region, will further support the growth of the market during the forecast period.
The Global air handling units market caters to diverse sectors like hospitals, universities, and server rooms, addressing the challenges posed by rising population and urbanization. From mixed-use buildings to shopping malls, developers prioritize efficient air conditioning systems to enhance building design and amenities. However, sluggish economic growth and fluctuating energy costs impede market growth, despite technological developments in materials like metal, alloys, and polypropylene. OEMs focus on cost- and environment-related benefits to penetrate developing and underdeveloped economies, emphasizing energy-efficient HVAC systems. Contractors and residential HVAC construction firms adhere to SEER standards, meeting application demands in pharmaceutical industries, laboratories, and shopping malls. Packaged air handling units dominate the market, catering to diverse application segments with reliability and efficiency.
The industry is witnessing remarkable growth driven by the increasing demand for efficient Ventilators, and air conditioning (HVAC) systems across various sectors. AHUs are integral components of central heating and cooling systems, providing essential functions such as air filtration, temperature regulation, and humidity control. These units come in various configurations, including packaged, modular, custom, and DX integrated designs, catering to diverse commercial and residential applications. Countries like India, Japan, and China are experiencing significant adoption of AHUs due to the booming construction sector and the need for improved indoor air quality. Moreover, AHUs equipped with energy-efficient technologies and IoT capabilities are gaining traction, enabling precise control over air cleanliness and carbon dioxide levels while minimizing energy consumption. Industries such as hospitality, manufacturing, and healthcare are investing in advanced AHU systems to ensure optimal indoor air quality and thermal comfort for occupants. As a result, the AHU market is poised for continued expansion, driven by the growing emphasis on energy efficiency and environmental sustainability. With a focus on energy efficiency, the industry is offering innovative products equipped with features like blower sections and heating coils, catering to the specific needs of hotels, lounges, and other establishments.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Air Handling Unit Market Scope |
|
Market Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.3% |
Market growth 2023-2027 |
USD 3.82 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.1 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Air Filter Co. Inc., Arbonia AG, Ariston Holding NV, Breezeair Technology, Carrier Global Corp., Cooke Industries, Daikin Industries Ltd., Desiccant Technologies Group, Environmental Air Systems LLC, Euroclima AG, Fischbach Luft-und Ventilatorentechnik GmbH, FlaktGroup Holding GmbH, Heinen & Hopman Engineering BV, Johnson Controls International Plc., Lennox International Inc., MANDIKÂ AS, MIDEA Group, Systemair AB, Trane Technologies plc, and VTS Polska Sp. z o. o. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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