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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
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.
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.
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
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.
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
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.
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.
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
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.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 6.2% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Business Type |
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By Capacity |
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By Application |
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By Region |
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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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